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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...importance-of-human-capital/(retrieved 02 October 2011)
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L.G. Bolman and T.F. Deal’s (2013) bestseller provided a four-frame model of an organization, which incorporates the structural, human resources, political and the symbolic forms.
The importance of Human Resource management is associated with the beginning of mankind. As the knowledge of survival had begun including safety, health, hunting and gathering, tribal leaders passed on the knowledge to their youth. However more advanced HRM functions were developed as early as 1000 B.C and 2000 B.C. Since the modern management theory took over, the working environment was transformed into a more friendly and safe work place. The workers were termed as most valuable resources. While some companies took the human side of employment seriously, there were others who did not find it mandatory. Hence they faced huge labor unions and factory shut downs (Henning, 2001).
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)
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.
As Hubbard and Beamish (2011, pp. 103-128) stated, Intangible assets are resources which can be hardly identified and valued such as knowledge and...
Effron, Marc, Robert Grandossy, and Marshall Goldsmith (eds). "Chapter 3 - The 21st Century Workforce". Human Resources in the 21st Century. John Wiley & Sons, © 2003. Books24x7. Web. Apr. 6, 2012.
Carmen C., Tauno K., 2008: Managing intellectual capital in small ITC companies [e-journal] 9 (4) p.4 Available
Mohammed, J., Bhatti, M., Jariko, G., & Zehri, A. (2013). Importance of Human Resource Investment for Organizations and Economy: A Critical Analysis. Journal Of Managerial Sciences, 7(1), 127-133.
With today’s rate of development in technology, there has also been an immense increase in global information sharing. Innovations in technology and design seem to be emerging in the market almost every month. One of the key aspects of any business is to gather, organize and efficiently apply this information. According to Antonic (2005), economic assets are fast becoming of secondary importance in the market as companies ascribe more importance to intellectual capital. With the right application of Knowledge Management methods, companies can achieve a competitive advantage through managing the immense amount of information available (Balanced Scorecard Institute, 2002).
As we know, the term ‘human resource management’ underlines a belief that people really make the difference, only people among other resources have the capacity to generate value. However, the human resource management is considered as the ‘Cinderella’ in the organization as its importance has not been discovered by the senior managers, in addition, it has to share responsibilities with line managers, sometimes it takes more work than it is expected. Actions should be taken to help the Cinderella find her glass shoes.
However you define the activities of management, and whatever the organisational processes are, an essential part of the process of management is that proper attention be given to the Human Resource function. The human element provides a major part in the overall success of the organisation. Therefore there must be an effective human resource function. In the past, most organisations viewed Human Resource Management (HRM) as an element function, that is an activity that is supportive of the task functions and does not normally have any accountability for the performance of a specific end task. Because of the emphasis on analysis and precision there is a tendency for strategists to concentrate on economic data and ignore the way in which human elements and values can influence the implementation of a strategy. 'Economic analysis of strategy fails to recognise the complex role which people play in the evolution of strategy - strategy is also a product of what people want an organisation to do or what they feel the organisation should be like.?(1).
According to our textbook Human Resource Management (HRM) is the policies, practices, and systems that influence employees’ behavior, attitudes, and performance. “The human resources management process involves planning for, attracting, developing, and retaining employees as the HRM planning provides the rights kinds of people, in the right quantity, with the right skills, at the right time (Lussier, 2012, p. 240).” According to our textbook the typical responsibilities of the Human Resources department fall into three categories, and they are administrative services and transaction, which handle hiring employees. The second involves business partner services that focus on attracting, evolving, retaining employees by having a clear understanding
Organizations can be configured in many different ways. Their overall classifications can be summarized by characteristics of complexity within the system, the level of formalization, and the centralization of decision-making power. The structure of each organization is influenced by many factors. Such factors include; the goods and services provided, the overall individuality of the staff providing the service and producing the products. The overall beliefs and values of the individuals performing the services that are being delivered, the technology that is utilized to help deliver the services and aid in product production, as well as the needs, desires, and generalized characteristics of the consumer population that requires or demand the product or service. (Yoder-Wise, 2007, p. 145) The organization will have different operating priorities based on its ownership. The main goal behind most business is to make money. The private owned institution strives to make its shareholders money, while a non-profit institution reinvests all of its revenue back into the orga...
Iveta, G. (Mar. 2012). Human Resources Key Performance Indicators. Journal of Competitiveness. Vol. 4, Issue 1. Retrieved from http://www.cjournal.cz/files/89.pdf
The Importance of the Human Resource Function Human resources are the backbone of any business. It deals with the most important resource in the business – people. For any business to achieve its objectives they must plan their resources and one of their key resource is people. They need to get the right people and develop. them well in order to meet the organisation’s aims successfully.