Hai-Ming Chen

The role of human capital cost in accounting

The purpose of this research is to deal with the human capital disclosure issue of present accounting systems. Many companies nowadays derive their competitive advantages mainly from human capital. However, under generally accepted accounting principles, all human‐related expenditures are treated as expenses, which are deductions of revenues, thus misleading decision‐makers into inappropriate judgments. This paper provides an alternative way of measurement and disclosure of human capital items in financial statements. The paper defines and classifies the human capital of a company in line with a theoretical framework provided by the authors, sorts out companys human capital investments according to cost development stages in human resources, isolates human capital from expenses and finally suggests disclosure in financial statements.

Key Trends of the Total Reward System in the 21st Century

COMPENSATION & BENEFITS REVIEW

The Utility of O-T-P Model in Taiwan Coast Guard

Although widely discussed for several years, training needs analysis (TNA) has seldom been applied to examine public services in Taiwan. The Taiwan Coast Guard (TCG) was established on January 28, 2000 to provide a combined military and police force with a unique human resource portfolio. After years of ad hoc training decisions, the TCG attempted to adopt a more systematic approach to TNA, the organization-task-person (O-T-P) model. In November, 2006, 2567 TCG service personnel were surveyed regarding their perceived training needs required to achieve the following four dimensions of major organizational core competencies: frequency, importance, familiarity and urgency. Analysis results revealed highly significant differences in training needs between military and police in the TCG. The methodology adopted by TCG for TNA has proven effective. Further, the four indicators applied in this revealed an interesting paradigm which may encourage the use of similar approaches in other organizations.

Perceptions of Justice in Extrinsic Reward Patterns

Effective extrinsic rewards foster a positive culture within organizations. The current study reviewed algorithmic/experiential reward patterns and perceptions of justice in four businesses to gain insight into the perceptions of employees with regard to justice. Results indicate that perceptions of justice vary according to patterns in extrinsic rewards. This study also discovered that employees perceive fairness according to characteristics specific to the organization and industry. Managers must understand how employees perceive justice to determine the most effective means with which to implement extrinsic rewards, according to two distinct patterns. Suggestions for practical implementation and future research are also provided.

Decision processes and information

In the field of management, decision processes are often the focus of discussion. This paper hypothesizes that decision processes are an evolution of cognition, and information processing is the primary activity for conversion of the decision makers cognition in the decision process. Information processing reduces variety and facilitates specific decision mak ing, where variety is the number of mutually exclusive out comes for a potential management decision. The conversion of the necessary information at each phase of the decision process will improve the rationalization of decision processes. This approach should provide guidance for researchers in the dis cussion of decision processes, as well as provide additional criteria for establishing rational decision processes.

Creating and sustaining economic growth through HR

With the rise of the knowledge economy, the importance of intellectual capital has grown. The concept of intellectual capital was raised by Galbraith in 1969, since when the market to book value of corporations around the world has increased dramatically. The implication of this phenomenon is that value creating factors have shifted from tangible assets to intangible ones. Thus, in order to create and sustain economic growth, there is a need for both scholars and practitioners to break down the value creating process and identify the crucial intellectual capital that creates value. However, there is no consistent definition of intellectual capital. For example, Chen et al. (2004) argue that intellectual capital includes human capital, structural capital, innovation capital and customer capital. Human capital is the source of all intellectual capital, and through structural capital and innovation capital, human capital can enhance customer capital. Wang and Chang (2005) use the Taiwanese information technology industry as an example and conclude that by using the human capital, performance can be increased through the enhancement of innovation capital and process capital. Sveiby (1997) suggested that market value is created by tangible net book value and intangible value, which includes external structure, internal structure and individual competence. Edvinsson and Malone (1997), using a similar structure, argue that market value is composed of financial capital and intellectual capital, including human capital, structure capital and customer capital. Edvinsson (1997) also mentioned a ‘Skandia navigator framework’, arguing that in the past, ‘human capital’ is provided only in the form of ‘labor’ in corporations, and tangible assets such as machines are the source of value, so a historically based financial analysis is enough to modify the

A framework of direct financial pay within high-tech company

Abstract An integrated framework of a direct financial pay within an organization is proposed in this paper. It uses “competitive advantage of human resources” and “explicitness of job worth” as two dimensions of job characteristics to define four kinds of direct financial pay : special-skill, performance, seniority and job-based pay. A high-tech company as an example to explain the pay system proposed here. The integrated framework recommends a perspective for managers to decide how to pay for some kinds of employees within an organization. Meanwhile, those potential positions that create competitive advantages can be identified; and corresponding human resources should be developed.

Determining in-house/outsourcing activities of hi-tech project to seek ROS maximization

Seeking maximal return on sales (ROS) of a hi-tech production project through the determinations of in-house or outsourcing activities is presented in this study. This paper not only introduces the finite budget and the capacitated in-house/outsourcing activities into the mathematical model called determining in-house/outsourcing (DIO) model, but applies the sales price function with the decrease of the completion time. A step-by-step algorithm for searching the suggested solution of the DIO model is also provided in this study. In addition, a computerized computing tool written with Visual Basic 6.0 to reach the suggested optimality as well as perform the simulated analysis, and a numerical example is followed. This study indeed contributes a computerized tool to the manager of the hi-tech project in determining the in-house/outsourcing activities into the production project.

The Relationship between Career Orientation and Performance of R&D Professionals in Taiwanese High-tech Firms

This paper studies the relationship between career orientation and performance of R&D professionals in Taiwanese high-tech firms. 385 R&D professionals of electronics and information/communication industry in Taiwan are selected, and 223 returned questionnaires were studied. The relationship is found between the organizational characteristics and career orientation of R&D professionals in the high-tech firms. In addition, the performance of samples th4t career orientation corresponds to the current position is higher than the others. Discussion and the implication for the career Orientation of R&D professionals in Taiwanese high-tech firms are provided.