Monetary Measurement Methods

Abstract

This chapter deals with the measurement of the value of people as organizational resources in monetary terms. The primary goal is to provide a method for measuring the two major dimensions of a person’s value to an organization (expected conditional value and realizable value) that were presented in Chapter Six. Our initial focus will be on the problem of measuring an individual’s value to an organization. In principle, the value of a group or the total human organization can be determined by merely aggregating the values of the individuals comprising the larger unit. However, we shall also consider some specific problems of group valuations. Moreover, we shall summarize some of the other approaches to the measurement of human resource value that have been proposed in the literature of human resource accounting.