An Exploration of Human Resource Management Practices and Human Capital Disclosure in The Services Industry: Evidence from Managerial and User Perspective
Human Resource Management; Human Capital Disclosure; Managerial and User Perspective; Service Industry
Abstract
Human resource management has become an important part of many companies' agenda. Instead of the critical development and enhancement of human capital in improving business competitiveness, the reporting of this human capital information is still an issue. This study aims to investigate the management of human resources and its relation to human capital disclosure. Interviews were conducted with five participants from different perspectives, namely, managerial and user perspectives, focusing on the servicing industry. A cross-case study was conducted to analyze the data collected and develop patterns found in the evidence. The findings of this study provide evidence that human resource management is critical and that specific human resource information is perceived to be useful from user and managerial perspectives. This study also concludes the need for supplementary information on human capital to be disclosed to deliver relevant information efficiently and effectively, which could influence decision-making. It is believed that the awareness of the importance of managing human resources for a firm's competitive advantage can further enhance the voluntary disclosure of human capital information. The study recommends further investigating the factors that might influence companies' human capital reporting behaviour.