Human Resource Management

Human Resources Management (HRM)
Student’s Name
Institutional Affiliation

Human Resource Management (HRM)
Discussion 1:
What is human capital?
Human capital is not necessarily supposed to be humans. When looked into in detail, it is the skill as well as the knowledge that provides an individual with the capability to add economic value to an organization. Alika, Joseph, and Aibieyi in their article defined human capital as improving an individual regarding education and training which means improvement in abilities. When investment is made in human capital, either by educating or training, individuals become beneficial to the organization later since their skills improve organization’s performance and productivity.
Why is it important to an organization and why is it important to grow it?
Human capital is crucial as all organizations depend on it to function and attain their objectives. Undoubtedly, it takes this kind of money to generate some other types of capital. Whereas machines reduce the number of employees required in a firm, human capital is the only form of capital which is relied on to create such devices. Additionally, the importance of human capital increases when we go deeper into topics, for instance, the knowledge-based economy. Grow human capital is crucial as it results in improvement of its productivity which in turn goes a long way to improve the richness of the company (Khan, n.d.).
From an organizational perspective, what is the difference between capital and human capital?
Most often, the idea of human capital is apparently a combination of both human and capital.

When it comes to economics point of view, capital denotes all factors of production utilized to produce goods or services but are not consumed during the production process. In some instances, organizations refer to labor as human capital. The difference between capital and human capital is that human capital is not consumed during the production process. Additionally, human capital is in charge of other capital including economic activities. Thus human capital as a wealth adds value when utilized.
Please tell us about the human capital in your organization and management’s philosophy on growing it.
Human capital is taken seriously in my organization as it is the primary form of capital which ensures there is an improvement in production. The HR department does a lot when it comes to training and coaching new or current employees on various tasks. In my organization, management believes that growing human capital is costly, but if it succeeds, its returns exceed the cost.
What is the biggest challenge to growing human capital? Why?
Although human capital is vital for organizations to improve their production and competitive advantage, there are challenges in regards to growing it. Since growing human capital comprises training or educating staff to gain more skills, it means finances and time are required to accomplish this. Therefore, the biggest challenge when it comes to growing human capital is finance. This is because educating or training individuals entails paying instructors or trainers to teach them. Also, equipment’s can be used during training hence extra cost.
Discussion 2:
How do you think the two models are related?
Strategic planning and human resources go hand in hand with one another since, during the process of strategic plans, the administration ensures that all plans for the funds are established in line with each other. This is because resources depend on each other to be useful when functioning. Forecasting, on the other hand, involves projecting on the needs of labor and its impacts (Walsh, Sturman & Longstreet, 2010). The two models are related, in that forecasting projects the changes while strategic planning and resources are about managing the same changes.
In what ways would you use these models to forecast HR, using strategic planning?
First and foremost, this model can be used to forecast HR when attempting to identify future issues which can face HR. These comprises predicting the supply of employees and also the company’s demand for staff. Doing so will enable the management to do an up to date planning that can cover all issues.
How would you accomplish question #2 for your organization?
For the case of my organization, question two can be accomplished by using the trends taking place in the industry. This includes the growth rate of the organization, the prevailing economic and political factors as well as technological factors. Additionally, other methods include work-study technique and managerial judgment.
What internal and external forces would affect your answer?
Several factors can affect the answer to number four. Internal factors include the management. An organization grows if it is managed efficiently and vice versa. Other internal factors constitute the rates of hiring or workforce demographics, employment trends, productivity and replacement of staff. External factors comprise government regulation, technological advancements, and changing market.

References
Alika, Joseph, I., & Aibieyi, S. (2014). Human Capital: Definitions, Approaches and Management Dynamics. Infinitypress.info. Retrieved 10 January 2018, from http://www.infinitypress.info/index.php/jbae/article/viewFile/352/283Walsh, K., Sturman, M., & Longstreet, J. (2010). Key Issues in Strategic Human Resources. Scholarship.sha.cornell.edu. Retrieved 10 January 2018, from http://scholarship.sha.cornell.edu/cgi/viewcontent.cgi?article=1244&context=articlesKhan, S. Human capital. Khan Academy. Retrieved 10 January 2018, from https://www.khanacademy.org/economics-finance-domain/core-finance/investment-vehicles-tutorial/investment-consumption/v/human-capital