Abstract In this paper, earlier studies by Flamholtz, Lev and Schwartz, and Morse on human resource value assessment were reviewed briefly, and a proposed human resource value model was presented. The contributions of the earlier studies to the literature are noteworthy because of their important role in formulating and presenting human resource value paradigms which provide a formal insight into the concept of an individual's "value" to formal organizations. The influence of the earlier studies on the conceptual framework proposed in this paper is readily noticeable. Specifically, one can cite the similarity between the proposed model and the Flamholtz 1972 model regarding a "basic" premise. The basic premise is that the "benefits" of an individual employee to a formal organization are the present value of the employee's future services quantified in some manner. The concept of the net benefits of human resources suggested in this paper is, although conceived independently, basically similar to Morse's concept of net human resources. The conceptual differences between some of the earlier studies and the model proposed in this paper are of two types. The first is a fundamental difference-where Flamholtz does not explicitly incorporate "costs" of employment in his model, the model suggested here does; and where Lev and Schwartz are not concerned with "benefits" generated by the employees for the organization, the proposed model places emphasis on net benefits-total benefits less total costs. The second type of difference between the model proposed in this paper and the earlier studies concerns the conceptual expansion of some of the major determinants of an individual's value to a formal organization. For instance, Flamholtz suggests that the probability of maintaining organizational membership will help determine an individual's expected realizable value.
Pekin Ogan (Thu,) studied this question.