A QUANTITATIVE APPROACH TO HCM USING PAV: METHOD AND ROBUSTNESS

Abstract

This study focuses on Human Capital Management (HCM). It provides Added value (AV) indicator considering HCM, tools to utilize them and also verify robustness of the tools. The aim of this study is to provide a quantitative technique for managers to make decisions by objectively evaluating HCM as well as projecting profit increase, which is generated by HCM. AV has been often used as a value measurement. However, profit structure supported by tangible assets has been changed to be supported by intangible assets in recent years. It is necessary to redefine AV for considering influence of intangible assets. Therefore, this study provides Personnel adjusted AV (PAV); AV indicator considering HCM. It also creates tools to utilize them using statistical methods. Then, verify the robustness of the tools. In the process of verifying robustness, this study extracts particular indices. It is possible to obtain suggestions for social issue from particular indices.