Evolution of Human Resource to Human Capital: A Strategic Shift
As per the Darwin’s theory of evolution, everything has to evolve in order to sustain its identity. Corporate and its environment are changing every day as per the needs and behaviour of the customer. New strategies and concepts are evolving and the old concepts are either getting modified or are getting redundant if not practised. Knowledge of attracting, selecting, deploying and developing talent and strategies has given a competitive advantage to the companies. In line of this Human Resource, that was considered as a supporting coordinate in strategy formulation, now has taken a front lead in capital generation and hence regarded as the Human Capital. Peter Drucker famously defined a knowledge economy as one in which the human brain provides the primary means of production. He then noted the obvious corollary: that an organization’s most valuable resource is lodged in the heads of its employees and goes home with them at night. [Reference4]. This is how firms have started involving employee participation at all levels for decision making and management forecasts (be it in any field, i.e. Operations, finance, Marketing, Human Resource department etc.) and not only a pre-selected group of individuals. Concepts like brainstorming of ideas have also evolved with the concept of human capital. In this article, let us first define human resource and human capital briefly. Human Resource was regarded as the set of individuals that forms the employee strength of any organization and its planning was typically considered as the process of anticipating and providing for the movement of people into, within and out of the organization. Previously firms were giving much importance to system implementation than human resource development as technology was much simpler. But with the advancement of technology and shortage of skilled manpower, firm has started giving respect to their employees and have initiated...
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