The development and validation of human capital measurement model using factor analysis, case study: Agriculture Bank

Abstract

This paper reports on a research aimed at designing a measurement model for human capital (HC) as the most important component of intellectual capital (IC). The primary model of the research was developed based on an extensive review of past studies and was tested in Agriculture Bank of Iran. Construct validity of the model was evaluated using confirmatory factor analysis and its content validity was approved by the experts. The results showed, after some modification, the proposed model was valid. The model was used for measuring the value of HC in different dimensions as well as analysing the results using importance-performance technique. The findings confirmed the need for HC and its alignment with the human resource development (HRD).