1. What is human capital?
Intellectual capital resources contribute to an organization’s potential to commence or continue to create value and are collectively known as intellectual capital or IC. Although there are many different ways of subdividing IC, the one favored by the authors is to divide intellectual capital into three categories based on their economic behavior.
These are:
1.1. Relational: These include all relationships that the organization has, such as customers, consumers, intermediaries, representatives, suppliers, partners, owners, lenders, and the like.
1. 2. Organizational: The intuitive definition was best articulated by Leif Edvinsson as “all those things that remain in the organization when the employees have left the building but that you cannot find in the balance sheet.” This includes resources such as brands, intellectual property, processes, systems, organizational structures, information (on paper or in data bases), and the like.
1. 3. Human: All the attributes that relate to individuals as resources for the company and under the requirement that these attributes cannot be replaced by machines or written down on a piece of paper. This includes resources such as competence, attitude, skill, tacit knowledge, personal networks, and the like. (p.19)
Human resources are not owned by anyone but are controlled by the individual. Just because the individual comes to work does not mean that one has access to his/her competence. The gatekeeper between the individual’s competence and the organization that wants to make use of that resource is the individual himself or herself. (p.22)
According to Wikipedia “human capital is the stock of competences, knowledge and personality attributes embodie...
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It helps not to call people “human resources”. They’re people. And, as it turns out, people like to be treated like people. Go figure. - Dharmesh Shah, Founder and CTO at HubSpot.
Organizations’ other resources can be hired, retained and discarded at any time but human resources needs special treatment. It needs to be carefully hired, deserve an extra effort to retain it and requires training & development to upgrade and improve its capabilities. Other resources depreciate with the passage of time but when the human resource gains more and more experience, it becomes more beneficial for the organizations. These characteristics have brought human resources to be the central element for the success of an organization. (Mohammed, Bhatti, Jariko, and Zehri, 2013, pg. 129, para. 2)
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.
Overall, human resource plays an important role in the business growth of a company. This is mainly due to the strategic issues faced are mostly human related based. Hence, with strong human resource management, companies will be able to maximize the gains from their employees that will result in maximum productivity that further leads to higher and sustainable growth.
Human resources are skills, talent and qualities that are passed down by people by sharing and teaching them. Human resources are intangible, they are anything that cannot be touched or seen. Knowledge originates in many forms; it is anything that you remembered, observed or learned. Skills are as simple as riding a bicycle or budgeting and talent is like singing or cooking incredible food like Curtis Stone. Personal qualities are very important for a person because it defines who you are; if you are outgoing or able to express your emotions, these are examples of your own personal qualities. Energy is very useful for finishing things like homework or working out. Time is very limited for everyone. Family and friends are very wise and help provide excellent human resources.
There are many functions of Human Resource Management, one of the most integral parts revolves around the process of acquiring human capital and the methods used to retain, motivate, and compensate employees. There are many factors involved in the overall process, to include the following: a job analysis, recruitment and selection, hiring the best candidate, evaluating and compensating them appropriately. Each part of the process affects the other, from ensuring that you have an accurate job description to determining the appropriate level of compensation.
It’s a common understanding that a given business organization is established with the main aim of making profits. In order to realize the set goals and objectives of such a business organization, there are certain departments charged with distinct roles within the organization. Furthermore these goals and objectives are usually defined in terms of economic prosperity that is manifested through huge volume of sales as they reflect huge returns. One of these departments includes the human resources department which has a responsibility of interviewing, hiring, remunerating as well as promoting employees. It’s one of the most important department in a business organization as the employees working under it are the ones who provide the required human labor to the organization. Since the human
Human resource: - These comprise the skills as well as ability of managers and staff.
human capital by Poisat (2006). He argues that a successful and highly productive business can
(Bharwani &amρ; Butt, 2012). With the helρ of human resources, an organization will be able to
With human capital however, this can be transferred through formal institutions such as schools, universities, organizations, government or even training facilities to teach people certain skills which may help them in being employable and economically active. Most skills that are taught are in line with certain occupations to deal with skills bottleneck. According to Sen (1997: 1959), “human capital concentrates on the agency of human beings through skills and knowledge as effort in augmenting production possibilities.”
Human resource management is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. Human Resource management is evolving rapidly. Human resource management is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce. (1)
Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)
Human capital is recognized as the largest and the most important intangible asset in an organization. Ultimately it provides the goods or services that customers require or the solutions to their problems. It includes the collective knowledge, competency, experience, skills and talents of people within an organization. It also includes an organization’s creative capacity and its ability to be innovative. Although investment in human capital is growing, there is still no standard measure of its effectiveness in companies’ balance sheets. Structural capital is the supportive infrastructure for human capital—it is the capital which remains in the factory or office when the employees leave at the end of the day. It includes