Human capital theory - The value and importance of people to organisational success

Oscar Wilde once said, ‘A cynic knows the cost of everything, but the value of nothing.’ Indeed, the same can be said for organisations that view their workforce as a cost, rather than an asset to be nurtured and developed over time. Many modern-day organisations have now come to the realisation that it is the firm’s intangible assets, such as the knowledge and skill of their employees, that is fundamental to creating value and attaining a sustainable competitive advantage over rival firms. Organisations today find themselves operating in a knowledge economy, and this raises many questions as to how firms can facilitate the creation, development and sharing of knowledge amongst its employees. Hence, the management and measurement of human capital (HC) has become an issue of great strategic importance. Access the report through this link.