Human Capital Management
Running head: HUMAN CAPITAL MGMT
P I5P Human Capital Management Key Assignment
Colorado Technical University
June 22, 2016
HRMT620-1402B-02
Dr. David Gliddon
P5 IP Human Capital Management Key Assignment
Business leaders today know that organizations hold three kinds of resources: financial, physical and human (Huang, Roy, Ahmed, Heng, & Lim, 2002). However, management often overlooks human resources because it cannot give a figure showing the company’s bottom line or net worth, like financial resources can. Nor can it be depreciated, as physical resources can. In fact, it has only been in more recent times, which some call the third phase of industrialization, that the human kind of resources has been given attention as a core competitive advantage (Browne, 2000).
The term human capital is used to describe the economic value of an employee’s capacities – education, abilities, experience. It refers to the notion that the quality of an employee can be improved upon by investing in that employee through benefits, training and education (Investopedia.com, 2014). Successful and competitive organizations recognize and appreciate the fact that their employees are an essential asset and contribute to the development and growth of the organization (Brocaglia, 2006). Those same successful companies manage human capital in the most efficient and effective manner possible. The bottom line is that they view their employees as individuals whom they are making an investment in; they are considered assets, not expenses (Brocaglia, 2006).
According to DiRomualdo and Martin’s i4cp report on critical human capital issues for organizations today (2013), the top four are managing organizational change, workforce analytics, workforce planning, and performance management. Of course, every organization is different and faces different challenges in the human capital arena. The development
P I5P Human Capital Management Key Assignment
Colorado Technical University
June 22, 2016
HRMT620-1402B-02
Dr. David Gliddon
P5 IP Human Capital Management Key Assignment
Business leaders today know that organizations hold three kinds of resources: financial, physical and human (Huang, Roy, Ahmed, Heng, & Lim, 2002). However, management often overlooks human resources because it cannot give a figure showing the company’s bottom line or net worth, like financial resources can. Nor can it be depreciated, as physical resources can. In fact, it has only been in more recent times, which some call the third phase of industrialization, that the human kind of resources has been given attention as a core competitive advantage (Browne, 2000).
The term human capital is used to describe the economic value of an employee’s capacities – education, abilities, experience. It refers to the notion that the quality of an employee can be improved upon by investing in that employee through benefits, training and education (Investopedia.com, 2014). Successful and competitive organizations recognize and appreciate the fact that their employees are an essential asset and contribute to the development and growth of the organization (Brocaglia, 2006). Those same successful companies manage human capital in the most efficient and effective manner possible. The bottom line is that they view their employees as individuals whom they are making an investment in; they are considered assets, not expenses (Brocaglia, 2006).
According to DiRomualdo and Martin’s i4cp report on critical human capital issues for organizations today (2013), the top four are managing organizational change, workforce analytics, workforce planning, and performance management. Of course, every organization is different and faces different challenges in the human capital arena. The development
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