Abstract: “The objective of this study is to provide a quantitative technique by using Personnel adjusted Added Value (PAV) to help managers make decisions by objectively evaluating their Human Capital Management (HCM) and projecting profit increase generated by HCM. The approach of this study is divided into three steps. In the first step, PAV is defined as the corporate output. The data are classified into two groups by Cluster Analysis. In the second step, the factors which represent HCM practices are selected and formulated using Principal Component and Factor Analysis. In the third step, the multiple regression model is constructed to identify the HCM factors which influence PAV. This process establishes the model for objectively judging the success of HCM.”

Keywords: human capital management, intangibles, added value