In Pakistan, none. Top management gives more weight-age to operations management.

The human capital development (HCD) depends on the human resources management (HRM), so how can we develop any resource without having management for it

Thanks a lot, dear colleagues for your valuable responses.

HRM is the organizational structure of the efficient employees of the company and they are focusing on the improvement of their company's gain and performance of company's employees. So, HRM is most important part of the organization but HCD is a process of improving employee's skills and capabilities through HRM.

I think human resource development is directly proportional of human capital development.

Human Capital Development is a leg within Human Capital Management, as much as Human Capital Development is important because it is important to keep developing your staff, Human Capital Management is even more important because if you just develop people and not manage them in other areas (i.e. employee wellness, promotions well compensated etc) they will end up leaving the organization.

Human Capital Development is a sub-set of Human Resource Management. HRM takes charge, listens, understands, and analyze all the employee in the organization, where their reports can suggest for HCD for skill development or training of their employee. An organization can outsource HCD but HRM is it's integral system.

Human Resource Management (HRM) is more important than Human Capital Development (HCD). To make it simple. HCD is all about preparing people for the challenges by equipping them with knowledge, education, training, skills, and expertise needed to be competitive while HRM is "the policies and practices needed to carry out the "people" or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising".

“The current shift of terms and definitions between Human Capital Management (HCM) and Human Resource Management (HRM) according to (Mayo 2001), the difference between HCM and HRM is that the former treats people as assets while the latter treats them as costs. Further, Kearns (2005) believes that in HCM ‘people are value adders, not overheads’ while in HRM ‘people are treated as a significant cost and should be managed accordingly’. Kearns implies that, in HRM ‘the HR team is seen as a support service to the line’ – HR is based around the function and HR team performs ‘a distinct and separate role from other functions’. Conversely, HCM is clearly seen and respected as an equal business partner at senior levels’ and is ‘holistic, organization-wide and systematic –based’ as well as being strategic and concerned with adding value”.

Therefore in this view, it should be noted that the perception of HCM complements and strengthens the concept of HRM in that both are important components in the process of employee management.

I believe HCD is playing major role in enhancing the skills and strategies at the organization, meanwhile HRM it can influence the behavior of the employees in order to grow their capabilities and contribution to the company performance.

Continued on the above: HCD can be evaluated using cost benefit analysis. Variables like resource inputs, education and training, and learning outcomes are assessed. Human Capital Management (HCM) can be seen as a discipline that drives bottom line performance and creates value throughout the organization by adopting the following practices:

- Linking people management to strategy

- Leading people

- Creating a high performance workforce

- Managing competencies

- Ensuring accountability

Hi Ali Nasser Al-Tahitah ,

I hope you are fine.

I think it is a trick question, because both are important equally. Perhaps you need first to offer conditions in order to develop people, and after that you can manage them for reaching the purposes of the organizations. Last but not least, is possible that the concepts of human capital and human resources differentiate between them because a politically correct language.

All the best,

Francisco

Human Capital Development is far superior to Human Resource Management in regards to individual to individual basis in improving their performance within an organization. Yet, Human Capital Development falls within the umbrella of Human Resource Management. Human Resource Management is a functional area within an organization that deals with all things human resources. Therefore, Human Resources Management is needed for an organization to be organized and productive, as well as, manage its human capital. Human Capital Development focuses on improving the individual performance of its human capital within an organization, so they may all align towards the organizations goals and mission / vision. Human Resources Management makes sure an organizations goals, mission and vision is carried out through its human capital.

They are a contextual entity: HRM is a management function in the organization, then HCD is a function of HRM, which is an action to meet the management needs of their organizations that concentrate on developing organizational resources.

Both Human Capital Development and Human Resource Management are very important to an organisation. Human capital development also revolves around human resource management.

I would say human resources management is more important because if you eliminate human resource management from the equation, then there would be no hiring, and if there is no hiring there would certainly be no human capital to develop.

HCD is the overall process and methodologies to enhance skills and competencies through diverse forms of learning in order to fulfill the potential of human capital, adding the highest value to organizational efforts. The management of HR is transactional steps to maintain a proper administrative flow of activities (compensation, labor relations, HSE, etc). Related to the "importance" of one over the other, it is clear that both processes seek different outcomes in their domain but are interrelated. You cannot try to develop an HC workforce within a chaotic administrative HR function and so on.

For me, the most important is the development of human capital, for several of them:

Human resources development is an approach that focuses its efforts towards investing in human capital and developing its ideas as required by the time of technology, and human resources development depends on the approach of internal marketing, which follows the approaches of learning and skills discovery and development.

When we speak of the term development, it can be said that it is a broad concept that includes the term management, which is an old approach to human resource.

Human capital development is to be considered more important. It focuses more on finding ways to fully tap into the potentials of the person to contribute effectively and efficiently in an organisation. It seeks out ways by which an individual can be improved as times and goals change.

Both are important, however HRM is the foundation from which to build your HCD in an organized, sustainable way. I have seen companies develop individuals in departments without a clue about what HR is doing, and then have to go backwards to set up large cross-functional management meetings to go through all staff to 9 box individuals. Succession planning is much more organized, skill and performance is clearly linked to documentation for promotion/demotion/disciplinary action/pay increase/layoff/growth, and there is more potential for successful change management because you can gradually evolve staff positions/job descriptions/job tasks/etc. as technology/product/service need changes.

Human Resources Management is a part of Human Capital Development

Thank you so much dear colleagues, your respectful comments and answers are really valuable and beneficial..

@Manuel_August

Are you sure? Or maybe the opposite ☺️

I think, that at the end, and taking into account COVID-19 crisis, the professional development must evolve from a paternalistic approach to an accountability one in which each person finally is responsible for their own development, subtracting the "all-knowing capacity" of HR advisors that conceptualized a "career path" as a series of steps meticulously visible. In other words, this interchange, cannot be the same, because of the emergence of new categories that impact the traditional views of "sussecion planning" and so on.

Both are important! HRM without any HCD will be rather weak.

I think, both are equally important. Human capital development focuses on developing skills, knowledge of an individual. After doing so, you need to ensure the best use of those skills and knowledge. Assigning the right man in the right place always plays a vital role in completing your task within time and with high quality. The latter part can be considered as Human resource management.

Human Capital Management is a part of Human Resource management. Also, check that the Human Capital concept has more classical conditions than it has invisibility and impact the postmodern era of business and human resource managed. The key term here is 'CAPTIAL', that word created a lot of debate in the way we view HUMANS. My submission.

This Capital is knowledge and know-how ( divided in implicit Knowledge, explicit Knowledge). Human Capital is not easy to evaluate, especially implicit Knowledge.

See also :

https://www.youtube.com/watch?v=dLfsCXVIvj0

HCD is one sub-element of HRM.

CC

Human capital development focuses on the ehancement of employees skill-set and knowledge. Traditionally the HCD birthing from the early works of Becker in the 1960 on the concrpt of Human Capital focused more on formal education neglecting experience and informal systems. In recent times, research into other dynamical ways of human capital development such as social networking( professional networking) and other unsang methodologies. Growing the skills and knowledge of workers therefore become prime in HCD.,

HRM on the other hand as old as the concept has been focuses on the totality of management practices focused on the human resource (people management) it does not restrict or specialize in skill or knowledge development but touches on the generic management processes.

Every single organization need to be strong in terms of HCD: but the issue is the management. on the other hand, the strong HRM without resources is an issue also.

Simply a good HRM for every organisation can lead to the boost of capital and the HCD without the knowledge of good management should lead to the destruction of the organisation. I wish my Organization would be strong in HRM.

Personally am so much excited by all contributions so far in this discussion. However Boeddrich contribution coupled with one of Dankyi gives insightful understanding of the HRM and HCD . lts true that HRM focuses more on processes and or procedures to the detriment of the businesses future skills needs . There is more of compliance in HRM which turns out to be procedural and routine. That's why HR function has been regarded as mere support services as compared to core functions of organisations . Businesses today need to drill further in their workforces with relevant analytics to map out skills (implicit knowledge) that can enable them to survive in any ensuing circumstances such as Covid19. This is where HCD becomes of necessity and of prime importance. Otherwise we may pride ourselves of doing HRM yet in nutshell we are managing Human Remains Management (HRM) .

Both are equally important. We also have to look at the lifecycle of an organization, its strategies and its needs. For mature organizations, they have both have HRM and HCD. Probably for smaller organization and new ones, they may begin with HRM and slowly add the elements of HCD.

The short answer is that both have different roles to play: HRM will continue to motivate and nurture employee performance through such functions as recruitment, pergormance appraisal and compensation.

HRD is one of the HR functions and its importance is in respect of ensuring that employees have the needed skills, knowledge and attitudes (SKAs) to perform the jobs. If employees are already prepared in terms of SKAs, then HRM is more important.

Capital is confined with expected return also. Hence I strongly feel Human resource management is more important. Human should be treated as assets and chances should be given all for protecting them from getting obsolete due to any change.

Human resource management is more important because it could utilize the sources that have,then development could also result more.

I think it's both. It's actually a paradox just like learning ambidexterity (exploitation and exploration); HR management may help retain and utilize the existing talent while Human capital development helps develop employee/leader competencies to meet the changing environmental demands.

Beverly, I want to to firmly tell that choose the right person for the right job. In an employment contract employee and employer relationship must be like a marriage contract. It is not hire and fire. It is to train them to suit the emerging situation.

In my first contribution in this discussion l did say it was exciting one and l do appreciate all the views of the contributors thereafter because as we dig further in it very important as aspects of HRM and HCD are being brought to the fore. May l dig further in this discussion on premises that figures speak louder than words and also management of implicit knowledge is important . Those of us who have practiced HRM amidist other professionals such as pure Scientist, Engineers and Accountants who form the majority of the board members of organisations will confirm that HR Analytics as subject matter is evolving and becoming apowerful tool of convincing those in such organizations boards influencing decisions making and their implementation. Towards this an HR Practitioner must therefore arm herself or himself with properly synthesized and analysed data to influence decision , procure abudget and approval for implementation of critical talent management or succession planning or succession management or learning and development strategy in such organizations. This is where HCD becomes of necessity to develop and nature analytic,implicit knowledge management and leadership competencies that Ghulam makes reference to herein . In addition to this there is overwhelming evidence that organisations which never paid attention in management of implicit knowledge have been made to recall back their retirees or extend their tenure and yet had impressive HRM policies in place which could not be implemented in time because there was no proper analytical data to help in influencing decision or procure budget and or approval.

@Ghulam Mustafa

Thanks Beverly. In accounting parlance Livestock (biological asset) is treated as asset. But it does mean that all such assets to be treated as other assets. Now people relying more on mechanical assets than living assets. It is very dangerous.

Human Capital Development (HCD)

A modern perspective, although with limited literature at the moment will show you that Human Capital is not only important but bigger than Human Resources Management. HRM basically would cover policies and procedures, let's call that the hard issues. HC would cover both the soft and hard issues. In other words Talent Management , Employment Relation, HRM and even OD.... The term "capital" in this context refers to the entire capacity required when dealing with people management issues in the workplace. I am confident that this perspective will gain momentum just like IR vs ER issues. It is exactly the same principle.

The capital value may become Zero. But human value never become Zero. That's why it is resource. Moreover if a human is not worth for one organization he would be worth in some organization for some other job or same job in one or other way. We must understand Capital is also a resource (Land, Labor, Capital and Organization).

Human Capital Development (HCD) and Human Resources Management (HRM) are like statics and dynamics. HCD it is quite statical process that can mostly be tracked only by quality characteristics and through the acquisition of new opportunities and prospects. And HRM is an almost daily process of ensuring vital activity, which can mainly be assessed by quantitative characteristics. @

Dear Oleksandr, HRM assessing in quantitative characteristics is not fully acceptable. But qualitative aspects can be quantified for assessment

Although possible, is it reasonable, nowadays, a human resources management that is not guided by the development of its human resources?

Beverly, My sincere thanks and regards for your prompt way of narrating and analyzing. I think you are from UK if I am correct. The Entrepreneurial reward should not be super profit. There should be anti-profiteering laws. I am an Indian. Here even though it is there it is not strictly implemented. I personally feel that HRM should not be restricted within an organization or a particular sector. In fact it is needed everywhere and it does exist either explicitly or inherently in every family and society. Nobody can fix a permanent definite value of human. I think Trump is a good strategic HR person and his subtle way of communications works irrespective of the consequences.

Dear Ali,

The both terms are close and are connected to personnel management (the basic old term which embraces all actions regarding attracting, selecting, recruiting, installing, training, assessing, remunerating, promoting and separating employees from the organization).

Next the play of definitions starts. Talking about the people as resources means dealing with them as with any other resources of organization -- getting them cheaper, utilizing them efficiently and disposing after the use with the minimal harm to the organization and the surroundings. OD and OB studies will never openly accept that cynical view, but many executives see HRM in that way.

When you mention "capital", you must consider the cost of capital, physical and moral depreciation rates, return on capital employed etc. In that logic human capital development is just the necessary investment into repair and updating of fixed assets plus acquisition (creation) of intangible assets. A few partisan studies in labor economics, especially Marxist-oriented, separate human capital from other types of capital as the only source of value added above the total costs of capital of the firm.

Regarding the price of capital and resources -- capital never has zero costs (taking into account of risks), some natural resources are free -- wind, hydraulic power of rivers and even drinking water from public wells in water-rich countries. Recently WTI oil had for a short period of time the negative price.

One small note on Beverly Dawn Metcalfe's comment -- the Communist party still exists in USA (see cpusa.org). The party was indeed banned by the Communist Control Act of 1954, which still remains in effect although it was never really enforced.

I believe in the development of human capital more,this will ensure more skills and thus more innovation will be brought in.

This also ensure that the organization ensure that there is no gap left on new knowldge and thus capitalizing the human resource properly

Dear Faith Yator the basic meaning of capital is a definite input and any decline in value is not accepted. In human you cannot expect it. Whatever may be the technology, that should not overrule the human values,

Human capital development is an organizational approach to capitalize the human skills and knowledge for their benefit. It is implied that if you will be terminated at any time if you are not adding sufficient value to the organisation. But the basic intention of HRM is use and treat them as resource with due respect of human values not as other capital assets.

I agree with you both Faith and Oliver. That the implicit knowledge in human capital is crucial for business sustainability in terms of innovations/continuity, succession planning and management. However this doesn't mean HRM should be ignored as its the major source of explicit knowledge.

The point is: human beings are not "resources", under any point of view that claims to be civilized, but the creators and the meaning of organizations.

Dear Paulo you want to consider Human as other capital asset? Does it make sense of civilization?

I agree that human resource is also crucial but imagine where the same "human, theresource" dont add value to the organization, how now will be organization grow? I think both are important but development is more important, my thinking though

Wonderful, and thank you so much, dear colleagues, for this useful and fruitful debate. I had confusion about the importance of both HRM and HCD to the organizations, but now, through this rich discussion and wonderful answers, several questions have come to my mind. Rather, do you think this matter worthy to established a new research study on a number of organizations from different countries, so that we may find an adequate answer from the reality in organizations? Faith Yator Oliver Bright PAULO EMILIO MATOS MARTINS Gamal S. A. Khalifa Amboka Asumwa Agustine Igor Gurkov Beverly Dawn Metcalfe

Berverly , thankyou so much for mentioning that in lndia there is awhole ministry of HRD which goes to add more value to Ali Nassers proposal and reminds me of my short study visit at Administrative staff Collage of lndia Bella Vista , Hyderabad 11years ago. One proffessor who took us through this particular course emphasised the importance of this ministry and its role towards that country's HCD . I support your views.

"But isn't this discussion making us think about the ethics of how one treats human beings?"

Dear Beverly Dawn Metcalfe

Yes, it does, I am wondering also about how the policy of today's organizations' treats Human being as assests?

Excellent question Dr Ali. Thanks for raising this issue

Thanks, Prof Mohamed Battour for joining and encouraging, your opinion in this regard is important too.

It is not my area Dr @Ali. I think the colleagues covered the point very well

Good question by Dr.Ali. But it is too late. Already education, employment, labor force and economic development are commercialized. Now we need to think human as resource.

Beverly, I just mentioned that talking about ethics will not yield any fruitful result. Past is passed.If we talk about ethics there is always positive and negative justifications. I would say human allowed, accepted and accommodated the unethical in treating the human as resources. I wanted to tell most of the knowledge workers started accommodating unethical practices because of their short term benefits and economic wealth. This covid made as to go for transformation which we need to have socialistic pattern of work culture, I mean think everything in humanitarian ground and everything in the world is to live human harmoniously. My big question we need to thin about redesigning of job?

I think they are on the same level.

Both are important.

Ali, I like the question you raised mid-discussion about the viability of a sweeping research project on company practices regarding the place of human capital in the management of HR. Yes, yes, yes.

Beverly, Whether we have to redesign the job? Work culture? Working time? Compensation? Only productivity? No humanity?

Betty Beeler

Thanks a lot to you and all colleagues involved this debate. I am really enthusiastic and have the intention to start this project.

Mohamed Battour

thank you so much, Prof. Battour

Berverly all said and done the human factor especially the mental faculty of thinking and storing valuable knowledge over years through precision of doing things and in the process attaining certain level of proficiency cannot easily overnight replaced by technology or other newly acquired human resource . This is why its said the most important resource in any organization is the human resource. This resource need to be developed in human capital and the knowledge arising thereof in terms of desirable skills need to be natured mined kept in certain form and transferred over to next generation for organization's posterity. Otherwise with flooded labour markets of all sorts of graduates why should organization recall back from thier retirement certain skills as astop gap measure to address lack of the now needed skills? The answer is basically simple that there was no succession planning and knowledge management strategies in place to cure the impeding or unexpected shortfall.

Oh yes, I am in for the research suggested. I am still agreeing that HCD is more important in an organization and infact a factor should be considered valuable for growth henceforth

Beverly that's why we have to redesign the job. We cannot compare with Tailor's period.He was the one who created the rest pauses in the work places, it was a great thing. Whatever may be the technology, input for any technology is from and by human. It will react only to the input, garbage in garbage out.

All the countries are rushing in finding the medicine for corona. Is it for protecting the people or for making it as an excellent business opportunity

I see it from which side one looks at it , yes on one protecting people and on the other abusiness opportunity. However beneath it could ego or supremacy which still remains human factor. Otherwise why blame games not me or you ?

I think it is for making a business rather than protect human being..

Amboka, It is not blame games. The consideration of humanity is fading away. Everything is for humanity and for human.Everybody should get opportunity to do some work to earn their livelihood. The person who is sufficient enough to do a job but not ready to do any job is not worth to live. Let us live and let others live. Now the need for the world is protecting the life of every human being in the world irrespective of the country, religion, province ,or any other division.

It depends on whether a specific, specific organization (company, enterprise, institution, etc.) depends on the employed staff to develop, improve their professions, occupied positions, whether the employees should be creative and innovative, or the model used personnel management allows to some extent employee participation in the decision-making process that has an impact on implemented production processes and development directions of the company, does the management of the organization care about associating employees with the company to identify with the company or not, or rather employees only have to perform with 100% mountains planned activities at specific workplaces and the company has a high staff turnover etc.

Greetings,

Dariusz Prokopowicz

Beverly, Let me thank first for your reply. I am not disputing about the Taylorism, it was the base for health,safety and welfare measures for workers. I want to tell you, at that period it was more than the need. Employees were not treated as human beings.In India Factories Act was enacted in 1948. No doubt his contribution is the great one not only for workers but also for the humanity. In bio-data system the probability of select errors and reject errors are there.No doubt, in direct system also it is there. Now the Corona created the need to have health as a prime part of human resource management.

I think this discussion is becoming more and more intresting. I am honestly elated with Berverly's contributions l may be wrong or right. In my own understanding she is drawing our attention to the fact that the dogmas of the past are inadequate for stormy present. For example do motivational theories such as that of Max Weber, X and Y thoery still hold any water? If not then there is aneed for a break from the past and redoing certain things differently to ameliorate current stormy situations. However having said that Oliver l don't know whether this may not be blame game when one country says l have this empirical evidence to prove that this other country is the source of this crisis . Interestingly the other denies yet its afact the that the first case of Covid19 emanated within its confines. That's why l still humbly submit that it depends on the way you look at this Covid19 issue as to whether it was born out of quest of protecting humanity and its diginity or it was meant to simply create abusiness opportunity.

Beverly, I agree with that. This is true in the case of silicon valley and alike. Do you think that working from home is applicable for all the countries. It cannot be applied to many of the developed countries and underdeveloped countries. In many countries the industrialists and business giants decide the fate of the economy. Do you think it is good for humanity? There are so many worker in unorganized sector. Many migrant workers are there. There is no food and health security.This covid proved it. Many developed countries could not provide even bed in the hospitals. Whether telecommuting will work in agriculture sector?

I am in agreement with Beverly especially with the understanding that HRM is holistic in nature as it focuses on relating business strategy to HRM with a consideration of HRM functions such a human resource planning and development which is directly linked to HRD. and HCD.

It is a really a good discussion and knowledge sharing. If anyone is having the view that human capital is more important, please share with your justifications which we did not discuss so far.

Beverly, Yes. You have narrated well.There are plenty of petty and retail traders particularly in developing and underdeveloped countries. They are operating locally. What about their livelihood. Many of the countries the wages and salaries are not fixed as per the cost of living of that region. Whether the ILO will look in to this matter.

"It is a really a good discussion and knowledge sharing. If anyone is having the view that human capital is more important, please share with your justifications which we did not discuss so far"

Yes, Dear Oliver Bright,

Some of the respectful participants considered that HCD is more important than HRM, however, I see it as a good opportunity to share with us the logical justifications and support their views.