Aktuálne číslo: 2/2024
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NET PRESENT VALUE (NPV) AS THE EVALUATION METHOD FOR THE INVESTMENTS IN HUMAN RESOURCE (HR) DEVELOPMENT
First of all we have to realize that human resources are the most valuable asset of the company. Effective human resource management (HRM) is not only to ensure the wellbeing of employees, but also is a valuable foundation for creating and maintaining a sustainable culture. This paper explores the challenges of HRM in the context of aligning financial objectives with human resource (HR) development goals. It would be helpful to estimate the future value of the impact of HR development on a company's revenue. When financial and HR managers evaluate an opportunity to invest in HR, they can use the Net Present Value (NPV) method. In literature is NPV defined as the sum of investment´s expected cash flows discounted back to their present value at a company-agreed risk-adjusted rate. The model of NPV presented by Matei et. al. (2024) provides us the view of HR development as a project which allows setting up the priorities in comparison with the company´s current activities. But this model doesn’t consider the possible risk that may occur from external or internal environment of the company. Some of them we pointed out on the concrete examples of the investment area in HR development and the risk groups that might affect the NPV evaluation. By applying data collected from questionnaire, analysis of external environment and literature we set up the research goal. The question is if the proposed model of NPV calculation is applicable for HRM development. There is potential for further exploration.
Vydanie: 2024/2 Strany: 57-65 Klasifikácia JEL: M52. M54, M14
DOI: https://doi.org/10.52665/ser20240205
Kľúčové slová: Human resource (HR) development, sustainability, investments, net present value (NPV), job satisfaction questionnaire, risk-adjusted rate
Sekcia:
Kontakty:
Monika Kleinová, Mgr.
Department of Economics and Finance
Faculty of Management
Comenius University Bratislava
Odbojárov 10
820 05 Bratislava
Slovakia
email: kleinova68@uniba.sk
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