The success of any organization not only depends merely on its tangible assets but also on the company’s reporting practices, policies adopted, technology used, awareness of stakeholders, investor’s role, financial analyst’s comments, and attitudes of public occupies a predominant role.
The past few years skyrocketing development has prompted companies to start considering the importance of intangible assets, especially human capital, in the company’s annual reports. Human capital is one of the vital components of intellectual capital that drives value creation especially in the knowledge-intensive companies.
Human capital generally refers to an individual’s knowledge, skills, and technical ability who in turn desire to participate and share to their teams to achieve the goals of the organization. To have a long-term survival and sustainability, companies have started highlighting its human capital disclosure in its annual reports. Human capital reporting has received considerable academic and practitioner attention across the globe over the past few years.
HOW HUMAN RESOURCES ARE DIFFERENT FROM HUMAN CAPITAL?
The difference between the function and what it solves for is the difference between human resources and human capital. It needs a complete shift in mindset from top to bottom from human resources to human capital.
Human capital is how people contribute to growth. It is about allowing the individual to influence more. |
Author Bio
i read the two articles of Nishkala on intellectual capital reporting and How Human Resources Are Different From Human Capital.
she has written very lucidly .
i wish her all the best.
Sir seriously such word’s are really enhancing positivism in me. Will improve gradually in me and share to other’s my small learnings. Thanks a lot sir.
Have highlighted the difference between human resources and human capital in a simple manner and brought out the importance of assessment human capital of an organisation.
As you rightly enunciated human resources are broad concept and human capital relates to company’s accelerated growth and corporate governance to stockholders. The company focus on developing human capital to have long term sustainability and performance. Your attempts to dwelt and differentiate between the two, would guide company’s to sharpen their focus to add value to the tangible assets of human capital. Good attempt.
Thanks a lot for such motivating lines sir. Will do more too.