HUMAN CAPITAL

KUMARI MONISHA
BARC/15024/12
DEFINATION
 THE TERM HUMAN CAPITAL
-Describes people and
-Their collective skills, abilities, experience and
potential
 It is the skills, knowledge, and experience possessed by
an individual or population, viewed in terms of their
value or cost to an organization or country.
 Human capital is the stock of knowledge, habit, social
and personality attributes, including creativity, embodied
in the ability to perform labor so as to produce economic
value.
 Alternatively, Human capital is a collection of resources—
all the knowledge, talents, skills, abilities, experience,
intelligence, training, judgment, and wisdom possessed
individually and collectively by individuals in a
population.
These resources are the total capacity of the people that
represents a form of wealth which can be directed to
accomplish the goals of the nation or state or a portion
thereof.
 Human Capital is one of three elements to make up
intellectual capital.
INTELLECTUAL CAPITAL
 Intellectual capital describes the knowledge assets
available to the organizations and is a large part of
intangible value. It can be described as:
 Human capital – the knowledge, skills, abilities and
capacity to develop and innovate, possessed by people
in an organization
 Social capital – the structures, networks and
procedures that enable those people to acquire and
develop intellectual capital represented by the stocks
and flows of knowledge derived from relationships within
and outside the organization
 Organizational capital –the institutionalized
knowledge possessed by an organization which is stored
in databases, manuals etc. This would also include HR
policies and processes used to manage people.
Human capital role

 Economic development
 Productivity growth,
 and innovation
 HUMAN CAPITAL MANAGEMENT
 Human Capital Management can be defined as
“an approach to people management that treats
it as a high-level strategic issue and seeks
systematically to analyze, measure and
evaluate how people policies and practices
create value”
Human capital management (HCM) is an approach to
employee staffing that perceives people as assets
(human capital) whose current value can be
measured and whose future value can be enhanced
through investment.
Investments- education, training and other learning
methods
Difference between HCM AND
HRM

 What distinguishes human capital and HCM from HRM is

the emphasis on the value of people and what they
produce, rather than a focus on the HR function itself-
Andrew Mayo
 HCM, unlike HRM, is about assessing the impact of
people management practices and the contribution of
people to bottom-line performance.
 The development of human capital might develop as
follows:
 assessing the effectiveness of HR
 evaluating the impact and effectiveness of people
management processes
 using human capital data
 developing measures to calculate the return on
investment in people
 HCM, which includes strategically-focused areas HCM
reporting.
 THANK YOU