Human Resources vs Human Capital Management
By siZidni
@siZidni (1860)
Indonesia
July 30, 2008 10:29pm CST
I am confuse with the new concept on human resources field.
now adays they always talk about human capital management.
what is different?
is it really reflected in company balance sheet when we talk about Human capital?
4 responses
@Dasari100 (3791)
• Anantapur, India
14 Apr 09
Human resources is just kind of man power but when it comes for human capital so investing the money on every human on particular company then handling them so it comes and see them in financial way not human way so then we can call human capital management.
@siZidni (1860)
• Indonesia
15 Apr 09
yes of course.
i have accounting background. since i graduated from accounting. and i had years of experience in as professional auditor. untill now i never heard that in financial statements we have to value company employess in the balance sheet.
i don't know how they value their employee. some says that for all cost incurred in building their employee capacity. i realized that all cost for employee is one of company investment cost. but it's not literally as real cost that can be capitalized in company asset.
@Dasari100 (3791)
• Anantapur, India
15 Apr 09
I know some information regarding the financial statements and i am doing the master of business administration course in finance stream so it is better to know each other isn't it?
1 person likes this
@debrakcarey (19887)
• United States
4 Sep 09
To better undestand WHAT this means I ask you to take a look at this webpage. At the bottom you will see a link to the original United States government document that is being acted upon.
http://www.criminalgovernment.com/docs/resource.html
Read the document. The pertainate info is highlighted.
We are no longer 'people' to our govenments. We are no longer merely citizens with human rights to consider. We are a resource, capital...to be spent.
1 person likes this
@siZidni (1860)
• Indonesia
4 Sep 09
well, i don't quite understand about the document. i am no american citizen. then i don't know the issue. yet what i am talking about here is in term of the company business look. well why do you raise this issue? do you have problem with your citizenship in america?
@ranaja758 (11)
• Pakistan
8 Aug 08
dear viewers.the topic under discussion is human resources vshuman capital management.u might have seen/observed that goodwell companies/institutions/organizations do manage trainee management scheme,investing a lot to turn the raw hand young trainees in to result-oriented team for the benifit of their own.self interest, though involved there in, yet they provide trenches to young degree holders to reach the climax.they invest not for the wel being of staff but for the the constant growth of their institutions, which yeh turn profitable for the staff who gain prestige,respect as the knowledge &experience grows together with passage of time. now their services are anxiously wanted by all other groups,offering highest salary. they, now the assets the capital can be hired on their own terms&conditions.
1 person likes this
@nekonyanta (892)
• Philippines
20 Sep 08
Hi. I read your response to the comment above. Maybe you're taking what you're boss said too literally. I mean, maybe he was saying that how well human capital is managed is reflected in the company's performance, or something like that.
Under International Financial Reporting Standards, the costs of training and other expenditures used to "manage human capital" are not capitalizable as an asset on the balance sheet since it is difficult to determine whether it would be probable that economic benefits would flow into the entity as a result of such activities and since such economic benefits are not readily measurable.
I, myself, am not familiar with the concept of Human Capital Management but now, it's got me thinking whether the new programs launched by our own HR Department have something to do with this new concept. Or maybe not. I don't really know. I don't pay much mind to admin matters. *lol*
1 person likes this
@siZidni (1860)
• Indonesia
22 Sep 08
thx nekonyanta..,
no i don't think i was wrong. he said it clearly.. and he even asked question on how it could be put in our balance sheet.
i was trying to explain to him about the standard you mention above.
but he insisted that he was right.
but anyway.. after all this time i've been trhough the Human capital project i realized that my boss was wrong.. and he then never mention about the capitalization of the cost of developing employees.
but how do you think about a company that it's major project is consultancy. they don't spent much money on fixed asset but only in developing and acquisition of their highly competence person with high cost. don't u think they should consider their personnel as major asset of their company ? or what about soccer company which their major asset is their soccer team..?
