Enumerating the Assets

7/31/2019 Enumerating the Assets

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Enumerating the Assets


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Introduction

Human Resource Management (HRM) activitieshave commonly been evaluated in behavioral andstatistical terms.

The need to evaluate HRM activities in economicterms is becoming increasingly apparent.

Developing such measures requires an inter-disciplinary approach wherein information from

accounting, finance, economics and behavioralscience has to be incorporated and delivered inthe language understood by the business world.


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The next step is to transform generated data intothe only language the business worldunderstands-Money.

The need to convert Human ResourceManagement (HRM) activities in economic termshas become vital in this competitive scenario.

HR has also evolved wherein its functions ofhiring, paying salaries, administration, benefits,

developing and retaining employees, etc., havebeen translated into quantitative terms in orderto monitor results and facilitate changes.


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Types of Human Assets

Human assets are in intangible form and arewithin the inside of human resources.

Therefore, there may be different ways in which

these can he classified. It has been classified into three categories

1. Intellectual Capital.

2. Social Capital.3. Emotional Capital.

4. Spiritual Capital.


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1. Intellectual Capital

Intellectual capital which can be defined at

individual level as well as at organizational

level.

1. Individual Level-it refers to his knowledge,

skills and expertise. It may be in the form of

specialized knowledge, tacit knowledge and

skills, cognitive complexity and learningcapacity.


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2.Organizational Level- intellectual capital

consists of both the stock of knowledge, skills

and expertise that members of the

organization collectively possess, and the

knowledge and expertise that may be

embedded in or owned by the organization

including patents. Information technologybased knowledge systems, or specialized

processes of work.


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2. Social Capital

Social capital is derived from the network of

relationships, both internally and externally.

Organizations point of view-social capital

relates to structure, quality, and flexibility of

the human networks which can be created

through cohorts, joint departments and

functions, long-term employment and internalculture.


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Other Aspect of social capital -is external-

built on the relationships with external forces

like customers, suppliers, government

agencies, etc. however, building external

relationships and working on these does not

involve taking undue advantages for

furthering the interest of the organization. It isused in the context of trustworthiness.


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3. Emotional Capital

Emotional capital involves self-confidence,

ambition, courage, risk- taking ability and

resilience.

It is reflected in what is described as a can do

spirit. Individuals need, self-confidence based

on self-esteem, courage, and resilience to

convert their knowledge and relationships intoeffective actions.


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Organizations require high internal energy and an

environment of pride, trust, and openness to create

a bias for speed and action in rapidly changing

environment. Emotional capital helps in controlling such emotions

as anger, hatred, frustration, confusion, sadness, etc.

which affect the job performance adversely. Further,

it helps in reducing stress, a major problem of the

modern organizations.


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4. Spiritual Capital

First, it was intelligent quotient (IQ) followed byemotional quotient (EQ), and now has come spiritualquotient (SQ).

It views that whereas with a high IQ you may gethired: with a high EQ, you get promoted. But this is ashort term perspective and long-term growth islinked to SQ.

spiritual capital is assuming increasing values, ego,and approach to work match those of theorganization. All these forms of human capital arenot isolated rather these are interrelated.

Enumerating the Assets

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