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Human Capital as a Revolution of Human Resources

If the company treats people as capital (human capital), then the company can obtain greater profits

That is, do not just treat humans as resources (human resources), but look at them as capital. Many companies treat their employees as human resources. This causes the company to earn a modest profit. Here I invite you to view employees as human capital (human capital) with all their knowledge, expertise and skills so they can run other resources.



As literally human capital (human capital) is knowledge, expertise, ability, and skills that make humans as capital or assets of an organization or company So when the employee or person concerned is no longer working, the company can still use the knowledge, expertise and skills possessed by the employee. That is, here humans are seen as a valuable asset or asset for the company.

This is certainly different from when humans are considered as a resource, which can be fired at any time when it is no longer productive. That is, when humans are only a resource and stop, all their knowledge, expertise and skills are no longer used by the company if you view humans as assets, they can be divided into two

Tangible Asset

Human Resources (HR) are considered here as a strategic central factor formed to carry out the various interests of the company's vision. So, in today's world environment, there has been a change in outlook regarding various resources that are strategic for the company. The change is from the dominance of physical resources (tangible assets) toward intangible assets.

The emergence of the view that knowledge as a very strategic corporate resource is based on the fact that knowledge can be used to develop valuable corporate competitiveness. So with the knowledge of the organization or company, human beings become visible capital. In its development, even humans are considered as a mobilizer of other resources.

Human capital has five main components, which are as follows
  • Individual Capability
  • Individual Motivation 
  • Leadership
  • The Organizational Climate 
  • Workgroup Effectiveness 

Intangible Asset

Today more and more companies are interested in using invisible assets and human capital as a way to gain an advantage over competitors. Included in the value of a company are three important types of assets for a company to provide goods and services, namely financial assets (cash and shares), physical assets (buildings, factories, equipment), and invisible assets.

An invisible asset is a type of corporate asset including human capital, consumer capital, social capital, and intellectual capital Human capital is one of the main components of a company's intangible assets. But so far the evaluation of company performance usually uses more resources that are tangible assets. That is, human capital is not positioning humans as capital like machines, but rather can help decision makers to focus on human development in order to improve the quality of the organization or company.

Therefore, even though it requires money, human capital management must still be done in a company. If necessary, use the services of professional financial planners in order to maximize the benefits of human capital management with limited costs.

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