Some facts about HUMAN CAPITAL within the organization.

1. “Never Underestimate the Importance of Human Knowledge”
“Never Underestimate the Importance of Human Knowledge”
By : Prakash Dhakal
MBA – HRM

2. Main Focus
Concepts
Differentiation (Knowledge and Human Capital)
Human Capital Activities
Human Capital Management
Human Capital Strategies
Human Capital Center of Excellence
Human Capital Risks
Conclusion
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

3. Core Concept
Knowledge
Knowledge is a familiarity with someone or something,
that can include information, description, facts, and or
skills acquired through experience or education. It can
refer to both the theoretical or practical understanding
of a subject.
Human Capital
Knowledge Human Capital
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

4. Core Concept
Knowledge
Human Capital
Valuable property or a good, which collectively represent
the wealth of an individual or business is known as capital.
Human capital is the economic value that an employee
provides to an employer. The assessment of this value is
related to the body of skill, knowledge, and experience
that the employee possesses.
Knowledge Human Capital
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

5. Core Concept
Knowledge
Human Capital
Knowledge Human Capital
Human capital is the stock of competences, knowledge
and personality attributes embodied in the ability to
perform labor so as to produce economic value. It is
the attributes gained by a worker through education,
Knowledge and experience, which is known as knowledge
human capital.
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

6. Core Concept, Human Capital
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

7. Knowledge Capital
An intangible asset that comprises the information and skills of a
company's employees, their experience with business processes,
group work and on-the-job learning is knowledge capital.
Knowledge capital is based on skills that employees share with
each other in order to improve efficiencies
Having employees with skills and access to knowledge puts a
company at a comparative advantage to its competitors.
Businesses develop knowledge capital by encouraging employees
to share information through white papers, seminars and person-
to-person communication, and even from the trainings.
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

8. Knowledge/Human Capital
Some Related Terms …
Human Capital is the combined value of the skills, knowledge,
creativity, abilities, and life experiences of
the organizational workforce.
This value creates a set of core competencies
that gives firm a competitive advantage in the
global marketplace.
The competitive advantage in the organization can only be sustained
through:
a. Continuing knowledge based training
b. Developing strategies to address the internal and external
forces that impact an organization’s effectiveness
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

9. Knowledge/Human Capital
Some Related Terms …
Human Capital is the combined value of the skills, knowledge,
creativity, abilities, and life experiences of the organizational
workforce.
This value creates a set of core competencies that gives firm a
competitive advantage in the global marketplace.
The competitive advantage in the organization can only be sustained
through:
a. Continuing knowledge based training
b. Developing strategies to address the internal and
external forces that impact an organization’s
effectiveness
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

10. Knowledge/Human Capital
Some Related Terms …
Human Capital is the combined value of the skills, knowledge,
creativity, abilities, and life experiences of the organizational
workforce.
This value creates a set of core competencies that gives firm a
competitive advantage in the global marketplace.
The competitive advantage in the organization can only be
sustained through:
a. Continuing knowledge based training
b. Developing strategies to address the internal
and external forces that impact an organization’s
effectiveness
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

11. Knowledge & Human Capital
Human Capital is the combined value of the skills, knowledge, creativity, abilities, and life experiences of the organizational workforce.

12. Knowledge & Human Capital

13. Human Capital Development
Human Capital Development are an innovative training
and development activities with expert management
and HR specialists.
It deals a dynamic and fresh approach to Training and
Development, which provide an innovation with
traditional methodologies to deliver fast and effective
results.
Human Capital Development are an innovative
training and development activities with expert
management and HR specialists which deals a Dynamic ,
fresh and innovative approach to deliver the Effective result

14. Investing in Human Capital
Investing in human capital is like invest in new technologies which gives
a better performance for the goal attending activities. ( similarly
employees can demonstrate their better performance if organization
invest on them )
(Invest in Human Capital is providing them training, good compensation
packages, insurance, maintaining healthy relation etc)
Human capital is a form of value that should be understood only in
economic terms, so that continuous investment in human capital is
needed to sharp the employees skills and knowledge.
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

15. Why Invest in HC ?
Professional View point
According to Prof. Shree Krishna Shrestha
Chief and Chair, IBMS
Head, Public Administration, CD.T.U.
“Human Capital are Organizational People who
Creates and Maintain the Intellectual Capital within
the Organizations that Drives Innovation and
Shapes Products”
So that every organization should seek to invest in Human Capital.
Video >>
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

16. Human Capital Approach
The approach of
Human Capital is
manifested within
a professional
framework that has
client satisfaction
at its heart.
• Develops and empower individuals, teams and organizations.
• Develops programs, processes and systems that fulfill organizational needs
• Provides an emphasis on practical skill development based on proven
management practice

17. Human Capital Management
Companies that engage in talent management (actually
known as HC management)
How company source, attract, select, train, develop, retain,
promote, and move employees through the organization is
analyzed in HC management.
The major aspects of HC management Includes:
•Performance management
•Leadership development
•Workforce planning/identifying talent gaps >>
•Recruiting (from the external as well as internal sources )
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

18. HC Management Suite
Learning Performance
Management Management
Recruitment 360 feedback
Management Module
HCM
Suite
Employee Talent
Engagement Management
Succession
HR Metrics
Planning
Performance management can focus on the performance of an organization, a department,
employee, or even the processes to build a product or service, as well as many other areas. This
is an ongoing process of communication between a supervisor and an employee .

19. HC Management Suite
Learning Performance
Management Management
Recruitment 360 feedback
Management Module
HCM
Suite
Employee Talent
Engagement Management
Succession
HR Metrics
Planning
A System in which employees receive confidential, feedback from the people who work around
them. 360 feedback addresses skills such as listening, planning, and goal-setting also it focuses
on subjective areas such as teamwork, character, and leadership effectiveness

20. HC Management Suite
Learning Performance
Management Management
Recruitment 360 feedback
Management Module
HCM
Suite
Employee Talent
Engagement Management
Succession
HR Metrics
Planning
Companies that engage in talent management in how they source, attract, select, train,
develop, retain, promote, and move employees through the organization. It Includes :-
performance management , leadership development, workforce planning, and recruiting

21. Why Talent Management ?
Video >>
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

22. HC Management Suite
Learning Performance
Management Management
Recruitment 360 feedback
Management Module
HCM
Suite
Employee Talent
Engagement Management
Succession
HR Metrics
Planning
Having people in place, experienced and prepared, will enhance continuity, build confidence ,
Knowing their people, take time to think, create WIN-WIN situation, invest, taking risk are the
way of succession planning

23. HC Management Suite
Learning Performance
Management Management
Recruitment 360 feedback
Management Module
HCM
Suite
Employee Talent
Engagement Management
Succession
HR Metrics
Planning
Compliance, certifications, and re-certifications (Metrics system)

24. HC Management Suite
Learning Performance
Management Management
Recruitment 360 feedback
Management Module
HCM
Suite
Employee Talent
Engagement Management
Succession
HR Metrics
Planning
Engaged employees will help promote the brand and protect the employer from the risks associated with
poor service levels or product quality. Similarly a strong employer brand will help in attracting and
retaining employees and also to deliver improved business performance, Engagement is Necessary.

25. Employee Engagement
Learning Performance
Management Management
HCM
Suite
Succession
HR Metrics
Planning
Engagement is about more than just a quality of work. Engagement effects everything from how you
handle conflicts, to the effort you put into solving problems, to the way you approach decision making.

26. HC Management Suite
Learning Performance
Management Management
Recruitment 360 feedback
Management Module
HCM
Suite
Employee Talent
Engagement Management
Succession
HR Metrics
Planning
Managing all types of the activities of recruitment procedures is known as Recruitment Mgmt.
(internal__ transfer, Promotion) and (for the external recruitment – managing advertisement,
employee exchange, agencies, educational institutions etc )

27. HC Management Suite
Learning Performance
Management Management
Recruitment 360 feedback
Management Module
HCM
Suite
Employee Talent
Engagement Management
Succession
HR Metrics
Planning
Learning Management manages all aspects of global education and training by automating and
optimizing the administration, management, delivery, and learning programs. Improve workforce
productivity, and Engage your workforce and improve talent readiness -- for organizational success.

28. Benefits
Human Capital Management
Increase Knowledge Base Knowledge management refers to
the efforts to systematically find,
Measure and improve organize and make available an
workforce productivity organization’s intellectual capital
Minimize risk by changing and develop a culture of
likely outcomes continuous learning and
knowledge.
Proactively plan for future
workforce needs
Each training opportunity added
Support enterprise knowledge base organization …
performance improvement
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

29. Benefits
Human Capital Management
Increase Knowledge Base
Human Capital Management
makes measuring and analyzing
Measure and improve
workforce productivity key indicators straightforward.
Minimize risk by changing
A built-in viewer provides a
likely outcomes
simple way to see the status of
Proactively plan for future key metrics, such as revenue per
workforce needs
employee, relative to goals …
Support enterprise
performance improvement
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

30. Benefits
Human Capital Management
Increase Knowledge Base
Human Capital Management
provides advanced analytics and
Measure and improve
workforce productivity
easy-to-use interfaces so business
users can identify and minimize
Minimize risk by changing risks by predicting workforce
likely outcomes
changes and analyzing associated
Proactively plan for future costs.
workforce needs
Forecasting or analytic expertise is
Support enterprise
performance improvement not needed.
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

31. Benefits
Human Capital Management
Increase Knowledge Base
Using pre-defined analytics, such
Measure and improve as Organization Analysis, displays
workforce productivity organizational hierarchies in a list
Minimize risk by changing
of graphical views while surfacing
likely outcomes critical data about the work force.
Proactively plan for future
workforce needs
What kind of workforce are
involving and what kinds are
Support enterprise needed, when needed…
performance improvement
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

32. Benefits
Human Capital Management
Increase Knowledge Base
Measure and improve
workforce productivity Human capital management
helps to integrate and align
Minimize risk by changing human capital strategies and
likely outcomes
improvement efforts with
Proactively plan for future organizational goals.
workforce needs
Support enterprise
The result is a comprehensive
performance improvement view of enterprise performance.
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

33. Human Capital Center of Excellence
Recruiting
Human Capital Center of Excellence
Retention Selection of required and
recommended candidate (staffing
Resource Development or enrollment, or employment)
Change Management Selection of highly qualified and
experience people.
Sourcing
Process: Screening, selection,
Organizational Devt. training, socializing etc.
Compliance / Legal
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

34. Human Capital Center of Excellence
Recruiting
Human Capital Center of Excellence
Preservation, Maintenance and
Retention withholding employees.
Resource Development By providing Training, good
compensation packages
Change Management
(monetary and non-monetary),
and employee socialization.
Sourcing
… which helps to bring excellence
Organizational Devt.
result in the organization.
Compliance / Legal
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

35. Human Capital Center of Excellence
Recruiting
Human Capital Center of Excellence
2 + 2 = 5 (Synergy)
Retention
Resource Development system
Resource Development helps to develop and improve
organizational performance.
Change Management
Also it helps to improve
Sourcing Customer satisfaction, reduces
staff turnover and helps to
Organizational Devt. increase productivity
profitability increase.
Compliance / Legal
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

36. Human Capital Center of Excellence
Recruiting
Human Capital Center of Excellence
Change management is a
Retention structured approach to shifting
individuals, teams, and
Resource Development organizations from a current state
to a desired future state.
Change Management
It is an organizational process
Sourcing aimed at empowering employees
to accept and embrace changes
Organizational Devt. in their current business
environment.
Compliance / Legal
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

37. Human Capital Center of Excellence
Recruiting
Human Capital Center of Excellence
In business, the term word
Retention sourcing refers to a number of
procurement practices, aimed at
Resource Development finding, evaluating and engaging
suppliers of goods and services.
Change Management
Human Capital Sourcing is the
Sourcing identification of job candidates
through proactive recruiting
Organizational Devt. techniques.
Compliance / Legal
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

38. Human Capital Center of Excellence
Recruiting
Human Capital Center of Excellence
OD, as a response to change, a
Retention complex educational strategy
intended to change the beliefs,
Resource Development attitudes, values, and structure of
an organization so that it can better
Change Management adapt to new technologies,
markets, challenges, and the
Sourcing dizzying rate of change itself.
Organizational Devt. So OD is the process of improving
organizations.
Compliance / Legal
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

39. Human Capital Center of Excellence
Recruiting
Human Capital Center of Excellence
Retention Legal compliance is the
process or procedure to
Resource Development ensure that an organization or
employees follows relevant
Change Management
laws, regulations and business
Sourcing rules to achieve the targeted
goal.
Organizational Devt.
Compliance / Legal
Presented to: Ms. Rosina Ranjitkar, Faculty of HRM, IBMS July - 2011

40. Human Capital Model
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

41. Human Capital Strategy
Talent is the only sustainable
advantage in a global knowledge
economy, and integrated talent
management strategy and practices
are now central to business results.
Human Capital Strategy provides
the foundational framework,
practical application and tools to
move the needle in any
organization and career.
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

42. Strategic Relation
Human Capital and Business
Human Capital is the combined value of the skills, knowledge,
creativity, abilities, and life experiences of the organizational workforce.

43. Human Capital Risk
Human capital risk occurs when the organization operates below
attainable operational excellence levels. example >>
Human capital risk accumulates in four primary categories:
 Absence activities
Activities related to employees not showing up for
work such as sick leave, industrial action, etc.
Unavoidable absence is referred to as legal Absence.
All other categories of absence are termed
"Controllable Absence“
 Collaborative
 Knowledge Activities
 Process activities
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

44. Human Capital Risk
Human capital risk occurs when the organization operates below
attainable operational excellence levels. example >>
Human capital risk accumulates in four primary categories:
 Absence activities
 Collaborative activities
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.)
 Knowledge
 Process activities
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

45. Human Capital Risk
Human capital risk occurs when the organization operates below
attainable operational excellence levels. example >>
Human capital risk accumulates in four primary categories:
 Absence activities
 Collaborative activities
 Knowledge Activities
Knowledge Activities are related to time expenditures by a
single person and include finding information, research,
email, messaging, blogging, information analysis etc.
 Process activities
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

46. Human Capital Risk
Human capital risk occurs when the organization operates below
attainable operational excellence levels. example >>
Human capital risk accumulates in four primary categories:
 Absence activities
 Collaborative activities
 Knowledge Activities
 Process activities
Process activities are knowledge and collaborative activities
that result due to organizational context such as errors/
rework, manual data transformation, stress, politics, etc.)
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

47. Risks (a poem copied from you can win)
...
To reach out for another is to risk involvement.
To expose feelings is to risk exposing your true self.
To place your ideas, your dreams, before a crowd is to risk their loss
To live is to risk dying.
To hope is to risk despair.
To try is to risk failure.
But risks must be taken, because the greatest Hazard in life is to risk nothing.
The person who risks nothing, does nothing, has nothing, and is nothing
They may avoid suffering and sorrow, but they cannot learn, feel, change, grow,
Love, or live. Only a person who risks is free.
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

48. Human Capital
Mobility Between Nations
Educated individuals often migrate from poor countries to rich countries
seeking opportunity.
capital-rich countries gain an arrival in labor, and labor rich countries
receive capital when migrants remit money home.
The ability to have mobility with regards to where people want to move
and work is a part of their human capital.
Being able to move from one area to the next is an ability and a benefit
of having human capital. (Terms in HUMAN CAPITAL VALUE)
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

49. Human Capital Valuation
Valuation is made according to the Knowledge, Skills
Experience, Education and performance of employee’s
that helps organization to achieve the targeted goal.
Productivity,
Efficiency,
Knowledge and education,
Popularity,
Credibility
Skills and
Legality etc..
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

50. Conclusion …
Human capital concept is now develop in a broader sense as
a KNOWLEDGE CAPITAL, because Knowledge gives the value
and Excellency.
Human Capital need motivation to raise their value and
performance.
Investment in human capital is continuous process which
helps employees to increases the performance & productivity
Which helps organization to exists in this competitive
business world, so organization should seek to invest in
HUMAN CAPITAL.
Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

51. “ To put it simply and starkly; if you don’t
get the people process right, you will never
fulfill the potential of your business.”
Larry Bossidy,
Former CEO of Honeywell

52. Q&A
Thank you

53. Note:
Some of the contents of this slides are copied from different
scholar’s articles from Google and Wikipedia.
Also I would like to assure that- this slides are prepared for the
academic use, not used for professional purpose, so that I am not
including references here.
____________
With Regard
Prakash Dhakal