HUMAN CAPITAL INVESTMENT FOR FIRM: AN ANALYSIS

Ya-ping LEI, Jing-fang JIA

Abstract


Many companies nowadays derive their competitive advantages mainly from human capital, so human capital must be invested and maintained. It becomes critical for companies to select human capital that matches their strategic targets. In this article, by summing up three different definitions of human capital in existing literature, the author firstly explores the definition and characteristics of human capital, and then discusses the inherent relationship of the human capital investment and the firm strategic targets. On the basis of aspects mentioned above, the author emphasizes that human capital should be designed according to specific firm strategic targets, and should try to assess the contribution of the human capital investment to company at the microcosmic area. Finally, this paper suggests some ways for business to select proper human capital that meets their strategic targets.
Key words: Human Capital, Human Capital Investment, Strategic target

Keywords


Human Capital, Human Capital Investment, Strategic target

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DOI: http://dx.doi.org/10.3968%2Fj.mse.1913035X20070102.004

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