Human Capital with Change: A Paradigm Shift of Human Resource Management

Abstract

     The organization of management among the current changes is more complex and challenging. The organizations need to compete in various dimensions more seriously. Capitalism is the basic concept that organizations with more capital will have an advantage over other organizations. It is a factor that has a major inflence on the management of business enterprises, government agencies and educational institutions to be competitive and grow the organization continuously. However, the concept of capital for current operations is not just a matter of money, technology and management resources, but has begun to focus more on human resources and regard the capital of the enterprise to create an advantage for the operation. Therefore, human resources, is even more important and a new concept is the concept of “Human Capital”.

     This article aimed to explain the paradigm shift about the concept of human resource management of the organization to the human capital. The view is that human resource is the most important asset in the organization using the knowledge, ability, skill and experience of the people in the organization. Therefore, human capital management is what managers at all levels in the organization must be involved with. They must work together with the human resource offier in the organization to plan and develop the human capital of the organization to have the potential to create the best results for the organization.