HUMAN CAPITAL MANAGEMENT, a backbone to effective Technology Management

An Abstract of my PAPER published in "National Conference on Technology Management" (TECHMA 2015) held @ Institute of Technology Management , DRDO, Mussoorie, UKD, India
               
Best Practises for Managing Technological Challenges in R&D Projects 

'Human Capital' is a measure of the economic value of an employee's skill set. This measure builds on the basic production input of labor measure where all labor is thought to be equal. But the concept of human capital recognizes that not all labor is equal and that the quality of employees can be improved by investing in them. The education, experience and abilities of an employee have an economic value for employers and for the economy as a whole. The term human capital was first used by a number of economists in the late 1950’s and early 1960’s. The Concept is that individuals generate, retain and use knowledge and skill (human capital) and create intellectual capital. Their knowledge is enhanced by the interactions between them (social capital) and generates the institutionalized knowledge possessed by an organization (organizational capital).

In India, rate of human capital formation has consistently increased after Independence due to qualitative improvement in each generation. At this time, until we develop artificial intelligence we pretty much need human capital to accomplish anything in the world. In fact, it takes human capital to create some other forms of capital. While a machine may eliminate the need to have hundreds of production workers make stuff, it still took human capital to design and build the machine. And as we move deeper and deeper into a knowledge-based economy that depends on information, knowledge and high-level skills, human capital is becoming increasingly important. 

Thus we see that Technology and Human Capital Management (HCM) have a broad range of influences upon each other, and Human Resource (HR) professionals should be able to reengineer the HR function, to meet present day technological demands and be able to support a proper managerial climate for innovative and knowledge based organization. 

Hence one of the most important parts of any organization is the human resource team. They are the backbone of an organization’s sustainability. Those leaders willing to make and stand by an investment in a modern culture, either government or private whether during hiring decisions or handling times of transition, will enjoy returns through better talent, stronger employee relationships, resilient employees, and sustained revenue. 

So we can safely infer that successful HR practice within an organization is the key ingredient to effective technology management. Thus investment on Human Capital can provide an organization with the backbone for a modern, intellectual and healthy work culture.

  

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