Knowledge capital Management

By : Prakash DhakalMBA – HRM

“Never Underestimate the Importance of Human Knowledge”

“Never Underestimate the Importance of Human Knowledge”

Main Focus

ConceptsDifferentiation (Knowledge and Human Capital)

Human Capital ActivitiesHuman Capital ManagementHuman Capital StrategiesHuman Capital Center of Excellence Human Capital RisksConclusion

Prakash Dhakal, MBA – II, Human Resource Management July – 2011 fall

Core Concept

Knowledge Knowledge is a familiarity with someone or something, that can include information, description, facts, and or skills acquired through experience or education. It can refer to both the theoretical or practical understanding of a subject.

Human Capital

Knowledge Human Capital


Knowledge

Human Capital Valuable property or a good, which collectively represent the wealth of an individual or business is known as capital.

Human capital is the economic value that an employee provides to an employer. The assessment of this value is related to the body of skill, knowledge, and experience

that the employee possesses.

Knowledge Human Capital

Core Concept


Knowledge

Human Capital

Knowledge Human CapitalHuman capital is the stock of competences, knowledge and personality attributes embodied in the ability to perform labor so as to produce economic value. It is the attributes gained by a worker through education, Knowledge and experience, which is known as

knowledge human capital.

Core Concept


Core Concept, Human Capital


Knowledge Capital

An intangible asset that comprises the information and skills of a company's employees, their experience with business processes, group work and on-the-job learning is knowledge capital.

Knowledge capital is based on skills that employees share with each other in order to improve efficiencies

Having employees with skills and access to knowledge puts a company at a comparative advantage to its competitors. Businesses develop knowledge capital by encouraging employees to share information through white papers, seminars and person-to-person communication, and even from the trainings.


Knowledge/Human CapitalSome Related Terms …

Human Capital is the combined value of the skills, knowledge, creativity, abilities, and life experiences of the organizational workforce.

This value creates a set of core competenciesthat gives firm a competitive advantage in the global marketplace.

The competitive advantage in the organization can only be sustained through:

a. Continuing knowledge based trainingb. Developing strategies to address the internal and external forces that impact an organization’s effectiveness



This value creates a set of core competencies that gives firm a competitive advantage in the global marketplace.


a. Continuing knowledge based trainingb. Developing strategies to address the internal and external forces that impact an organization’s effectiveness




This value creates a set of core competencies that gives firm a competitive advantage in the global marketplace.


a. Continuing knowledge based trainingb. Developing strategies to address the internal

and external forces that impact an organization’s effectiveness



Knowledge & Human Capital


Knowledge & Human Capital

Human Capital Development

Human Capital Development are an innovative training and development activities with expert management and HR specialists.

It deals a dynamic and fresh approach to Training and Development, which provide an innovation with traditional methodologies to deliver fast and effective results.

Human Capital Development are an innovative training and development activities with expert management and HR specialists which deals a Dynamic , fresh and innovative approach to deliver the Effective result

Investing in Human Capital

Investing in human capital is like invest in new technologies which gives a better performance for the goal attending activities. ( similarly employees can demonstrate their better performance if organization invest on them )

(Invest in Human Capital is providing them training, good compensation packages, insurance, maintaining healthy relation etc) Human capital is a form of value that should be understood only in economic terms, so that continuous investment in human capital is needed to sharp the employees skills and knowledge.


Why Invest in HC ?

Professional View point

According to Prof. Shree Krishna ShresthaChief and Chair, IBMSHead, Public Administration, CD.T.U.

“Human Capital are Organizational People who Creates and Maintain the Intellectual Capital within the Organizations that Drives Innovation and Shapes Products” So that every organization should seek to invest in Human Capital.

Video >>


Human Capital Approach

• Develops and empower individuals, teams and organizations.• Develops programs, processes and systems that fulfill organizational needs• Provides an emphasis on practical skill development based on proven management practice

The approach of Human Capital is

manifested within a professional

framework that has client satisfaction

at its heart.

Human Capital Management

Companies that engage in talent management (actually known as HC management)

How company source, attract, select, train, develop, retain, promote, and move employees through the organization is analyzed in HC management.

The major aspects of HC management Includes:

• Performance management• Leadership development• Workforce planning/identifying talent gaps >>• Recruiting (from the external as well as internal sources )


HC Management Suite

PerformanceManagement

360 feedbackModule

Talent Management

Succession Planning

Learning Management

Recruitment Management

Employee Engagement

HR Metrics

HCMSuite

Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product or service, as well as many other areas. This is

an ongoing process of communication between a supervisor and an employee .


360 feedbackModule

Talent Management

Succession Planning

Learning Management


Employee Engagement

HR Metrics

HCMSuite

A System in which employees receive confidential, feedback from the people who work around them. 360 feedback addresses skills such as listening, planning, and goal-setting also it focuses

on subjective areas such as teamwork, character, and leadership effectiveness

HC Management Suite


360 feedbackModule

Talent Management

Succession Planning

Learning Management


Employee Engagement

HR Metrics

HCMSuite

Companies that engage in talent management in how they source, attract, select, train, develop, retain, promote, and move employees through the organization. It Includes :-

performance management , leadership development, workforce planning, and recruiting

HC Management Suite


Why Talent Management ?

Video >>


360 feedbackModule

Talent Management

Succession Planning

Learning Management


Employee Engagement

HR Metrics

HCMSuite

Having people in place, experienced and prepared, will enhance continuity, build confidence , Knowing their people, take time to think, create WIN-WIN situation, invest, taking risk are the

way of succession planning

HC Management Suite


360 feedbackModule

Talent Management

Succession Planning

Learning Management


Employee Engagement

HR Metrics

HCMSuite

Compliance, certifications, and re-certifications (Metrics system)

HC Management Suite


360 feedbackModule

Talent Management

Succession Planning

Learning Management


Employee Engagement

HR Metrics

HCMSuite

Engaged employees will help promote the brand and protect the employer from the risks associated with poor service levels or product quality. Similarly a strong employer brand will help in attracting and retaining employees and also to deliver improved business performance, Engagement is Necessary.

HC Management Suite

Employee Engagement


Succession Planning

Learning Management

HR Metrics

HCMSuite

Engagement is about more than just a quality of work. Engagement effects everything from how you handle conflicts, to the effort you put into solving problems, to the way you approach decision making.


360 feedbackModule

Talent Management

Succession Planning

Learning Management


Employee Engagement

HR Metrics

HCMSuite

Managing all types of the activities of recruitment procedures is known as Recruitment Mgmt. (internal__ transfer, Promotion) and (for the external recruitment – managing advertisement,

employee exchange, agencies, educational institutions etc )

HC Management Suite


360 feedbackModule

Talent Management

Succession Planning

Learning Management


Employee Engagement

HR Metrics

HCMSuite

Learning Management manages all aspects of global education and training by automating and optimizing the administration, management, delivery, and learning programs. Improve workforce

productivity, and Engage your workforce and improve talent readiness -- for organizational success.

HC Management Suite

BenefitsHuman Capital Management

Increase Knowledge Base

Measure and improve workforce productivity

Minimize risk by changing likely outcomes

Proactively plan for future workforce needs

Support enterprise performance improvement

Knowledge management refers to the efforts to systematically find, organize and make available an organization’s intellectual capital and develop a culture of continuous learning and knowledge.

Each training opportunity added knowledge base organization …








Human Capital Management makes measuring and analyzing key indicators straightforward.

A built-in viewer provides a simple way to see the status of key metrics, such as revenue per employee, relative to goals …








Human Capital Management provides advanced analytics and easy-to-use interfaces so business users can identify and minimize risks by predicting workforce changes and analyzing associated costs.

Forecasting or analytic expertise is not needed.








Using pre-defined analytics, such as Organization Analysis, displays organizational hierarchies in a list of graphical views while surfacing critical data about the work force.

What kind of workforce are involving and what kinds are needed, when needed…








Human capital management helps to integrate and align human capital strategies and improvement efforts with organizational goals.

The result is a comprehensive view of enterprise performance.


Human Capital Center of Excellence

Recruiting

Retention

Resource Development

Change Management

Sourcing

Organizational Devt.

Compliance / LegalHum

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Selection of required and recommended candidate (staffing or enrollment, or employment)

Selection of highly qualified and experience people.

Process: Screening, selection, training, socializing etc.



Recruiting

Retention


Change Management

Sourcing



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Preservation, Maintenance and withholding employees.

By providing Training, good compensation packages

(monetary and non-monetary), and employee socialization.

… which helps to bring excellence result in the organization.



Recruiting

Retention


Change Management

Sourcing



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2 + 2 = 5 (Synergy)

Resource Development system helps to develop and improve organizational performance.

Also it helps to improve Customer satisfaction, reduces

staff turnover and helps to increase productivity profitability increase.



Recruiting

Retention


Change Management

Sourcing



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Change management is a structured approach to shifting

individuals, teams, and organizations from a current state

to a desired future state.

It is an organizational process aimed at empowering employees to accept and embrace changes

in their current business environment.



Recruiting

Retention


Change Management

Sourcing



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In business, the term word sourcing refers to a number of

procurement practices, aimed at finding, evaluating and engaging suppliers of goods and services.

Human Capital Sourcing is the identification of job candidates

through proactive recruiting techniques.



Recruiting

Retention


Change Management

Sourcing



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OD, as a response to change, a complex educational strategy

intended to change the beliefs, attitudes, values, and structure of

an organization so that it can better adapt to new technologies,

markets, challenges, and the dizzying rate of change itself.

So OD is the process of improving organizations.



Recruiting

Retention


Change Management

Sourcing



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Legal compliance is the process or procedure to

ensure that an organization or employees follows relevant

laws, regulations and business rules to achieve the targeted

goal.

Presented to: Ms. Rosina Ranjitkar, Faculty of HRM, IBMS July - 2011


Human Capital Model

Talent is the only sustainable advantage in a global knowledge

economy, and integrated talent management strategy and practices are now central to business results.

Human Capital Strategy provides the foundational framework,

practical application and tools to move the needle in any organization and career.

Human Capital Strategy


Strategic RelationHuman Capital and Business


Human Capital Risk


Human capital risk occurs when the organization operates below attainable operational excellence levels. example >>

Human capital risk accumulates in four primary categories:

Absence activities Activities related to employees not showing up for

work such as sick leave, industrial action, etc.Unavoidable absence is referred to as legal Absence.

All other categories of absence are termed "Controllable Absence“

Collaborative Knowledge Activities Process activities




Absence activities Collaborative activities

Collaborative activities are related to the expenditure of time between more than one employee within an organizational context. Examples include: meetings, phone calls, instructor led training, etc.)

Knowledge Process activities

Human Capital Risk




Absence activities Collaborative activities Knowledge Activities

Knowledge Activities are related to time expenditures by a single person and include finding information, research, email, messaging, blogging, information analysis etc.

Process activities

Human Capital Risk




Absence activities Collaborative activities Knowledge Activities Process activities

Process activities are knowledge and collaborative activities that result due to organizational context such as errors/

rework, manual data transformation, stress, politics, etc.)

Human Capital Risk

Risks (a poem copied from you can win)


. . .

To reach out for another is to risk involvement. To expose feelings is to risk exposing your true self. To place your ideas, your dreams, before a crowd is to risk their loss To live is to risk dying. To hope is to risk despair. To try is to risk failure.But risks must be taken, because the greatest Hazard in life is to risk nothing. The person who risks nothing, does nothing, has nothing, and is nothing They may avoid suffering and sorrow, but they cannot learn, feel, change, grow, Love, or live. Only a person who risks is free.

Human Capital Mobility Between Nations


Educated individuals often migrate from poor countries to rich countries seeking opportunity.

capital-rich countries gain an arrival in labor, and labor rich countries receive capital when migrants remit money home.

The ability to have mobility with regards to where people want to move and work is a part of their human capital.

Being able to move from one area to the next is an ability and a benefit of having human capital. (Terms in HUMAN CAPITAL VALUE)

Valuation is made according to the Knowledge, Skills Experience, Education and performance of employee’s that helps organization to achieve the targeted goal.

Productivity, Efficiency, Knowledge and education, Popularity, CredibilitySkills and Legality etc..

Human Capital Valuation


Conclusion …


Human capital concept is now develop in a broader sense as a KNOWLEDGE CAPITAL, because Knowledge gives the value and Excellency.

Human Capital need motivation to raise their value and performance.

Investment in human capital is continuous process which helps employees to increases the performance & productivity

Which helps organization to exists in this competitive business world, so organization should seek to invest in HUMAN CAPITAL.

“ To put it simply and starkly; if you don’t get the people

process right, you will never fulfill the potential of your

business.”

Larry Bossidy, Former CEO of Honeywell

Q & A Thank you

Note:Some of the contents of this slides are copied from different scholar’s articles from Google and Wikipedia. Also I would like to assure that- this slides are prepared for the academic use, not used for professional purpose, so that I am not including references here.

____________With RegardPrakash Dhakal

Career

Knowledge capital Management