Human Capital Analysis

2144 Words9 Pages
Definitions In order to present a narrow definition of Human Capital in respect to the following analysis it is important to remark as well the meaning of capital. Capital is defined as an asset that yields income and other useful outputs over a period of time. Capital has been seen usually as physical financial asset (bonds, shares, investment) , however the Term Human Capital is an extended view of how important the Human resources are in the current performance not only of companies but in the current economic development as a whole. Human Capital is defined by the Oxford English dictionary as “the skills, knowledge and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country”,…show more content…
As mentioned by Chatzkel (2004): “it is Human Capital that is the differentiator for organizations and the actual basis for competitive advantage.” It has become more and more apparent that here is where the underlying difference between companies in the internationalized economics lie. Companies nowadays have access to more or less the same resources, which is the reason why Human capital has become a more relevant subject in the last decades. Diversity can be described according to Kandola and Fullerton (1998) as: visible and non-visible differences which include factors such as sex, age, background, race, disability, personality and work-style.” A more accepted concept of diversity is not only the differences among individuals but the acceptance and inclusion of this differences. In order to have a better understanding of diversity an important model to consider is the four layer diversity model, first introduced by Marilyn Loden and Judy Rosener and modified in 2003 by Lee Gardenswartz and Anita Rowe. The model consists on the depth of and visibility of individuals differences. As shown in Exhibit 1.1 the core dimension is personality, which is the main factor in all kind of relationships, specially relations at the…show more content…
The factors mentioned in this dimension are: Fractional level/classification, work content or field, division or department, seniority, work location, union affiliation and management status. The aspects considered in the last layer of the model include the factors within a work setting which shape individuals. The four layer diversity dimension models proves useful in the HR branch due to the inclusion of factors within each individual and factors which are influenced by the organizations. It is also of relevance for this paper to underline a definition of Electronic Commerce, or eCommerce, this term was first used back in the 90’s and has from then on become a day to day way of living for many. There are no official claims as of who invented the eCommerce term, however the first domain name e-commerce.com was registered back in April 1994. The term became more known and famous to the public eye thanks to the publication of Frontiers of Electronic Commerce (1996) by Kalakota and Whinston. The definition by Prashat Jain is: “Electronic Commerce is the exchange in business information using electronic formats, including Electronic mail (email), electronic bulletin boards (EBBs) and Electronic Funds transfer (EFT).” He also mentioned that this is the process of two or more parties making business transactions via computer and some
Open Document