【正文】 . The highperforming panies identified it slightly more often than the others. 18 Market Capitalization of Talent Whereas at the start of the 1990s a pany39。old economy39。 value systems are sending panies scrambling to find new ways of attracting and motivating workers. A massive survey measuring the values and beliefs over the last three decades in 60 nations shows an unmistakable shift to a postmaterialist value system. People in the developed countries are less concerned with material gains and more interested in self expression, their personal wellbeing and improving the quality of their lives. ? A new book shows how Microsoft, Intel, Nokia, Starbucks, Singapore Airlines and 20 other worldclass anizations are luring and holding highquality employees. The panies studied stress the importance of trusting, unleashing and listening to their employees. Virtually all of them also invest heavily in new technology, training and employee benefits and recognize the importance of increasing their employees39。s heads. 20 HR Factors Affect Profit 15% of profit performance is driven by: ? Management participation ? Open management style ? Taking some risks, but not too many ? Top managers spending 20% of time with customers ? Around 20% of top management should be outsiders ? Management training is deemed important ? Top managers are effectively incentivized ? Succession planning is done ? A good appraisal system is in place ? Employees get feedback 21 HR Factors Affect Market Value 26% increase in market value in 2023 was driven by: ? Use of knowledge and contract workers ? Recruiting excellence ? Consistent panEuropean HR practices ? Good unionmanagement relations ? Lack of hierarchy, clear leadership ? Teamwork and 360176。ll e up with another $70 billion, if you really struggle. But that means that there is $350 billion more that people have given us credit for that is not there. What is it? Well, it39。intangibles39。 market capitalization was held in intangibles primarily, the talent, knowledge and teamwork of its staff. In hightech panies like Nokia, the percentage was as high as 95 per cent。The Value of HR This presentation provides summary results from key HR research done over the past fifteen years. Compiled by Darin Phillips 1 Shareholder Returns The five highest return to shareholders from 19721992 (Southwest Airlines Co. 21,775%, WalMart Stores, Inc. 19,897%, Tyson Foods, Inc. 18,118%, Circuit City Stores, Inc. 16,410%, and Plenum Publishing 15,689%) differentiated themselves from their petitors and the market only through the way they managed their people. – Pfeffer (1994). Competitive Advantage Through People, 1994. 2 Three HR Generations Functional HR departments (transaction, administration, and pliance cost centers who view employees as an overhead cost to be minimized) add value by preventing loss through policy enforcement Secondgeneration HR processes add value by removing barriers to performance (elements of strategic HR in a function that views employees as a leverageable asset) Thirdgeneration (strategic) HR systems (investment and ROI centers who align and improve strategicallyfocused employee performance) have integrated all best practices aligning them as a strategic system. High performance work systems include ?rigorous recruitment and selection procedures, performancecontingent incentive pensation systems, and management development and training activities linked to the needs of the business? (?which in turn, drive profits, growth, and ultimately market value?). – Becker, B., Huselid, M., Pickus, P. Spratt, M. (1997). HR as a Source of Shareholder Value: Research and Remendations. Human Resource Management, Spring 1997, Vol. 36, No. 1, pp. 3947. ( Becker, B., Huselid, M. Ulrich, D. (2023). Making HR a Strategic Asset. Working paper. State University of New York at Buffalo.) 3 What is 3rd Generation HR worth? Initial research on 740 panies? HR practices found that those with the most integrated high performance work systems (HPWS) had economically and statistically significantly higher levels of pany performance. One standard deviation of improvement on their bell curve of integrated HPWS was associated with changes in market value from $15,000 to $60,000 per employee. Employee productivity was calculated as the logarithm of sales per employee using gross rate of return on assets (GRATE), which is less sensitive to depreciation and other noncash transactions, and Tobin?s q, a futureoriented and riskadjusted capitalmarket measure of performance that reflects both current and anticipated profitability and often mirrors the price that the market will pay for intangible assets (goodwill). – Huselid, M. and Becker, B. (1995). High Performan