The most successful entrepreneurs understand that a company’s greatest asset is its human capital. Financial resources may grease a company’s wheels, but it’s the human capital that drives the company towards its organizational objectives. Given that the most successful companies in the world are driven by ideas and the people who espouse them, it makes sense that empires are built on human ingenuity, leadership and innovation. The importance of human capital in management cannot be understated.
Capital is a resource that a company uses to generate more capital. Human capital is also used to drive a company towards its long-term goals. At its core, it encompasses a person’s skills, attributes, ingenuity, knowledge, and abilities for the purposes of achieving organizational objectives. There are two ways to fine-tune human capital’s value to a company: training and orientation. Effective management of human resources requires the creation of a reliable retention strategy. There is little point spending time, effort and resources training human capital if Company A, Company B, or Company C simply purchases these resources from under your nose.
What Does It Take for Effective Human Resource Management?
Human resource management has gained in popularity over the years. It is a well-known fact that companies who successfully manage their human resources invariably churn out the biggest profits over the long-term. FinTech is altering the playing fields, by fostering the rapid rise of artificial intelligence technology (AI), but until it is fully capable of replacing human beings we will be heavily reliant on human capital. The economy is increasingly dependent on delving deeper into the inner mechanics of a knowledge-based paradigm.
The right data is more valuable than cash. But human ingenuity is needed to interpret this data and transform it into something actionable. Human resource management enterprises are tasked with cultivating this knowledge, developing human capital to the max, and streamlining communication processes at all levels. The most effective human resources have a keen understanding of a business and its inner mechanics. Organizations simply cannot function effectively without Human Capital Management. While cash, machinery, equipment, and the backing of angel investors are certainly valuable resources, they cannot substitute for the right human capital.
Inspirational Forces in Human Capital Management
Virgin founder Richard Branson is a sterling example of an entrepreneur who believes in the power of employees to make or break an organization. Throughout the recruitment process, HCM (Human Capital Management) is a highly effective means of achieving organizational objectives. The science behind HCM is all-encompassing. Individuals need to be effectively screened, vetted, and tested to ensure compliance with the standards set by the company and its management board.
One of the gurus in human capital management is Tai Lopez investor par excellence. Tai has been actively involved in advising multinational corporations, entrepreneurs, and students around the world. His skills as a partner, investor, mentor, and leader have proven invaluable to countless organizations over the years. His book club provides tidbits of information with mentor shortcuts, effective management, motivational techniques, and successful thinking. As one of the leading power players in human capital management, Tai Lopez is one of a select group of inspirational leaders who understands that people, not money drive organizations towards their objectives. Businesses are always about their stakeholders – the people inside and outside the organization – and this symbiotic relationship ultimately determines which organization succeeds.
THIS ARTICLE WAS COPIED IN ITS ENTIRETY FROM https://www.benzinga.com/general/education/17/08/9945978/investing-in-education-entrepreneurs-place-human-capital-at-the-top