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The Importance of Human Capital in The Era of Globalization

Human capital has become increasingly important in the era of globalization for three key reasons: 1) Globalization and technology have changed business structures and made intangible assets like human capital more essential; 2) Studies show the market value of companies now relies more on intangible assets rather than tangible ones; 3) Different human resource management can generate different values and performance outcomes for the same company's tangible assets.

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James Hammond
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47 views1 page

The Importance of Human Capital in The Era of Globalization

Human capital has become increasingly important in the era of globalization for three key reasons: 1) Globalization and technology have changed business structures and made intangible assets like human capital more essential; 2) Studies show the market value of companies now relies more on intangible assets rather than tangible ones; 3) Different human resource management can generate different values and performance outcomes for the same company's tangible assets.

Uploaded by

James Hammond
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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The

Importance

of

Human

Capital

in

the

era

of

globalization

In the era of globalization , the effect of human capital as intangible assets have played a very important role . Even human resources in accordance with the new paradigm of the company's current management practices , not only as a factor of production but has been regarded as a valuable asset for the survival of the company . There are two major forces why human capital at the center of major concern in the business community . First , competition in the business environment is a result of the globalization of trade and the development of some ey sectors such as telecommunications , transportation , and financial services . !econd , the development of information technology very "uic ly , especially after the emergence of the internet . #oth of these developments have dramatically changed the business structure and encourage intangible assets are increasingly important role for the company $ %heaterly &''() . *long with these two , more and more companies depend on intangible assets . This is reflected in the shift of the #roo ings study instutution in the +nited !tates that e,amined -'' companies in the last &' years . In ./0& , tangible assets represent 1&2 of the company's mar et value , fell to (0 2 in .//& . * recent study conducted in &''& showed that the greater the rate of decline to .- 2 , while 0- 2 is an intangible asset that determines the mar et value of the company . * company will produce different performance if managed by different people , different means of human resources in managing the assets of the same company will generate different added values . Thus, it can be concluded that a company will produce different performance if managed by different people or by atalain that the tangible assets of the company are very have a relationship of dependence on intangible assets in the case of human capital that generates intellectual capital 3 related to the 4 nowledge and nowing capability of a social collectivity 4 , as an organization , intellectual community , or professional practice that can manage and create value for a company $ 5hosal &''() . !ystems and practices of human resource investment is believed to be a source of competitive advantage for companies because the system is difficult to be imitated by other companies or simply purchased in the mar et . The behavior of investment in human resources to support the argument that investment in human resources is a potential source of competitive advantage . The system imposes on human investment can significantly impact on resources and the individuals within the company so that it can be one important factor achievement of competitive advantage $ #arney .//-) . 67 e,cellence compared to other production factors in a company's competitive strategy include the following 8 the ability of innovation and entrepreneurship , uni"ue "ualities , eahliaan special , different services and productivity capabilities that can be developed as needed $ 7obert and 9ac son ./0:) .

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