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Hermansons Unpurchased Goodwill and Adjusted Discounted
Future
Wage Model:
According to unpurchased goodwill model, the value of human
resources of an organization may be
calculated by capitalizing earnings in excess of normal earnings
for the industry or the group of
ompanies of which the firm is a part.
The adjusted discounted future wage model used compensation as a
surrogate measure of a persons
value to the firm. Compensation means the present value of
future stream of wages and salaries to
employees of the firm. The discounted future wages stream is
adjusted by an efficiency ratio which is
the weighted average of the ratio of return on investment of the
given firm to all the firms in the
economy for a specified period, Usually five years.Jaggi And Lau
Model:
This model suggests valuation of human assets on a group basis
rather than on individual basis.
Group, in this model, means a homogeneous group of employees who
may not be necessarily working
in the same department. It might be difficult to predict an
individuals future period, stay and chances of
promotion, but on a group basis, it is easier to ascertain the
future period of service, chances of
promotion and those who are likely to leave the firm during each
of the forthcoming period. It has been
assumed in this model that the pattern of movement is likely to
remain constant overtime and the
probabilities determined for one period can be extended to
future periods.Morse Net Benefit Model(1973):MU 0001
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According to this model, the value of human capital is
determined on the basis of the present value of
net benefits derived by the organization from the expected
future services of its employees. It involves
the following steps.
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Determination of the gross value of future services to be
rendered by employees in their individual
capacities as well as perating in groups. Determination of the
cost, ie. The total future payment to be
made to the employees. Calculation of net benefit to the
organization on account of human resources
by subtracting (i) from, (ii). Calculation of the present value
of the net benefits by discounting at
predetermined rate of discount.3. Write a note on Individual and
Organizational knowledge conversionprocess.Individual knowledge
conversion process:
Individual knowledge conversion takes place between tactic
knowledge and explicit knowledge.
According to Nonaka and Takeuchi, knowledge conversion is based
on four modes:Socialization: Knowledge is converted from tactic to
tactic through sharingand exchanging experiences and technical
skils.
Externalization: Tactic knowledge is converted into explicit
concept likeanalogies, models generalization etc.
Combination: Knowledge is converted from explicit to explicit
byreconfiguration of existing information by infusing
modifications, additions,MU 0001
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deletions, sorting combinations and categorization. This effort
results on thecreation of new or improved knowledge.
Internalization: Knowledge is converted from explicit to tactic.
This is
related to learning by reading, listening and doing. This stage
helps the individual to conceptualize theknowledge from his own
perspective through the interaction of his own cognition. Thus, the
individual
internalizes the explicit knowledge and converts it into tactic
knowledge.Organizational knowledge creation process:Organizational
knowledge creation involves five phases. These five phases
include:Sharing tactic knowledge:Interaction among individual
employees in the
form of meetings, discussions and conflict over ideas, provides
for exchange and sharing of tactic
knowledge. Thus, tactic knowledge held by most of the employees
becomes the organizational
knowledge.Creating concepts: The cognitive process of each
employee crystallizes the
shared tactic knowledge into models, concepts and
words.Justifying concepts:The new concepts generated by individual
need to be
tested in practice and justified for further validity and
practical implementation. This stage justifies
whether the new concepts/ideas are worthwhile for the
organization and the society.
