In The Human Value of Enterprise, Andrew Mayo proposes a quantitative methodology that attempts to bring the rigors of financial accounting to human resources management. Mayo sets forth a series of formulas designed to reveal how much each individual is contributing to the overall value that any company creates for its stakeholders. Of course, these formulas are limited by the subjective process through which managers assign values to the activities and results of their employees. That said, the procedures that Mayo outlines can be used as the foundation for a fairly rigorous system of human resource cost accounting that getAbstract.com recommends to all professionals in the field.
About the Author
Andrew Mayo is a well-known international consultant, speaker, and author. He is a Program Director at London Business School and a Professor of Human Capital Management at Middlesex University Business School. He is the co-author of The Power of Learning, Managing Careers, and Creating a Training and Development Strategy.