Proceedings of the 5th International Conference on Advanced Research in Management, Economics and Accounting
Year: 2023
DOI:
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Evolution and Implications of Human Capital: A Comprehensive Review
Njanjobea Isah Leontes, Crystal Hoole
ABSTRACT:
This journal article explores the evolution and implications of human capital (HC) beyond the traditional economic perspective, extending its application to management and human resource management. The study addresses the limitations of the economic-centric viewpoint, which predominantly focuses on skills, abilities, measurement, and economic growth. It introduces a novel framework that integrates insights from psychology and management studies, emphasizing the inclusion of organizational capital as a distinct element.
The methodology involves theoretical research, scientific abstraction, comparative analysis, and synthesis, consulting various databases such as Scopus, Science Direct, EBSCO, Web of Science, JSTOR, ProQuest, Google Scholar, SpringerLink, Emerald Insight, and Elsevier. The historical roots of HC are traced from Adam Smith’s seminal work to the contributions of influential economists in the 1960s. The transition of HC to the management context, particularly human resource management, is explored, highlighting its acceptance in the 1990s with a focus on intellectual, social, and organizational capital.
The article extends the application of HC theory to the hospitality industry, emphasizing its impact on service quality and organizational performance. The classification of HC components includes intellectual, social, and organizational capital. The diverse definitions of HC in human resource management literature are presented, indicating a lack of a unified definition. The paper concludes with a call for more integrated frameworks for comprehending and managing HC in contemporary organizations, acknowledging its multifaceted nature and significance in organizational success.
keywords: Human Capital, Social Capital, Intellectual Capital and organisational Capital