Measuring Human Resources: A Case Study in Small and Medium Enterprises
Proceedings, Seminar National Industrial Services, Universitas Sultan Ageng Tirtayasa, Cilegon, Banten, Indonesia, pp. 101-114, April 29-30, 2009 (ISBN 978-979-19280-0-7)
12 Pages Posted: 4 May 2009 Last revised: 13 Apr 2014
Date Written: April 29, 2009
The effective utilization and management on intangibilities, mainly on the firm’s human resources, have proven to play a crucial role in ensuring firm’s viability. Knowledge-based firms, which are mostly dominated by information technology firms, including other firms that put forth intellectual capital, or human capital as their business driver toward future advancement, have seen substantial growth, not only on the revenues, but also on the firm’s bottom-line.
Using the perspective of the knowledge-based theory of the firm, this paper attempts to analyze the appropriate measurements on human resources for firm’s survivability in today’s uncertain business environment. Human resources are seen as increasingly important factors to grasp the future market uncertainties and minimizing the organizations’ potential drawbacks.
Preliminary qualitative studies have been undertaken concerning the theory of the firm, including its development, as well as on supply chain management, consumer behavior, and customer satisfaction. This paper attempts to bring out the significance of measurements on the pool of human resources in trying to ensure organizational performance, and the creation of firm’s value.
A cluster sampling method is incorporated in this study to note the characteristics of small and medium enterprises in certain locations. Variables chosen in this study are mainly covered the traditional financial measurements and ratios, such as; sales, expenses, total assets, total liabilities, total equity, total inventory, interest expense, tax expense, growth rate, debt-to-asset, debt-to-equity, return on equity, return on investment, return on capital employed, return on assets, return on sales, and inventory turnover. Additional variables used in this study include; measurements on productivity, effectiveness, and efficiency. Aside from the qualitative analyses, which are based on interviews and field observations, a combination of statistical software packages are utilized as tools toward building quantitative analysis in this study. Researches are conducted by gathering data from primary and secondary sources in service industries in Jakarta, and Bandung. As stated, it is expected that such studies would reveal the significance of measurements on the pool of human resources in trying to ensure organizational performance, and the creation of firm’s value. It is expected that such issues are mostly true for small and medium enterprises, perhaps.
Keywords: measurements, productivity, human resources, financial, ratio, value, performance
JEL Classification: L20, M12, M21, M50, O15
Suggested Citation: Suggested Citation