Human Capital Literature Review

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III- Literature review and background Human Capital and the importance of improving the workforce: Starting by defining the term ‘Human Capital’: “Human capital is a measure of the economic value of an employee's skill set. This measure builds on the basic production input of labor measure where all labor is thought to be equal. The concept of human capital recognizes that not all labor is equal and that the quality of employees can be improved by investing in them. The education, experience and abilities of an employee have an economic value for employers and for the economy as a whole.” [1] From the above definition we can say that the way to development is focusing on discovering and improving the human resources capabilities and skills…show more content…
This process included getting the advantages of the Internet like posting advertisements of vacant positions, using online recruitment tools through the enterprises’ websites, also other activities like computer based training and some online surveys. [10] Strohmeier (2007) defines E-HRM as the application of information technology for both networking and supporting the interaction of at least two individual or collective actors in their shared performing of HR activities. There are some other terms used to describe utilizing the technology in this field, such as Virtual HRM, Web-based HRM or Business-to-employee (B2E), but the term E-HRM is more preferred as it describes web-orientated technologies to more than only business and employees as actors- there can be applicants in the E-recruitment or consultants-, it also includes Enterprise resource planning (ERP) systems.…show more content…
relieving them from routine administrative work efficiently would improve their performance giving them more confidence in decision making helping them in participating and being effective internal consultancy prominent position in the organization. [9] [12] [13] Types of e-HRM: Dividing the e-HRM to different types based on goal of applying it we can say that there are three types of it: - Operational e-HRM, in this kind of e-HRM relevant with operational side of the HR department where such applications aid to deal with the administrative work managing the employees’ data and payroll functions. - Relational E-HRM, which is relevant to activates that help getting the best of the employees by training them or the performance selection and the recruitment process using enterprises’ websites. - Transformational e-HRM, and this kind is relevant to the strategic side of HR which helps the HR department to be more strategic oriented aligned with the business strategic plans. [5] [14] E-HRM

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