Strategic Human Capital: Approaches & Models for Achieving Organizational Long-term Competitiveness and Sustainability

Author(s):  
Asghar Zomorrodian
2015 ◽  
Vol 19 (5) ◽  
pp. 1007-1028 ◽  
Author(s):  
Michel Ferrary

Purpose – The purpose of this paper is explore an organizational design that allows firms to invest in transferable strategic human capital. Strategic human capital requires considerable investment in training costs, effective compensation, opportunities for professional development and expectancy of long employment relationship within a firm. A firm can undertake investment in strategic knowledge and workers can engage in learning only in these circumstances. However, there are a number of risks that are associated with investment in strategic human capital within a firm. In this paper, the author argues that providing strategic human capital to other firms within alliances could be a strategy for leveraging resource. Strategic knowledge facilitates transactions between firms possessing co-specialized human capital and tangible resources. Organizational design of an alliance based on co-specialization allows to balance costs and returns for the human capital supplier, as well as for beneficiary and workers. Within an alliance, the human capital supplier provides workers to a beneficiary firm and coordinates their activities. Supplier specialized in human capital investment ensures improved performance, productivity and efficiency of workers. Possibility to form a greater pool of labor force and to centralize training allows optimizing cost and sharing risks associated with investment activity among alliance participants. Human resource practices in an alliance system foster long-term employment relationship. Entering an alliance increases number of job positions, professional development opportunities through horizontal mobility, promotion and learning opportunities for workers. Finally, alliances allow leveraging investment in human capital beyond a single organization. Design/methodology/approach – This paper conceptualizes the use of alliance based on co-specialization as a strategy to optimize investment in strategic human capital resource. It draws upon the resource-based view (Barney, 1991; Wernerfelt, 1995) and transaction cost theory (Coase, 1937; Williamson, 1981) to examine an alliance as a strategy for leveraging the human capital resources for accessing new markets, building reputation and sharing the risks across more than one organization. Findings – First, the paper reviews the theoretical literature on human capital as a strategic resource (Becker, 1962; Coff, 1997), its sourcing on internal and external labor markets and respective employment systems (Delery and Doty, 1996; Doeringer and Piore, 1971). Second, it focuses on the features of human capital resource (Barney, 1986; Chi, 1994; Doz and Hamel, 1998). Third, it conceptualizes the use of alliances based on co-specialization as organizational structures for investment in human capital across organizations and examines respective employment system and HR practices (Delery and Doty, 1996; Doeringer and Piore, 1971). As result, the author argues that an alliance can be an alternative mean to optimize returns on investment in human capital with strategic transferable knowledge. By consequence, the author describes an alliance employment system and illustrates the arguments with a case of human capital trading in a co-specialization alliance under a long-term management contract in the luxury hotel industry. Originality/value – This paper discusses collaborative ventures as a sourcing strategy of the human capital. An alliance strategy is relevant for sourcing the strategic human capital resources. Human capital resource can be accessed by firms through transfer of skills and organizational routines within collaborative agreements, such as alliances based on co-specialization. In this case, alliance is an organizational architecture between organizations that improves the efficiency and productivity, reduces marginal cost on training due to larger scale of operations and reduces risk by splitting investment in human capital and by offering more career and development opportunities for strategic knowledge workers.


2008 ◽  
pp. 94-109 ◽  
Author(s):  
D. Sorokin

The problem of the Russian economy’s growth rates is considered in the article in the context of Russia’s backwardness regarding GDP per capita in comparison with the developed countries. The author stresses the urgency of modernization of the real sector of the economy and the recovery of the country’s human capital. For reaching these goals short- or mid-term programs are not sufficient. Economic policy needs a long-term (15-20 years) strategy, otherwise Russia will be condemned to economic inertia and multiplying structural disproportions.


2021 ◽  
pp. 014920632110031
Author(s):  
Robert E. Ployhart

Barney’s presentation of the resource-based view (RBV) profoundly shaped the trajectory of management scholarship. This article considers the RBV’s impact specifically on the field of strategic human capital resources. Although Barney is still highly relevant, I suggest that research has not sufficiently appreciated the role that individual and collective performance behavior and outcomes play in linking human capital resources to competitive advantage. An alternative, what might be called RBV2.0, posits that research needs to recognize that human capital resources are distinct from performance behavior and outcomes. Such an observation raises the question, “Resources for what?” Answering this question leads to several important insights. First, a given type of human capital resource is only important to the extent it is related to performance behavior and outcomes that contribute to competitive advantage. Second, performance behavior is largely strategy-specific and thus firm-specific. Third, firm specificity is not a characteristic of human capital resources but rather a function of the proximity of the resource to firm-specific performance behavior and outcomes. Consequently, “Performance” is the answer to the question, “Resources for what?” This emphasis on understanding human capital resource-performance relationships adds considerable precision into the RBV, helps resolve puzzles in the strategic human capital literature relating to firm specificity and performance mobility, and promotes a deeper understanding hiding latent within Barney’s original view.


Author(s):  
Andrés Mideros

The paper reports on an ex-ante evaluation of the long-term effect of the Ecuadorian social transfer programme called “Bono de Desarrollo Humano (BDH)” on human capital accumulation. A dynamic cohort microsimulation model is used to analyse for cost-effectiveness of different policy scenarios. Results show that cash transfers do promotehuman capital accumulation but with rather small effect. Transfers targeted at critical ages are the most cost-effective to promote human capital accumulation


Author(s):  
Nopadol Rompho

Purpose The purpose of this paper is to examine the relationship between levels of human capital and financial performance of firms that use two distinct human resource management (HRM) strategies. Design/methodology/approach A survey of 128 HRM managers was conducted to assess differences in human capital between firms using different HRM strategies. A multiple regression analysis was used to investigate the relationship between firms’ human capital and financial performance. Findings The results show that companies employing a make-organic strategy have a higher level of human capital than companies employing a buy-bureaucratic strategy. There was no relationship between the level of human capital and long term financial performance of firms with both make-organic and buy-bureaucratic strategies. Research limitations/implications This research contributes toward understanding the effect of HRM strategy and facilitates an optimal strategy choice depending on the organization. However, this study did not consider the lead time between changes in human capital and the effect on financial performance. Practical implications The research encourages firm managers to understand the value of human capital, preparing them for changes in the future. Originality/value This study is among the first to investigate the relationship between human capital and financial performance considering different HRM strategies.


Author(s):  
Allahyar Muradov Et al.

Sustainability in education is important in ensuring knowledge-based and innovation-driven development and human capital reproduction. Sustainability is particular important for the prevention of some economic and social problems that may arise in the future and raising the competitiveness of the country. Sustainability - the prevention as some of economic and social problems that may arise in the future is of particular importance in raising the country's competitiveness. The aim of the research is to estimate the economic-social benefits of regulation of sustainability in education and to give the suggestions in the direction of the improvement of the effectiveness of the regulation. The impact of continuity in education on the formation and development of human capital, knowledge-based society building, labour intelligence, competitiveness and the improvement of welfare are assessed cross-country in the article. In particular, in recent years, researches and politicians have analysed the ‘4th industry’ revolution (‘Industry 4.0’) ‘the benefits and losses in the medium and long-term perspective and its interaction with the sustainability of education. Here are two issues: 1) socioeconomic disadvantages of ensuring sustainability in education, 2) socioeconomic advantages of ensuring sustainability in education. Firstly, it is analysed the impacts of increased unemployment, reduction of employment income, declining social security and welfare that will be resulted as problems on economic development. Secondly, it is analysed (ensuring in sustainability condition) the distinguished factors of rapid technological innovation, labour productivity, repatriation of human capital, raising competitiveness on the international level, innovation-based development, economic benefits of knowledge and skills.


2019 ◽  
Vol 34 (5) ◽  
pp. 1275-1282
Author(s):  
Nedka Nikolova

HR brand is a new socio-economic and management phenomenon that now shapes its theory and develops its potential in practice. Interest in its application is growing globally, both theoretically and practically. The HR-brand concept is rapidly developing as an effective marketing tool for strategic human capital management, creating a positive corporate identity and increasing the organization's competitiveness, but to date there is no systematized uniform theory and methodology. With increasing interest, its conceptual nature, component structure, models and technology for construction and development, as well as the effects of its application in strategic terms are discussed. A central methodological problem in theory and practice is the assessment of the employer's brand as part of the intangible assets of the firm, which has a significant role in the formation of market capitalization. Specialized scientific literature proposes different approaches, methodologies, models that are fragmented. The rapid development of high technologies and the intensive update of the technological and socio-economic infrastructure of the society, the dynamic state of the economy and the growing competition in the open labor market are only a part of the factors that make the problem of the shortage of highly qualified specialists a global, multi-dimensional and multi-level problem. As a new phenomenon, it requires formulation, structuring and complex research - in a managerial, organizational, social, economic and psychological aspect. Labor market globalization and the "war for talents" motivate many companies to seek new management approaches. With the development of the theory and methodology of marketing and the expansion of its practical application on the basis of modern information technology, more and more companies use marketing tools to formulate and implement their competitive strategies. The idea of applying the marketing approach to the strategic management of the human capital in the organization has been proposed and discussed for the first time by the marketing experts Simon Barrow and Tim Ambler in the period 1990-1996, when they both identified and defined for the first time a specific employer's brand (Employer Brand - EB), also called Human Resources Brand (HR - brand), different from the common corporate brand and the product brands of the organization. Unlike other corporate brands, Employer Brand identifies the organization as an employer. HR-brand is a new socio-economic and management phenomenon that is now forming its theory and develops its potential in practice. the interest in its application is increasing on a global scale, both in theory and practice. As far as the human capital is key to both small and large companies, it is equally applicable to all organizations, regardless of size and industry. The concept of the HR-brand is rapidly developing as an effective marketing tool for strategic human capital management, creating a positive corporate identity and increasing the competitiveness of the organization, but to date there is no systematized theory and methodology. With increasing interest, its conceptual nature, component structure, models and technology for construction and development, as well as the effects of its strategic application are being discussed. Various approaches, methodologies, models that have a fragmentary character are proposed in the specialized scientific literature. The belief that, to the extent that the employer's brand expresses its unique identity, it is widely believed that it should be created and developed according to a unique internal project of the organization. The main goal of the author in this publication is the systematization of the results of the theoretical research on the methods of assessment of the employer's brand.The best practices of leading global companies included in the "Fortune Global 500 Companies" are discussed. The practical significance of the study is the possibility that the results could be used by Bulgarian companies in the competitive struggle for attracting talents


2020 ◽  
Vol 12 (3) ◽  
pp. 30-66
Author(s):  
Łukasz Bryl

AbstractObjective: The aim of this paper is to present the long-term development of the chosen human capital indices that uncovers and compares the outcome of the national efforts performed by the two culturally distant countries (China and Poland) over the decade. Additionally, paper indicates the areas of further HC progress in both nations.Methodology: The study was based on measuring human capital with the help of deliberately chosen set of macroeconomic indices (28 items) referring to the nations’ capability to create innovations. Analysis was performed for the 2007–2017 years.Findings: Positive phenomena in the case of human capital development outperform the negative ones in both countries, however, the extent is more remarkable in the case of China. China managed to: improve greatly the pupil-teacher ratio (both in primary and secondary schools), increase secondary and tertiary education enrolment rate along with the rise of the no. of students from abroad. In Poland, the greatest increase was observed in the case of the number of researchers what consequently contributed to the improvement of number of scientific and technical articles and citable documents (h-index).Value Added: To the best Author’s knowledge this is the first paper that compares national human capital development in Poland and China with a set of indices focused on capability to create innovations and adopts longitudinal approach.Recommendations: Policy-makers in the case of Poland should concentrate on: fostering university/industry research collaboration, improving rank in worldwide QS classification and performing more efforts to attract and retain talents. Moreover, the negative trends should be reversed with regard to: PISA scores and general quality of education system. In turn, Chinese authorities should facilitate better PISA scores and increase the presence of scientific and technical articles.


Sign in / Sign up

Export Citation Format

Share Document