Human capital

 

Capital is the things which are needs to earn money or organization goals. In that case human capital mean, people who are involve earning money to organization or do the necessary things to achieve company goals by using their knowledge and skills. Therefore, human capital management has a vital role in the organization. Now days human capital management is defined as the future of the organization. Hence, some of  the employees are leaving the organizations for different reasons.

·         Retirement

·         Dismissal

·         Negative work environment

·         Better salary

If effective management system involved to this, the employee turnover can be reduced largely. Before that it is needed to identify the features of the human capital.

·         Creativity and innovation

Organization should have the power to rebuild when they are falling down in critical situation. Because they have the ability to create relevant goals and drive the organization to achieve the goals. In that case organizations need good creative and innovative culture.

·         Knowledge and skills

People of the organization should have proper knowledge of the required field and qualified trainings. Then they can manage the relevant areas by taking decisions.

·         Value added

People can give the value to implementing the planning, developing strategic and achieve the goals. These values can be increase by motivation and training them

·         Competitive advantage

Employee of the company can be given the competitive advantage by have talented skills, good performance, flexibility and creativity than other competitors.

·         Increase the customer satisfaction

When employees have good loyalty to the company, loyalty of the customers of company are increase. This effect to the financial growth of the organization. Because when the company has good and talented employees, customers are more likely to get the service from that company.

So human capital management is important things to the organization. Because as mention earlier it gives more benefits to the  company.  In that case organization needs to identify the how to develop their human capital.

·         Developing cultural value

The company should have good relationship among the employees . Then clear career path to the employees. Organization need to have good working environment ( ex:no long working hours) and communication with the team. If employees are dissatisfied, they will easily move to another company.

·         Developing organization structure

Organizational structure should not more complicated and need to give more decision-making power. Then employees are feeling more effective works and become improve the quality of the work.

·         Recruiting and hiring

When hiring the people to the organization, the company should have to use more attractive recruiting methods. If not, employees will become dissatisfied easily. Therefore, selecting the matching people to that required job is more important things.

·         Optimizing performance

There should have proper monitoring system to employee’s performance and rewarding them according to their achievements.

·         Talent development

Proper training mechanism is needed to develop employee up to next level. Then organization can avoid the costly tun over.

 

 

Reference

Pasban, M & Nojedeh ,SH, 2016,’ A Review of the Role of Human Capital in the Organization’, Procedia - Social and Behavioral Sciences,vol.230,pp.249-253

 

Jeanetta ,t 2019,8 benefits of investing in your human capital development ,viewed by 1 July 2020,

https://theolsongroup.com/5-benefits-investing-human-capital/

 

Philanthropy University n.d., The Importance of Human Capital Management for Your Organization, viewed by 3 July 2020,

https://philanthropyu.org/the-importance-of-human-capital-management-for-your-organization/

 

Grimsley, S & Shinn, J n.d., What Is Human Capital? - Importance to An Organization, viewed by 3 July 2020,

https://study.com/academy/lesson/what-is-human-capital-importance-to-an-organization.html#partialRegFormModal