Topic 3. The concept of «Human capital»

Recommended reading: Summary: 1.Армстронг М. Стратегическое управление человеческими ресурсами/перевод с анг. - М.: Смысл, Armstrong M. (2006). Strategic human resource management. Typeset by Caxon graphics Ltd. 3. Arthur D. Fundamentals of Human Resources Management.fourth edition. Amacom, Бакирова Г.Х. Управление человеческими ресурсами. – СПб.: Речь, Бакирова Г.Х. Тренинг по управлению персоналом. СПб.: Речь, Базаров Т.Ю. Управление персоналом. Практикум. – М.:ЮНИТИ- ДАНА, Барбара Арт. Bersin & Associates © High-Impact Leadership Development for the 21st Century (Part 1): Key Findings, Trends and Analytics. 8.Борисова Е.А. Оценка и аттестация персонала. – СПб: Питер, Дубинская Е.Н.Техники подбора персонала. - СПб.: Речь, Blancero D., Boroski J., Dyer L. Key competencies for a transformed human resource organization: results of a field study // Human resource management Vol № Stewart G., Brown K.G. Human Resource Management. Linking strategy to practice. Wiley, Further Reading 1.Базаров Т.Ю. Технология центров оценки персонала: процессы и результаты. - М.: Кнорус, 2.Дубинская Е.Н.Техники подбора персонала. - СПб.: Речь, Кибанов А.Я. Управление персоналом. Учебник. - М.: ИНФРА-М, Ковалев С.В. Работа с персоналом. – М.: Альфа-Пресс, Почебут Л.Г., Чикер В.А.Организационная социальная психология. - СПб.: Речь, Практикум по психологии менеджмента и профессиональной деятельности/под ред.Г.С.Никифорова, М.А.Дмитриевой и др. - СПб.: Речь, Becker G.S. (2011) Human capital: Theoretical and Empirical Analysis. - N-Y., Internet resources

Questions: Human capital theory. The concept of "Analysis of human resources“. Measurement of individual value employee. Stochastic model of positional

Human capital theory The last two decades in management science have been under two banners: "innovation" and "human resources". This time can be characterized by the increasing complexity of the external organizational environment, the sharp increase in the rate of change and increased competition on world markets. All this required a search for hidden reserves and new ways to improve efficiency. Of all organizational resources is "human resource" or "human capital" has become a resource that hides the greatest scope for increasing the efficiency of the modern organization. "The human factor" has been considered as an object. "The human factor" has been considered as an investment not less, and perhaps more important than plants, equipment, technology, etc.

. Last years became the general opinion that efficiency of development of economy of the modern states in huge degree depends on that, how many means it puts in the people. Without it it is impossible to provide its forward development. So, in the USA, by some estimations, the share of investments into the human capital makes more than 15 % of gross national product that exceeds "pure" total investments of the private capital into factories, the equipment and warehouse. And even if special researches on this question were not spent, it is possible to assume with a high share of confidence that one of the highest indicators of level of investments in the human capital in the world is positively connected with the highest in the world indicators of a level of development of economy.

In XVII century the ancestor of English classical political economy V.Petti has made an attempt for the first time to estimate monetary cost of productive properties of the human person. On its method “value of a great bulk of people, as well as the earths, is equal to the twentyfold revenue which they bring”. It has estimated value of all population of England of that time approximately in 520 million Sterlings, and cost of each inhabitant - on the average 80 Sterlings. He noticed that the riches of a society depend on character of employment of people and their ability to work. So, adult Petti estimated twice more expensively, than the child, and “the seaman is actually equal to three peasants”.

In 1812 in Russia Ludwig Jacob has calculated comparative costs from hiring of the free worker and the serf, having expressed them in physical units: poods and rye quarters. In calculations it used concept "the half-received" or "missed" income. In our century two Nobel Prizes in the field of economy for working out of the theory of the human capital - to Teodoru Schultz in 1979 and Gary to Bekker in 1992 have been awarded Though the basic contribution to popularisation of idea of the human capital has been brought by T.Schultz, the treatise of G.Bekker with the same name became classics of modern economic thought. In the analysis it started with representations about human behaviour as rational and expedient, applying such concepts, as a rarity, the price, alternative costs, etc. The model formulated in it became the basic for all subsequent researches in this area

The human capital is available at everyone has reserved knowledge, skills, motivations. Formation, accumulation of professional experience, health protection, geographical mobility, information search can be investments into it. Initial interests of the researcher consisted in an estimation of economic return from formation.

Bekker the first has carried out statistically correct calculation of economic efficiency of formation. For income definition, for example, from higher education from those lifelong earnings who has ended college, lifelong earnings of those who has not gone further high school were subtracted. Training costs, along with a factor cost (the tuition fee, a hostel etc.), as the main element contain “the missed earnings”, i.e. The income half-received by pupils for years of study. In essence, the lost earnings measure value of time of the pupils spent for training, and are alternative costs of its use. Having defined return from investments in study as the relation of incomes to costs, Bekker has received figure in % of annual profit.

One of the most interesting and known attempts of use of the theory of the human capital at corporate level - the concept “Analysis of human resources” - АHR (Human Resourсes Accounting), offered by Eric Flemholtsem still in the early sixties.

Occurrence АHR is connected with occurrence of interest to the personnel as to the important resource of the organization in which use considerable reserves are hidden. Any resource is characterized by economic efficiency of its use. Therefore it was necessary to develop the tools allowing to managers more effectively to use the personnel, to estimate this efficiency and to lead to its general for other kinds of resources to a monetary estimation. Existing then and the system of the account existing now does not allow to consider the personnel as object for investments. So, acquisition of the usual computer for pair thousand dollars will be considered as increase in actives of the company, and an expense in some tens thousand dollars on search of the high quality expert - as the single expenses reducing profit in the accounting period.

In E.Flemholts's first works has specified three primary goals АHR: To give the information necessary for decision-making in the field of management by the personnel both for managers on the personnel, and for the top management; To provide managers with methods of numerical measurement of cost of the human resources necessary for acceptance of concrete decisions; To motivate heads to think of people not as about expenses which should be minimized, and is faster, as about actives which should be optimized. So, it is possible to tell that “the Analysis of human resources” (АHR) is a process of revealing, measurement and granting of the information on human resources to the persons, making decisions in the organization. If to consider activity on management of the personnel as a set of some functions possibility АHR within the limits of separate functions can present as follows.

Personnel arrangement - distribution process between people of various organizational roles and problems. In an ideal at personnel arrangement it is necessary to consider three variables: productivity (appointment of the person most qualified for given work), development (to give the chance to other workers to develop the skills, mastering new duties) and individual satisfaction of workers. АЧР could help to define values of these three factors and to reduce them to a common denominator - the monetary form. Further methods of linear programming without effort will allow to optimize their values, having facilitated, thus, decision-making on placement of personnel.

Thank you for your attention