This paper examines the questions of how important human capital is for business success. With this intention it is first defined what human capital is before there are evaluated several measurement approaches concerning the valuation of human capital in a company. Consequently, embedded into a case study, the value of this asset is calculated with the Lev & Schwartz model at an Indian tech company called Infosys technology limited. As a result of the case study it is pictured that human capital and the returns of Infosys are highly correlated, which underlines the hypothesis that human capital is a key factor for business success. To generalise the stated findings there is also a view on a macro economical level. The main result of this paper is that human capital actually can be said to be the most important aspect for business success. In a last part the author criticises that many companies do not pay enough attention at human capital.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Statement of the research question
- Ambition and approach
- Definition and differentiation
- Evaluating human capital
- Methods to evaluate human capital
- Case study part one: Evaluating human capital at ITL
- The impact of Human Capital on business success
- Case study part two: The impact of human capital at ITL
- The impact of human capital on business success in general
- Analysis and discussion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to investigate the significance of human capital as a driver of business success. It begins by defining human capital and exploring various methods for its valuation. A case study on Infosys Technology Limited (ITL) is then used to illustrate the relationship between human capital and business performance. Finally, the paper examines the macroeconomic implications of human capital and critiques the insufficient attention many companies give to this crucial asset.
- Defining and measuring human capital
- The correlation between human capital and business success
- Case study analysis of Infosys Technology Limited
- Macroeconomic perspective on human capital
- Critique of corporate approaches to human capital investment
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This chapter introduces the research question, which focuses on determining the importance of human capital in achieving business success. It highlights the shift in modern economies towards intangible assets as key value drivers, particularly human capital. The chapter emphasizes the challenge of measuring human capital's impact due to its intangible nature and the need for evidence regarding the profitability of investments in this asset. The research question is clearly stated: Does human capital serve as a key factor for business success, and if so, how can its worth be measured and its impact quantified?
Definition and differentiation: This section provides a comprehensive definition of human capital and distinguishes it from other related concepts. It establishes a foundational understanding of human capital, explaining its different facets and its importance within the context of business operations. The chapter further clarifies the scope of this concept by delineating its boundaries in relation to tangible and intangible assets, as well as setting parameters that differentiate human capital from other forms of intellectual property or business assets. This section lays the groundwork for the subsequent analysis by providing a clear conceptual framework.
Evaluating human capital: This chapter delves into the methodologies used to evaluate human capital. It explores various approaches, from quantitative models to qualitative assessments, detailing the strengths and limitations of each method. A specific emphasis is placed on the selection criteria for appropriate methodologies and the contextual factors that must be considered when valuing human capital within a company. This section paves the way for the case study by presenting a theoretical framework for evaluating the asset within a company setting.
The impact of Human Capital on business success: This chapter investigates the relationship between human capital and business success. It presents a case study that examines the impact of human capital on the overall performance of a company. This section also moves beyond the micro-level of the case study to discuss the general impact of human capital on business success in wider economic contexts. The implications for business strategy and long-term planning are clearly described.
Schlüsselwörter (Keywords)
Human capital, business success, intangible assets, valuation methods, case study, Infosys Technology Limited, macroeconomic impact, competitive advantage, investment in human capital.
Frequently Asked Questions: A Comprehensive Language Preview
What is the main research question addressed in this paper?
The central research question explores the significance of human capital as a key driver of business success. It investigates how human capital's worth can be measured and its impact quantified to determine its role in achieving business success.
What are the key themes explored in this paper?
The paper examines several key themes, including defining and measuring human capital, the correlation between human capital and business success, a case study analysis of Infosys Technology Limited (ITL), a macroeconomic perspective on human capital, and a critique of corporate approaches to human capital investment.
What methods are used to evaluate human capital in this research?
The paper explores various methodologies for evaluating human capital, ranging from quantitative models to qualitative assessments. It discusses the strengths and limitations of each method, emphasizing the importance of selecting appropriate methodologies based on contextual factors.
What is the role of the Infosys Technology Limited (ITL) case study?
The ITL case study serves as a practical illustration of the relationship between human capital and business performance. It provides empirical evidence to support the theoretical arguments presented in the paper, allowing for a concrete analysis of human capital's impact on a specific company.
How does the paper define human capital and differentiate it from other concepts?
The paper offers a comprehensive definition of human capital, distinguishing it from other related concepts such as tangible and intangible assets, and other forms of intellectual property. This ensures a clear understanding of the scope and boundaries of the concept within the context of the research.
What is the macroeconomic perspective on human capital discussed in the paper?
The paper expands beyond the micro-level analysis of the case study to explore the broader macroeconomic implications of human capital. It considers the impact of human capital on business success within wider economic contexts.
What is the paper's critique of corporate approaches to human capital investment?
The paper critiques the insufficient attention many companies give to human capital, highlighting the need for increased investment and a more strategic approach to managing this crucial asset for achieving long-term business success.
What are the chapter summaries included in the preview?
The preview includes summaries for the Introduction, Definition and Differentiation, Evaluating Human Capital, and The Impact of Human Capital on Business Success chapters, providing a concise overview of the content of each section.
What keywords are associated with this research?
Keywords include: Human capital, business success, intangible assets, valuation methods, case study, Infosys Technology Limited, macroeconomic impact, competitive advantage, investment in human capital.
What is the overall objective of this research paper?
The primary objective is to investigate the significance of human capital as a driver of business success, providing a comprehensive analysis of its valuation, impact, and implications for both individual companies and the wider economy.
- Citar trabajo
- David Baur (Autor), 2018, Human Capital as Key Factor for Business Success. The Importance of Human Capital, Múnich, GRIN Verlag, https://www.grin.com/document/988691
