In today's competitive market, assessing the business reputation of industrial and production personnel is critical for understanding an organization’s true market value. Traditional financial metrics often overlook the human capital’s contribution to business growth. This study introduces a comprehensive methodology, known as the "standard-production methodology," for evaluating the performance and reputation of industrial personnel. Unlike standard approaches, this method quantifies the impact of professional skills and productivity on an organization's revenue. By focusing on factors like productivity variations, skill application, and economic outcomes, the methodology provides a more accurate reflection of how personnel influence the financial health of a company.
The approach involves calculating the effect of both positive and negative deviations from standard productivity on net revenue, offering a clear picture of the personnel's influence. It distinguishes between the added value from above-average performance and the detriment caused by below-standard productivity. This method also emphasizes the need for better integration of human capital assessments in financial reports, enabling managers and investors to make more informed decisions. By implementing this methodology, businesses can better align their human resources strategies with overall growth objectives.
Ultimately, this innovative approach serves as a valuable tool for businesses seeking to optimize management decisions and for investors looking to gauge the potential of their investments based on the workforce’s contribution to productivity and reputation .
DOI: https://dx.doi.org/10.61927/igmin120
Full Text: https://www.igminresearch.com/articles/html/igmin120
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