The purpose of this paper is to discuss the philosophical baseline of two popular business schemes, the business model and a latter variation of human resource costing and accounting (HRCA). The aim is to identify crucial assumptions inherent in the models that may influence attempts of creating a symbiosis between them.
The paper provides a conceptual perspective on the two models. Data for the paper were gathered during a case study on the usefulness of HRCA for small and medium‐sized enterprises (SME) as well as from extensive literature readings. These data have been compiled and analysed under the influence of Weick's method for generating theory.
While the business model and HRCA share a common purpose they try to provide different qualities to the organisation. Whereas the former seeks to realise dreams and ambitions, the latter supports displacements of threats towards organisations and managers. This difference is a potential source of friction that may result in a harmful organisational behaviour.
The paper also expands on the theoretical baseline of two popular business schemes. By identifying crucial differences, amendments and adaptions are possible to make within organisation or among business consultants that could override the problems. Some suggestions are made on this issue.
The paper expands the theoretical and philosophical understanding of popular business schemes. By introducing a theory of happiness a new perspective providing crucial information of the function of the two business schemes is revealed.
