Human Capital And Its Impact On The Success Of The Company Essay

1280 Words6 Pages
Companies consist of both intangible and tangible assets and each has an impact on the success of the company. The tangible assets are things that you can physically see examples include buildings, inventories, and equipment. Intangible assets are the asset that you can’t see or tough like money, intellectual property, patents, company reputation and human capital (Lev,2004). Human Capital consist of employees and their skills and abilities. Human Capital is often considered a very valuable asset within a company which must be protected. Company’s must have a strong strategic recruitment and compensation plan in order to maintain its human capital and stay competitive.
There are eleven competencies that most well managed companies have and if they fail in either of them they lose their competitive advantage. The eleven competencies are talent, speed, shared mind-set and coherent brand identity, accountability, collaboration, learning, leadership, customer connectivity, strategic unity, innovation, and efficiency (Ulrich, & Smallwood, 2004). In a lot of companies several of these competencies are a part of the employee performance review. Tying these organizational competencies into the employee performance review process helps to ensure that the organization is successful.
Talent is one of the competencies that can be seen in a successful organization therefore a company must have a strategic talent management plan that includes recruiting and compensation
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