CAN HUMAN RESOURCES INDUCE SUSTAINABILITY IN BUSINESS? MODELING, TESTING AND CORRELATING HR INDEX AND COMPANYS BUSINESS RESULTS
DOI:
https://doi.org/10.5937/ekoPolj1502399ZKeywords:
Investments, HR index, Correlation, Modeling.Abstract
In this paper the authors analyze the impact of the composite human resource index on sustainable growth in a specifc business sector in a transition country. Sustainability of countrys economy is growingly relying on the knowledge economy which has been implemented in strategies of sustainable development throughout Europe. The knowledge economy is mostly based on human resources and the way they are organized and managed in the companies actively operating in competitive markets. In order to confrm importance of the human resources (HR) index, results were tested by means of modeling, measuring and correlating the HR index with business results at micro level. The tests were conducted on the data from the survey in Serbian meat processing industry. The results were then compared with the results from the survey conducted in a fnancial industry. Moreover, a model was made that could be applicable in all countries that do not have available offcial statistic data on the level of investments in human resources. The focus was on determining the correlation direction, and hence creating a research model applicable in all business sectors. It has been found that a signifcant one-way correlation exists between business performance and increased HR index. In that way it has been confrmed that in Serbian economy that has recorded global decrease during transition, certain business sectors, and especially companies with high levels of investments in improving its HR index record above average and sustainable growth.
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References
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30.Zubović, J., Jeločnik, M., Subić, J. (2012): A survey conducted in meat processing industry companies in Serbia 2011-2012, unpublished research material, internal documentation (questionaires), IAE Belgrade.
31.Zubović, J., Jeločnik, M., Subić, J. (2011): The Analysis of HR Index in Serbian Financial Industry, Industrija, vol. 39, no. 1, pp. 227-242.
2. Bassi, L., McMurrer, D. P. (199): Indicators of Human Capital Investment and Outcomes from the American society for training & development, in: Measuring and Reporting Intellectual Capital: Experience, Issues, and Prospects, Amsterdam, June 1999, pp. 1-10, available at: www.oecd.org/dataoecd/61/44/1947815.pdf, accessed at: 12 March 2012.
3. Bassi, L., McMurrrer, D. (2007): Maximising your Return on People, Harvard Business Review, vol. 85, no. 3, pp. 115-123.
4. Birch, K., Levidow, L., Papaioannou, T. (2010): Sustainable Capital? The Neoliberalization of Nature and Knowledge in the European "Knowledge-based Bio-economy", Sustainability, no. 2, pp. 2898-2918.
5. Chasovskaya, E. (2010): Human Resources Analysis in International Business, Information Technologies, Management and Society, vol. 3, no. 1, pp. 112-114.
6. Cranet (2008): The list of researches conducted using Cranet questionnaire, available at: www.cranet.org/downloads/EnglishPost2000.doc, accessed at: 14 October 2011.
7. Darwish, T., Singh, S., Mohamed, A. (2013): The role of strategic HR practices in organisational effectiveness: an empirical investigation in the country of Jordan, International Journal of Human Resource Management, (serial online), vol. 24, no. 17, pp. 3343-3362.
8. Dearden, L., McIntosh, S., Myck, M., Vignoles, A. (2002): The returns to academic and vocational qualifcations in Britain, Bulletin of economic research, vol. 54, no. 3, pp. 249- 274.
9. Denisova Schmidt, E. (2011): Human Resource Management in Russia: Some Unwritten Rules, WU Online Papers in IBC, series one: Intercultural Communication and Language Learning, paper 8, Department für Fremdsprachliche Wirtschaftskommunikation, WU Vienna University of Economics and Business, Vienna, pp. 1-12, available at: http://epub.wu.ac.at/3153/1/08-denisova_endversion.pdf, accessed at: 10 June 2014.
10.Done, I., Domazet, I. (2011): Improving the quality of human resources by implementation of internal marketing, in: Andrei et al. (Edt.), The role of labour markets and human capital in the unstable environment, KARTA GRAPHIC Publishing House, Ploiesti, Romania, pp. 47-75.
11. Ene, C. (2012): Consumer protection in Bulgaria: EU challenges, Economics of Agriculture, vol. 59, no. 2, pp. 253-265.
12.De la Fuente, A., Ciccone, A. (2002): Human capital in a global and knowledge-based economy, Final Report, European Commission, Directorate General for Employment and Social Affairs, Unit A.1, Brussels, Belgium, available at: www.antoniociccone.eu/wpcontent/uploads/2007/07/humancapitalpolicy.pdf
13.Government of Serbia (2008): National Strategy of Sustainable Development of Republic of Serbia, Offcial Gazzete of the Republic of Serbia, no. 57/08.
14.Greer, C. R. (2006): Strategic Human Resource Management, 2nd edition, Dorling Kindersley (India) Pvt Ltd, India.
15.Griliches, Z. (1997): Education, human capital and growth: a personal perspective, Journal of Labor Economics, vol. 15, no. 1- Part 2, pp. S330-S344.
16.Hanson, B., Johanson, U., Leitner, K. H. (2004): The impact of human capital and human capital investments on company performance - Evidence from literature and European survey results, in: Descy, P., Tessaring, M. (Eds.) Impact of education and training, Cedefop Reference series, 54, Offce for Offcial Publications of the European Communities, Luxembourg, pp. 262-319.
17.Katou, A., Budhwar, P. (2012): The Link between HR Practices, Psychological Contract Fulfllment, and Organizational Performance: The Case of the Greek Service Sector, Thunderbird International Business Review, (serial online), November 2012, vol. 54, no. 6, pp. 793-809.
18.Kwon, K., Rupp, D. E. (2013): High-performer turnover and frm performance: The moderating role of human capital investment and frm reputation,Journal of Organizational Behavior, vol. 34, no. 1, pp. 129-150.
19.Montoya, J. A. (2013): The Value of Human Capital in Colombia, 2001-2009: An Estimate Based on the Lifetime Income Approach, October 9, available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2338318
20.Mubarik, M. S., Govindaraju, V. C., Devadason, E. S. (2014): Proposed Framework for Assessing Human Capital: Derivation of the Human Capital Index and its Application, May 5, pp. 1-28, available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2433166
21.Nikolić, I., Zubović, J. (2013): Structural changes in Serbian industry during transition, Industrija, vol. 41, no. 2, pp. 67-79.
22.Serbian business registers agency (SBRS), Data on participation of meat processing industry in Serbian economy, Materials received by email on request to SBRS, sent in January 2012.
23.Stacey, R. D. (2001): Complex responsive processes in organizations: Learning and knowledge creation, London: Routledge, UK.
24.Subić, J., Jeločnik, M., Jovanović, M. (2013): Evaluation of Social Sustainability of Agriculture within the Carpathians in the Republic of Serbia, Scientifc Papers. Series Management, Economic Engineering in Agriculture & Rural Development, vol. 13, no. 2, pp. 411-415.
25.Theriou, G., Chatzoglou, P. (2014): The impact of best HRM practices on performance – identifying enabling factors, Employee Relations, (serial online), September 2014, vol. 36, no. 5, pp. 535-561.
26. Tkachenko, O., Ardichvili, A. (2013): Human Capital Development in Central and Eastern Europe: an Analysis of Trends and Challenges Facing Hungary, the Czech Republic, Slovenia, Estonia, and the Russian Federation, published on UFHRD Conference, Brighton, UK, available at: www.ufhrd.co.uk/wordpress/wp-content/uploads/2013/09/TkachenkoArdichvili-working-paper.pdf, accessed at: 10 June 2014.
27.Watson Wyatt Worldwide Research (2012): Human capital index: Linking human capital and shareholder value, Watson Wyatt Worldwide Research, Washington DC, USA, pp. 1-12.
28.Zubović, J., Domazet, I. (2013): Effectiveness of government interventions at labour markets: the case of women and youth in Serbia, Actual Problems of Economics, vol. 13, no. 139, pp. 302-313.
29.Zubović, J., Domazet, I., Bradić Martinović, A. (2008): Foreign investments to developing countries´ food industry: does it improve competitiveness, trade and R&D, ин proceedings State, Possibilities and Perspectives of Rural Development on Area of Huge Open-pit Minings, Institute for Agricultural Economics, Belgrade, pp. 79-85.
30.Zubović, J., Jeločnik, M., Subić, J. (2012): A survey conducted in meat processing industry companies in Serbia 2011-2012, unpublished research material, internal documentation (questionaires), IAE Belgrade.
31.Zubović, J., Jeločnik, M., Subić, J. (2011): The Analysis of HR Index in Serbian Financial Industry, Industrija, vol. 39, no. 1, pp. 227-242.
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Published
2015-06-30
How to Cite
Zubović, J., Jeločnik, M., & Subić, J. (2015). CAN HUMAN RESOURCES INDUCE SUSTAINABILITY IN BUSINESS? MODELING, TESTING AND CORRELATING HR INDEX AND COMPANYS BUSINESS RESULTS. Ekonomika Poljoprivrede, 62(2), 399–420. https://doi.org/10.5937/ekoPolj1502399Z
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Original scientific papers
