HUMAN CAPITAL

Human Resource
Management (Mngt1)
Introduction

Before the 80s, 'personnel' was commonly used to refer to employees in

an organization, with titles like Personnel Officer, Manager, or VP. Non-
unionized companies may assign roles like Employee Relations Officer,
Manager, VP, or SVP. Most companies have a Manual of Personnel Policy.
Human Capital Management has gained acceptance. In the U.S., there
is already a Human Capital Magazine which advertises itself as "the
magazine that focuses attention on how human capital management
creates business value and improves performance in personal and
organizational terms."

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According to Petty and Smith
Human Capital
Concept emphasizing skills
and education as valuable
investments in individuals.
And this concept was
developed extensively by
American economists Gary
Becker (1930 to present) and Human Capital Concept
Theodore Schultz (1902-
1998), In the last 20th
century.
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Adam Smith defined four types
of fixed capital
(1) useful machines, instruments
of the trade
(2) buildings as the means of
procuring revenue
(3) improvements of land; and
(4) Human Capital

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Human capital
Refers to the
knowledge and
abilities that enable
the performance of
labor in a manner that
generates market
What is Human Capital?
value.

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What is the impacts of Human Capital Concept todays?

In today's workforce, it
influences career opportunities,
income, and adaptability
through evolving industries,
fostering individual and
societal development.

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Components of Human Capital

Ability Behavior Efforts Time

 Knowledge Manifesting of Your exceeding The availability
 Skills Values, Ethics, work, to of your time to
 Talent Beliefs, and accomplish the finish your work
reactions task.

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 Career Growth Recognition
Opportunity to acquire Promotion to
more skills, trainings, recognized his
development achievement

Return on investment
(ROI) Happiness Pay and
The feelings of Benefits
Summarized into four categories Self-satisfaction, The money and
love, enjoyment sense of valued
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Finding the Proper Investor
Finding the proper investor
requires careful
consideration and
alignment of goals between
the business and the
investor. It's not just about
obtaining funds but also
about establishing a
partnership that can
contribute to the long-term
success of the business.

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Retaining the Proper Investor

Refers to the ongoing

effort of keeping the right
individuals, groups, or
entities who have invested
in a business or venture
actively engaged and
satisfied with their
investment. Retention is
crucial because it
contributes to the stability
and success of the business
over the long term.

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Review
Human capital
Emphasizes the knowledge,
skills, talent that contribute to
firm.
Finding Proper Investor
Fit & right partnership aligned
Impact of Human capital It with the firm vision.
maximizes the productivity and
innovation in one company. Retaining Proper
Components of H.C Ability, Investor. Maintained the
Behavior, Effort, Time benefits, relations, win-win
concept from Firm, Investor &
Return on Investment employees (ROI)
Career growth, recognition,
Happiness, Benefits
(motivation & Money)
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Reina S. Mateo
BSBA 1- Night Class

Retchel Paray
Mngt. Instructor

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Thank You!
God Bless!

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