International Journal of Financial Management

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Role of Human Capital Management in Economic Value Addition of Large Scale Organizations: A Literature Review


Affiliations
1 Faculty, Department of Management, Birla Institute of technology, Mesra, Ranchi
2 Asistant Professor, Department of Management, Birla Institute of technology, Mesra, Ranchi
     

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The concept of human resource is transformed to human capital as an outcome of globalization and corporate sustainability. There have been various studies which relate human assets as an important fi nancial input cost and separate accounting methodology has also been developed. The research topic relates to the Role of Human Capital Management in Economic Value Addition of large scale organizations. Economic Value Addition (EVA) has become an important fi nancial indicator of corporate performance. The corporate organizations have shifted their focus more on market capitalization and economic value addition rather generating operating profi t. The researcher feels that human assets could be an important input while generating profi ts vis-a-vis maximizing organizational wealth. The paper presents a comprehensive literature review of Economic Value Addition which is a very powerful indicator for fi nancial manager who wishes to adopt and implement the concept of EVA. Moreover, an important variable human capital focuses on such diverse issue for value adding performance metric. The aim of literature review is to summarize, analyse, integrate and evaluate the current literature on the role of human capital management in economic value addition of large scale organizations. Large scale organizations can erect entry barriers through EVA vide Human Capital.

Keywords

Economic Value Addition, Human Asset, Human Capital, Human Capital Management, Human Resource Accounting, Shareholder Value
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  • Role of Human Capital Management in Economic Value Addition of Large Scale Organizations: A Literature Review

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Authors

Sujata Priyambada Dash
Faculty, Department of Management, Birla Institute of technology, Mesra, Ranchi
Vijay Agrawal
Asistant Professor, Department of Management, Birla Institute of technology, Mesra, Ranchi

Abstract


The concept of human resource is transformed to human capital as an outcome of globalization and corporate sustainability. There have been various studies which relate human assets as an important fi nancial input cost and separate accounting methodology has also been developed. The research topic relates to the Role of Human Capital Management in Economic Value Addition of large scale organizations. Economic Value Addition (EVA) has become an important fi nancial indicator of corporate performance. The corporate organizations have shifted their focus more on market capitalization and economic value addition rather generating operating profi t. The researcher feels that human assets could be an important input while generating profi ts vis-a-vis maximizing organizational wealth. The paper presents a comprehensive literature review of Economic Value Addition which is a very powerful indicator for fi nancial manager who wishes to adopt and implement the concept of EVA. Moreover, an important variable human capital focuses on such diverse issue for value adding performance metric. The aim of literature review is to summarize, analyse, integrate and evaluate the current literature on the role of human capital management in economic value addition of large scale organizations. Large scale organizations can erect entry barriers through EVA vide Human Capital.

Keywords


Economic Value Addition, Human Asset, Human Capital, Human Capital Management, Human Resource Accounting, Shareholder Value

References