DEVELPOING QUALITY HUMAN CAPITAL: A STRATEGIC APPROACH TO BUSNIESS SUCCESS
The key for future of any country and any institution lies in the talent, skills and capabilities of its people. With talent shortages projected to become more severe in much of the developed and developing world, human capital and workforces must be well establish for prepared the demand of competitive economies.
Human capital is the employees whom posses individual and collective knowledge, skill and abilities (Ivana, 2010). Employees are referred to as human capital as soon as they apply their knowledge and skill to create product and services that give value to the organization.
Human capital is not a one-dimensional concept but means different things to different stakeholder. In the business world, human capital is the economic value of an employee’s set of skills (The Human Capital Report, 2013).
Human capital lies at the core of innovation and a productive high income economy. It is the most important investment an organization makes. Tenth Malaysia Plan 2011-2015 (2010), no economy can succeed without a highly skilled talent base that is able to rapidly respond creatively to economic change. In business world, strategic approach must been done to make sure the human capital growth follow the organization objective goal. Human resource management in an increasing number of organizations has become a major player in developing strategic plans and facilitating changes with the organization (J. Younger, A. Younger, & N. Thompshon, 2011). For that, the function of human resources management in the organization must take a lead to make sure this organization objective goal support by the human capital development.
2. STRATEGY DEVELOPING QUALITY HUMAN CAPITAL
A healthy competitive environment has been created and engagement levels have increase, having a positive effect on performance levels. A greater awareness of globalization and global market has also been a positive side-effect (H. Thomas, R. Smith, & F. Diez, 2013). Business performance has improved, turnover is down, and engagement is up. Because of that human resources in the organization have to increase effort in searching capable employees.
Human resource is the corporate function tasked with acquiring, developing and deploying the people need for an organization to be successful. This corporate function helps the organization to achieve strategic goal. But to gain a deep enough understanding of how business objective translate into specific workforce and organization needs make many human resources department in the organization struggled. Organization must have a strong program, led from the top, to articulate the human capital dimensions of business vision at a strategic level (D. Smith, Y. Silverstone, & A. Lajtha, 2010).
An effective human capital strategy helps put in place the right leaders to source, develop and direct the right workforce talent, supported by the right culture, organization and operating model. Work in the human capital dimension underpins many of the organization most important decisions about where and how to compete. In this way, a human capital strategy supports an enterprise in meeting today’s urgent needs while also helping it become agile enough to reposition itself for ongoing market competitiveness and growth.
2.1 STRATEGY DEVELOPING HUMAN CAPITAL (HUMAN RESOURCES PLANNING) Human resources planning should follow from organization or human resource policy and strategy formulation (C. Mabey, R Thomson, 2012). In this planning stage, the human resource department should identify mismatches between the stated organization objectives with the expectation of the employee. Human resources planning are the process of systematically forecasting the future demand, supply for employees and deployment of their skills within the strategic objective of the organization.
The organization objectives must convey top...
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