Innovative model for Assessing Human Assets

Abstract

There is an old adage that “you can’t improve it if you can’t measure itâ€. Until recently, the value of an organization is measured through the traditional balance sheet, e.g., Building, Plant, Materials, Money, etc. It was viewed as a sufficient reflection of the organization’s assets. However,  with the growing emergence of the knowledge economy, the traditional valuation has been put into question due to the non-inclusion of the Human capital in its purview as it is an important part of an organization’s  total value. The value of Human Resource in an organization should be measured / valued for the sustainable growth of the organization. Hence, the concept of measuring human resources has emerged in the recent past and a few experts have developed methods for the same. A detailed  study has been made and proposed a new formula for measuring the value of human resources. By using the proposed formula, the total value of Human Assets in an organization can be valued and may be used for  taking measures to increase the Human resource asset.