On Human Capital In Firm Shares Firm's Residues

Inputs in enterprise, no matter how complex they are in expression forms, can be resolved into two categories: material capital and human capital. The latter has not only the character of general capital but also attributes in itself, one of which is that human capital exists inside human body, inseparable from it's owner. This private nature of proprietorship of human capital makes it far more significant for us to utilize the economical value in human capital through motivation than through restriction and supervision, or even infringing. Therefore, to arrange corporate system, we should emphasize motivation and let human capital's owner act on himself to achieve his self-interests .The key to motivating is to let human capital get corresponding position in corporate system arrangement, at least, not lower than material capital's. So it's real value can be constantly manifested while gaming with material capital. And as a result, it can share the "incremental cake ", i.e. firm's residues.However, during corporate system's evolution, human capital didn't get the same status as residue claimant as equal as material capital's for a time. In early stage, owner of material capital monopolizing residues was a common phenomenon, for material capital was treated as scare production factor and its owner, as risk-taker. Nevertheless, the situation began to change, for, with the promotion of position of human capital of entrepreneur, entrepreneur began to claim residues with the start of payout policy. What's more, we can see that not only owners of material capital but also those ofhuman capital can play the roles of risk-takers, and that from lower human capital to higher human capital, all of their owners may become innovators or novelists. This series of changes makes people clear-headedly realize tint corporate system assignment has evoluted forward so that human capital's owner can claim residues.How to practise the idea that human capital claims firmresidues? This paper's tentative argument is that: the total values of a firm depends on it's human capital and material capital's values, and, human capital and material capital contribute to the firm values in proportion to their respective values; according to the proportion, we can divide residues between human capital and material capital; then we cut apart human capital's residues among all their owners, depending upon individual's human capital reserve (the amount of which can roughly be defined by individual investment in human capital); finally, all the individuals can acquire corresponding shares. Such a way may be somewhat abstractly theoretical. But such theoretical abstraction can undoubtedly explore a new path of research. When operating in practice, human capital shares firm residues by way of such forms as yearly-wage, reward and stock option. Yet, other more effective forms of claiming residues expects more progressive research. As for state-owned enterprise reform, it's imperative. Therefore, at the last paragraph of this paper, I give some advice on that when we let state-owned enterprise's human capital shares firm residues, how we should arrange corporate system inside the firm and how we should build institutional environment outside the firm.