HUMAN CAPITAL
An organization, in private or public sector, should have competitive advantages to win the competition. Competitive advantages can be gained by making a unique design of product or service, using a modern technology, implementing an effective organization design, and the most important is having an effective human resource management.
An organization should optimize every employee’s potential to get great work performances, and then can make the organization stand on better position than other organizations. One type of investment in an organization is human development. This kind of investment has a purpose to improve productivity by doing some improvements in health, education, and work training. Healthy, educated, and skilled employees will give positive impacts to organization productivity. An organization with a good human resource management will have a competitive advantage which hard to be copied by other organizations. Invesment in human, which is the most valuable economic resource, provides a sustainable competitive advantage and will overcome workforce ill-equipped which is the biggest threat in economic stability.
In 1960, Theodore W. Schultz’s speech entitled “Investment in Human Capital”, in front of American Economic Association members, is a foundation of human capital theory. According to Schultz, human capital is the acquisition of all useful skills and knowledge that is part of deliberate investment. In this theory knowledge, idea, creativity, skill, and productivity make human can be considered as a capital. Other capitals are only tools, but human capital can invest itself in many forms of human resource investment such as formal and informal education, work experience, and health.
HUMAN C...
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...ethics and hurt anyone else.
Human with moral intelligence will never have a grudge feeling. He will not avenge to someone who hurt him.
Moral capital becomes more important in developing human resource that has high Intelligence Quotient and controllable emotion. Moral capital will make human do something useful and can give a wholeness feeling.
Health Capital
Health becomes a capital for human to work and being productive because human will not able to give his optimum performance if he is unhealthy. Stephen Covey (1990) in his book entitled “Seven Habits of Highly Effective People” states that health is a part of life that makes human become effective. Because of that health quality should be kept up and enhanced. Unhealthy condition will make intellectual capital hampered, emotional capital unstable, loss of adversity capital, and social capital decreased.
Health and wellness can be affected by many factors. The lack of sufficient health care needs to be addressed; to give Americans, rich or poor, a chance of a healthier lifestyle. The definition of health may never be universally accepted, but every culture deserves equal opportunity to better healthcare. Environments will always have an affect on health, but with proper education, people can be taught more effective ways to live in an environment that can’t sustain a healthy lifestyle. As Americans, it is our responsibility to protect our own, and we should begin with our health care system.
Throughout a person’s life, they are working to increase their self-worth, not only to themselves, but to others. Whether it be through schooling to gain knowledge or working to hone skills, it is an important aspect to becoming a functioning member of any given society. However, there are levels of worth that cannot often be seen on the surface, and thus they are usually taken for granted. These aspects of worth are deemed “Human Capital”, “Social Capital”, and “Cultural Capital”, and are crucial to everyday life, as can be seen within the life of Sou Hang and his family.
Once it’s done, there are no takes back for what has been finished. Yet at the end of everything not one person should have to suffer for the pain because someone wants to get even with the person. Revenge is never the right way to solving anything, there can be other ways to solving a problem instead of the use mislead actions. By noticing how revenge makes us feel, it might be possible to reason with the person before destroying lives of others. Never mistaken revenge for defining justice with another human
The leadership labyrinth has some explanations that discuss the possible causes why women are not occupying a consider number in top leadership positions, being one of them, the fact that women have less Human Capital investment in education, training, and work experience than men.
How well a business manages its assets and resources predicates its overall success. Companies that spend financial resources foolishly are apt to find themselves in bankruptcy. Companies that work capital equipment resources beyond the machine’s capabilities or for other than intended purposes are apt to experience downtime and/or lose the equipment to failure. The same premise holds true for a company’s human assets. However, unlike other company assets, which depreciate over time, human assets appreciate over time when managed properly. The article, Importance of Human Resource Investment for Organizations and Economy: A critical Analysis, explains the importance of managing human assets as follows:
healthy is a major component in ones’ overall wellbeing, more so mentally, but being healthy
The company should have their own advantages to lead the competition and be well known to people that will lead in earning high profits as it is very important to study and formulate unique advantages to have edge with other company.
Human resource is the most valuable and unique asset of an organization. The successful management of an organization’s human resource is an exciting, dynamic and challenging task , especially at a time when the world has become a global village and economies are in a state of flux. The lack of talented resource and the growing expectation of the modern day employee has further increased the difficulty of the human resource function.
Since accumulation of human capital is an important contributor to economic growth, it is important to recognize factors which facilitate this accumulation, and how does human resource transform to the more viable human capital? Central to this transformation are two elements; education and health care, where the attainment and improvement of these, is seen directly influencing labour productivity. From this cause effect relationship we can make a ‘logical assumption’ that improvement in human resources leads to economic growth (Dreze and Sen 2002; Rivera and Currais 1998).
Human Resources Management (HRM) Interventions relates to the idea of improving an organizations overall performance and efficiency by improving the members (individuals and groups) performances, commitment, and flexibility. According to Beer et al. (1984), this is often a relevant intervention technique when organizations are facing increased international competition. They see the value of HR investments as a way to improve organizations competitive advantages. Further, they establish that HRM policies have long-term consequences and immediate organizational outcomes. These policies should include the overall competence of employees, the commitment of employees, the cost effectiveness of HRM practices,
...llenging to the organization is undeniable thus the organizations really have to come out with competitive transformation strategies so that they are strong enough to compete with their business competitors (Tonono, 2008).
Health is a vital component in our everyday life. If it is compromised, everything else goes down with it. Health affects an individual drastically; therefore, it is imperative that we take good care of our bodies in order to maintain normal body functions that can help us go through our normal day-to-day lives without fail. There are many factors that can affect health--one of them is Education. Health education feeds emotions that will motivate us to do a better job at being caretakers of ourselves. It can therefore, be said that health education can encourage people to act on their own personal health.
Human capital which represents “the knowledge, skills, competencies and attributes embodied in individuals that facilitate the creation of personal, social and economic well-being” (OECD) was first defined and measured by Sir William Petty (1690). He believed that labour was the ‘father of wealth’ and included national wealth during the measurement. After Petty, Adam Smith (1776) presented a clear analysis of human capital and mentioned it as part of general stock. Afterwards Shultz (1961) classified the formation of human capital as skills and knowledge that people acquire, and recognized the human capital as one of key elements for national economic growth.
So, what is Competitive Advantage? In a number of industries, the average performance of the industry is usually no better than the average performance of industries' as a whole. However particular firms or groups of firms manage to do considerably better than average. In this case, the high performing firm or sub-group has something special and difficult to imitate to offer which allows it to outperform it's rivals.
One of the causes that influences an organization’s human resource is its strategy. A strategy refers to a plan that in place to guide business operations and activities. The business strategy then provides schedules and activities for the employee, and as a result affects the human resource. The scope is to build on qualifications and capabilities, therefore influences human resource to higher capacity while the unsuitable distribution of tasks may dampen human resource to poor results. Managers in the organization play a significant role in influencing human resource. The type of leadership structure and leadership style implemented by the organization establishes the level of encouragement that a leader and their leadership have on human resource. An ineffective leadership will fail to mobilize human resource into performing required tasks due to poor control of employees. Effective leadership influences human resource management responses to the management’s needs towards competitiveness. Ammi, F. T., & Mushatt, S.