A REVIEW ON HUMAN CAPITAL; TWO PRINCIPAL IDEAS PREDOMINANTLY GENERIC HUMAN CAPITAL AND SPECIFIC HUMAN CAPITAL FOR ORGANIZATIONAL PERFORMANCE

Abstract

Today the businesses suffer with many complexities. The recent downturns in various economies, saturated business markets, globalized business approaches challenged the traditional organizational designs, approaches and processes. The organizations have realized the importance of Human Capital (HC) to face the business challenges. Those who capable of handling such complexities with HC capabilities will win even with high competition. Scholars highlighted that there are many approaches developed to measure and report human capital. Those organizations that plan, organize, develop, manage and align employee behaviours that shape the real work with HC strategies achieve the Organizational Performance than those who do not. HC includes self-generating, expandable, transportable, and shareable characteristics. The economic value of an organization stands not only on its tangible assets but on intangible assets too whereas HC is considered as an ‘intangible asset’. This paper reviews the impact of HC on Organizational Performance from various critical perspectives. This study revolved how HC concept systematically evolved in intellectual progression encompass with two principal ideas such as Context Generic HC and Context Specific HC. The cognitive ability of an individual is considered as Context-Generic Human Capital whereas Context-Specific Human Capital of individuals could be measured by the dimensions such as “value”, “rareness”, “inimitability”. JEL: J20; J24; L25 Article visualizations: