In business you may hear the term “human capital” used in
relation to building and maintaining an organization. A human capital model is
the pattern employed by an organization to best use the human capital at their
disposal. Let’s briefly look at these terms.
Webster (2005) defines capital in part as, “wealth (money or
property) owned or used in business by a person, corporation, etc… wealth, in
whatever form, used or capable of being used to produce more wealth… any source
of benefit or assistance.”
To speak of “human capital” is to express the value of human
beings to the success of an enterprise, and hence the importance of investing
in their training, education, and well being. Human capital theory is rooted in the work of British economists
Sir William Petty and Adam Smith. “It postulates that expenditure on training
and education is costly, and should be considered an investment since it is
undertaken with a view to increasing personal incomes” (Becker, 1964). Marshall (1998) asserts
that, “Human capital arises out of any activity able to raise individual worker
productivity.”
Too often leaders see human resources as a commodity to be
used up rather than to be cared for. Bolman and Deal (2003) place the emphasis
of “human resources” as seeing human
beings as a valuable resource to be
nurtured and cared for, not just expended as a means of production. The
assumption is that there is a symbiotic relationship between employees and the
organizations that employ them. They suggest a human resource perspective
should embrace the following core assumptions:
- Organizations exist to serve human needs rather than the reverse.
- People and organizations need each other. Organizations need ideas, energy and talent; people need careers, salaries and opportunities.
- When the fit between individual and system is poor, one or both suffer. Individuals are exploited or exploit the organization—or both become victims.
- A good fit benefits both. Individuals find meaningful and satisfying work, and organizations get the talent and energy they need to succeed (p. 115).
As to my organization, since my organization is the Church,
our primary emphasis (our HCM if you will) is upon the value and worth of every
human life—created by God with intention and purpose. God has made the supreme
investment toward the salvation of humankind. However, from a capitalistic
point of view, being a non-profit organization, we are not as concerned with
people being productive toward the accumulation of more wealth as we are of
people realizing their God-given potential toward their own personal
fulfillment and the building of His kingdom.
_____________
References:
Becker, G.S. (1964). Human
Capital: A theoretical and empirical analysis with special
reference
to education. New York .
Retrieved Sep 7, 2009 from http://economyprofessor.com/economictheories/human-capital-theory.php
Bolman, L.G. & Deal, T.E.
(2003). Reframing Organizations.
Artistry, choice and
leadership. San Francisco :
Jose-Bass
Marshall, G. (1998). Human capital theory. A Dictionary of Sociology.
Retrieved Sep 7, 2009 from
Encyclopedia.com:
http://www.encyclopedia.co./doc/1O88-Humancapitaltheory.html
Webster’s New
World College
Dictionary (4th ed). (2005).