HC W3 Lecture 3 PDF

BH30403 HUMAN C A P I TA L LECTURE 3 MODERN THEORY OF HUMAN CAPITAL Today, human capital theory is often further dissected in order to quantify components known as “intangibles” such as:  cultural capital  social capital  intellectual capital...

BH30403 HUMAN C A P I TA L LECTURE 3 MODERN THEORY OF HUMAN CAPITAL Today, human capital theory is often further dissected in order to quantify components known as “intangibles” such as:  cultural capital  social capital  intellectual capital C U LT U R A L C A P I TA L A term introduced by Pierre Bourdieu (Cultural Capital Theory Of Pierre Bourdieu) - Bourdieu studied under Marxist philosophers to refer to the symbols, ideas, tastes, and preferences that can be strategically used as resources in social action. He sees this cultural capital as a ‘habitus’, an embodied socialized tendency or disposition to act, think, or feel in a particular way. By analogy with economic capital, such resources can be invested and accumulated and can be converted into other forms. Thus, middle-class parents are able to endow their children with the linguistic and cultural competences that will give them a greater likelihood of success at school and at university. Working-class children, without access to such cultural resources, are less likely to be successful in the educational system. Thus, education reproduces class inequalities. Bourdieu sees the distribution of economic and cultural capital as reinforcing each other. Educational success—reflecting initial cultural capital—is the means through which superior, higher-paying occupations can be attained, and the income earned through these jobs may allow the successful to purchase a private education for their children and so enhance their chances of educational success. S O C I A L C A P I TA L Social capital is "the networks of relationships Social capital is the value that comes from social among people who live and work in a particular networks, or groupings of people, which allow society, enabling that society to function individuals to achieve things they couldn't on their effectively". own. It involves the effective functioning of social groups Social capital in business world is distinct from through interpersonal relationships, a shared sense human assets like fame or charisma, which cannot of identity, a shared understanding, shared norms, be taught or transferred to others in the way skills shared values, trust, cooperation, and reciprocity. and knowledge can. Some have described it as a form of capital that produces public goods for a common purpose, although this does not align with how it has been measured.  SOCIAL CAPITAL 1: SHARING INFORMATION AND RESOURCES YOU TELL YOUR NEIGHBOR A GROUP OF COWORKERS DOOR-TO-DOOR VOLUNTEERS A NEIGHBORHOOD BUILDS A ABOUT THE DELICOUS NEW DISCUSS WEATHER FORECASTS EXPLAIN A CANDIDATE'S COMMUNITY GARDEN PIZZA PLACE DOWNTOWN. OVER COFFEE. PLATFORM. TOGETHER USING SHARED TOOLS. SOCIAL CAPITAL2: PROVIDING A S S I STA N C E A next-door neighbor A group of cancer comes over to help you survivors form an online dig your car out of the support group together. snow. People drop their A church holds a garage change into a charity sale to raise money for a donation jar at the local homeless shelter. checkout counter. S O C I A L C A P I TA L 3 : E S TA B L I S H I N G T R U S T A stranger returns your wallet after finding it in a restaurant. Two parents of Little Leaguers wave to one another on the street. A group of bowlers laugh together during their league game. A neighbor calls the police when she sees your kitchen light turn on while you're on vacation. INTELLECTUAL C A P I TA L Intellectual capital refers to the collective knowledge, skills, experience and training of a company's employees. It may also refer to a company's culture, intellectual property, relationships, processes and other intangible information assets. These elements often represent a company's unique capabilities and provide the framework for financial success. I N T E L L E C T UA L C A P I TA L The economic school of thought sees knowledge as intellectual capital. Intellectual capital is defined by Stewart (1997) as “intellectual material-knowledge, information, intellectual property, and experience—that can be put to use for creating wealth.” Intellectual capital includes human capital, innovation capital, and structural capital, of which human capital is recognized as the major component of intellectual capital. It is the combination of knowledge, skills, innovation, and ability of an organization's individual employees to meet the task. KNOWLEDGE C A P I TA L The term knowledge capital refers to the intangible value of an organization made up of its knowledge, relationships, learned techniques, procedures, and innovations. In other words, knowledge capital is the full body of knowledge an organization possesses. A company's knowledge capital depends on the skills and talents of its workers, which is what makes it an intangible asset. Knowledge capital provides companies with a comparative advantage over their competitors. Knowledge capital has three main components: human capital, relational capital, and structural capital. R E L AT I O N A L C A P I TA L Relational capital is defined as the relationships between coworkers. It also includes the relationships between workers and vendors, customers, suppliers, partners, and collaborators. Relationship capital also includes franchises, licenses, and trademarks as they have value only in the context of the relationship they have with customers. STRUCTURAL C A P I TA L This type of capital represents the non-physical capital possessed by an organization, such as processes, methods, and techniques, that allow it to operate and enable it to leverage its capabilities. Structural capital may also include intellectual property such as databases, code, patents, proprietary processes, trademarks, software, and more. THANK YOU