HUMAN CAPITAL PLANNING A REVIEW OF LITERATURE AND IMPLICATION FOR HR DEVELOPMENT

Topics: Strategic management, Human capital, Human resource management Pages: 19 (7878 words) Published: January 25, 2015
Human Resource Development
Review
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Integrative Literature Review: Human Capital Planning: A Review of Literature and Implications for Human Resource Development
Kenneth J. Zula and Thomas J. Chermack
Human Resource Development Review 2007; 6; 245
DOI: 10.1177/1534484307303762
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Integrative Literature Reviews

Human Capital Planning: A Review
of Literature and Implications for
Human Resource Development
KENNETH J. ZULA
Keystone College
THOMAS J. CHERMACK
Colorado State University
The shift in the U.S. economy from a manufacturing powerhouse to a servicedriven economy has placed a great emphasis on human capital planning within organizations in order to remain competitive in a new global economy. The link between critical business strategy and the successful implementation of strategy has been well documented in the literature. This article examines the literature surrounding human capital, human capital planning, and the implications for human resource development (HRD). The results of the review and synthesis of the literature are provided, and the implications for HRD scholars and practitioners are reported in detail. The research reports an in-depth justification and rationale for the incorporation of human capital planning into practice and research to determine the impact on HRD interventions and organizational performance through the use of a model and process for human capital planning. Keywords:

human resource development; intellectual capital; human capital; knowledge assets; strategic planning; strategic management

Although once considered an insubstantial variable, today human capital is recognized as an important factor affecting the success of organizations. As the U.S. economy continues to move from a manufacturing powerhouse to one of service delivery, it is becoming increasingly more important to study the effects of human capital return on investments (Becker, 1993). In addition, it is important to examine the human capital planning process (Brush & Ruse, 2005), the alignment of human capital to business objectives (Kaplan & Norton, 1992, 1993), the alignment of human resources to business initiatives (Becker, Huselid, & Ulrich, 2001), and the metrics and measurements associated with human capital and the allocation of resources to ensure the alignment with strategic business direction (Brush & Ruse, 2005; Weiss & Finn, 2005).

Human Resource Development Review Vol. 6, No. 3 September 2007 245–262 DOI: 10.1177/1534484307303762
© 2007 Sage Publications

Downloaded from http://hrd.sagepub.com by ronny walean on May 6, 2008 © 2007 SAGE Publications. All rights reserved. Not for commercial use or unauthorized distribution.

246

Human Resource Development Review / September 2007

According to Huselid and Barnes (2002), “little academic work has been completed regarding human capital management systems. Practitioners are relatively light years ahead of the academic work in progress or already completed” (p. 10). Human resource development (HRD) practitioners have recognized the need to align intangible assets to...


Citations: http://hrd.sagepub.com/cgi/content/refs/6/3/245
Downloaded from http://hrd.sagepub.com by ronny walean on May 6, 2008
human capital return on investments (Becker, 1993). In addition, it is important
to examine the human capital planning process (Brush & Ruse, 2005), the alignment of human capital to business objectives (Kaplan & Norton, 1992, 1993),
the alignment of human resources to business initiatives (Becker, Huselid, &
Ulrich, 2001), and the metrics and measurements associated with human capital
and the allocation of resources to ensure the alignment with strategic business
direction (Brush & Ruse, 2005; Weiss & Finn, 2005).
© 2007 Sage Publications
Downloaded from http://hrd.sagepub.com by ronny walean on May 6, 2008
According to Huselid and Barnes (2002), “little academic work has been
completed regarding human capital management systems
capital planning. The concept of human capital planning moves the idea of
human expertise as an element of competitive advantage (de Geus, 1989) into
the realm of organizational planning. In particular, this approach to planning
is in line with Becker, Huselid, and Ulrich’s (2001) Human Resource
an exhaustive review of referred and nonreferred publications as outlined by
Torraco (2005)
Downloaded from http://hrd.sagepub.com by ronny walean on May 6, 2008
© 2007 SAGE Publications
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