Human capital as strategic valued assets: Core drivers of organizational success in the modern-day workplace
List of Authors
  • Deepika Faugoo

Keyword
  • Human Capital, Strategic Valued assets and Organisational Success

Abstract
  • In today's rapidly evolving business landscape, the recognition of human capital as strategic valued assets is pivotal to achieving sustained organizational success. This paper explores the critical role of viewing, treating and managing human resources as valued strategic assets in driving competitive advantage, positioning them as indispensable to an organization's long-term prosperity. In essence, it puts forward three main theories from the contemporary Human Resource Management (HRM)/Strategic HRM (SHRM) literature that is the resource-based view (RBV), human capital theory, and social exchange theory. These theories emphasise that the rarity, uniqueness of human resources with their human capital, encompassing accumulated knowledge and skills, makes them irreplaceable grants an organization a competitive edge, driving business success over its rivals. Further, reciprocal relationships between employer and employee based on support and trust and the use of a plethora of HR practices are means to value human resources as strategic valued assets/human capital. Through this lens, the study underscores the importance of valuing employees as key contributors to organizational success and offers strategic insights into the investments that enhance workforce capability, retention, and engagement and highlights the importance of more research in this area.

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