The human capital is referred as the knowledge and the set of skills that is possessed by population or an individual. The human capital is viewed in terms of the value or skill the person obtains and the value of money or cost the person attains. In terms of the organizations, human capital is the set of skills that employees acquire, and use their human skills to generate ideas, and perform work effectively and efficiently (Levy, 2010).
The resources for human capital include talent, knowledge, and wisdom, judgment, training, which is possessed collectively or individually. The human capital creates the material wealth for a firm or an economy (Von, 2009). The report emphasizes on the significance of human capital in the global organizations. …show more content…
In the modern business, the term human resources management is used to define the department. The sole reason to develop excellence in the department is to obtain the finest resources from the pool of candidates and train them for the needs of the business (Chiswik, 2009).
Such method is also common in employing fresh graduates. As the fresh graduates do not possess any experience in the field, the HR trains them, and provides them the necessary knowledge to not only survive, but perform in the work pressure and duties.
Aligning Human Capital with Business Strategy It is also observed that the companies use their talent, and human capital that they possess with their main business strategies to obtain the results. It is because of the intense competition in the market place that companies align the human skills they possess with the strategies of the business (Tomasello, 2009). It uses the customization option of human talent, and training the employees according to the requirement of the company. The employees are awarded according to their performance in the company.
The resources for human capital include talent, knowledge, and wisdom, judgment, training, which is possessed collectively or individually. The human capital creates the material wealth for a firm or an economy (Von, 2009). The report emphasizes on the significance of human capital in the global organizations. …show more content…
In the modern business, the term human resources management is used to define the department. The sole reason to develop excellence in the department is to obtain the finest resources from the pool of candidates and train them for the needs of the business (Chiswik, 2009).
Such method is also common in employing fresh graduates. As the fresh graduates do not possess any experience in the field, the HR trains them, and provides them the necessary knowledge to not only survive, but perform in the work pressure and duties.
Aligning Human Capital with Business Strategy It is also observed that the companies use their talent, and human capital that they possess with their main business strategies to obtain the results. It is because of the intense competition in the market place that companies align the human skills they possess with the strategies of the business (Tomasello, 2009). It uses the customization option of human talent, and training the employees according to the requirement of the company. The employees are awarded according to their performance in the company.