On Human Capital Management Theory And Empirical

Human Capital is an important asset of enterprises. Over the years, it has won wideattention from both enterprises and academic areas. The focus studies conducted in thisarea have significant impacts to the development of enterprises and the advancement ofthe economy.This dissertation reviews the origin of the human capital theory, and scrutinizes themajor academic thoughts and studies by scholars, by which it reveals the developmentprocess of human capital that goes from unconsciousness status to consciousnessawakening, from undervalued to highly rated, and from supporting role to leading rolefor the enterprises. As each academic thought and school approaches this vary fromdifferent background and various viewpoints, understandings to this topic differ greatly,some even in completely opposite directions. No matter what their arguments andstanding points are, one thing is unanimously consistent – the human capital topic is animportant research topic.Starting with the theoretical analysis, this dissertation reviews the traditionalenterprise property right theory. Traditional property right theory focuses more on non-human capital features and its property right ascription, and thereby the enterpriseinfrastructure system was built upon non-human capital orientation. With humancapital plays more and more vital role and secures a key place in the development ofenterprises, people begin to realize the importance of human capital. As the humancapital factors overtake that of non-human capital, the possibility of changing thecorporate system fundamentally is imminent, especially in the field of property rightarrangement and incentive mechanism. Starting from the second part of this dissertation,the argument of establishing human capital incentive mechanism on top of humancapital property right theory was brought out after several key fundamental theorieswere reviewed.This dissertation proceeds on to analyze the value creation process and assessmentof the human capital. Like what Karl Marx did in analyzing the capital from thecommodity prospective, the research is conducted from the value creation analysis, i.e.,value and execution value. Investment creates value, whereas value execution createsprofit for the enterprises. This dissertation explores areas like human capital valuecomposition, human capital investment and its value creation process, human capitalassessment and measurement, and human capital value materialization. Qualitative andquantitative analysis research methodologies are utilized to analyze theoretical andpractical issues.Game theory, as one of the major analytical tools, was used to explore humancapital incentive mechanism. Contract theory maintains that enterprise is composed of aseries of contracts. Human capital theory thinks that modern enterprises grow out of thegame play of human capital and non-human capital. Revitalize human capital is thechoice that leads to enterprises development. Base on the classic incentive theories, thisdissertation discusses the needs to employ human capital incentive approaches. Byleveraging game theory, this dissertation also analyzes the pros and cons of the humancapital and non-human capital approaches. With the discussion of enterprise corporategovernance and human capital participation in enterprise profit redistribution, humancapital incentive approach is brought out based on property right theory and leveraginggame theory. Cases, obtained from Motorola, are given to support the model establishedby the previous research.Perspectives on the development of human capital theory and practice arediscussed at the end of this article.