Univ.-Prof. Dr. Christian Scholz Workshop Dealing With Human Capital: Ten Lessons Learned and Five Questions Asked 23./24. juin 2016 IAE de Bordeaux
Univ.-Prof. Dr. Christian Scholz!
Workshop
Dealing With Human Capital: Ten Lessons Learned and Five Questions Asked
23./24. juin 2016 IAE de Bordeaux
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Lesson #1: !When moving beyond verbal and abstract representations of
Human Capital, the story becomes very complicated.
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Cost based paradigm
Income based paradigm
Performance potential paradigm
Three paradigms
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Lesson #2: !The performance potential paradigm is able to overcome the short comes of both the cost based and the income based
paradigm.
Value basis
Full-Time-Equiva-
lents
Marked salary
Value depreciation
Knowledge erosion
Value compensation
Recruit-ment
Personnel develop-
ment
Value change
Commit-ment Context Retention
Performance potential paradigm
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Lesson #3: !The performance potential paradigm can be transformed
into a practical mathematical formula.
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••• +=g
1iiiiiiii MPE)b,w(flFTEHC
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Lesson #4: !Aiming at a monetary value of Human Capital irritates and
creates enmities.
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Lesson #5: !Getting the monetary value of Human Capital out of the HR
data warehouses is currently impossible.
Real 'me
HC costs €
HC perfor-mance
€
SFo-Database
Real 'me
SAP HR Oracle HRM
Controlling
SFo-Data
Value base
Full-Time-Equiva-
lents
Market salary
Value decreciat
ion
Knowledge erosion
Value compensation
Recruit-ment
Develop-ment
Value change
Commit-ment Context Retention
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Lesson #6: !The only way towards a true Human Capital Management is
by using national or (even better) international standardization of Human Capital Reporting.
ISO TC 260 Human Resource Management
TC 260
WG 1 Terminology
WG 2 Metrics
WG 3 Human
Governance
WG 4 Workforce Planning
WG 5 Recruitment
WG 6 Knowledge
Management
WG 7 Human Capital
Reporting
Chairman‘s Advisory Group
Communication Task Group
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Lesson #7: !International standardization of reporting must respect and
understand national differences in Human Resource Management and its metrics.
For France: • Document de Référence • Rapport annuel • Nouvelles régulations économiques • Grenelle II
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Lesson #8: !The currently most likely set of variables to be used in
Human Capital Reporting allows for various methods to calculate the Human Capital value.
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Lesson #9: !Forcing students to calculate the Human Capital values and the outcomes of Human Management practices, increases
the understanding not only of Human Capital, but of the whole Human Capital Management process.
1. Valeo 51% 2. Michelin 47% 3. PNP Paribas 45% 3. LVMH 45%!_____________________________________ 36. Société Générale 22% 37. Safran 19%
1. E.ON 46% 2. Linde 42% 3. Bayer 40% 3. VW 40% _____________________________________ 29. Beiersdorf 9% 30. Siemens 9%
‘HCR10’ (annual report 2015) France Germany
Taken from: Schatton, Mercedes, Bachelorthesis June 2016
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Lesson #10: !Human Capital influences directly and/or the relationship to
corporate performance and this effect can be analysed.
Human Capital 2014
Delta !Human Capital
Human Capital 2010
Corporate Performance 2014
Delta!Corporate Performance
Corporate Performance 2010
Staff intensity Research intensity
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Open Questions:
(1) How are tendencies towards convergence and/or divergence, for instance, within Europe, reflected and/or driven by Human Capital philosophies?
(2) To which degree is Human Capital measurement critically influenced by culture and what could/should we do about it?
(3) How are differences across countries with respect to Human Capital reporting to be explained and what are the consequences of that explanation?
(4) What happens to Human Capital valuation when we move on towards the borderless organization and the proportion of cloud workers increase?
(5) How can we use Human Capital in order to assist Human Capital Management by moving from „more“ to „better“?
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