Director is a general position by itself speaks the end channel of profit center. This position becomes a sac for the company to collect revenue, and finally make profit for the corporation.
More narrow than director is, for instance, human capital director (HC Director). He/she is the most competent person in human capital aims, for the organization.
Does really HC Director define the meaning of human capital correctly? Do you think human capital is intagible and cannot be directly purchased or sold? Or does the reference book make confusion in definition?
This is one of human capital by definition, which I do not agree: human capital, like any other type of capital, can be utilized more efficiently and thus lead to improvements in production quality and quantity. In this term, human capital is a passive person. Hershel becomes active after being used or utilized. Conversely, a talent who has the most aspect of human capital is “an activist.” They will offer training to employees, even there is no spending given to him/her for training that improves his/her competency.
Where a talent acquires new knowledge from? They learn or study various discipline to enable them share the knowledge to produce quality product and service, faster and better. They use paid and free internet or books, find coach on their own money which is reserved against the income. Therefore, company must not create an account for high training budget. It can be minimized up to zero amount.
Adam Smith states that improvements to human capital come from training, education and experience that make the individual enterprise more profitable. According to me it is traditionally called human resources management.
In human capital management, a talent invests in his/her competencies to produce tangible and intangible profit for the company. An employer, conversely, invests in salary, compensation, tools, facilities, and benefits, in which the amount of investment, is calculated according to real profit, or intangible profit that is converted into tangible profit.
Human capital is the collective wealth of knowledge, talents, training, skills, judgment and accumulated experiences for an organization. This wealth can be measured by using components of human capital index (HCI). The resulted index then shall be converted into amount of compensation. At this point, directors do not necessarily spend corporate training budget for his/her personal development.
Anything you do to increase your ability to earn higher future wages could be considered investing in your human capital. The monetary and time-consuming investments that you make early in life, like obtaining a higher education, on-the-job training and learning better social skills, can increase your personal human capital.
There's no rule of thumb that companies follow in determining what to budget for training. According to a 2002 report by the american society of training and development, which surveyed more than 375 major corporations, companies spend 1 percent to 3 percent of their total payroll on training. On a per-person basis, the average spent on training is more than $700 per year. At leading-edge companies, that figure doubles to more than $1,400 per employee per year. Viewed as a percentage of profits, training budgets represent 5 percent to 20 percent of total corporate profits.
Now onwards companies must not reserve training budget anymore, beacuse the budget has been converted into profit based compensation for each talent in the companies. Therefore it will save money, to create new fresh money.
Share it if it improves your work environment
