Human Capital Management Challenges in India

Appendix

It has always been a mystery as to why there is a gap between the book value and the market value of firms. Intangibles such as belief in the firm’s performance, leadership or goodwill in accounting terms, tend to enhance the market value of the share. If that is the case, how could something as intangible as that be measured?

At present, organisations proudly announce, ‘Employees are our assets’. If we consider the above critically the key question then becomes, how would organisations accomplish this if they had the opportunity to do it? To quantify the intangibles it is necessary to understand what organisations mean when they say, ‘We value our employees’. Understanding the drivers could help us break the value code. These are ...