Human Capital Frameworks: How To Build A Strong Organization
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Basically, this book's preparation is also a discourse for us always to learn and have an optimistic view of looking ahead that there is always a way to achieve success by utilizing the right human capital.
Eny Lestari Widarni
Dr Eni Lestari Widarni is a practitioner and academic in human resource management. Dr Eni Lestari Widarni is the leader of the university of economics in Indonesia, namely the Jaya Negara Tamansiswa Malang School of Economics.
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Human Capital Frameworks - Eny Lestari Widarni
CHAIRMAN OF MAJU JAYA NEGARA TAMANSISWA FOUNDATION
Alhamdulillah, thanks to Allah SWT, for the publication of the Human Capital Framework Book published by Triple Nine Communication Press, written by Dr Eny Lestari Widarni, MM. At the Tamansiswa Malang State College of Economics, who inshaAllah is very helpful for the needs of students and female students in participating in the Study of Learning Process at the Tamansiswa State Campus of STIE Jaya Negara Malang.
This book discusses very interesting things about Performance Evaluation, including the scope, stages in human capital and its application in management, as well as what methods exist in human capital that are very useful.
May Allah make this book a charity for the author, and make knowledge useful and a blessing for all of us. Aamiin.
Malang, September 2019
Chairman of the Maju Jaya Negara Tamansiswa Foundation
Ki.Drs. Purnomo Adji, M.Pd
Foreword Of Registrar General of the Supreme Council The Tamansiswa Union
Gratitude for the presence of Allah SWT, for the publication of the Human Capital Frame Work Book published by Janega Press written by Dr Eny Lestari Widarni, MM. At STIE Jaya Negara Tamansiswa Malang which is very useful in the world of education. Where education is learning, knowledge, skills and habits of a group through teaching, training or research.
This book discusses many things about education and applications in the field of Human Capital which are very helpful in the quality of human resources.
The hope is that this book will be a motivation to improve self-quality and charity for the author, as well as make knowledge that is useful and blessed for all of us. Aamiin.
Malang, September 2019
Registrar General of the Supreme Council
The Tamansiswa Union
Ki.DR.Saur Panjaitan XIII, MM.
FOREWORD
Praise and gratitude, we always pray to the presence of the Almighty God because of the abundance of His grace and guidance so that we can finish compiling this book. Along with the community's demands on the importance of information and education, especially on Human Capital Frameworks, it is the main objective of this book.
This book's purpose is to develop the next edition of the book and be a reference for the public, practitioners, and academics. This book contains all aspects related to human capital and the organizational environment.
Basically, this book's preparation is also a discourse for us always to learn and have an optimistic view of looking ahead that there is always a way to achieve success by utilizing the right human capital.
Not to forget, we also express our gratitude because we might not have been able to complete this book without the help of various parties. The hope is that this book on human capital will benefit the community and become a reference for the community in developing their human capital capabilities. No human being is perfect and His creation, no ivory is not cracked; we welcome all comments, criticisms, suggestions, and messages that can help us be better in releasing the next edition of the book.
Malang, September 2019
Author
Dr. Eny Lestari Widarni, SE, MM
Table Of Content
CHAPTER 1. HUMAN CAPITAL
Definition of Human Capital
Human capital or human capital is an essential element of intangible assets in the organization. Intangible assets include copyrights, customer relationships, brands, and corporate image. All of this is the organization's wealth, so knowing how employees' imagination and creativity are as important as well for business success is a hard
asset. The importance of human assets explains why it is vital to measure their value and how well they are used and show what needs to be done to manage them more effectively. As Becker (1993) stated, human capital is that humans are not just a resource, but capital that generates returns. Every expenditure made to develop the quality and quantity of that capital is an investment activity. Human capital theory, as stated by ES Human Resourcesenberg and Smith (1997), the concept of workers is the embodiment of a set of skills that can be rented
to the employer. Knowledge and skills of workers come from education and training, including training that results in share carrying experience specific and Capital productive skills.
According to Edwinson and Malone (1997), human capital is the individual knowledge, experience, capability, skills, creativity, innovativeness.
Knowledge includes knowledge about academic tests obtained through education; skills can work or fulfill practical abilities. According to Stewart (1997), human capital is the lifeblood of intellectual capital, a source of innovation and empowerment, but a component that is difficult to measure. Human capital reflects the company's collective ability to produce the best solutions based on the knowledge possessed by the people in the company, which will increase if the company can use the knowledge possessed by its employees. According to Davenport (1999), human capital is the effort brought by workers to invest in their work. This includes abilities, behavior, enthusiasm, and time. According to James Hatch (enterprise resource planning rise Magazines, 15 November 1999), human capital is everything about humans (labor), intellectuals, knowledge, and experiences. Labor is a physical or mental effort that is issued by employees to process products and provide services.
Scarborough and Elias (2002): explain, The concept of human capital is beneficial and is seen as a bridging concept. It defines the relationship between human resource practices and business performance. They show that human capital is mostly non-standard, hidden, dynamic, context-dependent, and this characteristic often occurs in society. This trait makes it difficult to evaluate human capital because the human capital that is entrepreneurial resource planning important to company performance is the flexibility and creativity of individuals, their ability to develop skills to respond and be motivated by different contexts. They also mention that:
In human capital theory, references are made to people and skills, while in physical capital theory, references are made to plants and equipment."
Stockley (2003) defines human capital as: The term of human capital is a recognition that people in organization and business are important an essential asset who contributes to development and growth, in a similar way as physical assets such as machines and money. The collective attitude, skills, and abilities of people contribute to organizational performance and productivity. Any expenditure in training, development, health and
. This means that support is an investment, not just an expense. Human capital is a concept explaining that people in organizations and businesses are important and potential assets, contributing to development and growth, just like physical assets such as machines and working capital. Attitudes, skills, and human abilities have a contribution to organizational performance and productivity.
Expenditures for training, development, health, and support are not just costs but are investments. Meanwhile (Gary Dessler, 2003, 9) defines