Human Capital

Topics: Human resource management, Human resources, Management Pages: 11 (2261 words) Published: January 16, 2014
HUMAN CAPITAL
INTRODUCTION:
HUMAN BEINGS BRING KNOWLEDGE & ATTITUDE TO THEIR PLACE OF WORK KNOWLEDGE
PROVIDES
CAPABILITY
ABILITY
TO PERFORM
CAPABILITY IS ASSOCIATED WITH CREATIVITY
ABILITY WITH DOING [ACTION]
BESIDES KNOWLEDGE, EXPERIENCE CAN ALSO BE THE SOURCE OF ABILITY THE SCOPE OF ABILITY BASED ON EXPERIENCE IS LIMITED
HUMAN CAPITAL:
IN PAST IT WAS HR; TODAY IT IS HUMAN CAPITAL
HUMAN CAPITAL IS KNOWLEDGE + COMPETENCIES REQUIRED TO PERFORM TO PRODUCE ECONOMIC VALUE KNOWLEDGE SHOULD BE APPLIED TO ANY WORK SITUATION TO PRODUCE ECONOMIC RESULTS CONSTANT APPLICATION OF KNOWLEDGE, ONE BECOMES EXPERT

TYPES OF CAPITAL
HUMAN CAPITAL
INTELLECTUAL CAPITAL
STRUCTURAL CAPITAL
CAPITAL STRUCTURE
HUMAN CAPITAL
SUM OF COMPANY’S EMPLOYEES INCLUDING THEIR COMPETENCIES / TALENTS / CREATIVITY / KNOW-HOW KNOWLEDGE COMPANY SEEKS TO UTILIZE
INTELLECTUAL CAPITAL
THE SUM OF A COMPANY’S IDEAS / INVENTIONS / TECHNOLOGY / KNOWLEDGE / COMPUTER PROGRAMS / PATENTS / TRADEMARKS / DESIGN / METHODS SYSTEMS / PROCESSES / PUBLICATION WHEN CODIFIED, DEFINED WRITTEN OR COMMITTED TO MEDIA FORM

THE COMPANY’S INTELLECTUAL ASSETS CAN BE MOVED / LEASED / SOLD. WHEN THESE INTELLECTUAL ASSETS ARE LEGALLY PROTECTED, WE CALL THEM INTELLECTUAL PROPERTY STRUCTURAL CAPITAL
THE SUM OF A COMPANY’S TANGIBLE ASSETS INCLUDING FINANCIAL ASSETS / BUILDING / MACHINERY 7 EQUIPMENT / MANUFACTURING FACILITIES / DISTRIBUTION CHANNELS / SALES OUTLETS CUSTOMER CAPITAL
THE SUM OF A COMPANY’S CUSTOMERS INCLUDING THEIR NAMES / CONTRACTS / CONTACT DATABASE / LOYALTY / SATISFACTION / REFERENCES / TESTIMONIALS / FUTURE REVENUE HUMAN CAPITAL MANAGEMENT TOOLS & STRATEGIES TO DELIVER PERFORMANCE RESULTS: TO MAXIMIZE RETURN ON INVESTMENT, EMPLOYEE SELECTION & DEVELOPMENT TO BE INTEGRATED. HR STRATEGY IS”HIRE TO RETIRE” INTEGRATE TOOLS & PROCESSES ASSOCIATED WITH PEOPLE & PERFORMANCE TO REALIZE ORGANIZATION OBJECTIVE, ALIGN NEEDS OF INDIVIDUALS WITH ORGANIZATION GOALS TO DELIVER RESULTS, INTEGRATE ORGANIZATION OBJECTIVES WITH COMPETENCE OF PEOPLE IN TODAY’S COMPETITIVE ENVIRONMENT, JOB CONTENTS ARE CONSTANTLY UNDERGOING CHANGE. IDENTIFY COMPETENCIES FOR TOMORROW’S JOB, & ACCORDINGLY EDUCATE PEOPLE. EMPLOYEES SHOULD CONSTANTLY UPGRADE THEIR KNOWLEDGE & LEARN NEW KNOWLEDGE IN TODAY’S COMPETITIVE ENVIRONMENT EMPLOYEES SHOULD EITHER PERFORM OR PERISH [RETIRE] RECRUITMENT

LET SELECTION BE OBJECTIVE
MATCH PEOPLE WITH ORGANIZATION
TRAINING
LET EDUCATION BE ONLINE
EVALUATION SHOULD ALSO BE ONLINE
IF LEARNING HAS TAKEN PLACE, RECOGNIZE THE SAME
PERFORMANCE APPRAISAL
COMPETENCY SHOULD BE THE CRITERIA FOR PERFORMANCE
COMPENSATION
PAY FOR PERFORMANCE

SIX FACTOR HUMAN CAPITAL STRATEGY MODEL POWDIR
PEOPLE
WORK PROCESSES
ORGANIZATION STRUCTURE
INFORMATION KNOWLEDGE
DECISION MAKING
REWARDS
PEOPLE:
INCLUDES:
CAPABILITIES
EXPERTISE
DEVELOPMENT
DEMOGRAPHICS & DIVERSITY
WORK PROCESSES
INCLUDES:
WORK FLOW
SEQUENCE OF ACTIVITIES
UNIT (INTER) DEPENDENCIES
ORGANIZATION STRUCTURE
INCLUDES:
ROLES & RESPONSIBILITIES
JOB DESIGN
REPORTING RELATIONSHIP
GOAL SPECIFICATION
PERFORMANCE MANAGEMENT
INFORMATION & KNOWLEDGE
INCLUDES
COMMUNICATION: MECHANISM & FLOWS
INFORMATION EXCHANGE
INTELLECTUAL CAPITAL: USE / CREATION
INFORMATION SYSTEM
DECISION MAKING
INCLUDES
VISION STRATEGY
DECISION MAKING ACCOUNTABILITY
SPEED & QUALITY DECISION MAKING
PARTICIPATION
DECENTRALIZATION
REWARDS
INCLUDES
MONETARY / NON-MONETARY
LONG / SHORT TERM
WORK ITSELF
CAREER PROGRESSION

CONCLUSION
IN PAST ECONOMIC THEORIES CONSIDERED HUMAN BEINGS AS LABOUR; ONE OF THE THREE FACTORS OF PRODUCTION TODAY HUMAN BEINGS ARE CONSIDERED AS COMPETITIVE ADVANTAGE TO BUSINESS TODAY THE ONLY VITAL VALUE ANY ENTERPRISE HAS ESII

EXPERIENCE
SKILLS
INNOVATIVENESS
INSIGHTS OF ITS PEOPLE
THERE IS A FLOOR TO COST REDUCTION, BUT NO CEILING TO VALUE CREATION VIEW HR AS VALUE PRODUCING ASSET, INSTEAD OF COST TO BE MINIMIZED / REDUCED / CONTROLLED ASSIGNMENTS
1. VISIT A MANUFACTURING...
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