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HOW TO CALCULATE AND ENHANCE HUMAN ECONOMIC VALUE ADDED IN TRADITIONAL COMPANIES

In today's competitive business landscape, companies are constantly searching for ways to maximize their efficiency and profitability. One often overlooked aspect of this quest is the value that human capital brings to an organization. Human Economic Value Added (HEVA) is a concept that sheds light on this crucial element, allowing companies to understand and enhance the true worth of their employees. Human Economic Value Added (HEVA) measures the economic contribution of human capital to a company. It goes beyond the traditional financial metrics and recognizes the impact that employees have on the organization's overall performance. HEVA takes into account factors such as skills, knowledge, experience, and productivity, providing a more comprehensive evaluation of the value employees bring to the table. Calculating and enhancing Human Economic Value Added is crucial for several reasons. Firstly, it allows companies to accurately evaluate the contribution of their employees, e

MASTERY APPROACH TO MANAGEMENT


The mastery approach is the corporate incompetence created against the background of the inadequacy of the regulatory framework regulating activities in the enterprise, and in this environment of incompetence, employees perform work not according to any regulatory documents and instructions, but according to their personal practices or the instructions of other relatively more experienced employees.

One of the biggest challenges facing companies in terms of human resources is a low-skilled workforce that does not have a deep understanding of their work. In particular, this problem manifests itself more prominently in production enterprises where there are complex technical processes where technical knowledge is more required.
As we all know, the level of competence of the company's human resources affects the effective operation of the company's business processes, the company's strategic goals, and financial indicators. The problem of incompetent workforce brings with it problems such as inefficiency and low performance to companies.
All of these financial and performance ramifications aside, this time I'm going to talk about an often overlooked, under-represented topic – the mastery approach caused by corporate incompetence.

What is this mastery approach ?

The mastery approach is the corporate incompetence created against the background of the inadequacy of the regulatory framework regulating activities in the enterprise, and in this environment of incompetence, employees perform work not according to any regulatory documents and instructions, but according to their personal practices or the instructions of other relatively more experienced employees.
Inadequacy of the normative base naturally produces masters who solve problems related to work on different processors or structural units based on their personal experience. These masters are selected according to their structure and guide other less experienced workers in the status of "apprentices". Due to the lack of nomatic base, corporate learning system and corporate memory, mastery is mainly gained through experience and seniority.

Mastery approach carries many risks for the company.

Ungrounded job knowledge: How well-grounded the job knowledge of the foremen guiding others in a structural unit is always under question. Because this knowledge is not gained on the basis of specific scientific theories, or this knowledge is not gained by looking at all the processes of the company from above and seeing the interrelationship of the processes. For this reason, there is a possibility and risk of errors in this knowledge.
Blackmail of the masters: In the mastery approach, the masters have a significant role in the execution of the processes and in this way the processes and hence the company become dependent on them. The resulting dependence can lead to the masters blackmailing the company, demanding higher wages, more social benefits and benefits.
Non-sharing of information: Masters do not want to lose the advantage and power they have gained through experience and knowledge by sharing this knowledge. In this regard, the maturation period of the students under the supervision of the masters often takes a very long time. Sometimes a disciple's full apprenticeship may even last until the master's retirement or near death.
Loss of information: When a master leaves the company, he takes with him the knowledge and experience he has acquired over a long period of time. Again, it takes many years for the company to recover from this data loss.
Fear of work: Work is often seen by apprentices as an abstract, messy, complex set of activities because the frameworks and solutions to the problems encountered in the mastery approach are not defined in advance. And the masters who keep the knowledge required by the work as their monopoly are like heroes.
I would like to share with you a funny story that a friend of mine told me related to the topic. But I will not be able to write all the parts of the story in this article.
He becomes a confectioner in Sheki. He used to cook tel halwa very well. Apart from that man, there was no one in that region who could make tel halva. No matter how hard other confectioners tried, no matter how many tests they did, they could not make the composition of the halva. The man does not share his secret about the composition of halva with anyone until the end of his life. No matter how hard his students try, they cannot learn this secret. So, the man directly performs the last process of halva himself and did not entrust that process to anyone. This man has a disciple in his old age. This guy can't get anything no matter how many men he chases. One day the man falls ill and falls on his deathbed. He called his student and said: "Son, I have hidden my secret from everyone until today. But in these last days I will share my secret with you. I used to keep lemon salt in my hand while cooking halva, you didn't see it. At the end, when mixing the halva, I added this salt to the halva. This is my secret. Don't tell anyone this secret of mine. Now go and fight the case."
The man says this and after a while he commits his life. The boy also spreads the secret he learned to all his friends. After that, everyone starts cooking from that halva.
As you can see, in reality, the work is not so bad. If only other confectioners knew the composition and preparation rules of halva, they could easily prepare halva.
The mastery approach is not just a system that connects those whose job title is mastery. The mastery approach is not only framed by production processes. There can be a mastery approach in the structure of Human Resources, in finance, and in marketing. It is enough to have "fertile" conditions for the development of masters.
In order not to make it too long, I'll end the post here for now. In my next article, I will try to continue the topic by covering topics such as how to fight the mastery approach, engineering system, corporate memory.

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