A Proposed Framework for Measuring Human Capital Intangible Value Component in Restaurant Organizations Using Economic Value Added

Abstract

Those restaurant companies that are able to deliver high performance human resource management, which increases the intangible value of their human capital (HC), and create greater economic value added (EVA) have the potential to compete more effectively. The purpose of this paper is to propose the development of a framework to demonstrate the EVA of an intangible human resource high performance work system (HPWS). When a restaurant firm has the ability to measure the total value (tangible + intangible) of their human resources, then they may choose to engage in a paradigm shift and undergo a fundamental change in philosophy that will enable them to harvest the full potential of their employee's intangible economic value.