Instrumental Approach in Human Capital Management: A Conceptual Framework

Abstract

Human Capital Management (HCM) is a management concept that demands theoretical foundations for implementation. It must not be easily equated with human resource management activities. HCM must include initiatives directly focused on the knowledge resources that are at the organization's disposal. However, using only internal knowledge resources is not enough to raise the level of competitiveness. Organizations must reach outside their environment. It has been adopted that, in instrumental terms, HCM is based on intentionally selected and applied organizational, technical, social, formal, and legal, as well as economic and financial instruments in a manner that enables the organization's goals to be achieved. At the inter-organizational level, HCM was included in the organization's business ecosystem as the organization gains new opportunities to use the knowledge and human capital of its stakeholders thanks to its network connections. It is from this perspective that the article proposes the main concepts, goals and practices, methods that HCM can serve.

Intellectual Capital Evaluation Index Based on a Hybrid Multi-Criteria Decision-Making Technique

“…Accordingly, enterprises should setup the concept of human capital investment and focus on long-term planning to bring higher yields. Managers need to have the ability to perform collaborative system management, integrate various activities implemented at the individual, team, organization, and inter-organizational human capital levels, and manage multiple aspects of human capital interaction [61].…”