Human Capital Classification

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Questions and Answers

What is the role of a Human Resource Management professional like Lata?

Developing compensation plans

Ensuring the organization has the necessary human capital to accomplish its goals (correct)

Recruiting and selecting employees only

Ensuring compliance with occupational health and safety regulations

What is 'human capital' in the context of Human Resource Management?

A type of financial investment

A type of management approach

Employees with a certain set of knowledge, skills, and abilities (correct)

A type of training program

What is the primary concern of Human Resource Management?

Developing training and education programs

Complying with occupational health and safety regulations

Ensuring maximum ROI on resources

Fulfilling management objectives and taking care of resource needs (correct)

What is one of the tasks involved in ensuring a company is appropriately staffed?

Job analysis, planning, recruiting, and selection Signup and view all the answers

How does Human Resource Management differ from personnel management?

HRM has a broader scope and a different mission Signup and view all the answers

What is the main difference between a Human Resource Management approach and a personnel management approach?

HRM has a broader scope and a different mission Signup and view all the answers

What does a Human Resource Management professional like Lata do to keep employees up-to-date on skills and knowledge?

Develops training and education programs Signup and view all the answers

What does human resource management focus on?

Acquisition, development, motivation and maintenance of human resources Signup and view all the answers

What is the assumption of personnel management regarding people?

People are a means to achieve desired output Signup and view all the answers

What is the purpose of personnel function in personnel management?

For employee's satisfaction Signup and view all the answers

What is the basis of job design in human resource management?

Group work/team work Signup and view all the answers

Who is involved in decision making in human resource management?

Collective decision making with employee participation Signup and view all the answers

What is the focus of personnel management?

Increased production and satisfied employees Signup and view all the answers

What is the scope of human resource management?

All level of managers from top to bottom Signup and view all the answers

What is the nature of personnel management?

A routine function Signup and view all the answers

What are the three categories of human capital according to the classification?

Intellectual capital, social capital and emotional capital Signup and view all the answers

What is the primary goal of HRM?

To make efficient and effective use of human resources Signup and view all the answers

What is the main objective of human resource management according to the National Institute of Personnel Management (NIPM)?

To bring together and develop into an effective organisation of the men and women who make up an enterprise Signup and view all the answers

What is the definition of human resource management according to Flippo?

Planning, organising, directing and controlling of human resources Signup and view all the answers

What is the primary concern of HRM according to Decenzo and Robbins?

Peoples dimension in management Signup and view all the answers

What is the role of HRM in achieving organisational objectives?

Acquiring peoples' services, developing their skills, and motivating them to higher levels of performance Signup and view all the answers

What is the definition of human resources?

The quantitative and qualitative aspects of employees working in an organisation Signup and view all the answers

What is the primary responsibility of a human resource manager?

To make efficient and effective use of human resources Signup and view all the answers

Study Notes

Human Capital Classification

Human capital is classified into three categories: intellectual capital, social capital, and emotional capital.
Intellectual capital consists of specialized knowledge, tacit knowledge, skills, cognitive complexity, and learning capacity.
Social capital is made up of a network of relationships, sociability, and trustworthiness.
Emotional capital consists of self-confidence, ambition, courage, risk-bearing ability, and resilience.

Defining HRM

HRM is a process of making efficient and effective use of human resources to achieve set goals.
HRM involves planning, organizing, directing, and controlling the procurement, development, compensation, integration, maintenance, and separation of human resources.
HRM aims to bring together and develop into an effective organization of the men and women who make up an enterprise, considering the well-being of individuals and working groups.

Comparison of HRM and Personnel Management

HRM focuses on the acquisition, development, motivation, and maintenance of human resources.
Personnel management focuses on personnel administration, employee welfare, and labor relations.
HRM assumes people as an important and valuable resource, whereas personnel management assumes people as an input for achieving desired output.
HRM provides more training and development opportunities, whereas personnel management provides less training and development opportunities.
HRM decisions are made collectively after considering employee participation, authority, decentralization, and competitive environment, whereas personnel management decisions are made by top management as per the rules and regulations of the organization.
HRM focuses on effectiveness, culture, productivity, and employee participation, whereas personnel management focuses on increased production and satisfied employees.
HRM is concerned with all levels of managers from top to bottom, whereas personnel management is concerned with personnel managers.
HRM is a modern approach, whereas personnel management is a traditional approach.

Human Resource Management Function

HRM ensures the fulfillment of management objectives and takes care of the needs of resources.
HRM goes beyond the administrative tasks of personnel management and encompasses a broad vision of how management would like the resources to contribute to the success of the organization.
HRM involves job analysis, planning, recruiting, and selection, as well as developing training and education programs to keep employees up-to-date on skills and knowledge.
HRM develops compensation plans.