Future Performance Trend Indicators: A Current Value Approach to Human Resources Accounting. Report V.

摘要

The development of Future Performance Trend Indicators is based on the Current Value Approach to Human Resource Accounting. This report presents the Value Attribution portion of the Current Value Approach whereby the dollar value of observed changes in the state of the human organization is estimated. A general procedure for Value Attribution is presented. The procedure includes: (1) prediction of changes in organizational effectiveness due to changes in the human organization; (2) establishing the dollar value of the predicted changes: and discounting and capitalizing the dollar values to arrive at the current value and investment value of the changes in human organization. This procedure is illustrated using (1) previously derived relationships between the state of the human organization and two measures of its effectiveness; (2) observed changes in the human organization; and (3) estimated dollar values of the effectiveness criteria. The results of the illustration indicate that even moderate changes in the human organization can be of significant value to the organization.