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Motivation: Creating competitive advantage is based on the company’s ability to create value for the customer. The key factor that allows to create product or service which are compatible with the needs of customers is the employee. Held by people human capital is of particular value to the organization because of the complexity and diversity, which de-termines the scope of its use. Based on a model developed by J. Ingham and achievements in the field of human capital theory in the article author attempt to develop a scheme which is allowing the improvement of human potential. Aim: The aim of the article is to present the approach of value creation through the use of human capital. It is based on a combination of elements of the value chain and the rec-ognition process. The presented approach gives the ability to create a human capital management strategy, which allows to determine actions that creates the level and value of processes in organization. Results: Application of developed scheme, based on a combination of value stream with processes for human capital allows to determine the differentiation of human potential and its involvement in various organizational processes. In the longer term use of the pre-sented approach will allow for the actual building and the development of values based on the use of organizational processes and human factor.
Volume 17, Issue 4, December 2018
p-ISSN 1898-2255, e-ISSN 2392-1625
© 2018 Nicolaus Copernicus Universi. All rights reserved. cbyd
Creang value of organizaon through
human capital management
Koszalin Universi of Technology, Facul of Economic Sciences, Department of Management,
ul.Kwiatkowskiego 6e, 75-343 Koszalin, Poland
Movaon: Creang compeve advantage is based on the company’s abili to create
value for the customer. e key factor that allows to create product or service which are
compable with the needs of customers is the employee. Held by people human capital is
of parcular value to the organizaon because of the complexi and diversi, which de-
termines the scope of its use. Based on a model developed by J. Ingham and achievements
in the eld of human capital theory in the arcle author aempt to develop a scheme
which is allowing the improvement of human potenal.
Aim: e aim of the arcle is to present the approach of value creaon through the use
of human capital. It is based on a combinaon of elements of the value chain and the rec-
ognion process. e presented approach gives the abili to create a human capital
management sategy, which allows to determine acons that creates the level and value
of processes in organizaon.
Results: Applicaon of developed scheme, based on a combinaon of value seam with
processes for human capital allows to determine the dierenaon of human potenal
and its involvement in various organizaonal processes. In the longer term use of the pre-
sented approach will allow for the actual building and the development of values based
on the use of organizaonal processes and human factor.
Keywords: human capil; human capil management; value; processes; service
JEL: J24; M5; L8
received 02.01.2018; revised 28.05.2018; accepted 31.12.2018
Citaon: Toszewska-Czerniej, W. (2018). Creang value of organizaon through human capital
management. Ekonomia i Prawo. Ecomomics and Law, 17(4): 443–457.
1. Inoducon
e company’s abili to obtain and maintain a compeve depends om
the organizaonal resources. e level of compeon between organizaons
forces them to verify the individual funcons and business processes to achieve
compeve advantage (Ahuja & Kumar, 2009, p. 241). Eecve ansforma-
on of input to the output that brings high value for a client is the main objecve
of the organizaon and determines the possibili of market success. Vericaon
of the ansformaon process of input elements allows to show their importance
for the creaon of value through results. Dierence between human resources
determine the conibuon in the process of creang the value and enable com-
parisons between individuals performing homogeneous processes in the organ-
izaon. Service providing process is a specic one in which human capabilies
and competences play a major role.
A key organizaon component is human capital (Król, 2015, pp. 96–98)
which requires the measurement to know its ue status. erefore, choosing
of appropriate methods and management techniques is required. e main aim
of the arcle is to describe the approach of value creaon through the use of hu-
man capital. e approach includes elements of the value chain and process
of building service value. It helps to create a human capital management sat-
egy, which allows to determine the appropriate acon which creates the level
and value of the processes.
2. Literature review
Human capital management is an important element of the organizaon’s man-
agement process. People are considered as a sategic element that help to gain
a compeve advantage. According to the Accounng for People Task Force
‘HCM is an approach to people management that eat it as a sategic issue
and seeks a systemacally measure how people polics and pracces create
value’2, (Young, 2005, p. 24). e HRM literature explains the relaonship
of HRM pracces and company performance through the resource-based view
(Borowski, 2013; Ingham, 2007; Król, 2015). is view argues that compeve
advantage is obtained when resources are valuable, rare, and inimitable. Having
regard to the approach presented in the arcle the key organizaons resource is
human capital, it can be dened as the skills, knowledge, experience and health
that make people economically producve (Becker, 2009; Ingham, 2007; Król,
2015). e abili to create value for the organizaon depends on the dieren-
aon of the human capital components and the abili to use them. model cre-
ated by J. Ingham (2007) is based on building value through the use of human
capital. Literature indicates that the key to the proper use of human capital is
measurement (Becker, 2009; Ingham, 2007; Król, 2015; Massingham & Tam,
2015), the presented arcle uses an approach based on measuring process ow
rates, in accordance with the model of creang values of M. Porter (2006).
3. Research approach
In an arcle based on literature study’s, author aempt to connect process
model of the organizaon with elements of the human capital management pro-
cess. Based on the created scheme case study was carried out, which serves as
a beginning for further research process and improvement of the presented ap-
proach, in order to make beer use of human capital in the organizaon. A case
study method was employed. Presented in the arcle study on service process
value was carried out in micro-enterprise providing services in the eld of auto
mechanics. e enterprise is located in the West Pomeranian province. e
scope of the study takes into account the me period of six months and was ana-
lyzing the process of providing services by 6 employees. e research tool was
a quesonnaire of the scope of work, completed aer each process, in which
the employee was involved in during the working day. e vericaon process
of creang services value by the employees proceeded according to the scheme
3.1. e process of creang value
Creang value allows to connect the mission, goals and operaonal sategies,
which requires the full cooperaon and accountabili at all management lev-
els (Szczepankowski, 2007, pp. 19–20). Based on the presented denion is
assumed, that the creaon of value in the enterprise is a process that is imple-
mented by the cooperaon of three interdependent components:
skilful connecons of mission, sategic objecves and companies’ taccs;
involvement of all levels of management company;
eecve combinaon of quantave and qualitave characteriscs which
determine the value (Nogalski & Bors, 2000, pp. 16–21). In the process
approach, the company is regarded as a process or series of related acons
constung the specied value om the customer point of view. Value
chain analysis is key to understanding the sategic capabilies of an en-
terprise, giving a detailed look at how enterprise resources are being used,
their conol, and the pe and quali of their interrelaonships. Typically,
this analysis is the cause of good or bad business condion (Weiss, 2012, pp.
Current research emphasizes the usefulness of organizaonal outcomes
to others when dening value (van Fenema et al., 2014, p. 180). eorecal
analysis of the concept of value, presented in the literature, focuses on exam-
ining the inuence and sength of the sucture of the sources of value crea-
on and the evoluon of the relaonship between them. At the sategic level
of organizaon, the value method has a role in the design of programs intended
to deliver sategic benets (Jay & Bowen, 2015, p. 132). Analyze of the value
process enabled to form a sequenal approach to value creaon. Value stages
are created based on the division of the processes, they have the abili to in-
form the organizaon and the client on the state desired, and the level of ob-
taining this status. e formula value management is therefore a concept that
unites the customer value theory with value for the owner’s approach. M. Por-
ter (2006, p. 22), says that this concept allows a systemac look at the source
of the value generated for the buyer. e selected stages of value generaon
take into account the three phases in which the value of the input and output
ows are generated by the acons to which they are subjected. e elements
of the process are shown in scheme 2.
In the various phases it is important to isolate a sub-acon and acon that
create value for the customer. It is important to dene the key areas of ac-
vi of the company sources of compeve advantage. Exacng measures
of value or combining them is done in terms of their impact on compeveness
(Borowski, 2013, p. 16).
3.2. Creang processes value by human capital
ere is recent interest in other capitals and how these can be used to create
organizaonal value (Massingham & Tam, 2015, p. 399). According to the the-
ory, there are three ways of recognion, intangible and tangible assets that al-
low to provide value in sategy. Each aects the funconing of the company
and generate nancial results in dierent extent. e rst stage is the level
of value creaon that represents a matching individual skills to organizaonal
capabilies. is is the basis to achieve the organizaon’s return in investment,
which will exceed the cost of capital invested. A key element om the point
of view of the theory of human capital is the abili to assembly workers with
high level potenal of uniqueness in generated processes.
e second area is primarily focused on internal processes, carried out by
employees. Depending om the level of the conibuon acon taken in the sec-
ond area are the basics for obtaining the desired eects. e nal step in process
of value making is formed value, characterized by having a corresponding in-
crease in potenal relave to the input. Important role plays the measurement
process, which is the primary method for verifying eecveness of the HR pro-
cesses. Scheme 3 takes into account the dierent phases of the value creaon
process which determinate the process of generang the value.
Recognion of acvies relang to the implementaon of the HR funcon
on the basis of the process approach is based on a concept created by J. Ing-
ham (2007). It allows to share value creaon in three basic stages, on acons
in the eld of human capital management.
e rst stage is value for money, dened as the value of the conibuon.
is area refers to the basic elements of value, primarily material, which can
create increased eciency. It also considerate the legal requirements and other
basic standards. It is a useful area that not always allow to achieve business ob-
jecves and ensure customer sasfacon. It has however a direct impact on -
nancial results.
e second phase of the added value represents the necessary skills
to meet business needs. ese acvies may aect a signicant improvement
in the eciency of the processes, but above all, is increasing the eciency lead-
ing to growth, change and development of organizaonal processes.
e last stage produced value represents the result of undertaken acvies.
e principle of this area is that connuous improvement generated value is
insucient. Skills and abilies to create value are required to be able to surprise
competors and change the nature of the areas of compeon.
Just as in the assumpons of the resource theory created intangibles assets
must be valuable, rare, durable over me and not easy to follow. e gener-
ated value consistent with the assumpons may be dicult to develop and even
more dicult to maintain. e pace of change in the economy with an increase
in compeve acvi may mean that resources and skills can move to a lower
level values. is usually means that what the present moment is generated value
can, in a short period of me, constute an inial value, which is the foundaon
subjected to acons aimed at producing value growth.
e approach focused on the applicaon of methods and techniques which
are tailored to the accumulated capaci has led to the development of intangible
assets, but if they are not in line with the business sategy of the company will
not be able to generate added value. Step output includes both tangible and in-
tangible outputs of processes. Tangible outputs refer to the number of employ-
ees, their observable behaviour, explicit knowledge and skills. e outputs
of intangible assets related to the formaon of human capital, organizaonal
and relaonship include human capabilies, commitment (Hamel & Prahalad,
1994, p. 163).
Every element in the chain requires the development of an individual set
of measures, adequate to the ongoing pracces. Consistent measures of value
should be developed for each area of consideraon, taking into account the dif-
ferent approach to specic areas of the sategy. us, it is assumed that the ac-
vi value through the implementaon of more than one process. In addion,
dierent levels of human capital management enable the development of acv-
ies in support of the various elements of the human resources sategy (Ing-
ham, 2007, p. 183).
Process approach shows how the human factor conibutes to the creaon
of value and is a basic assumpon of the presented concepts. Employees with
possessed potenal play a special role in the process of creang services value.
To a large extent, the employees determine the eects of the process of service.
Individualized nature of services due to primarily om the relaonship between
the conactor and the result. Using the presented scheme based on the input
and output seams may be characterized the service providing process.
3.3. Service delivery process
Eects of the business operaons of the producon system can be interpreted as
resource eciency input system— human labour, capital, materials in the pro-
ducon of goods and services that represent its output (Piętowska-Laska, 2008,
p. 83). As the service is determined every acon contains an element of imma-
teriali, which consists in inuencing the customer or items or properes that
are in his possession, and that does not ansfer ownership rights (Payne, 1997,
p. 9).
Services have been characterized dierently to goods and are said to be de-
ned by their intangibili, inseparabili and simultaneous producon, disi-
buon, and consumpon (Resnick et al., 2014, p. 840). Regardless of the pe
of services there is a similar increase in the impact on consumers of dierent
social, economic and technological. Among the forces bearing the growth
in consumpon of services are included: increasing the level of income per cap-
ita, the need for a wider range of social benets, the size and role of the pub-
lic sector, the complexi of working environments, increased specializaon,
relaxaon of ade barriers. ese ends conibute globally to the increasing
importance of service processes (Bryson et al., 2004, p. 243).
In the process of value creaon companies use the specic conibuon
that through the process of ansformaon creates a service that allows to meet
the needs of customers. In addion, service sta ought to oer not only pro-
fessional and competent but also personal and iendly service with a proac-
ve approach to customer needs (Ilicic & Webster, 2015, p. 174). Consucon
of values requires mulple integrated steps in many areas of business (Jeziorski
& Borkowski, 2008, p. 38). e eecveness of this process depends on the re-
sources available and the capacies that have units operang in organizaon
sucture. Scheme 4 shows the elements building the process of service.
Resources are idened with the conibuon necessary to provide services.
e diagram takes into account the area of inasucture, informaon, agents
and employees as key elements of the input process. While abili is understood
as corporate know-how in the eld of coordinaon, conol and deployment
of resources of value in certain parts of the organizaon. e task of the spe-
cic abili is to provide enterprise possibilies for opmal use of resources
in the process of creang value for customers.
According to the approach presented in the arcle key importance in provi-
sion of services is aibuted to employees. e only elements belonging to both
the abili and resources. is underlines the primacy of employees in the pro-
cess. e abili of employees is idened with potenal, which accumulated
in the employees, allows for the implementaon of the process of providing ser-
vices in a way that ensures the achievement of customer sasfacon. People are
a very important factor dierenang services. By creang addional benets
become a source of compeve advantage (Michalski, 2007, p. 535).
4. Methods
e analysis made in the study was based on the vericaon of a service process
implemented by 6 employees of the company. Parcipants in the study tak-
ing into account the age and work experience have been apprehended on ve
charts. Each of the employees for a period of six months, that dened the case
study period, has generated an output value with the involvement of appropriate
value conibuon.
Chart 1 shows that the sta of the company is young, since the average age is
31.4 years, and the average seniori in the company is 5.6 years. is situaon
has both posive and negave aspects aecng the organizaon’s acvies.
Employees are characterized by a esh approach, low probabili of profes-
sional burnout, lack of generaonal dierences. However, there are limitaons
related to the low level of experience, which is exemely important in the pro-
cess of providing services and which aects the number of mistakes made by
employees during their work.
e duraon of the study lasts a period of 6 months. e arcle included
the results of studies taken om March to August 2016. Tested processes con-
sider the posion of employees recurring tasks, including repair and replace-
ment of parts of motor vehicles and motorcycles.
5. Analysis of value creaon process
High value of the human factor is one of the condions for the development
of enterprises, as conducive to lowering the costs of their acvies, thereby
increasing their compeveness. Value calculaons in presented study were
based on the conibuon of the companies on the value of expenditures used
in the service process and the value of employee engagement dened by the com-
pany as 25% of the hourly work of the employee. e output value is built by
the value of services produced, as reected in the amount of what the customer
pays. e approach to the calculaon was condioned by an arrangement with
the company, which established minimum interference in the process of work
and limited access to nancial data.
An analysis of creang value requires the presentaon of input amount that
the parcular process involved. According to the presented in scheme 4, it is
necessary to present the value of assets and capabilies, which are the basis for
building the value of service processes. Chart 2 shows the dierences in the value
of work in PLN and the resources used by employees in the considered period,
which are considered as an input in the service providing process.
e gure shows the disparies exisng between the values of the inputs by
individual employees. In all cases there is a visible increase in the value input
in the second quarter survey. is is mainly due to the increase in the amount
of processes, partly as a result of the dismissal of two workers. Aer each ser-
vice employee on specially designed for tesng sheet marked the working me
and the pe of used labour resources involved in the service process. In the fol-
lowing part of the study on the basis of demonsated value the size of ansfor-
maon and output value of individual employees will be presented.
e ansformaon is generally dened as a kind of process changing the sub-
ject, consisng of its converng by mechanisms of natural or put into acon by
the people (Wróblewski, 2009, p. 9). Organizaonal processes in order to ena-
ble the generaon of value for the customer include all the costs of the resources
involved directly and indirectly in the process. In the study included only
the cost of the work of the employee, as factors determining the value of en-
gaging human capital. is is a great simplicaon and requires further work
on the applicaon of the concept of enlargement and the fullment of other var-
iables. Chart 3 shows how during the individual months has changed the value
of the ansformaon processes created directly by employees.
e value of work in the considered case takes into account that part
of the salary, which is built on the basis of the unit cost of work me for each
employee determined in the examined company. Recognion of remunera-
on om the point of view of the employer recognizes them as the purchase
price of a factor represenng the manufacturing component of total producon
costs. Considered om the point of view of the employee is the income aris-
ing om the involvement of their own capital on the basis of the employment
relaonship. An ecient system of remuneraon should have been designed
so as to provide an opportuni to develop both the level of compeveness
of the company and the competence of the worker (Borkowska, 2004, p. 11).
e result of the involvement of human capital is the eect in the form of ser-
vices delivered to the customer. From the point of view of the present concept
value of outputs reects the dierence between the value of me and the level
of remuneraon obtained by the employee. Such a disncon allows to eval-
uate the actual value of the output seam generated through the involvement
of employee human capital. Chart 4 shows the output values of employees
of the company.
Considering that human capital management process allows for more ac-
curate separaon of the actual values built up through commitment of human
capital in various organizaonal processes. In the present case, which in-
cluded a comparison of the same processes carried out by employees working
in the same condions for the same period of me vericaon seams does
not constute such a complex task. e following gure shows the dispari
between the values input, ansformaon and output produced by individual
Chart 5 shows that in described example the value of outputs in every case
is higher than the input element. is only proves the validi of the basic as-
sumpons of the process model. Human capital management should mainly
help to build value by the human factor. Demonsated by tesng dispari
proves the validi of the basic assumpons of process approach. However,
given that the knowledge of the ue value of what is created by people in the or-
ganizaon requires meculous vericaon of the conibuon of each employee
in the seam and separate the conibuons provided by the organizaon is
necessary to deepen the scope of the study.
e next stage of the presented approach should be vericaon of the rea-
sons for the disparies, which primarily requires a detailed measurement of hu-
man capital. An important challenge for human capital research is to idenfy
a set of measures which are widely accepted and adopted. e eld’s focus
on measurement appears to suggest that it must be accurate before progressing
to managing (Massingham & Tam, 2015, p. 393). is measurement should
cover the elements involved in the producon of services such as capabilies,
competences, sasfacon and involvement. Employee sasfacon and com-
mitment refer to the individual’s emoonal relaonship with the organizaon
and help understand whether they will use their knowledge to create value for
the rm (Massingham & Tam, 2015, p. 395).
6. Conclusion
Included in the arcle approach assume that generate value by human capital
is the basic factor of the success of the organizaon. e value of their coni-
buon to the value of creaon process is determined by the level of investment.
e technical capabilies and intellectual potenal of the employee help to see
that the process is not just an execuve standard. Processes are to be the point
of reference for execuves, in order to indicate the direcon of acvies that
will be opmal for fullling customer expectaons (Kisiel, 2015, p. 89).
e purpose of the use and development of human capital is to maximize its
value during the implementaon of management processes. Shaping the ser-
vice process is determined by the sength of mind and the abili of its use by
employees. Inclusion in the human capital management process of the value
chain has allowed it to idenfy disproporons in the conibuon of individual
workers in seams of value. is is an easy way to understand how important
is the human potenal involved in specic organizaonal processes. is is rst
and foremost an impulse to invesgate the reasons for creang services of var-
ying levels of value.
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Author conibuons: author has given an approval to the nal version of the arcle.
Funding: this research was undertaken as part of e paradigm of organizaon management,
sge III project and was fully funded by a grant 504.04.08.
Note: the results of this study were presented at 9th Inrnaonal Conference on Applied
Economics Conmporary Issues in Economy (June 22–23, Toruń, Poland).
Chart 1.
Survey respondents
10 86
34 33 35
employee 1 employee 2 employee 3 employee 4 employee 5 employee 6
seniori age
Source: Own preparaon.
Chart 2.
Levels of input seams
employeer 1 employeer 2 employeer 3 employeer 4 employeer 5 employeer 6
march april may june july august
Source: Own preparaon.
Chart 3.
Levels of ansformaon
employeer 1 employeer 2 employeer 3 employeer 4 employeer 5 employeer 6
march april may june july august
Source: Own preparaon.
Chart 4.
Levels of output seams
employeer 1 empl oyeer 2 employeer 3 employeer 4 employeer 5 employeer 6
march april may june july august
Source: Own preparaon.
Chart 5.
e levels of value created by employees
employeer 1
employeer 2
employeer 3
employeer 4
employeer 5
employeer 6
input an sposion o utput
Source: Own preparaon.
Scheme 1.
e process of obtaining data
assigning an employee
to the service
asset management
by resource manager
(release for use)
the process of ansforming
the collected elements
and the employee's own
conibuon into the result
end of process, the result
compleon by the employee
of the process sheet
and signing it
(completed quesonnaire)
Source: Own preparaon.
Scheme 2.
Elements of the process approach
creang value maintenance
and development of value generated value
use of resources acquired
om the environment
processes implemented
that allows to build
customer value
process results
that are characterized
by value for the customer
Source: Own preparaon based on Porter (2006).
Scheme 3.
Elements of value creang process
creang value maintenance
and development of value generated value
conibuon, condioned
by human potenal
processes implemented
under the build customer
value and personnel sategy
the eects condioning
the eecveness of the
pracces that build value
Source: Own preparaon based on Ingham (2007).
Scheme 4.
Sucture of the service process
and capabilies
which are input
input ansformaon
processes output
service valuable
for the
Source: Own preparaon.
... Human capital is a characteristic of human resources (HR) that is determined by the knowledge that is owned used to create value for the organization (Collin and Clark, in Widodo (2014)). Creating value is an effort to create value through building capabilities, strengthening the direction of business strategy, and prioritizing privileges to realize organizational competitiveness (Ingham 2007in Toszewska-Czerniej (2018). The results of the study of Pennings et al. (1998) explain that human capital management must pay attention to the sources of knowledge and the flow of knowledge. ...
... The relation between human capital and economics [7]; human capital and development [8]; human capital and economic performance [9], even the link between social capital and human capital [10]. Contribution of human capital to the success of an organization or company [11][12][13]; investment in human capital [14,15]; human capital and competitiveness [16][17][18]; the relationship of human capital with the sustainability of organizations or institutions [19]. Various studies on the role of human capital in manufacturing, non-manufacturing, and even services reinforce the urgency of this research, namely reviewing the value chain model of developing human capital through education in pesantren by understanding pesantren as an educational institution. ...
The professional accountant is the one who verifies accounts, advises, makes an economic and financial diagnosis on the activity carried out by the economic entity, and also supports the management team in the decision-making process. In this time of crisis, more than ever, the professional accountant no longer only responds to the well-known challenges of the current activity but must inform the management team about the new risks that may affect the activity of the entity. By providing solutions to the management team, he must stay focused on respecting the fundamental principles of professional ethics. This chapter focuses on integrated reporting of companies, which aims to present by the economic entity information on the conduct of its business, as well as the steps by which it achieves added value over time. But how many economic entities do this integrated reporting? How many entities provide information about its capitals: human, financial, intellectual, or social? Are certain risks associated with these capitals? These are some questions we want to answer through our study. In this regard, by studying the financial reports of companies listed on the Bucharest Stock Exchange, we have extracted information on the capital used by economic entities, the risks identified by these entities, and the solutions presented by the professional accountants respecting ethical principles. The study concludes with the formulation of conclusions on how information is reported by economic entities and whether there is a link between integrated reporting and the field of activity to which it belongs.
The purpose of the study is to improve the mechanism for the efficient functioning of industrial enterprises based on the management of the elements of human capital. The practical significance of the results of the research lies in the fact that the proposed algorithm can be used in the system of strategic management of industrial enterprises, as well as regional authorities, in order to develop new and adjust existing policies in the field of socio-economic development of regions. In order to study scientific approaches to understanding the essence of human capital, and the specifics of its management, the historical method is used in this study. To optimize the process of managing human capital within the socio-economic system, a systematic method of the analysis is applied. In the process of testing the proposed mechanism for optimizing the management process of human capital of industrial enterprises, we rely on the statistical research method and correlation-regression analysis.
Full-text available
Purpose – The purpose of this paper is to explore the relationship between service quality, the service encounter and the retail experience within a changing UK retail environment. Design/methodology/approach – Data were gathered from 40 customers and 20 staff of an established UK health and beauty retailer with a long-standing reputation for personal customer service. A qualitative analysis was applied using both a service quality and a customer value template. Findings – Customers focused more on the utilitarian features of the service experience and less on “extraordinary” aspects, but service staff still perceived that the customer encounter remained a key requisite for successful service delivery. Research limitations/implications – Recent environmental developments – involving customers, markets and retail platform structure – are challenging traditional service expectations. Practical implications – Retailers may need to reassess the role of the service encounter as part of their on-going value proposition. Originality/value – Limited research to date on the perception of shoppers to the service encounter in a changing retail environment and to the evolving notions of effort and convenience.
Full-text available
Purpose – The purpose of this paper is to investigate the contributions of successful total productive maintenance (TPM) initiatives to competitive manufacturing. It also seeks to critically examine the implications of strategic TPM implementation initiatives in an Indian manufacturing organisation. Design/methodology/approach – The study is carried out at a precision tube mill that has successfully implemented TPM and has reaped significant benefits as a result of TPM implementation, to study the TPM implementation issues and achievements realised as a result of strategic TPM implementation. The approach is directed towards the justification of TPM implementation for its support to competitive manufacturing in Indian industries. Findings – The study reveals the exploits of Indian entrepreneurs with TPM practices and highlights the contributions of TPM in realising the overall organisational goals and objectives. The study reveals that strategic TPM initiatives can significantly contribute towards the improvement of manufacturing performance in the organisation, leading to the realisation of core competencies for meeting global challenges. Research limitations/implications – The study is conducted to develop an understanding of contributions of TPM initiatives towards building manufacturing competencies in Indian manufacturing industry. The present study endeavours to investigate the effect of an aggressive TPM implementation plan for strategically meeting global challenges and competition. Practical implications – The study highlights the contributions of strategic TPM initiatives to organisational performance and highlights the need for the successful management of TPM programmes for establishing sustained maintenance improvement initiatives. Originality/value – The study highlights the contributions made by holistic TPM implementation at a precision tube mills in an Indian manufacturing enterprise.
Giving a student-friendly account of the diversity of theoretical perspectives, this outstanding book aids understanding the evolving economic geography of advanced capitalist economies. A series of detailed firm and employees' case studies from Europe, North America and the Asia Pacific, are used to inform useful theoretical case studies, which also investigate the significance of increased blurring of the lines between services and manufacturing functions in the production and consumption process.
Purpose – The purpose of this paper is to provide a holistic and comprehensive historical perspective of the evolution of value management, and to illustrate the impact that value analysis can have on innovation within organizations. Design/methodology/approach – A review of published material from credible sources describing the evolution of the value management methodology, and a desktop analysis of 35 documented value management case studies illustrating the role of value management in innovation. Findings – Published descriptions of the evolution of value management are incomplete and fragmented. A holistic and comprehensive historical perspective of value management as a value-adding methodology is provided. Mapped against a model for innovation, value management is shown to contribute substantially to innovation within organizations across a variety of contexts. Value management is currently evolving into a powerful approach to strategic planning. Practical implications – This paper illustrates the contribution of value management to innovation across a variety of industries and contexts. Originality/value – The paper provides a holistic and comprehensive historical perspective of the evolution of value management as a methodology, and demonstrates by mapping selected case studies onto a model of innovation impact, that the method is a powerful and versatile approach to obtaining innovative solutions to organizational problems.
Purpose – The purpose of this paper is to examine the relationship between human capital (HC) and value creation and employee reward. HC is an important component of intellectual capital (IC). There is growing interest in how IC can be used to create organizational value. This paper addresses the need for critical analysis of IC practices in action. Based on data gathered from three annual surveys at Australia’s second largest public sector organization, the paper introduces psychological contract (PC) as new HC factors, and develops a method to measure HC in terms of value creation (work activity) and employee reward (pay). The findings have practical implications for managers in using the paper’s HC measurement to achieve strategic alignment (SA) of the workforce. Design/methodology/approach – The research was based on data gathered from three annual surveys (2009-2011) of staff at Australia’s second largest public sector organization. A total of 248 questionnaires were completed. Three independent variables conceptualized HC: first, employee capability ( HC 1); second, employee satisfaction ( HC 2); and third, employee commitment ( HC 3). Two dependent variables were tested: work activity and pay. The data collected in this study was analyzed through the use of bivariate correlation and linear regression using SPSS software. Findings – The paper’s major finding is that HC1 (employee capability) and HC2 (employee satisfaction), had a direct positive relationship with the importance of work activity. The paper’s second finding was that only HC1 has a direct positive relationship with the pay. However, HC3 (employee commitment) had a direct negative relationship with the importance of work activity. Further, HC2 and HC3 had no relationship with pay. The research project organization (RPO) achieved SA with employees’ capability and motivation; as well as employee capability and pay. However, inequities emerge in terms of employee commitment and value creation (work activity) and in the PC factors and pay. Research limitations/implications – While the research findings are limited by them being based on a single RPO, this is offset to some degree by the longitudinal nature of the study and the size of the RPO. It also presents opportunities for further research, particularly in terms of further testing of the new conceptualization of HC in other organizations and industry settings, and investigation of the failed hypotheses: PC and pay; and employee commitment and work activity. Practical implications – While strong PC employees are being asked to do important work, they are not always being paid at the rate of colleagues doing similar work. This will create perceptions of distributive justice, which will make those with strong PC unhappy, thereby decreasing their PC, disrupting the SA of the value creation, and lead to employee turnover. Managers can address this problem by using the HC method outlined in this paper to introduce methods such as merit increases and variable pay. While this is problematic for public sector organizations often constrained by having to fit salary awards, innovative organizations are increasingly considering more flexible pay systems. Originality/value – The paper introduces a new conceptualization of HC, and two proxies for organizational performance: pay and work activity. The paper addresses calls for IC in practice research to make the field more relevant for practitioners. The HC model introduced will allow managers to act on IC measurement by linking HC value with adequate pay, increasing motivation, commitment, and productivity, leading to increased innovation and reduced employee turnover.
Purpose This study explores consumer brand associations and values derived from a corporate brand and a celebrity brand endorser prior to their endorsement. Design/methodology/approach This study uses both Hierarchical Value Mapping and Brand Concept Mapping to identify brand attributes that translate to personal meaning for consumers and then to identify whether these attributes are encompassed by a specific brand. Findings Results from Brand Concept Maps and Hierarchical Value Maps show consumers value accessibility and customer service in financial corporate brands. Consumers value expertise in celebrity brands and respect success in both corporate and celebrity brands. A central finding is the importance of brand authenticity. Corporate brand authenticity establishes a sense of security and assists in the development of brand relationships. Celebrity brand authenticity creates consumer attention and enhances celebrity trustworthiness aiding in the development of a consumer-celebrity brand relationship. Research limitations/implications The findings have implications for corporate brands utilizing celebrity endorsers. In terms of strategic positioning, corporate brands need to center their marketing communications on desired brand associations at the core of both the corporate and celebrity brand that translate to personal meaning for consumers. Originality/value This study uses a combined theoretical and methodological approach, drawing on Associative Network Theory and Means-End Chain Theory, and Brand Concept Mapping and Hierarchical Value Mapping methods respectively, to understand and uncover personal meaning or value derived from brand associations.
PurposeSharing services increasingly extends beyond intraorganizational concentration of service delivery. Organizations have started to promote cooperation across their boundaries to deal with strategic tensions in their value ecosystem, moving beyond traditional outsourcing. This chapter addresses two research questions geared to the challenge of interorganizational shared services (ISS): why would organizations want to get and remain involved in ISS? And: what are the implications of ISS for (inter)organizational value creation? Design/methodology/approachThe conceptual chapter reviews literature pertaining to ISS from public, commercial, and nongovernmental sectors. ISS is understood as a multistakeholder organizational innovation. In order to analyze ISS and conduct empirical research, we developed a taxonomy and research framework. FindingsThe chapter shows how ISS can be positioned in value chains, distinguishing vertical, horizontal, and hybrid ISS. It outlines ISS implications for developing business models, structures, and relationships. Success factors and barriers are presented that epitomize the dynamic interplay of organizational autonomy and interorganizational dependence. Research limitations/implicationsThe research framework offers conceptual ideas for theoretical and empirical work. Researchers involved in ISS studies may adopt strategic, strategic innovation, and organizational innovation perspectives. Practical implicationsISS phases are distinguished to focus innovation management — initiation, enactment, and evaluation. Furthermore, insights are provided into processes and interventions aimed at making ISS a success for participating organizations. Originality/valueCross-sectoral perspective on ISS; taxonomy of ISS; research framework built on organization and strategic management literature.
Wynagrodzenia -rozwiązywanie problemów w praktyce
  • S Borkowska
Borkowska, S. (2004). Wstęp. In S. Borkowska (Ed.), Wynagrodzenia -rozwiązywanie problemów w praktyce. Kraków: Oficyna Ekonomiczna.