Presentation Details

The Fourth International Conference on Knowledge, Culture and Change in Organisations

Continuous Added-Value Management: Creating Wealth in the Age of Human Imagination

Dr Sunil Erevelles, Haya Alchaar.


Value in organizations is increasingly derived today through the leveraging of the human imagination. While this notion is now widely accepted, it is still relatively unclear how an organization can best exploit the hidden potential capital that it possesses in the form of uncultivated ideas of its people. Current organizational structures and performance appraisal systems are often ill-equipped to best utilize this capital. Organizations are thus frequently wasting a considerable amount of their resources.

“Continuous Added-Value Management” (CAVM) is a system designed to continuously and completely focus the organization on leveraging human capital to the maximum possible extent to constantly add value to itself. It consists of three basic areas: (i) the changing of the value systems of the organization to focus on the creation of intellectual capital, (ii) the changing of the organizational structure to facilitate the exploitation of hidden potential capital and (iii) the changing of the performance appraisal and reward systems to continuously maximize the leveraging of human capital.

CAVM helps focus a business on the task of constantly creating value in every part of its organization. Performance appraisal and reward system are directly and fully tied to a person’s ability to generate and implement new ideas. Performing routine job-related tasks are only a prerequisite of work, but the main task of every person is to add value on a regular basis through ideas and change. In this paper, we describe the concept of CAVM and suggest how it can be achieved and implemented in organizations.

Presenters

Dr Sunil Erevelles  (United States)
Associate Professor of Marketing
Department of Marketing
University of North Carolina



Haya Alchaar  (United States)


University of North Carolina


Keywords
  • Human Imagination
  • Creating Value in Organizations
  • Reward Systems



(30 min. Conference Paper, English)