Human Resources vs. Human Capital in Corporate Management

There is the term human resource vs. human capital which is often used in a company. The important role of human resources in a company is inevitable. A company will limp without the human resources that carry out the company's vision and mission and workflow. So that having quality human resources and performing well is valuable capital and assets in the management of a company.

Both of these terms have the same role to regulate human resources or take care of people who work in the company. In fact, as technology develops, many companies place more emphasis on human capital for the management of their organisations. However, these two terms still need to be recognised as the spearhead and a great asset of the company.

Definition of Human Resources vs. Human Capital

Human resources and human capital in a company are regulated in a management that has the function of developing human resources. This management is demanded to be able to guarantee the welfare and improvement of the quality of existing human resources in a company. In terms of roles and functions, both have an important role in human resource management.

Understanding Human Resource Management is a strategy in the approach and management of human resources in order to achieve organisational goals. In practice, this management can determine the job description and position of employees who work in a company. In addition, the provision of training, compensation, employee employment, health, justice and security issues is the responsibility of human resources.

Whereas Human Capital Management is management that focuses on adding and creating value to existing human resources. In this case, human capital places more emphasis on analysis, data collection and presentation to get clearer direction. So it can be formulated that human capital is more related to the activities of adding human knowledge and skills.

Difference between Human Resources vs. Human Capital

Although both regulate human resources to carry out the company's management functions, the two have differences in several aspects. Here are the differences between human resources vs. human capital:

1. Viewpoints
In terms of point of view or point of view, human resources view employees only as supporters or supporters. Whereas human capital will view employees as important assets, keys, and the spearhead of an organisation or company.

2. Focus
Human resources will emphasise the implementation of business strategies and ensure their human resources can carry out well. Whereas human capital is thinking about strategies to optimise the abilities of employees to be more effective and efficient in carrying out tasks.

3. Measurement
Human resources are more focused on what employees must and have given to the company. Whereas human capital is more focused on how to obtain, analyse, and present information to employees in organisational development.

The high turnover of employees who often go in and out becomes a separate homework for the company. Not to mention the declining productivity due to age, health, and ability that can no longer keep up with technological advances. The implementation of better human capital management can be a solution. Some large companies such as Google, LinkedIn, Nissan and Cadbury can be examples of the application of innovative and creative human capital.

Human resource management vs. human capital management will always change according to the times and needs of the company. Employees not only act as a tool to carry out the company's vision and mission. More than that, employees are human beings who have the talents, abilities, and qualities that need to be continuously fostered and developed in order to progress. Human resource progress will be positively proportional to the company's success.

9 comments for "Human Resources vs. Human Capital in Corporate Management"

  1. Sadece bunun çok faydalı olduğunu söylemek istiyorum, Bunu yazmak için zaman ayırdığınız için teşekkürler.

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  4. Ultimately, the distinction between HR and Human Capital lies in their strategic orientation. HR focuses on the efficient management of employees, while Human Capital seeks to maximize the value that employees bring to the organization. By finding a balance between these two approaches, companies can create a culture that values its people and harnesses their potential to drive innovation and long-term success.

  5. In corporate management, the distinction between "Human Resources" and "Human Capital" is more than just a matter of terminology; it reflects a fundamental shift in how organizations view and manage their workforce.

    Traditionally, "Human Resources" has been the prevailing concept, focusing on the administrative functions related to employees, such as recruitment, payroll, benefits, and compliance. While important, this approach tends to view employees as costs to be managed and controlled, which can sometimes result in a transactional and compliance-driven relationship between the organization and its workforce.

    In contrast, "Human Capital" represents a more modern and strategic perspective. It recognizes that employees are not just costs but valuable assets that can contribute significantly to an organization's growth and success. Human Capital management is about investing in and developing employees to maximize their potential, skills, and knowledge, ultimately driving innovation, productivity, and competitive advantage.

    Human Capital also emphasizes the importance of talent development, employee engagement, and a culture of continuous learning. Organizations adopting this perspective understand that a motivated and skilled workforce is a critical driver of long-term success.

    In summary, the shift from Human Resources to Human Capital in corporate management signifies a broader recognition of the strategic importance of employees and a move away from the traditional transactional approach. It highlights the need for organizations to invest in and nurture their workforce to thrive in today's competitive business landscape. Reference : What is OpenSea NFT?

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