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Abstract

Content

Introduction

Socio-economic development in the new millennium is characterized by the increasing role of human factors.

Today is understood in a new role of human capital. It is the main factor in increasing the competitiveness of the company. In this regard, investments in human capital are an integral part of successful business development.

Like conventional capital, skills, knowledge, skills, rights tend to accumulate. However, their formation and development requires both from the individual and on society as a whole is a quite time-consuming, labor, material and financial resource, that is investment. These include all kinds of costs that can be evaluated in monetary form or another, have a suitable character, and contribute to the growth in future earnings of the person.

1. Theme urgency

To evaluate the effectiveness of investments in human capital is often used common methods of investment appraisal. This approach does not take into account features of human capital, which leads to incorrect results.

Human capital appears as a special resource, which is interested in investing in all of the objects of economic activity. Thus assess the relevance of investments in human capital is expressed in all 3 levels of economic activity:

2. Goal and tasks of the research

The aim of the study is to develop a simulation model for evaluating investments in human capital, which would take into account the interests of the object and the subject of investing.

Main tasks of the research:

  1. Identify the features of investment in human capital.
  2. Analysis methods for evaluating the effectiveness of investment in human capital.
  3. Development of models for assessing effective investment in human capital, eliminating or minimizing the drawbacks of existing methods of assessment.

Research object: investment in human capital.

Research subject: methods for evaluating the effectiveness of investment in human capital.

3. Analysis methods for evaluating the effectiveness of investment in human capital

One of the main methods for evaluating the effectiveness of investment in human capital is an expert approach. Under this method is estimated as the qualitative characteristics of a particular employee, and set the properties of the human (human) capacity. For greater objectivity of this method is used weights. The procedure of calculation involves three steps:

  1. Identification of key indicators, identifying the contribution of knowledge capital employee in the company.
  2. Establishment of weight fraction (coefficient value) for each indicator, based on how often each indicator is shown at the appraise.
  3. Definition of a scale to assess each indicator [2].

Further analysis of the results and determined the average score for each employee. These values are compared with the reference obtained by the empirical method (by adding up all scores on all quality indicators). Expert approach includes various modifications and evaluation is a necessary component of human capital.

Like most other existing methods for evaluating the effectiveness of investment in human capital, professional approach assesses the situation with only one hand: in the interest of investors only, but does not account for the preferences of the employee or employees received benefits estimates do not indicate the effectiveness of the investment company.

To correct this deficiency in the master's work will be developed a simulation model that takes into account the interests of both parties. At the initial stage of the model was developed, aimed at accounting ethics of employees as an indicator of the level of satisfaction with staff at higher salary levels, as one of the types of investments in human capital (Figure 1).

Model for the Assessment of staff morale

Figure 1 – Model for the Assessment of staff morale

The results of this model are shown in Figure 2.

Normal level of morality, which seeks to guide the company, i.e. where the employee demonstrates a high level of productivity and working conditions is satisfied. At this level, set the initial value of morality.

Results of simulations for Model for the Assessment of staff morale

Figure 2 – Results of simulations for Model for the Assessment of staff morale
(animation – 10 frames, 3 cycles of repeating, 374 Kilobytes)

In the beginning the company operates at a loss, because of this there is a decline in morality. But revenue growth rate is higher than the costs, so, starting with the 20th simulation step, revenues exceed expenses. Due to the influx of labor is further enhanced revenue growth and, consequently, higher wages, which stops the decline in morality.

This model reflects the impact of wages, as one of the possible types of investment in human capital. The disadvantage of this model is its focus only on the needs of staff. Further studies will be aimed at improving the model to account for the overall benefit to the company received from investing activities in the model by taking into account assessments of the effectiveness of investments. Also consider other types of investments in human capital of the enterprise.

Conclusion

Human capital is a special kind of resource, which features have an impact on investment activity in this area. Because of these features would be wrong to use conventional methods to evaluate investments.

To obtain more accurate simulation results it is necessary to estimate the effectiveness not only for investors but also for the staff, which is an investment. To carry out this task in the initial stage of the assessment model developed by company personnel morale. Further studies will be aimed at developing a simulation model that takes into account the interests of both staff and management firm, and showing the efficiency of investment in human capital of the enterprise.

In writing this abstract master's work is not yet complete. The finished version of the work may be obtained from the author or his head after December 2012.

References

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