Human Capital VS. Human Resources Management : The Applicable Approach for Thai Organizations

Abstract

This article studies the application among Human Capital Management and Human Resources approach in Thai organizations based on the concepts of applied economics, materialism and capitalism. There are two objectives of the study. Firstly; to exhibit the knowledge collecting from Human Resources and Human Capital theorists and practitioners. Secondly, to investigate and assess whether the application of best practices vs. best fit is preferable and lead to the desire outcome of Thai’s organizations (both of public and private units). It is divided into two main parts. The first part will describe and discuss the both concept and their dissimilarity. The second part discusses the application of this approach in terms of appropriateness when adopting in Thai organizations’ context.  This is done by employing 2 key analytical approaches: 1) Philosophical-based analyses, i.e., ontology, epistemology, logic, ethics, axiology and methodology; 2) Concentrating and adopting Burrell and Morgan (1979) ideologies.

The data collection is principally based on the secondary data by reviewing the relevant literature including concepts, principles, theories as well as analysis and interpretation of method-comparison study. This paper compares and distinguish, which approach is the most desirable between human capital and human resources management. Because these two people management approaches are not inherently ‘good’ or ‘bad.’ They are just different and interchangeable. But in the end, achievement of likable firm performance is primarily focused. The writer’s perspective cannot generalize that any of these two concepts is compatible with all types of organization. Thai’s private firm, a dynamic and transformational mode may suitably fit with the application of human capital approach, while the transactional style of government unit that is implied as organization as machines (Morgan, 1986) hold a limitation and challenging from the heavy and bureaucratic system. The latter organization still deploy the human resources concept but should enhance this approach strategically.

As a conformist, to just follow through without strict consideration may lead to the opposite outcomes. As both of these people management approaches are mutually corroboration and interdependence; therefore, the optional preferred application over the firms could be ‘mixed approach’ that sustains the professionalism of human resources, while ensuring the strategic human capital management. Conform to the study of Chueasraku (2018) that found the collaboration among two approaches have led and significant effects on the people management effectiveness with the power of prediction as 54.9%.