IDEAS home Printed from https://ideas.repec.org/a/spr/cejnor/v28y2020i2d10.1007_s10100-019-00629-w.html
   My bibliography  Save this article

The measurement of human capital as an alternative method of job evaluation for purposes of remuneration

Author

Listed:
  • Wojciech Koziol

    (Cracow University of Economics)

  • Anna Mikos

    (Malopolska School of Economics in Tarnow)

Abstract

Contemporary science and business practice in the field of remuneration management includes many concepts and models of the remuneration systems and job evaluation. Despite this rich achievement, many basic concepts and elements related to salaries are differently interpreted and defined, therefore practice of payroll systems is based on the compromise. Usually it is a compromise between the expectations of employees and the financial capacity of the employer or as a result of interaction between the market forces, supply and demand. Depending on the circumstances, there is a risk of distortions resulting in too low or too high salaries or an incorrect pay relationship in the organization. As a result, the welfare of the employees is reduced or the employer’s financial balance is at risk. The aim of the article is to present the method of human capital measurement as a conceptual base of job evaluation aimed at improving the remuneration system in the organization. This method allows an objective measurement in monetary units the necessary qualifications of the employees to perform work on most traditional jobs. As a result, it is possible to provide a pay standard for such a job. The supplement to the considerations is to provide an example application of the described model to several selected workplaces and a comparison with the existing solution in the company.

Suggested Citation

  • Wojciech Koziol & Anna Mikos, 2020. "The measurement of human capital as an alternative method of job evaluation for purposes of remuneration," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 28(2), pages 589-599, June.
    • Handle: RePEc:spr:cejnor:v:28:y:2020:i:2:d:10.1007_s10100-019-00629-w
    DOI: 10.1007/s10100-019-00629-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10100-019-00629-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10100-019-00629-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yingchao Zhang & Oliver Fabel & Christian Thomann, 2015. "Pay inequity effects on back-office employees’ job performances: the case of a large insurance firm," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 23(2), pages 421-439, June.
    2. Boris Urban & Gabriël Coenraad Daniël Stoltz Joubert, 2017. "Multidimensional and comparative study on intellectual capital and organisational performance," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 18(1), pages 84-99, January.
    3. Guillermo O. Pérez-Bustamante Ilander & Carla S. E. Marques & Marjan S. Jalali & Fernando A. F. Ferreira, 2016. "The impact of continuous training in small and medium enterprises: Lessons from an industrial case analysis," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(2), pages 234-250, April.
    4. Grosse, E. H. & Glock, C. H., 2013. "An experimental investigation of learning effects in order picking systems," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 58990, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    5. Barkai, Haim & Levhari, David, 1973. "The Impact of Experience on Kibbutz Farming," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 56-63, February.
    6. Anne-Françoise Bender & Frédérique Pigeyre, 2016. "Job evaluation and gender pay equity: a French example," Post-Print hal-01533470, HAL.
    7. Abdul Suleman & Fátima Suleman & Elizabeth Reis, 2016. "Fuzzy approach to discrete data reduction: an application in economics for assessing the skill premium," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(3), pages 414-429, June.
    8. Wiktor ADAMUS, 2009. "A New Method Of Job Evaluation," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 56, pages 515-536, November.
    9. Lucie Lidinska & Josef Jablonsky, 2018. "AHP model for performance evaluation of employees in a Czech management consulting company," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(1), pages 239-258, March.
    10. Arnoldo C. Hax & Nicolas S. Majluf, 1982. "Competitive Cost Dynamics: The Experience Curve," Interfaces, INFORMS, vol. 12(5), pages 50-61, October.
    11. Wojciech Koziol, 2018. "The Concept of Measurement and Reporting of Human Capital," Springer Proceedings in Business and Economics, in: David Procházka (ed.), The Impact of Globalization on International Finance and Accounting, pages 311-318, Springer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alžbeta Kucharčíková & Martin Mičiak & Emese Tokarčíková & Nikola Štaffenová, 2023. "The Investments in Human Capital within the Human Capital Management and the Impact on the Enterprise’s Performance," Sustainability, MDPI, vol. 15(6), pages 1-21, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hisham Alidrisi, 2021. "An Innovative Job Evaluation Approach Using the VIKOR Algorithm," JRFM, MDPI, vol. 14(6), pages 1-19, June.
    2. Petra Tomanová & Michal černý, 2022. "Efficiency of antiquarian bookshops in informationally complete markets," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 30(2), pages 573-593, June.
    3. Alpana Agarwal & Divina Raghav, 2023. "Analysing Determinants of Employee Performance Based on Reverse Mentoring and Employer Branding Using Analytic Hierarchical Process," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 48(3), pages 343-358, August.
    4. Daniel Reißmann & Daniela Thrän & Alberto Bezama, 2018. "Key Development Factors of Hydrothermal Processes in Germany by 2030: A Fuzzy Logic Analysis," Energies, MDPI, vol. 11(12), pages 1-20, December.
    5. Corsi, Thomas M. & Grimm, Curtis M., 1987. "Mobility Barriers in the Motor Carrier Industry," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 28(1).
    6. Jürgen Fleiß & Stefan Palan, 2015. "Collaborative decision systems in economics and in complex societal and environmental applications," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 23(2), pages 279-282, June.
    7. Clotilde Coron, 2018. "Quels effets des mesures d’égalité professionnelle, en fonction de leur difficulté d’appropriation ? Une étude de cas," Post-Print halshs-01963120, HAL.
    8. Ramirez, R. & Bhatti, Y. & Tapinos, E., 2020. "Exploring how experience and learning curves decrease the time invested in scenario planning interventions," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    9. Guillaume Roels, 2020. "High-Performance Practice Processes," Management Science, INFORMS, vol. 66(4), pages 1509-1526, April.
    10. Mónica García-Melón & Tomás Gómez-Navarro & Hannia Gonzalez-Urango & Carmen Corona-Sobrino, 2022. "Adapting RRI public engagement indicators to the Spanish scientific and innovation context: a participatory methodology based on AHP and content analysis," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 30(4), pages 1483-1512, December.
    11. Clotilde Coron, 2020. "The Business Case for Professional Gender Equality. Perceived Gender Equality and Recommendation of the Company by the Employees According to Gender [Le business case de l’égalité professionnelle. ," Post-Print halshs-02526249, HAL.
    12. Lee, Kangil & Han, Taek-Whan, 2016. "How vulnerable is the emissions market to transaction costs?: An ABMS Approach," Energy Policy, Elsevier, vol. 90(C), pages 273-286.
    13. Plaza, Malgorzata, 2016. "Balancing the costs of human resources on an ERP project," Omega, Elsevier, vol. 59(PB), pages 171-183.
    14. Alžbeta Kucharčíková & Martin Mičiak & Emese Tokarčíková & Nikola Štaffenová, 2023. "The Investments in Human Capital within the Human Capital Management and the Impact on the Enterprise’s Performance," Sustainability, MDPI, vol. 15(6), pages 1-21, March.
    15. Glock, Christoph H. & Grosse, Eric H. & Abedinnia, Hamid & Emde, Simon, 2019. "An integrated model to improve ergonomic and economic performance in order picking by rotating pallets," European Journal of Operational Research, Elsevier, vol. 273(2), pages 516-534.
    16. Baffoe-Bonnie, John, 2004. "Learning-by-doing and input demand of a rate-of-return regulated firm," Economic Modelling, Elsevier, vol. 21(6), pages 1015-1037, December.
    17. Martin Junginger & Wilfried van Sark & André Faaij (ed.), 2010. "Technological Learning in the Energy Sector," Books, Edward Elgar Publishing, number 13741.
    18. Spertino, Filippo & Di Leo, Paolo & Cocina, Valeria, 2013. "Economic analysis of investment in the rooftop photovoltaic systems: A long-term research in the two main markets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 531-540.
    19. Sadek, Biland, 2024. "Components and Strategic Routes of Corporate Transformations," MPRA Paper 120332, University Library of Munich, Germany, revised 26 Feb 2024.
    20. Nippa, Michael, 2011. "Zur Notwendigkeit des Corporate Portfolio Management: Eine Würdigung der wissenschaftlichen Forschung der letzten vier Jahrzehnte," Freiberg Working Papers 2011/02, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:cejnor:v:28:y:2020:i:2:d:10.1007_s10100-019-00629-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.