Remington Consulting Group Essay Example | Topics and Well Written Essays - 3000 words

Remington Consulting Group - Essay Example Elements of intellectual capital include human capital, social capital, and organizational capital. The branch of economic theory concerned with the value embodied in a firm’s human resources is known as human capital management. Human capital management has been described as "a strategic approach to people management that focuses on issues that are critical to the organization's success." The most significant link between human resources management and human capital management is the definition of the link between the two. Human capital management is concerned with the measurement metrics. However, it is not primarily about measurement but creating and demonstrating the value that people and people management can contribute to an organization. The practice of human capital management begins with the collection of data and continuation with measurements and reporting. Specific applications of human capital management relate to human resources strategy formulation, talent manag ement, learning and development, knowledge management, performance management, and reward management (Baron and Armstrong, 2008). Human capital management practices allow value extraction rather than value creation as a way to maximize the value of the firm. Human capital has been considered an organization’s intangible assets. These include competencies such as skills, experience, potential and capacity. It is widely believed that people with the right profile and capability provide a competitive advantage that cannot be replicated. Changes in practices have led human capital to become an important driver of organizational performance. Drivers include the acceptance that human capital is a key asset driving creation of value; move in human resource function from efficiency to effectiveness, the cost to adding value, inputs to outputs, data collection to analysis, and operational performance (Ceridian, 2007). In the case study, Remington has not focussed on the value that can be derived from their human resources. The firm has consultants for specific domains within each branch. However, the use of tools to maximize human capital management has not been optimized.