Role of Human Capital Management in Economic Value Addition of Large Scale Organizations

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 financial 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 financial indicator of corporate performance. The Corporate organizations have shifted their focus more on market capitalization and economic value addition rather generating operating profit. The researcher feels that human assets could be an important input while generating profits vis-a-vis maximizing organizational wealth, now the termed could as EVA in the study. The paper presents a comprehensive literature review of Economic Value Addition which is a very powerful indicator for financial 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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