The Relationship between Human Capital, Value Creation & Employee Reward

Chapter 1: Introduction

  • Overview

The study examined the relationship between human capital, creating value and employee reward. Human capital is an interesting key element of intellectual capital in today’s age. Human capital can be used for regulatory value calculation (Edvinsson, Malone & Stewart, 1997). This study focuses critical analysis of concerned practices being performed to discover public sector organization strategic emphasizing on employee compensation. The output can be gained through strategic alignment of labor that creates Business value through transformation to achieve goals and objectives of organization. This study basically is divided into three phases .The first phase consists of critical analysis of the Human Capital literature highlighting its challenges in the Public sector and the second phase addresses the methodology used in this research project describing the research framework, research method used and data collection method used. In the third phase of this study discussion would be about results and findings of data. Usage of “Mass card” has been elaborated in this study when workforce is aligned strategically within an organization (Guthrie & petty, 2000).

The originality of the document is a re -conceptualization of human capital and the paper addressees the call for research of intellectual capital to elaborate relevance of related field to professionals .The conceptualization of human capital introduced here will allow managers to act on the intellectual capital measurement, linking the value of human capital with adequate pay, increase motivation, commitment and productivity enhancement, achieving strategic alignment in the workplace  towards the greater innovation and to achieve reduced  staff turnover.

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