A STRATEGIC HUMAN CAPITAL MANAGEMENT AS PART OF BUSINESS DEVELOPMENT

Keywords: investment, human capital, strategic human capital management, business value, business development strategy.

Abstract

The company’s achievements could be measured in the prism of human capital. Human capital adds substantial value to a  business in a competitive market. Human capital in a company is associated with employment,  employees are an essential resource, and at the same time, capital (asset).

The human capital add value to a company in case it provides development, brings opportunity to innovative strategies, increases the efficiency of the work process and economic efficiency of the enterprise, uses market opportunities and neutralizes potential threats.

Strategic human capital management should be in line with the business strategy by objectives and structure. The purpose of strategic human capital management is to determine its directions and methods to achieve the goals of the organization, and,  increase its value.

The strategy of human capital management requires: to take into account the needs and capabilities of all employees without exception  (since they all have value – from the head of the company to the unskilled worker), the integration of human capital management with the business development strategy, sectoral and functional strategies.

 The theory and practice of management have developed many useful models to support strategic human capital management, with varying levels of complexity, the amount of knowledge required for their use, and the cost of implementation. An analysis of the models of strategic human capital management suggests that each enterprise can find the optimal ones from its point of view (Michigan model, Harvard model, Schuler human capital model, a model of acquisition and involvement (contractual), a model of all-outs in human capital, etc.).

Сonsequently, a strategic human capital management should become a mandatory norm, and their integration with the business strategy  is a prerequisite for strengthening its values.

References

1. Armstrong, M. (2004). Praktyka upravlenyia chelovecheskymy resursamy [Practice of Human Resources Management]. SPb .: Peter [in Russian].

2. Becker, G. S. (1962). Investment in Human Capital: A Theoretical Analysis. Journal of Political Economy. Supplement..

3. Becker, G. S. (1964). Human Capital: A Theoretical and Empirical Analysis. N.Y.:Columbia University Press for NBER.

4. Schultz, T. (1958). The Emerging Economic Science and Its Relation to High School Education. The High School in a New Era.

5. Schultz, T. (1960). Capital Formation by Education. Journal of Political Economy, Vol. 68.

6. Schultz, T. (1961). Investment in Human Capital. The American Economic Review, № 1.

7. Schultz, T. (1964). Transforming Traditional Agriculture. New Haven.

8. Schultz, T. (1971). Investment in Human Capital. The Role of Education and of Research.

9. Kendrick, J. Sovokupnуi kapytal US і ego formyrovanye [Cumulative US capital and its formation]. Moscow: Progress [in Russian].

10. Tichy, N. M., Fombrun, Ch. J., Devanna, M. A. (1982). Strategic Human Resource Management. Sloan Management Review, 2, pp. 47–61.

11. Mincer, J. (1974). Schooling, experience and earnings. N. Y.: Columbia University Press.

12. Antonyuk, V. P., Amosha, A. I., Melzer, L. G. and others. (2011). Liudskyi kapital rehioniv Ukrainy v konteksti innovatsiinoho rozvytku [The human capital of the regions of Ukraine in the context of innovation development]. National Academy of Sciences of Ukraine, Institute of Industrial Economics [in Ukrainian].

13. Bogynia, D. T. (2013). Transformatsii vidtvorennia trudovoho potentsialu Ukrainy v informatsiinii ekonomitsi [Transformation of the reproduction of labor potential in the context of the formation of an information economy]. Lviv: Lviv Commercial Academy [in Ukrainian].

14. Kolot, A. M., Grishnova, O. A, Gerasimenko, O. O. (2010). Sotsializatsiia vidnosyn u sferi pratsi v konteksti stiikoho rozvytku [Socialization of relations in the field of labor in the context of sustainable development]. Kyiv: KNEU [in Ukrainian].

15. Semey, L. K. (2016). Suchasni problemy liudskoho kapitalu u vymiri trudovoi mihratsii ta reemihratsii [Modern problems of human capital in the dimension of labor migration and reamigration]. Socio-economic problems of the modern period of Ukraine, 3 (119), pp. 67-70 [in Ukrainian].

16. Beer, Michael, Bert Spector, Paul R. Lawrence, and D. Q. Mills.(1984). Managing Human Assets: The Groundbreaking. Harvard Business School Program. New York: Free Press.

17. Schuler, R. S. (1992). Strategic Human Resource Management: Linking People with the Needs of Business. Organizational Dynamics, 21, pp. 18–32.
Published
2019-03-12