| The objective of this study was to determine what “intangible” variables may contribute to the bottom-line of a strategic business unit (SBU). The criterion variable in this study was ROI%. The predictor variables for this study were a function of the pre-administered “employee satisfaction” survey.; Traditionally, ROI has been defined in cost accounting terms, although other ideologies have emerged. Despite the seemingly methodological process of accounting, an important component contributing to the bottom line has essentially been excluded from this “quantitative” or financial assessment: the “soft” or “intangible” elements.; Only recently has the topic of “intangibles” been a focus of discussion and academic study (Baruch Lev, personal communication, May 17, 2001). The recent interest can be attributed to organizational needs, especially in the area of “value”. More specifically, the intangible components are being assessed in order to calculate a “tangible” or monetary value.; It was hypothesized that high ROI% business units would manifest higher scores on intangible capital variables. These variables were driven by a secondary data analysis of a 1997 and 1999 employee satisfaction survey.; The data of approximately 1,800 (per year), divided into 16 business units, were analyzed using SPSS 9.0. Factors analysis identified five factors for the 1997 population, and six factors for 1999 group. These intangible variables were analyzed using a regression analysis.; Although no statistically significant results were found, this study is important for several reasons. First, ROI is the ratio many organizations use to make crucial business decisions, ranging from leadership to strategy. Second, both internal and external stakeholders of the organization (i.e., employees and stockholders) use ROI findings as the basis for investment purposes. Finally, despite its limitations, an “employee satisfaction” or “job satisfaction” survey can provide additional insight into the organization's “health,” when assessing the variables relative to ROI%. |
