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Exploring human capital: Putting human back into strategic human resource…
Exploring human capital: Putting human back into strategic human resource management
Human resource management
Definition
Planned human resource deployments.
Activities to enable achieving goals.
Composition
Determinants of decisions about HR practices.
Composition of human capital resource pool.
Requieres human resource behaviors.
Effectiveness of decisions.
Business strategies.
Competitive situations.
Focus
Practices that impact human capital.
Relationship between HR practices and performance.
Relationship between human capital and performance.
Objective
Attract talent.
Motivate talent.
Develop talent.
Retain talent.
Provide competitive advantage.
Human capital
Definition
Knowledge of individuals.
Information about individuals.
Ideas of individuals.
Skills of individuals
Health of individuals.
Characteristics
Assets that yield income over longs periods of time
People can't be separated from their qualities.
Implications
Different firms make different investment choices regarding human capital.
Individuals make conches regarding the investments made in their human capital.
Individuals make decisions weighing benefits and costs.
Approaches
Economic view
Defines human capital in terms of their knowledge, skills, etc.
Agregate human capital's relationship with productivity and economic stress.
Psychology
Equates human capital with the characteristics of the individual.
Cognitive ability's relationship with performance.
Focus on how organizations impose on people.
Human capital developed in individuals.
Aggregate accumulation of individual human capital that creates value.
Measurement of human capital in strategic HRM
Subjective measures
Based on perceptions of a single respondent.
Bias.
Innacuracy of reporting.
Inconsistencies.
Low reliabilities.
Attempt of mitigation of earlier problems by having multiple raters.
Proxies
Prevalent in economic and macro organizational areas.
Critical issues.
Validity of stand-in variable as human capital
Reduced ability to find significant relationships.
Valid assessments fraught with considerable error variance.
Direct assessments
Directly assess characteristics of individuals instead of using indirect assessments.
Account for more variability in the characteristics being assessed.
Reduce error variance.
Are more relevant to the particular job at hand.
Future directions in human capital
Emergence
Meacurement
Issues regarding human capital in strategic HRM
Individual versus collective.
Unit-level human capital is either more or less than the simple aggregation of the individuals.
Specific versus general.
Human capital as purely general or purely specific.
Competitive advantage achieved through firm-specific human capital.
General human capital characteristics will be compensated at a market level.
Transferability of human capital.
Ownership of capital.
Skills versus motivation versus behaviour