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HOW TO CALCULATE AND ENHANCE HUMAN ECONOMIC VALUE ADDED IN TRADITIONAL COMPANIES

In today's competitive business landscape, companies are constantly searching for ways to maximize their efficiency and profitability. One often overlooked aspect of this quest is the value that human capital brings to an organization. Human Economic Value Added (HEVA) is a concept that sheds light on this crucial element, allowing companies to understand and enhance the true worth of their employees. Human Economic Value Added (HEVA) measures the economic contribution of human capital to a company. It goes beyond the traditional financial metrics and recognizes the impact that employees have on the organization's overall performance. HEVA takes into account factors such as skills, knowledge, experience, and productivity, providing a more comprehensive evaluation of the value employees bring to the table. Calculating and enhancing Human Economic Value Added is crucial for several reasons. Firstly, it allows companies to accurately evaluate the contribution of their employees, e

ENGINEER APPROACH, CORPORATE MEMORY AND CPB


A company that learns faster than its competitors can take a step ahead of the competition.

In my article "Mastery System", I shared my thoughts about what this system is and what risks it has for the company. In this article, I will try to express my opinion on what steps should be taken to prevent such a situation in the management system.
The reason for the existence of the mastery system is that the management system is not fully regulated. The lack of regulation of the management system means the absence or insufficiency of regulatory documents regulating the activities of the company. In unregulated systems, due to the fact that the problems that will arise related to the system op

eration are not determined in advance, uncertainties and stops can occur in the process flow. In addition, one of the most affected systems within the company's overall management system is the company's human resources system. So, as I mentioned in the previous article, the mastery system leads to an incompetent workforce.

What should be done?

Companies operating in such conditions and feeling the weight and complications of the system on themselves should without wasting time switch to the engineering system, which is an alternative to the mastery system, or in other words, to the quality management system.

How?
In accordance with the company's strategy, it should be started from the modeling of the company's business processes (we assume that the company's strategy exists).
After developing the business process model, it is necessary to regulate these processes. That is, the procedure regulating the process, rules, instructions, and forms regulating the flow of information should be prepared. It is necessary to pay attention to the compliance of the prepared documents with the requirements of the legislation related to the subject, scientific research, the experiences of other large companies, the standards and rules of use of the used machine and equipment.
According to these regulations, process flow charts and technological routes should be drawn.
It is necessary to ensure that each employee learns the regulations that apply to him. Therefore, a regulatory matrix for positions should be prepared, and knowledge of regulations should be included in the company's competency matrix as "required technical knowledge".
Formation of corporate memory and improvement of employees' competencies of the corporate learning system. I would like to write this article under a new title, since it is one of the main topics of today's article.


CORPORATE MEMORY

Corporate memory, in the broadest sense, is a collection of information formed by registering activities and transactions in the company. Corporate memory can be divided into 2 stages according to the level of development of management systems of companies:

Management Accounting

Management accounting includes the process of preparing the information needed by the manager for the planning and control of production and commercial activities. Management accounting links the management process with the accounting process.
Management accounting develops information bases for making various management decisions (operational, tactical and strategic) based on the accounting of operations. It fully provides business managers with the necessary information for making operational and tactical decisions. In order to make a strategic decision, it is necessary to use the data obtained as a result of special research along with the accounting data.
Management accounting is often thought of by people as accounting. However, according to the process management approach, the concept of management accounting is a broad concept. Process regulations and accounting, corporate reporting and document circulation accounting also form a very important basis for decisions to be made.
A strong memory of past activities is not enough to make decisions. Being able to quickly access in-memory data, link data, and receive any type of report is at least as important as memory. In humans, the brain is considered a large memory store. However, when there are problems in the nervous systems that collect and process information from the brain, people cannot remember the past despite the information being stored in the brain. Or they experience short-term memory loss and memory impairment. In this regard, I can say that this system should be supported by a good software so that companies can have effective management accounting and form strong corporate memory.

Corporate Learning

The implementation of the concept of corporate learning with effective learning methods for the development of human capital that adds value to the company and its work, at the same time directly affects the corporate culture and company performance, business results, and leads to sustainable development and competitive advantage for companies. A company that learns faster than its competitors can be one step ahead of the competition. The first of the main topics I want to touch on in this article within the corporate learning system is the base of business processes, regulations and the system of learning these regulations. Competence in regulations is extremely important for an engineering system. If we approach the issue with process logic, since the company consists of business processes, we can see that the improper functioning of these processes, failure to ensure the correct flow of information and activities according to the work flow diagrams, will lead to the incompleteness of the company's activities and failure to achieve the set goals. Of course, this problem also arises from the fact that the employees who perform those processes do not have the required competence for the processes and lack of knowledge about how the process works and how to solve the problems that will arise. A company-wide database of all regulations and a learning system designed to teach technical knowledge of these regulations will largely eliminate problems related to employee incompetence. But the study of this technical knowledge is not enough on its own, and its support in other sub-systems within the Human Resources System of the company is very important.
Another topic related to the corporate learning system is the data collection, storage and optimization system that we as the G5 group call the "Corporate Precedents Base" (hereafter CPB). The concept of CPB frees the company from the dependence of individual specialists, increases the speed of learning by sharing the successful experience of one with all employees, and stimulates the development of the company by increasing the power of innovation and creativity.
CPB is the registration in a database of successful solutions to problems that arise in any process and the solution of which is not predetermined. The information in this database also acts as corrective and preventive suggestions and leads to the development of regulations on the relevant process.
In order for CPB to work effectively, it is first necessary to develop the corporate culture of the company, create a learning culture, and prepare a motivational ground for people to share their experiences.

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