By [http://ezinearticles.com/?expert=Shyamala_Sankaranarayanan]Shyamala Sankaranarayanan
Human capital - This is the term often used in lectures and workshops conducted by big corporate organizations for the benefit of their workforce. The knowledge, skills, expertise, experience and competencies of human resource are collectively called human capital and all organizations are more than ready to invest in human resource as they consider it to be a priceless asset. Business firms are keen to enhance their personnel capability by exceptional training and development. The ultimate aim is to empower the work force by which the organization stands to gain a competitive edge.
Some of the important factors that influence the personnel capability of an organization are as follows:
A) Factors related to the personnel system
B) Factors related to employee and organizational characteristics
Organizations invest huge sums of money in human resource training and development. What do they expect in return? High productivity per employee, low overhead costs, reduced employee turnover, reduced attrition, reduced absenteeism etc., creating a strategic advantage for the company. Highly satisfied and motivated workforce is a result of efficient and effective personnel system.
Corporate firms show genuine concern for the development of their workforce by creating an informal atmosphere facilitating free flow of communication. An open door policy followed by the superiors is also a welcome change that has strengthened the roots of superior-subordinate relationship. It should be remembered that functional areas are formed only for the purpose of understanding and analysis and in reality, there is no such demarcation and all the functional areas have to work in tandem to create a holistic effort that has a direct bearing on the development of an organization.
When we talk about human resource the following aspects have to be dealt with care as they are delicate in nature:
The existence and use of human resource and enhancement of its capability is of strategic importance for a firm to accomplish its goals and objectives.
Article Source: [http://EzineArticles.com/?Rate-of-Return-on-Investment-in-Human-Capital!&id=6046348] Rate of Return on Investment in Human Capital!
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| Journal of Human Capital (Photo credit: Wikipedia) |
Human capital - This is the term often used in lectures and workshops conducted by big corporate organizations for the benefit of their workforce. The knowledge, skills, expertise, experience and competencies of human resource are collectively called human capital and all organizations are more than ready to invest in human resource as they consider it to be a priceless asset. Business firms are keen to enhance their personnel capability by exceptional training and development. The ultimate aim is to empower the work force by which the organization stands to gain a competitive edge.
Some of the important factors that influence the personnel capability of an organization are as follows:
A) Factors related to the personnel system
- Man power planning
- Recruitment and Selection
- Development
- Compensation
- Communication
- Appraisal
- Position of the personnel department within the organization
- Procedures and standards
- Quality and competencies of managers and staff
- Perception about the image of the organization as a worker
- Availability of career opportunities and advancement
- Working conditions
- Corporate image
- Organizational climate
- Morale of the employees
- Union-management relationship
- Collective bargaining
- Employee welfare measures
- Safety
- Security
- Employee participation in management
- Formation of quality circles
- Total quality management
Corporate firms show genuine concern for the development of their workforce by creating an informal atmosphere facilitating free flow of communication. An open door policy followed by the superiors is also a welcome change that has strengthened the roots of superior-subordinate relationship. It should be remembered that functional areas are formed only for the purpose of understanding and analysis and in reality, there is no such demarcation and all the functional areas have to work in tandem to create a holistic effort that has a direct bearing on the development of an organization.
When we talk about human resource the following aspects have to be dealt with care as they are delicate in nature:
- Inter-personal skills
- Conflicts
- Morale
- Stress
- Job satisfaction
- Union problems-wages, welfare and security
- Discipline
Article Source: [http://EzineArticles.com/?Rate-of-Return-on-Investment-in-Human-Capital!&id=6046348] Rate of Return on Investment in Human Capital!
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