Evolution of Human Resource to Human Capital: A Strategic Shift

As per the Darwins theory of evolution, everything has to evolve in order to sustain its identity. Corpo pose and its milieu ar changing every solar mean solar day as per the needs and behaviour of the customer. red-hot strategies and models be evolving and the old sen eonnts atomic number 18 every getting modified or are getting redundant if not practised. familiarity of attracting, selecting, deploying and come aparting talent and strategies has given a competitive advantage to the companies.In line of business of this kind-hearted imaging, that was considered as a supporting prepare in strategy formulation, now has interpreted a front lead in ceiling extension and hence regarded as the clement Capital. Peter Drucker famously specify a knowledge economy as one in which the serviceman headspring provides the primary means of exertion. He accordingly noted the obvious corollary that an organizations most valuable imaging is lodged in the heads of its employee s and goes home with them at night. Reference4.This is how profligates micturate started involving employee mesh at all aims for decision qualification and sellment forecasts (be it in any(prenominal) field, i. . Operations, finance, Marketing, Human Resource department and so forth ) and not only a pre-selected group of individuals. Concepts kindred brainstorming of ideas prevail also evolved with the concept of serviceman peachy. In this article, let us first define mankind mental imagery and gentleman metropolis briefly. Human Resource was regarded as the mark of individuals that forms the employee strength of any organization and its proviso was typically considered as the process of anticipating and providing for the movement of people into, at heart and out of the organization.Previously unshakables were giving much(prenominal) importance to dust implementation than mankind resource development as technology was much honestr. moreover with the advance ment of technology and shortage of skilled manpower, self-coloured has started giving look on to their employees and have initiated different measures to enhance their skills. This has generated the concept of Human Capital. Human capital contract the concept of adult male resource in damage of expertise and knowledge beneficial for the company. Human Capital describes the economic evaluate of employees knowledge, skills and capabilities.This concept has highlighted the fact that success increasingly depends on an organization aptitude to negociate talent and stressed upon the idea of deal through people. In line of strategical planning that involves a set of procedures for fashioning decision about the firms big term goals and strategies, forgiving being capital has taken the front seat. In the older model with the advancement of system technology, corporates started considering system forrader benevolent resource. Their master(prenominal) goal was to make piece resource as predictable as corpo authentic assets.But in last 40 days this concept has gradually changed and now the concepts similar Toyota Production system pioneered the model that benignantkind resource come much before systems and that any individual on the production line had the capability often regarded as the ownership to point out problems and rest the line when proper standard run procedures (SOP) is not being followed or to a greater extent or less error has occurred. This has also extrapolated the idea that it is the human resource that drives and maintains the system and is not the other way round.It has also advanced the human resource processes to be continuous and not episodic as considered previously. Human capital is clearly different from the tangible pecuniary capital due to the distinguishing characteristic of human capital to grow cumulatively everywhere a long span of time. receivable to the shocks experienced in the business cycles it is gruelin g to maintain the linearity in reaping of tangible monetary capital. During the period of prosperity, monetary capital grows at relatively high magnitude while during the period of ceding back and depression there is a drop cloth in generation of monetary capital. Reference3.Contrary to this, human capital has uniformly rising rate of harvest-festival over a long period of time because the foundation of this human capital is laid down by the skills some(prenominal) technical as rise as educational and health inputs. Reference3. The received generation is qualitatively developed by the effective inputs of education and health that lead also benefit the future generation by its advance research and development. thus the future generation gets refined day by day in terms of skills, production depicted object etc. generating more than than human capital with superior quality.Firms have started banking upon their skill inventories for their business differentiation. Skill in ventories attend each employees education, past run experience, vocational interest, specific abilities and skills, compensation storey and job tenure. IT hubs in Hyderabad, Bangalore etc. have banked upon their skill inventories and this has signified the rapid addition of Indian economy. Companies such as Mackenzie etc. has over a period of time emphasised and given inputs to develop a pool of human capital to encourage the competitive advantage.Now the trategy formulation has moved from simple analysis to devising a ordered course of inputs and actions. Thus cumulative growth of Human Capital in India is evident. Countries manage china have always banked upon their human capital for their economic growth. many another(prenominal) reasons explicitly explain the strategic change of human resource to human capital study of which is globalization. Globalization has led to multitasking of the employees where the work pass is developed in a holistic manner to accomplish many tasks at one time. The resources are utilised in a much better way.Individual knowledge bases are continually changing and adapting to the real world in front of them. So the dimension of knowledge is not hold in to demographic borders and has developed leaps and bounds. Training programs musical accompaniment building the human capital by ontogeny superior knowledge, skills and experience inside the workforce. Managers of today are thriving to develop business agility in their team. Many development assignments are getting unified for employees, empowering them and ensuring that their job duties and requirements are flexible generous to allow growth and learning.Human capital is intangible and elusive and cannot be tapped the way organizations manage jobs, products and technologies. One of the reasons for this is that the employees, not the organization or system own their human capital. If value employees leave a company, they take their human capital with them, and any inv estment the firm has made in training and developing those employees is lost. Technology advancement has also pioneered the slip of human resource to human capital.Companies similar Apple, Samsung are coming up with more than one product in a year where the human talent is apply profusely to gain the technical niche. advance of technology tends to reduce the job openings that requisite little skill and increased the pip that required considerable skills. This transformation has shifted the human resource from touch labours to knowledge workers, in which the employee responsibilities expand to map a richer arrange of activities such as planning, decision making and problem solving.Even the firm are preparing unappeasable prints of programs to reform the skills of not only the amphetamine management but also the heart and the lower management also. Firms are creating programs and awards want mentorship program, performance pay, incentives, bonuses and other awards for all l evel of employees to retain their human capital. Because employee skills, knowledge and abilities are amongst the most distinctive and renewable resources on which a company can draw, their strategic management is more important than ever. Reference2.Thus HR professional can concentrate more effectively on the firm turn over direction instead of daily morsel tasks. This blueprint can include forebode personnel needs especially for firms planning to expand, contract or merge, planning for life history and employee promotions, and evaluating the impact of the firms policies- both those related to HR functions and other functions- to improve the firms earning and strategic directions. But the main challenge comes in usage of human resource as human capital.Without proper ownership and proper activities that capitalizes the guile of an employee, the part of the capital gets unutilized and goes as lazy waste. Managers are architecting work for the employees in such a manner where they feel themselves attached and their skills are enhanced. This also catapults their full capacity utilization. The evolvement of this concept has inevitably changed the focus of firm from traditional Human Resource instruction to strategic Human Capital Management.To be in the competition firms are victimisation their human capital to implement both proactive and reactive change initiatives and are crossing the line to retain their human capital. Such is the magnitude of human capital in todays scenario, where in a manager success is persistent by the amount of human capital he has generated or retained in a year. The future depends on engage businesses that leverage human capital.