CHAPTER 2

HUMAN CAPITAL
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 HUMAN CAPITAL
COMPONENTS OF HUMAN CAPITAL
1. KNOWLEDGE
2. ABILITIES
3. SKILLS
4. EDUCATION
5. TRAINING
6. EXPERIENCE
7. JUDGMENT
8. WISDOM
9. CREATIVITY
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 HUMAN CAPITAL
 HUMAN CAPITAL MANAGEMENT (HCM) IS A SET OF
PRACTICES RELATED TO PEOPLE RESOURCE
MANAGEMENT. WHICH FOCUSES ON THE
ORGANIZATIONAL NEED TO PROVIDE SPECIFIC
COMPETENCIES AND ARE IMPLEMENTED IN THREE
CATEGORIES: WORKFORCE ACQUISITION,
WORKFORCE MANAGEMENT AND WORKFORCE
OPTIMIZATION
 HUMAN CAPITAL: THE KNOWLEDGE,
EDUCATION, TRAINING, SKILLS, AND EXPERTISE
OF A ORGANIZATION’S WORKFORCE. 3
KNOWLEDGE: IS A NEW CURRENCY FOR ECONOMIC AND CAREER
DEVELOPMENT.
KNOWLEDGE: IS TO DO, TO CREATE, TO INNOVATE, TO MAINTAIN. IN
GENERAL IT IS THE MIND SET TO BE PROACTIVE.

KNOWLEDGE IS THE DOMINANT GROUP IN THE COMPANY’S

WORKFORCE.
WORKFORCE HAS TWO CATEGORIES “THE FITS AND UNDER FITS.
THESE TWO WORKFORCE ARE LIKELY DIFFER MARKEDLY IN THEIR
NEEDS AND BEHAVIOR, AND IN THE JOB THEY PERFORM.
SUCCESS AND FAILURE OF A BUSINESS DEPENDS UPON THE
KNOWLEDGE THAT THE LEADER HOLDS.

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SKILLS: IS THE DEGREE TO WHICH A JOB
REQUIRES A VARIETY OF ACTIVITIES SO
THAT AN EMPLOYEE CAN USE A NUMBER
OF DIFFERENT SKILLS AND TALENTS.
SKILLS QUALIFICATION INVENTORY:
EDUCATION
LANGUAGE
CAREER DEVELOPMENT INTEREST
SPECIAL SKILLS
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SKILL: MAXIMIZES THE SIMILARITY BETWEEN
TRAINING SITUATION AND WORK SITUATION.
IT:-
 HELPS TO CONTRIBUTE ADEQUATE PRACTICE
 LABEL/IDENTIFY POTENTIAL WORKFORCE
 DIRECT IN A PROPER AND REQUIRED RIGHT
DIRECTION
 PROVIDE ‘HEADS UP’- TO BECOME FIRST LINE
SUPERVISORS IN STRESSFUL CONDITIONS
 IS LEARNING –BY-DOING
 HELPS TO DO THINGS IN ONCE OWN PACE 6
CREATIVITY: THE ABILITY TO COMBINE IDEAS
IN A UNIQUE WAYS OR TO MAKE UNUSUAL
ASSOCIATION BETWEEN IDEAS. A CREATIVE
ORGANIZATION DEVELOPS UNIQUE WAYS OF
WORKING OR NOVEL SOLUTION TO PROBLEMS.
CREATIVITY ALONE IS NOT ENOUGH, IT SHOULD
BE TURNED TO INNOVATION. AN INNOVATIVE
ORGANIZATION IS CHARACTERIZED BY THE
ABILITY TO CHANNEL CREATIVITY INTO USEFUL
OUTCOMES. A LEADER SHOULD NURTURE
INNOVATION. 7
CREATIVITY:
 BRINGS NEW THINGS INTO BEING (CREATIVENESS)
 JOIN TWO PREVIOUSLY UNRELATED THINGS (SYNTHESIS)
 IMPROVE SOMETHING OR GIVE IT A NEW APPLICATION
(MODIFICATION)
TO BE CREATIVE YOU DO NOT NEED TO BE A GENIUS STUDENT AT
SCHOOL OR ALBERT EINSTEIN OR THOMAS EDISON. YOU HAVE LITTLE
THING IN YOU BUILD/DEVELOP THAT USING AVAILABLE LITTLE
OPPORTUNITY, THEN YOU CAN BE CREATIVE.
 GENERATING UNIQUE AND NOVEL RESPONSES TO PROBLEMS AND
OPPORTUNITIES.

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WISDOM: IS YOUR PERSPECTIVE IN LIFE
IS YOUR SENSE OF BALANCE
IS YOUR UNDERSTANDING OF HOW THE VARIOUS PARTS AND
PRINCIPLES APPLY AND RELATE TO EACH OTHER THAT
EMBRACES:-
JUDGMENT
DISCERNMENT
COMPREHENSION
WISDOM IS A RESULT OR ONENESS AND INTEGRATED WHOLENESS.

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EDUCATION:
EDUCATION AS ONE PERCEIVES, IT HAS BEEN TAUGHT, IT IS
INFORMED; BY QUANTUM CONCEPTS:

RELATEDNESS -
HOLISTIC PERSPECTIVE
DUALITY
UNCERTAINTY
PARTICIPATION
ENERGY

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EXPERIENCE
EXPERIENCE IS A PRACTICAL KNOWLEDGE, SKILL, OR PRACTICE
DERIVED FROM DIRECT OBSERVATION OF PARTICIPATION IN EVENTS
OR IN A PARTICULAR ACTIVITY.
EXPERIENCE IS:-SKILL, TALENT, ABILITY ONE OWNS

ABILITY: .A PERSON’S EXISTING CAPACITY TO PERFORM THE

VARIOUS TASKS NEEDED FOR A GIVEN JOB
.POSSESSION OF SKILL TO DO SOMETHING
.TALENT, SKILL AND PROFICIENCY

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 SUMMARY
KNOWLEDGE:
WHAT IS LEARNED
FAMILIARITY WITH FACTS
FACTUAL INFORMATION LEARNED FROM SCHOOL, BOOKS, EXPERTS

WISDOM:
QUALITY OF HAVING EXPERIENCE, KNOWLEDGE, GOOD JUDGMENT
THE ABILITY TO KNOW WHAT IS TRUE, OR RIGHT AND LASTING
THE COLLECTION OF LEARNED KNOWLEDGE
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POOLING TOGETHER KNOWLEDGE
AND PERSONAL EXPERIENCE
THE ABILITY TO USE THE
KNOWLEDGE
KNOWLEDGE IS RELATED TO
COMPLEX REASONING TO PROBLEM
SOLVING
IS AN APPLICATION OF KNOWLEDGE
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INTELLIGENCE:
THE ABILITY TO RETAIN KNOWLEDGE
USE REASONING TO SOLVE A PROBLEM
IT INVOLVES REASONING ALL THE KNOWLEDGE GAINED FOR SIMPLE
PROBLEM SOLVING

INSIGHT:
THE ABILITY TO SEE THINGS OR UNDERSTAND SOMETHING CLEARLY
OFTEN USING INTUITIONS
THE ABILITY TO SEE AND COMPREHEND THE NATURE OF THINGS
IT IS BIGGER PICTURE THAN WISDOM

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KNOWLEDGE AND WISDOM BOTH
ARE VERY IMPORTANT PARTS OF
PERSONAL DEVELOPMENT AND
WIDE SCOPE OR GLOBAL DECISION
MAKING

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TRAINING: REFERS TO METHODS USE
TO GIVE NEW OR PRESENT
EMPLOYEES THE SKILLS THEY NEED
TO PERFORM THEIR JOBS.

HELPING EMPLOYEES DO THEIR PRESENT

JOBS.
TRAINING:
HELPING MANGERS HANDLE FUTURE
RESPONSIBILITIES
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REFERENCES

1. ROBERT T. MORAN, PHILIPP R. HARRIS, SARAH V. MORAN (2007)

MANAGING CULTURAL DIFFERENCES

2. GARY DESSLER (2003) HUMAN RESOURCES MANAGEMENT

3. BATEMAN SNELL (2002) MANAGEMENT

4. STEPHEN P. ROBBINS, MARY COULTER, NEHARIKA VOHRA (2010)

MANAGEMENT

5. STEPHEN R. COVEY (2004) THE SEVENTH HABIT

6. JOHN R. SCHERMERHORN, JR. JAMES G. HUNT, RICHARD N. OSBORN

(2005) ORGANIZATIONAL BEHAVOIUR 9TH EDN.

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END OF CHAPTER TWO!!

Thank you all

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