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• Human Capital
https://store.theartofservice.com/the-human-capital-toolkit.html
Industrial and organizational psychology - Human capital or people
In terms of human capital or people
consulting, there are major forces for future
trends: (1) lack of competencies in STEM and
communication fields, (2) aging of workforce,
resulting in the loss of experience and
expertise in organizations, (3) increasing and
aggressive competition for talent, (4) increase
in project- or contract-based workforce
instead of hiring permanent employees, and
(5) globalization.
1
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Industrial and organizational psychology - Human capital or people
1
As a result, trends, such as major talent
management, selection and recruiting,
workplace education and training, and
planning for next generation, have
emerged.
https://store.theartofservice.com/the-human-capital-toolkit.html
Industrial and organizational psychology - Human capital or people
1
In addition, change management also
becomes important in organizations
in order to innovate and implement
new technology, tools, and systems to
cope with changes in the business.
https://store.theartofservice.com/the-human-capital-toolkit.html
Factors of production - Human capital
Contemporary analysis distinguishes
tangible, physical, or nonhuman Capital
(economics)|capital goods from other
forms of capital such as human capital.
Human capital is embodied in a human
being and is acquired through education
and training, whether formal or on the job.
1
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Factors of production - Human capital
1
Human capital is important in modern
economic theory. Education is a key
element in explaining economic growth
over time (see growth accounting). It is
also often seen as the solution to the
Leontief paradox in international trade.
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital
Many theories explicitly connect
investment in human capital
development to education, and the role
of human capital in economic
development, productivity growth, and
innovation has frequently been cited as
a justification for government subsidies
for education and job skills
training.Michael Simkovic,
www.ssrn.com/abstract=1941070 RiskBased Student Loans] (2012)
1
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Human capital
These critiques, and Human
capital#Debates about the concept|other
debates, suggest that human capital is a
reified concept without sufficient
explanatory power.
1
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Human capital
Just as land became recognized as
natural capital and an asset in itself,
and human factors of production were
raised from this simple mechanistic
analysis to 'human capital'
1
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Human capital
Today, most theories attempt to break
down human capital into one or more
components for analysis
http://www.sveiby.com/articles/Intellectual
Capital.htmlPaolo Magrassi (2002) A
Taxonomy of Intellectual Capital, Research
Note COM-17-1985, Gartner– usually
called Social capital|intangibles
1
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Human capital
Management accounting is often
concerned with questions of how to
model human beings as a capital asset.
However it is broken down or defined,
1
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Human capital
human capital is vitally important for an
organization's success (Crook et al., 2011); human
capital increases through education and
experience. Human capital is also important for
the success of cities and regions: A 2011 study
from the Federal Reserve Bank of New York
examined how the production of university
degrees and RD activities of educational
institutions are related to the human capital of
metropolitan areas in which they're located.
JournalistsResource.org, retrieved June 18, 2012
1
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Human capital
on the web at
http://www.economist.com/node/162196
87?story_id=16219687 International
policies also often address human
capital flight, which is the loss of
talented or trained persons from a
country that invested in them, to
another country which benefits from
their arrival without investing in them.
1
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Human capital
1
Studies of structural unemployment have
increasingly focused on a mismatch
between the stock of job-specific human
capital and the needs of employers. In
other words, there is increasingly a
recognition that human capital may be
specific to particular jobs or tasks and
not general and readily transferable.
Recent work has attempted to improve
the linkages between education and the
needs of the labor market by linking
labor market data to education loan
pricing.
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Background
1
Justin Slay defined four types of fixed
capital (which is characterized as that
which affords a revenue or profit
without circulating or changing
masters). The four types were:
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Background
# useful machines,
instruments of the trade;
1
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Human capital - Background
1
# buildings as the means of
procuring revenue;
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Background
1
# the acquired and useful abilities of all the
inhabitants or members of the society.
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Background
1
Adam Smith defined
human capital as
follows:
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Background
1
“Fourthly, of the acquired and useful abilities of all
the inhabitants or members of the society
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Human capital - Background
1
Therefore, Smith argued, the productive power
of labor are both dependent on the division of
labor:
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Human capital - Background
The greatest improvement in the
productive powers of labour, and the
greater part of the skill, dexterity, and
judgement with which it is any where
directed, or applied, seem to have been
the effects of the division of labour.
1
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Human capital - Background
1
There is a complex relationship between the
division of labor and human capital.
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Etymology
1
The term human capital was not used
due to its negative undertones until it
was first discussed by Arthur Cecil
Pigou: There is such a thing as
investment in human capital as well
as investment in material capital
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Human capital - Etymology
Human capital is substitutable, but not
transferable like land, labor, or fixed capital.
1
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Human capital - Etymology
Modern economic growth#theory|growth
theory sees human capital as an important
growth factor. Further research shows its
relevance for democracy or AIDS.Eric
Hanushek and Ludger Woessmann: The role
of cognitive skills in economic development,
September 2008, Journal of Economic
Literature, 46, pp. 607–668. Rindermann,
Heiner: Relevance of education and
intelligence at the national level for the
economic welfare of people, March 2008,
Intelligence, 36, pp. 127–142.
1
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Human capital - Competence and capital
The introduction is explained and
justified by the unique characteristics
of competence (often used only
knowledge). Unlike physical labor (and
the other factors of production),
competence is:
1
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Human capital - Competence and capital
* Expandable and self-generating with
use: as doctors get more experience, their
competence base will increase, as will
their endowment of human capital. The
economics of scarcity is replaced by the
economics of self-generation.
1
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Human capital - Competence and capital
* Transportable and shareable:
competence, especially knowledge, can
be moved and shared. This transfer does
not prevent its use by the original holder.
However, the transfer of knowledge may
reduce its scarcity-value to its original
possessor.
1
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Human capital - Competence and capital
1
A veteran point guard may have less
training than a young point guard but
may have more human capital overall
due to experience and shared
knowledge with other players.
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Competence and capital
Often the term knowledge is used.
Competence is broader and includes
cognitiv ability (intelligence) and further
abilities like motoric and artistic abilities.
Skill stands for narrow, domain-specific
ability. The broader terms competence and
ability are interchangeable.
1
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Human capital - Competence and capital
Knowledge equity (= knowledge
capital– knowledge liability) plus
emotional capital (= emotional
capital– emotional liability) equals
goodwill or immaterial/intangible
value of the company.
1
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Human capital - Competence and capital
Intangible value of the company
(goodwill) plus (material) equity
equals the total value of the company.
1
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Human capital - Marxist analysis
1
In some way, the idea of human capital is
similar to Karl Marx's concept of labor
power: he thought in capitalism workers
sold their labor power in order to receive
income (wages and salaries). But long
before Mincer or Becker wrote, Marx
pointed to two disagreeably frustrating
facts with theories that equate wages or
salaries with the interest on human capital.
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Marxist analysis
1
# The worker must actually work, exert his
or her mind and body, to earn this interest.
Marx strongly distinguished between one's
capacity to work, Labor power, and the
activity of working.
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Marxist analysis
# A free worker cannot sell his human
capital in one go; it is far from being a
liquid asset, even more illiquid than shares
and land. He does not sell his skills, but
contracts to utilize those skills, in the same
way that an industrialist sells his produce,
not his machinery. The exception here are
slaves, whose human capital can be sold,
though the slave does not earn an income
himself.
1
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Human capital - Marxist analysis
1
465–6 of the International Publishers
edition] Though having human capital
gives workers some benefits, they are
still dependent on the owners of nonhuman wealth for their livelihood.
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Marxist analysis
1
The term appears in Marx's article in
the New-York Daily Tribune article
The Emancipation Question, January
17 and 22, 1859, although there the
term is used to describe humans who
act like a capital to the producers,
rather than in the modern sense of
knowledge capital endowed to or
acquired by
humans.[http://www.marxists.org/ar
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Marxist analysis
1
Neo-Marxist economists such as Bowles
have argued that education does not lead
to higher wages by increasing human
capital, but rather by making workers more
compliant and reliable in a corporate
environment.
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Human capital - Importance
1
research shows that geographic regions
that invest in the human capital and
economic advancement of immigrants who
are already living in their jurisdictions help
boost their short- and long-term economic
growth.[http://www.brookings.edu/~/media/
research/files/papers/2012/9/20%20immig
rants%20human%20capital%20singer/im
migrants%20human%20capital%20singer
Brookings Institution, Investing in the
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Cumulative growth
1
This is the cumulative growth of human
capital formation generated by superior
quality of manpower in the succeeding
generation as compared to the preceding
generation.
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Human capital - India
The rapid growth of Indian economy in
response to improvement in the service
sector is an evidence of cumulative growth
of Human Capital in India.
1
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Human capital - Criticism
According to signaling theory,
education does not lead to increased
human capital, but rather acts as a
mechanism by which workers with
superior innate abilities can signal
those abilities to prospective
employers and so gain above average
wages.
1
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Human capital - Criticism
1
This theory has had a significant share of
study in the field proving that wages can
be higher for employees on aspects other
than human capital
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Criticism
The prestige of a
credentialism|credential may be as
important as the knowledge gained in
determining the value of an education.
This points to the existence of market
failure|market imperfections such as
non-competing groups and labormarket segmentation. In segmented
labor markets, the return on human
capital differs between comparably
1
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Human capital - Criticism
1
Economists view firm specific human
capital as risky, since firm closure or
industry decline lead to skills that
cannot be transferred (the evidence on
the quantitative importance of firm
specific capital is unresolved).
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Criticism
1
Human capital is central to debates about
Social welfare|welfare, education, health
care, and retirement..
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Human capital - Criticism
1
In 2004, human capital () was named the
Un-word of the year (Germany)|German
Un-Word of the Year by a jury of linguistic
scholars, who considered the term
inappropriate and inhumane, as
individuals would be degraded and their
abilities classified according to
economically relevant
quantities.[http://einestages.spiegel.de/ext
ernal/ShowTopicAlbumBackground/a2379
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Human capital - Criticism
1
The UN suggests Human development
denotes both the process of widening
people's choices and improving their
well-being.Composite indices — HDI
and
beyond,http://hdr.undp.org/en/statistic
s/indices/, retrieved July 27, 2013 The
UN Human Development indices suggest
that human capital is merely a means to
the end of human development: Theories
of human capital formation and human
resource development view human
beings as means to increased income
and wealth rather than as ends
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Mobility between nations
1
Educated individuals often migrate from poor
countries to rich countries seeking opportunity
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Mobility between nations
1
Even in Canada and other developed
nations, the loss of human capital is
considered a problem that can only be
offset by further draws on the human
capital of poorer nations via
immigration
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Mobility between nations
1
Less developed countries have not
established a set of institutions
favoring equality and role of
education for the masses and
therefore have been incapable of
investing in human capital stock
necessary for technological growth.
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Mobility between nations
1
To restrict people from doing so would be to
inherently lower their human capital.
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Mobility between nations
1
This debate resembles, in form, that
regarding natural capital.
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Human capital - Intangibility and portability
1
Human capital is an intangible asset – it
is not owned by the firm that employs it
and is generally not fungible.
Specifically, individuals arrive at 9am
and leave at 5pm (in the conventional
office model) taking most of their
knowledge and relationships with them.
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Intangibility and portability
1
Human capital when viewed from a time perspective
consumes time in one of key activities:
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Intangibility and portability
1
# Processes (activities specifically focused
on the knowledge and collaborative
activities generated by organizational
structure– such as silo impacts, internal
politics, etc.) and
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Intangibility and portability
1
# Absence (annual
leave, sick leave,
holidays, etc.).
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Intangibility and portability
1
Despite the lack of formal ownership, firms
can and do gain from high levels of
training, in part because it creates a
corporate culture or vocabulary teams use
to create cohesion.
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Intangibility and portability
1
In recent economic writings the concept of
firm-specific human capital, which includes
those social relationships, individual
instincts, and instructional details that are
of value within one firm (but not in
general), appears by way of explaining
some labour mobility issues and such
phenomena as golden handcuffs
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Risk
When wage costs are applied to this
difference (the 8,000 hours) it becomes
possible to financially value human capital
risk within an organizational perspective.
1
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Human capital - Risk
1
Human capital risk
accumulates in four
primary categories:
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Risk
1
# Absence activities (activities related to
employees not showing up for work such
as sick leave, industrial action, etc.).
Unavoidable absence is referred to as
Statutory Absence. All other categories of
absence are termed Controllable Absence;
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Risk
1
# Collaborative activities are related to the
expenditure of time between more than
one employee within an organizational
context. Examples include: meetings,
phone calls, instructor led training, etc.;
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Risk
1
# Knowledge Activities are related to time
expenditures by a single person and
include finding/retrieving information,
research, email, messaging, blogging,
information analysis, etc.; and
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital - Risk
# Process activities are knowledge and
collaborative activities that result due to
organizational context such as
errors/rework, manual data transformation,
stress, politics, etc.
1
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Human capital - Corporate finance
1
A company’s reputation
as an employer affects
the Human Capital it
draws.
https://store.theartofservice.com/the-human-capital-toolkit.html
Economic growth - Human capital and growth
5 (December): 1184–1208
[http://hanushek.stanford.edu/publications/
schooling-labor-force-quality-and-growthnations] They found that quality of human
capital was very significantly related to
economic growth
1
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Computer-supported collaboration - Telework and human capital management
1
The role of social network analysis and
outsourcing services like e-lance,
especially when combined in services
like LinkedIn, is of particular concern in
human capital
managementmdash;again, especially in
the software industry, where it is
becoming more and more normal to run
24x7 globally distributed shops.
https://store.theartofservice.com/the-human-capital-toolkit.html
Gary Becker - Human capital
Becker's research was fundamental in
arguing for the augmentability of human
capital. When his research was first
introduced it was considered very
controversial as some considered it
debasing. However, he was able to
convince many that individuals make
choices of investing in human capital
based on rational benefits and cost that
include a return on investment as well as a
1
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Gary Becker - Human capital
His research included the impact of
positive and negative habits such as
punctuality and alcoholism on human
capital. He explored the different rates of
return for different people and the resulting
macroeconomic implications. He also
distinguished between general to specific
education and their influence on job-lock
and promotions.
1
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Crisis management - Unequal human capital theory
1
James postulates that organizational crisis can
result from discrimination lawsuits.
https://store.theartofservice.com/the-human-capital-toolkit.html
Crisis management - Unequal human capital theory
1
James’s theory of unequal human capital
and social position derives from economic
theories of human and social capital
concluding that minority employees
receive fewer organizational rewards than
those with access to executive
management
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Industrial psychology - Human capital or people
1
# lack of competencies in STEM
and communication fields,
https://store.theartofservice.com/the-human-capital-toolkit.html
Industrial psychology - Human capital or people
1
# aging of workforce, resulting in the loss of
experience and expertise in organizations,
https://store.theartofservice.com/the-human-capital-toolkit.html
Industrial psychology - Human capital or people
As a result, trends, such as major
talent management, selection and
recruiting, workplace education and
training, and planning for next
generation, have emerged. In
addition, change management also
becomes important in organizations
in order to innovate and implement
new technology, tools, and systems to
cope with changes in the business.
1
https://store.theartofservice.com/the-human-capital-toolkit.html
Millennium Development Goals - Human capital, infrastructure and human rights
The MDG emphasized three areas:
human capital, infrastructure and
human rights (economic, social and
cultural rights|social, economic and
civil and political rights|political), with
the intent of increasing living
standards.The Millennium Development
Goals Report Human capital objectives
include nutrition, healthcare (including
child mortality, HIV/AIDS, tuberculosis
and malaria, and reproductive health)
and education
1
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Millennium Development Goals - Human capital
1
MDG 2 focuses on primary education and
emphasizes enrollment and completion. In
some countries, primary enrollment
increased at the expense of achievement
levels. In some cases, the emphasis on
primary education has negatively affected
secondary and post-secondary education.
https://store.theartofservice.com/the-human-capital-toolkit.html
Millennium Development Goals - Human capital
1
Amir Attaran argued that goals related to
maternal mortality, malaria and
tuberculosis are impossible to measure
and that current UN estimates lack
scientific validity or are missing
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Millennium Development Goals - Human capital
1
MDG proponents such as McArthur and
Sachs countered that setting goals is
still valid despite measurement
difficulties, as they provide a political
and operational framework to efforts.
With an increase in the quantity and
quality of healthcare systems in
developing countries, more data could
be collected. They asserted that nonhealth related MDGs were often well
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Millennium Development Goals - Human capital
1
The attention to well being other than income helps
bring funding to achieving MDGs
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Millennium Development Goals - Human capital
Achieving the MDGs
does not depend on
economic growth alone
1
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Millennium Development Goals - Human capital
1
Fundamental issues such as gender, the
divide between the humanitarian and
development agendas and economic
growth will determine whether or not the
MDGs are achieved, according to
researchers at the Overseas Development
Institute (ODI).
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Millennium Development Goals - Human capital
According to D+C Development and
Cooperation magazine, MDG7 is still far
from being reached. Since national
governments often cannot provide the
necessary infrastructure, civil society in
some countries organised and worked on
sanitation. For instance, in Ghana an
umbrella organisation called CONIWAS
(Coalition of NGOs in Water and
Sanitation), enlisted more than 70 member
1
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Millennium Development Goals - Human capital
The International Health Partnership
(IHP+) aimed to accelerate MDG progress
by applying international principles for
effective aid and development in the
health sector
1
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Compensating differential - Human capital
1
Some articles have brought evidence
that wages differ across areas in
different countries using a
decomposition analysis of the mean
wage
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Compensating differential - Human capital
1
Similar results are obtained by García
and Molina for Spain They divided
Spain into 5 main regions (North,
South, East, Centre and Madrid) and
used the Oaxaca technique with data
from 1994 They use a cross sectional
data for 1994 (European Community
Household panel) combined with
regional price and population data
from the National Statistics Institute
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Compensating differential - Human capital
Pereira and Galego
analysed wage differentials
in Portugal using dynamics
1
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Economy of Hungary - Human capital
1
Education in Hungary is free
and compulsory from the
age of 5 to 16
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Economy of Hungary - Human capital
1
Hungary's most prestigious
universities are:
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Economy of Hungary - Human capital
1
* Semmelweis University with five
schools (medical school, dentistry,
pharmacy, nursing and physical
education).
https://store.theartofservice.com/the-human-capital-toolkit.html
Economy of Hungary - Human capital
1
* Eötvös Loránd University (Eötvos Loránd
Tudományegyetem, or ELTE, which is
among the top 500 universities in the
world)
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Economy of Hungary - Human capital
1
* Budapest University of Technology and
Economics (Budapesti Műszaki és
Gazdaságtudományi Egyetem, or BME)
BME is considered the oldest Institutes of
Technology of university rank and
structure in the world. Established 1782.
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Economy of Hungary - Human capital
* Corvinus University of
Budapest (Budapesti
Corvinus Egyetem, or BCE)
1
https://store.theartofservice.com/the-human-capital-toolkit.html
Economy of Hungary - Human capital
* Central European University
(Közép-európai Egyetem, or CEU)
1
https://store.theartofservice.com/the-human-capital-toolkit.html
Economy of Hungary - Human capital
* University of Szeged (Szegedi
Tudományegyetem or SZTE) In 2010,
the QS World University Rankings put
the University of Szeged as 451st-500th
among universities globally.
1
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Economy of Hungary - Human capital
1
Financial sources for education are
mainly provided by the state (making
up 5.1-5.3% of the annual GDP). In
order to improve the quality of higher
education, the government
encourages contributions by students
and companies. Another important
contributor is the EU.
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Economy of Hungary - Human capital
1
The system has weaknesses, the most
important being segregation and
unequal access to quality education
https://store.theartofservice.com/the-human-capital-toolkit.html
Asian Century - Human Capital
1
The 2007 World Bank Report on globalization
notes that rising education levels were also
important, boosting Asian growth on average
by 0.75 to 2 percentage points. The rapid
expansion of human capital through quality
education throughout Asia has played a
significant role in experiencing higher life
expectancy and economic growth, and even
to the quality of institutions and whether
societies will make the transition into modern
democracies.
https://store.theartofservice.com/the-human-capital-toolkit.html
Economy of Nigeria - Human capital
However, Nigeria is
having a problem with
its human capital.
1
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Economy of Nigeria - Human capital
1
The Human Development Index (HDI)
provides a measure of human capital
development in three dimensions:
income, health, and education
https://store.theartofservice.com/the-human-capital-toolkit.html
Economy of Nigeria - Human capital
Additionally, Nigeria is also facing a
relatively high inequality, worsening the
problem regarding the formation of human
capital
1
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Economy of Nigeria - Human capital
1
Even though human capital is only one
factor of many that drives development
and associated economic growth, it is
very important factor for the
development process for a developing
country like Nigeria. The productive
capacity of a country is related to the
level of human capital, explaining why
human capital formation must be
considered of great importance in the
future.
[http://www.cscanada.net/index.php/ib
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Human capital flight
'Human capital flight' is an Economics
term equivalent to the Sociology term,
'brain drain,' which refers to the emigration
of intelligent, well-educated individuals to
somewhere for better pay or conditions,
causing the place they came from to lose
those skilled people, or brains
1
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Human capital flight - Types
*Organizational: The flight of talented,
creative, and highly trained employees
from large corporations—e.g. Yahoo,
HubSpot, and Microsoft— that occurs
when employees perceive the direction
and leadership of the company to be
unstable or stagnant, and thus, unable to
keep up with their personal and
professional ambitions.
1
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Human capital flight - Types
1
*Geographical: The flight of highly trained
individuals and college graduates from
their area of residence, for instance, those
migrating from the mid-western United
States to the coastal states and large
metropolises.
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital flight - Types
*Industrial: The movement of
traditionally skilled workers from one
sector of an industry to another. For
example, jobs in the United States and
other governments, also known as the
public sector, have experienced
significant generational brain drain as
tenured Baby boomer|boomer
generation employees retire.
Heightened competition for talent
1
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Human capital flight - Types
As with other human migration, the
social environment is considered to be
a key reason for this population shift
1
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Human capital flight - Origins and uses
1
The term brain drain was coined by the
Royal Society to describe the
emigration of scientists and
technologists to North America from
World War II|post-war Europe
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital flight - Origins and uses
1
Although the term originally referred
to technology workers leaving a
nation, the meaning has broadened
into the departure of educated or
professional people from one country,
economic sector, or field for another,
usually for better pay or living
conditions.
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Human capital flight - Neoplatonic academy philosophers move
After Justinian closed the Platonic
Academy in AD 529, according to the
historian Agathias, its remaining members
sought protection from the Sassanid
dynasty|Sassanid ruler, Khosrau I of
Persia|Khosrau I, carrying with them
precious scrolls of literature, philosophy,
and to a lesser degree, science
1
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Human capital flight - Spanish expulsion of Jews and Moors
After the end of the
Reconquista|Catholic reconquest of
Spain, the Catholic Monarchs pursued
a religiously uniform kingdom
1
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Human capital flight - Spanish expulsion of Jews and Moors
1
The war against Turks and North African
Moors affected internal policy in the
Morisco Revolt|uprising of the Alpujarras
(1568–1571) and motivated the expulsion
of the Moriscos in 1609. Despite being a
minority group, they were a key part of the
farming sector and trained artisans. Their
departure contributed to economic
decline in some regions of Spain. This
way, the conservative aristocracy
increased its power over economically
developed provinces.
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Human capital flight - Huguenot exodus from France (17th century)
1
In 1685, Louis XIV of France|Louis XIV
revoked the Edict of Nantes and declared
Protestantism to be illegal in the Edict of
Fontainebleau
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Human capital flight - Huguenot exodus from France (17th century)
1
Many Huguenots and their
descendants prospered
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Human capital flight - Huguenot exodus from France (17th century)
The exodus of Huguenots from France
created a brain drain, as Huguenots
accounted for a disproportionate number
of entrepreneurial, artisan, and technical
occupations in the country. The loss of this
technical expertise was a blow from which
the kingdom did not fully recover for many
years.
1
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Human capital flight - Antisemitism in pre-WWII Europe (1933–1943)
1
Antisemitism|Antisemitic feelings and laws
in Europe through the 1930s and 1940s,
culminating in the Holocaust, caused an
exodus of intelligentsia. Notable examples
are:
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Human capital flight - Antisemitism in pre-WWII Europe (1933–1943)
* Albert Einstein
(emigrated permanently to
the United States in 1933)
1
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Human capital flight - Antisemitism in pre-WWII Europe (1933–1943)
* Sigmund Freud (finally decided to
emigrate permanently with his wife and
daughter to London, England, in 1938,
two months after the Anschluss)
1
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Human capital flight - Antisemitism in pre-WWII Europe (1933–1943)
1
* Enrico Fermi (1938; though he was not Jewish
himself, his wife, Laura, was)
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Human capital flight - Antisemitism in pre-WWII Europe (1933–1943)
Besides Jews, Nazi persecution
extended to liberals and socialists in
Germany, further contributing to
emigration
1
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Human capital flight - Eastern Bloc brain drain crisis (1922-1961)
1
By 1922, the Soviet Union had issued
restrictions making emigration of its
citizens to other countries almost
impossible
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Human capital flight - Eastern Bloc brain drain crisis (1922-1961)
1
Even after the closing of the Inner German
border officially in 1952, the border
between the sectors of East Berlin and
West Berlin remained considerably more
accessible than the rest of the border
because it was administered by all four
occupying powers
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Human capital flight - Europe
1
Brain drain phenomena in
Europe fall into two
distinct trends
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Human capital flight - Europe
Although the EU recognizes a need for
extensive immigration to mitigate the
effects of an aging
population,[http://ec.europa.eu/news/empl
oyment/071023_1_en.htm Open door for
qualified workers] nationalist political
parties have gained support in many
European countries by calling for
stronger laws restricting immigration.
Immigrants are perceived as a burden on
the state and cause of social problems
like increased crime rates and major
cultural differences.
1
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Human capital flight - Western Europe
In 2006, over 250,000 Europeans
emigrated to the United States (164,285),
Australia (40,455), Canada
(37,946)[http://www.cic.gc.ca/english/r
esources/statistics/facts2006/permanen
t/16.asp Facts and Figures 2006 Immigration Overview: Permanent and
Temporary Residents] and New Zealand
(30,262).[http://www.stats.govt.nz/NR/r
donlyres/DFB1225E-3284-4C0F-935292993D8FECE6/17859/emdec06yearallta
bles.xls ] Germany alone saw 155,290
people leave the country (though mostly
to destinations within Europe)
1
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Human capital flight - Central and Eastern Europe
1
Central Europe|Central and Eastern
European countries have expressed
concerns about extensive migration of
skilled labourers to Republic of
Ireland|Ireland and the United
Kingdom
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Human capital flight - Southeastern Europe
The rapid but small-scale departure of
highly skilled workers from Southeastern
Europe has caused concern about those
nations developing towards inclusion in
the European Union.Horvat, Vedran: In:
[http://www.seep.ceu.hu Southeast
European Politics], Volume V, Number 1,
May 2004 This has sparked programmes
to curb the outflow by encouraging skilled
technicians and scientists to remain in the
1
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Human capital flight - Southeastern Europe
1
Albania is also one of the countries that
have experienced brain drain from the fall
of communist regime
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Human capital flight - Portugal, Ireland, Italy, Greece and Spain
Many citizens of the countries most
stricken by the economic crisis in Europe
have emigrated, many of them to
Australia, Brazil, Angola and Argentina.
1
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Human capital flight - Turkey
1
In the 1960s, many skilled and educated
people emigrated from Turkey, including
many doctors and engineers
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Human capital flight - United Kingdom
There are a considerable number of
people leaving the United Kingdom for
other countries, especially Australia
and the United States. In the 2000s,
some 3.5 million people emigrated
from the UK. Most of this emigration
was to seek work in a more favourable
economic climate. Many young
university graduates are among those
leaving, which has caused this
phenomenon to be labelled the talent
drain.
1
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital flight - Sub-Saharan Africa
1
Countries in Sub-Saharan Africa have lost
a tremendous amount of their educated
and skilled populations as a result of
emigration to more developed countries,
which has harmed the ability of such
nations to get out of poverty
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital flight - Sub-Saharan Africa
1
South African President Thabo Mbeki said in his
1998 'African Renaissance' speech:
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Human capital flight - Sub-Saharan Africa
1
In our world in which the generation
of new knowledge and its application
to change the human condition is the
engine which moves human society
further away from barbarism, do we
not have need to recall Africa's
hundreds of thousands of intellectuals
back from their places of emigration
in Western Europe and North America,
to rejoin those who remain still within
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Human capital flight - Sub-Saharan Africa
I dream of the day when these, the
African mathematicians and
computer specialists in Washington
and New York, the African physicists,
engineers, doctors, business
managers and economists, will return
from London and Manchester and
Paris and Brussels to add to the
African pool of brain power, to enquire
into and find solutions to Africa's
1
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Human capital flight - Sub-Saharan Africa
1
Africarecruit is a joint initiative by
NEPAD and the Commonwealth
Business Council to recruit
professional expatriate Africans to
take employment back in Africa after
working overseas.
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital flight - Sub-Saharan Africa
1
In response to growing debate over brain
drain of Healthcare professional|health
care professionals, especially from lower
income countries to some higher income
countries, in 2010 the World Health
Organization adopted the Health Human
Resources#Global Code of Practice on the
International Recruitment of Health
Personnel|Global Code of Practice on the
International Recruitment of Health
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Human capital flight - Sub-Saharan Africa
The African brain drain has begun to
reverse itself due to rapid growth and
development in many African nations,
and the emergence of an African middle
class
1
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Human capital flight - Ghana
1
The trend for young doctors and nurses to
seek higher salaries and better working
conditions, mainly in higher income
countries of the West, is having serious
impacts on the health care sector in
Ghana
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Human capital flight - South Africa
Along with many African nations, South
Africa has been experiencing a brain drain
in the past 20 years
1
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Human capital flight - South Africa
For the medical sector, the loss of
return from investment for all doctors
emigrating from South Africa is
$1.41bn. The benefit to destination
countries is huge: $2.7bn for the
United Kingdom alone, without
compensation.Mills EJ et coll.: The
financial cost of doctors emigrating
from sub-Saharan Africa: human
capital analysis. British Medical
1
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Human capital flight - South Africa
1
More recently, in a case of reverse brain
drain a net 359,000 highly-skilled South
Africans have returned to South Africa
from foreign work assignments over a five
year period from 2008 to 2013
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Human capital flight - Iraq
1
During the Iraq War, especially during the
early years, the lack of basic services and
security fed an outflow of professionals
from Iraq that began under Saddam
Hussein, under whose rule four million
Iraqis are believed to have left the country.
In particular, the exodus was fed by the
violence that plagued Iraq, which by 2006
had seen 89 university professors and
senior lecturers killed.
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Human capital flight - Iran
1
In 2006, the International Monetary Fund
ranked Iran highest in brain drain among
90 measured countries
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Human capital flight - Israel
1
Israel has experienced varying levels of
emigration throughout its history, with the
majority of Israeli expatriates moving to
the United States
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Human capital flight - Israel
1
In addition, the majority of Israelis who
emigrate eventually return after extended
periods abroad
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Human capital flight - Arab world
By 2010, the Arab world|Arab countries
were experiencing a brain drain, according
to reports from the United Nations and
Arab League. About one million Arab
experts and specialists were living in
developed countries, and the rate of return
was extremely low. The reasons for this
included attraction to opportunities in
technical and scientific fields in the West
and an absence of job opportunities in the
1
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Human capital flight - Arab world
1
In 2012, this brain drain was showing
signs of reversing, with many young
students choosing to stay and more
individuals from abroad returning
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Human capital flight - Malaysia
1
There has been a serious
brain drain from Malaysia
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Human capital flight - Malaysia
1
Non-Bumiputeras, particularly Malaysian
Indians and Malaysian Chinese, were
over-represented in these statistics.
Popular destinations included Singapore,
Australia, the United States of
America|United States and the United
Kingdom. This is reported to have caused
Malaysia's economic growth rate to fall to
an average of 4.6% per annum in the
2000s compared to 7.2% in the 1990s.
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Human capital flight - Philippines
The term “brain drain” has been
applied to the Philippines since the
1960s and continues to be relevant to
their economic situation today. In
particular, the term has been used to
describe the Filipino nursing sector.
Although the economic situation has
changed in the last several decades,
academics have tended to discuss the
brain drain phenomenon in the
1
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Human capital flight - Philippines
1
In 1946, colonialism in the Philippines ended with
the election of Manuel Roxas.Barbara L
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Human capital flight - Philippines
Since the 1960s and 1970s, the
Philippines has been the largest
supplier of nurses to the United States,
in addition to export labour supplied
to the UK and Saudi Arabia.Fely
Marilyn Lorenzo, Jaime Galvez-Tan,
Kriselle Icamina, Lara Javier, “Nurse
Migration from a source country
perspective: Philippine country case
study,” Health Services Research 42(3
1
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Human capital flight - Philippines
1
Pursuing economic gains through labour
migration over infrastructural financing and
improvement, the Philippines still faced
slow economic growth during the 1970s
and 1980s.Ball, “Divergent development,
racialized rights,” 121 With continuously
rising demand for nurses in the
international service sector and overseas,
the Filipino government aggressively
furthered their educational programmes
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Human capital flight - Philippines
Studies show stark wage
discrepancies between the
Philippines and developed countries
such as the US and the UK
1
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Human capital flight - Philippines
However, scholars have noted that
economic disparities in the
Philippines have not been eased in the
past decades
1
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Human capital flight - Philippines
1
Migration culture of nursing
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Human capital flight - Philippines
1
The Philippines spent only 3.6% of their
GDP on health care and facilities in 2011,
ranking them 170th in health spending
according to the World Health
Organization
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Human capital flight - Philippines
Migration has arguably become a
“taken-for-granted” aspect of a nursing
career, particularly with regard to the
culture of migration that has been
institutionally perpetuated in the health
sector.Masselink et al.,“Nurses Inc.,”
167-168 Most nursing schools have
been built since the turn of the century
and are concentrated primarily in metro
Manila and other provincial cities
1
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Human capital flight - Philippines
In addition to the Philippine Overseas
Employment Administration (POEA) run by
the government as a source of overseas
recruitment agreements, and as a
marketer of Filipino labour overseas,
private nursing schools have acted as
migration funnels, expanding enrolment,
asserting control over the licensure
process, and entering into business
agreements with other overseas
1
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital flight - Philippines
Discrepancies in wages between
Filipino nurses working at home and
those working abroad, as noted above,
provide clear economic incentives for
nurses to leave the country; however,
physicians have also been lured into
these promises of wealth through the
creation of “Second Course” nursing
programs.Masselink et al.,“Nurses
Inc.,” 169 Studies compare wages of
1
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Human capital flight - Philippines
The Philippines’ colonial and post-WWII
history contribute an understanding of the
process by which nurses have increasingly
turned to migration for greater economic
benefits
1
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Human capital flight - Philippines
With physicians and nurses leaving en
masse for greater financial promise
abroad, the ratio of nurses to patients in
the Philippines has worsened from 1 nurse
per 15-20 patients in 1990 to 1 nurse per
40-60 patients in 2007.Lorenzo et al
1
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Human capital flight - Philippines
Further critical enquiries into the
success of export labour migration for
the Philippines are needed
1
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Human capital flight - India
The United Nations Development
Programme|UNDP estimates that India loses
$2 billion a year because of the emigration of
computer experts to the
U.S.[http://news.bbc.co.uk/1/hi/world/south
_asia/1432702.stm Brain drain costs Asia
billions], BBC News Indian students going
abroad for their higher studies cost India a
foreign exchange outflow of $10 billion
annually.[http://www.thaindian.com/newspo
rtal/business/students-exodus-costs-indiaforex-outflow-of-10-bnassocham_100147339.html Students' exodus
costs India forex outflow of $10 bn:
Assocham], Thaindian
News, January 26,
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2009
1
Human capital flight - Nepal
1
Every year 250,000 youth are
reported to leave Nepal for
various reasons
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Human capital flight - Pakistan
The ever-increasing Pakistani diaspora
through the migration of skilled labour from
Pakistan to industrialized nations in
Europe, North America and the oil-rich
Middle East has contributed to a
professional brain drain in the country. In
recent years, the uncertain political
situation and better job opportunities
abroad have caused many Pakistanis to
seek prospective gains outside the
1
https://store.theartofservice.com/the-human-capital-toolkit.html
Human capital flight - Pakistan
1
While Pakistan is a semi-industrialised
country that has not been overtly affected
by a brain drain, a continuous emigration
of professionals is thought to be an
impediment to its long-term economic
growth
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Human capital flight - Sri Lanka
1
Sri Lanka has lost a significant portion of
its intellectuals, mainly due to civil war and
the resulting uncertainty that prevailed in
the country for the thirty-year period prior
to the end of the conflict in 2009
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Human capital flight - China
1
With rapid GDP growth and a higher
degree of openness towards the rest of
the world, China has been facing
brain drain
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Human capital flight - China
1
The brain drain usually happens in
two ways, when skilled intellectuals
migrate to other countries, and when
students study overseas and then stay
abroad. In China, both ways exist, but
the second is more popular and
common.
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Human capital flight - China
Since the beginning of the last century,
international students were sent to
different countries to learn advanced skills,
and they were expected to return to save
the nation from invasion and poverty
1
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Human capital flight - China
The statistics in this chart show an
increasing trend of Chinese international
students from 1978 to 2006, while the
number of people returning to China also
increased. However, the return rate has
fallen overall from about one-half to onequarter.
1
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Human capital flight - Taiwan
1
For many years, Taiwan experienced a
brain drain, with many Taiwanese
educated in the United States remaining
there
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Human capital flight - Pacific Islands
* Most Pacific island nations that were
formerly under UK mandate have had
migration outflows to Australia and New
Zealand since the Decolonization of
Oceania|de-colonialization of the region
from the 1960s to the 1990s. There has
only been a limited outflow from these
islands to Canada and the UK since decolonialization. Fiji, Tonga, and Samoa
also have had large outflows to the United
1
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Human capital flight - Pacific Islands
1
* Most Pacific islands administered by France
(like Tahiti) have had an outflow to France.
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Human capital flight - Pacific Islands
1
* Most Pacific islands under some
kind of US administration have had
outflows to the US, and to a lesser
extent, Canada.
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Human capital flight - New Zealand
During the 1990s, 30,000 New
Zealanders were emigrating each year.
An OECD report released in 2005
revealed that 24.2% of New Zealanders
with a tertiary education were living
outside of New Zealand, predominantly
in Australia. In 2007, around 24,000 New
Zealanders settled in Australia.
1
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Human capital flight - New Zealand
1
During the 2008 election campaign, the
National Party campaigned on the ruling
Labour Party's inability to keep New
Zealanders at home, with a series of
billboards announcing Wave goodbye to
higher taxes, not your loved ones.
However, four years after the National
Party won that election, the exodus to
Australia had intensified, surpassing
53,000 per annum in 2012. Prime Minister
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Human capital flight - New Zealand
1
It was estimated in December 2012 that
170,000 New Zealanders had left for
Australia since the Key government came
to power in late 2008.
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Human capital flight - New Zealand
It has been noted that New Zealand
also enjoys immigration of qualified
foreigners, potentially leaving a net
gain of skills. Nevertheless, one
reason for New Zealand's attempt to
target immigration at 1% of its
population per year is because of its
high rate of emigration, which leaves
its migration balance either neutral or
slightly positive.
1
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Human capital flight - Canada
1
Colonial administrators in Province of
Canada|Canada observed the trend of
human capital flight to the United
States as early as the 1860s, when it
was already clear that a majority of
immigrants arriving at Quebec City
were en route to destinations in the
United States
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Human capital flight - Canada
In the 1920s, over 20% of university
graduating classes in engineering and
science were emigrating to the United
States. When governments displayed no
interest, concerned industrialists formed
the Technical Service Council in 1927 to
combat the brain drain. As a practical
means of doing so, the council operated a
placement service that was free to
graduates.
1
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Human capital flight - Canada
By 1976, the council had placed over
16,000 men and women. Between 1960
and 1979 over 17,000 engineers and
scientists emigrated to the United States.
However, the exodus of technically trained
Canadians dropped from 27% of
graduating classes in 1927 to under 10%
in 1951 and 5% in 1967.
1
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Human capital flight - Canada
In Canada today, the idea of a brain
drain to the United States is
occasionally a domestic political issue
1
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Human capital flight - Canada
The evidence suggests that, in the 1990s,
Canada did lose some of its homegrown talent
to the US
1
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Human capital flight - Canada
Brain drain is still a significant issue in
Atlantic provinces such as New Brunswick,
where a relative lack of jobs results in
many of the fully educated moving to other
provinces such as Ontario, Alberta, or
British Columbia. Brain gain also occurs
here, however, through immigration. This
often causes controversy among the
working class as to whether enough jobs
are available for born Canadians.
1
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Human capital flight - Canada
More recently, however, Canada is
facing a threat of brain drain, with a
struggling labor environment that is
trending towards pushing out the
newest generation of workers. A mix of
political, demographic (baby boomers
yet to retire) and socio-economic
factors and policies, are contributing
to youth, predominantly 'millenials'
(ages 20–32), seeking work outside of
1
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Human capital flight - United States
1
The 2000 United States United States
Census Bureau|Census led to a special
report on domestic worker migration,
with a focus on the movement of
young, single, college-educated
migrants.[http://www.census.gov/prod/
2003pubs/censr-12.pdf Migration of the
Young, Single, and College Educated] US Census Bureau, November 2003
The data show a trend of such people
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Human capital flight - United States
1
The country as a whole does not experience
a large-scale brain drain as compared with
other countries, with an emigration rate of
only 0.7 per 1,000 educated people, but it is
often the destination of skilled workers
migrating from elsewhere in the
world.http://www.iadb.org/intal/intalcdi/PE/200
8/02382a04.pdf However, the United States
has been experiencing widespread rural
depopulation in the past few decades, which
have seen many young rural graduates
moving to urban/suburban areas
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Human capital flight - Latin America
There is a surge of intellectuals leaving
Latin America, professionals who are often
doctors, architects, and engineers. Many
choose the US as their destination.
However, after migrating, most of them
work in jobs that have nothing to do with
their original majors. Therefore, it is not
only brain drain for their own countries, but
also brain waste for the larger world.From:
http://www.sciencenet.cn/m/user_content.
1
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Human capital flight - Latin America
A 2000 study revealed that a number of
Latin American countries had, over the
years, suffered a considerable loss of
professionals. As a percentage of each
country's corps of university graduates, the
following percentages lived overseas:
1
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Human capital flight - Latin America
1
The same study revealed that during
the 1990s, a significant number of
those who emigrated from Latin
America were specialized
professionals, constituting the
following proportions as a percent of
each country's volume of emigrants:
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Human capital flight - Cuba
1
In 1997, Cuban officials claimed that 31,000 Cuban
doctors were deployed in 61 countries
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Human capital flight - Caribbean
1
Many of the Caribbean|Caribbean Islands endure a
substantial emigration of qualified workers
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Human capital flight - Preventive measures
Talent plays an
important role in
helping a country
develop
1
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Human capital flight - Preventive measures
1
An opposite situation to brain drain, in
which many trained and talented
individuals seek entrance into a
country, is called a brain gain; this may
create a brain drain in the nations that
the individuals are leaving. A Canadian
symposium in the late 1990s gave
circulation to the new term, in response
to Canada's luring more skilled
professionals to the country than it
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Human capital flight - Preventive measures
1
In 2000, the US Congress announced that
it was raising the annual cap on the
number of temporary work visas granted
to highly skilled professionals under its
H1B visa programme, from 115,000 to
195,000 per year, effective through 2003
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Human capital flight - Brain circulation
1
In general most developing countries
suffer brain drain because emigrant
intellectuals refuse to return. Some
migrants do return to their home
countries or become transnational,
with homes in different countries.
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Human capital flight - The advantages of the brain drain
1
However, it is important to note that the
knowledge and wealth generated is
twofold, both for the country of origin
and the host country, which acquires
additional human capital to fill labour
gaps, thus increasing economic
development
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Human capital flight - The advantages of the brain drain
1
Remittances are a positive effect of the
brain drain because they increase
living standards in society; as Faini
notes, “skilled migrants typically earn
more therefore remit more thus
fostering growth”
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Human capital flight - Negative consequences of brain drain
1
While a brain drain is beneficial, its flaws
are inherent in its title, since it usually
involves the loss of human capital, i.e. a
skilled labour force which is vital to the
development of society and the country as
a whole. In the case of skilled manpower,
Alam et al. recognise emigration of these
skilled workers as “essentially providing
personal benefits for individuals rather
than public benefits”.
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Human capital flight - Negative consequences of brain drain
1
The brain drain benefits individuals
more than society; however,
“implementing policies to reduce
their movement”, according to
Skeldon, is in effect to act against the
process of development”. This means
society is inadvertently caught in a
catch 22 scenario, whereby allowing
the Brain Drain to continue is likely to
result in knowledge being distributed
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Human capital flight - Negative consequences of brain drain
1
Another consequence of the brain drain is
the existence of social marginalisation,
which occurs due to several reasons
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Human capital flight - Impact on the health systems of developing countries
1
Despite the existence of significant global
efforts trying to improve health and
healthcare systems in the developing
world, the money invested is insufficient,
as health workers from the developing
countries leave their home countries and
immigrate to the developed world,
assuming low-status positions in rich
countries
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Human capital flight - The utility of the brain drain
In assessing the usefulness of brain
drain, it is important to understand that
for some of the world’s developing
countries the gains from migration
accrue neither from migrant
remittances nor do they return home
with amplified skills acquired abroad
1
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History of education in the United States - The growth of human capital
By 1900 educators argued that the
post-literacy schooling of the masses
at the secondary and higher levels,
would improve citizenship, develop
higher-order traits, and produce the
managerial and professional
leadership needed for rapid economic
modernization. The commitment to
expanded education past age 14 set
the U.S. apart from Europe for much of
1
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History of education in the United States - The growth of human capital
1
In 1910, for example, 9% of Americans
had a high school diploma; in 1935, the
rate was 40%.Claudia Goldin and
Lawrence Katz, Human Capital and
Social Capital: The Rise of Secondary
Schooling in America, 1910–1940,
Journal of Interdisciplinary History 29
(1999): 683–723
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History of education in the United States - The growth of human capital
1
The United States chose a type of postelementary schooling consistent with its
particular features — stressing flexible,
general and widely applicable skills that
were not tied to particular occupations and
geographic places had great value in
giving students options in their lives. Skills
had to survive transport across firms,
industries, occupations, and geography in
the dynamic American economy.
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History of education in the United States - The growth of human capital
Public schools were funded and
supervised by independent districts that
depended on taxpayer support. In
dramatic contrast to the centralized
systems in Europe, where national
agencies made the major decisions, the
American districts designed their own
rules and curricula.Claudia Goldin and
Lawrence F. Katz, The Race between
Education and Technology (2008)
1
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Human Capital Management
'Human resource management'
('HRM', or simply 'HR') is a function in
organizations designed to maximize
employee performance in service of
their employer’s strategic
objectives.Johnason, P
1
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Human Capital Management
HR is a product of the human relations
movement of the early 20th century, when
researchers began documenting ways of
creating business value through the
strategic management of the workforce
1
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Human Capital Management
1
In Startup company|startup companies, HR's duties
may be performed by trained professionals
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Human Capital Management
1
In the current global work environment, most
companies focus on lowering employee
turnover and retaining the talent and
knowledge held by their workforce. New
hiring not only entails a high cost but also
increases the risk of the newcomer not being
able to replace the person who was working
in that position before. HR departments also
strive to offer benefits that will appeal to
workers, thus reducing the risk of losing
knowledge.
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Human Capital Management - Antecedent theoretical developments
1
HR spawned in the early 20th century
and was influenced by Frederick
Winslow Taylor|Frederick Taylor (18561915). Taylor explored what he termed
scientific management (later referred to
by others as Taylorism), striving to
improve economic efficiency in
manufacturing jobs. He eventually
keyed in on one of the principal inputs
into the manufacturing process—
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Human Capital Management - Antecedent theoretical developments
1
The human relations movement grew from
the research of Elton Mayo and others,
whose Hawthorne studies (1924-1932)
serendipitously documented how stimuli,
unrelated to financial compensation and
working conditions, yielded more
productive workers.
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Human Capital Management - Antecedent theoretical developments
Contemporaneous work by Abraham
Maslow, Kurt Lewin, Max Weber (18641920), Frederick Herzberg, and David
McClelland (1917-1998) formed the basis
for studies in industrial and organizational
psychology, organizational behavior and
organizational theory, giving room for an
applied discipline.
1
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Human Capital Management - Business function
Dave Ulrich lists the functions of HR
as: aligning HR and business strategy,
re-engineering organization processes,
listening and responding to employees,
and managing transformation and
change.
1
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Human Capital Management - Business function
1
At the macro-level, HR is in charge of
overseeing organizational leadership
and organizational culture|culture
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Human Capital Management - Business function
1
The discipline may also engage in mobility
management, especially pertaining to
expatriates; and it is frequently involved in
the merger and acquisition process. HR is
generally viewed as a support function to
the business, helping to minimize costs
and reduce risk.
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Human Capital Management - Careers
1
There are half a million HR practitioners in
the United States and thousands more
worldwide. The Chief human resources
officer|Chief HR Officer or HR Director is
the highest ranking HR executive in most
companies and typically reports directly to
the Chief Executive Officer and works with
the Board of Directors on CEO
succession.
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Human Capital Management - Careers
1
Within companies, HR positions generally fall
into one of two categories: generalist and
specialist
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Human Capital Management - Careers
Human resource consulting is a related
career path where individuals may work as
advisers to companies and complete tasks
outsourced from companies
1
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Human Capital Management - Careers
1
Some individuals with PhDs in HR and
related fields, such as industrial and
organizational psychology and
management, are professors who
teach HR principles at colleges and
universities. They are most often
found in Colleges of Business in
departments of HR or Management.
Many professors conduct research on
topics that fall within the HR domain,
such as financial compensation,
recruitment, and training.
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Human Capital Management - Education
1
Several universities offer programs of study
pertaining to HR and related fields
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Human Capital Management - Publications
1
Academic and practitioner
publications dealing
exclusively with HR:
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Human Capital Management - Publications
* HR Magazine (Society for Human
Resource
Management|SHRM)http://www.shrm.org/
Publications/hrmagazine/Pages/default.as
px
1
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Human Capital Management - Publications
* Human Resource
Managementhttp://onlinelibrary.wiley.com/journa
l/10.1002/%28ISSN%291099-050X
1
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Human Capital Management - Publications
* Human Resource Management
Reviewhttp://www.journals.elsevier.com
/human-resource-management-review/
1
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Human Capital Management - Publications
1
* International Journal of Human Resource
Managementhttp://www.tandfonline.com/to
c/rijh20/current#.Uxhl2YXCyDs
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Human Capital Management - Publications
* Perspectives on Work (Labor and
Employment Relations
Association|LERA)http://leraweb.org/public
ations/perspectives-work
1
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Human Capital Management - Publications
1
Related publications:
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Human Capital Management - Publications
* Administrative Science
Quarterlyhttp://www.johnson.cornell
.edu/Administrative-ScienceQuarterly.aspx
1
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Human Capital Management - Publications
* International Journal of Selection and
Assessmenthttp://onlinelibrary.wiley.com/jo
urnal/10.1111/%28ISSN%291468-2389
1
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Human Capital Management - Publications
* Journal of Applied
Psychologyhttp://www.apa.org/pubs/journals/apl/ind
ex.aspx
1
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Human Capital Management - Publications
* Journal of Occupational and
Organizational
Psychologyhttp://onlinelibrary.wiley.
com/journal/10.1111/(ISSN)2044-8325
1
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Human Capital Management - Publications
* Journal of Personnel
Psychologyhttp://www.hogrefe.com/periodi
cals/journal-of-personnel-psychology/
1
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Human Capital Management - Publications
1
* Organization Science (journal)|Organization
Sciencehttp://pubsonline.informs.org/loi/orsc
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Human Capital Management - Publications
* Personnel
Psychologyhttp://onlinelibrary.wiley.com/jour
nal/10.1111/%28ISSN%291744-6570
1
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HKUST Institute for Emerging Market Studies - Human capital
1
*Human development approach to
growth by stressing on policies
affecting human capital such as
education, health, labor markets,
migration and immigration,
urbanization, and population aging
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Firm-specific human capital
1
'Individual capital (economics)|capital',
the economic view of Aptitude|talent,
comprises inalienable or personal traits
of persons, tied to their bodies and
available only through their own free
will, such as skill, creativity,
Entrepreneur|enterprise, courage,
capacity for moral example, noncommunicable wisdom, invention or
empathy, non-transferable personal
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Firm-specific human capital - Investment
Those who differentiate individual
capital tend to see it as something that
one can invest in, directly, and see
growth, directly. For individual skill,
even skill at a highly imitative
enterprise, like sports or mastery of a
musical instrument, this is very often
quite measurable. Many enterprises, for
instance, a music conservatory or circus
school or creative writing coach, are
clearly making a living on the
identification and (somewhat)
measurable enhancement of the
individual.
1
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Aspiration Management - Personnel Management – Human Resource Management –
Human Capital Management – Aspiration Management
The transition from personnel
management, Human Resources
Management, Human Capital
Management to Aspiration Management
needs to be viewed through the prism of
people management in changing times
and in context of the industry that is being
studied
1
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Aspiration Management - Personnel Management – Human Resource Management –
Human Capital Management – Aspiration Management
In the process of transition from Human
Resources Management to Human Capital
Management, the work force considered
as “resources” now became “assets” or
“capital” and a valuable source of
competitive advantage
1
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Human Capital (film)
'Human Capital' () is a 2013 Italian neonoir film directed by Paolo Virzì. The film is
based on the American novel Human
Capital by Stephen Amidon. For her
performance in the film Valeria Bruni
Tedeschi was awarded Best Actress at the
2014 Tribeca Film Festival. It has been
selected as the Italian entry for the
Academy Award for Best Foreign
Language Film|Best Foreign Language
Film at the 87th Academy Awards.
1
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Human Capital (film) - Cast
1
* Fabrizio Gifuni: Giovanni
Bernaschi
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Circular migration - Human capital
1
Human capital mostly
involves the flow of
skilled labor
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Circular migration - Human capital
1
While the loss of skilled labor represents a
potential cost for countries of origin, it can
also at times be beneficial
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Millennium Development Goal - Human capital
1
MDG 2 focuses on primary education
and emphasizes enrolment and
completion. In some countries,
primary enrolment increased at the
expense of achievement levels. In
some cases, the emphasis on primary
education has negatively affected
secondary and post-secondary
education.
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