Human Capital and Social Capital
SCHOOL OF BUSINESS
PHD OF BUSINESS ADMINISTRATION
UNIT: HUMAN RESOURCE SEMINAR
UNIT CODE: DHR 702
TOPIC: HUMAN AND SOCIAL CAPITAL
BY: JOSEPH KIOKO
REG. NO: D80/61281/2011
DATE: 05/06/2013
LECTURER: PROF. P. O. K’OBONYO
Introduction and Definitions:
Human capital is defined by the OECD (1998, p9) as “the knowledge, skills and competences and other attributes embodied in individuals that are relevant to economic activity.” While Duration of schooling and levels of qualification are the standard measures used to measure human capital the OECD itself acknowledges that these are far from capturing the full extent of human capital.
Bontis et al (1999) define Human Capital as “Human Capital represents the human factors in the organization; the combined intelligence, skills and expertise that give the organization its distinctive character. The human elements of the organization are those that are capable of learning, changing, innovating and providing the creative thrust, which if properly motivated can ensure the long-term survival of the organization.”
Davenport (1999) asserts that “People possess innate abilities, behaviors and personal energy and these elements make up the human capital they bring to their work. And it is they (employees) and not their employers who own the capital and decide when, how and where they will contribute it.” The emphasis being that Human Capital consists of intangible resources that workers provide to their employers.
Human Capital focus on attributes an individual possesses e.g. education and experiences. These attributes represent an asset both at individual and organizational level. For an individual, more education and experience provide a satisfactory position in the job market and safeguards one’s position against environmental turbulence. More human capital leads to higher compensation and personal rewards; workers with more education and
PHD OF BUSINESS ADMINISTRATION
UNIT: HUMAN RESOURCE SEMINAR
UNIT CODE: DHR 702
TOPIC: HUMAN AND SOCIAL CAPITAL
BY: JOSEPH KIOKO
REG. NO: D80/61281/2011
DATE: 05/06/2013
LECTURER: PROF. P. O. K’OBONYO
Introduction and Definitions:
Human capital is defined by the OECD (1998, p9) as “the knowledge, skills and competences and other attributes embodied in individuals that are relevant to economic activity.” While Duration of schooling and levels of qualification are the standard measures used to measure human capital the OECD itself acknowledges that these are far from capturing the full extent of human capital.
Bontis et al (1999) define Human Capital as “Human Capital represents the human factors in the organization; the combined intelligence, skills and expertise that give the organization its distinctive character. The human elements of the organization are those that are capable of learning, changing, innovating and providing the creative thrust, which if properly motivated can ensure the long-term survival of the organization.”
Davenport (1999) asserts that “People possess innate abilities, behaviors and personal energy and these elements make up the human capital they bring to their work. And it is they (employees) and not their employers who own the capital and decide when, how and where they will contribute it.” The emphasis being that Human Capital consists of intangible resources that workers provide to their employers.
Human Capital focus on attributes an individual possesses e.g. education and experiences. These attributes represent an asset both at individual and organizational level. For an individual, more education and experience provide a satisfactory position in the job market and safeguards one’s position against environmental turbulence. More human capital leads to higher compensation and personal rewards; workers with more education and