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Accounting for human capital and organizational effectiveness
Kramar Murthy, Vijaya Guthrie, James Professor, Robin J. Kramar
Kramar
Murthy, Vijaya
Guthrie, James
Professor, Robin J. Kramar
Abstract
This article discusses how the shift to a knowledge-based economy has propelled firms' human capital (HC) and associated intellectual resources to center stage. It notes that while organizational researchers have highlighted the increasingly strategic role of HC, and despite a growing realization among firms that their human-knowledge resources are becoming more important, managerial awareness of the value of HC remains low. The article suggests that HC management, measurement, and reporting are increasingly vital capabilities that all organizations will need to acquire. It proceeds to analyse the nature of HC, trace the evolution of HC accounting, identify current accounting challenges, and describe contemporary frameworks that are seeking to address these challenges. The article defines HC within organizations as ‘employee capability, knowledge, innovation, adaptability, and experience’, noting that it is typically represented as one element in a tripartite framework of intellectual capital, the other two being relational capital and organizational capital.
Keywords
knowledge-based economy, human capital, employee capability, knowledge, innovation, adaptability
Date
2011
Type
Book chapter
Journal
Book
The Oxford Handbook of Human Capital
Volume
Issue
Page Range
382-399
Article Number
ACU Department
Collections
Relation URI
Source URL
Event URL
Open Access Status
License
File Access
Controlled