SPMT 262 Exam 1
Human capital assets that bring economic value - ✔️✔️- The employees physical and
mental health
- Persons values and beliefs
- Work ethic
- Education
Neoclassical Economics - ✔️✔️Argue that the consumers perception of a products
value is the driving factor in its price. Supply and Demand determines value
- They call the difference between actual production costs and retail price the economic
surplus
Human Capital Management - ✔️✔️The collection of organizational practices related to
the acquisition, management, and development of the human workforce within an
organization
Human Capital - ✔️✔️- The employees of an organization
- The economic value that comes from things like the worker's, experiences, skills
knowledge and abilities
Social Captital - ✔️✔️A set of shared values that allows individuals to work together in
a group to effectively achieve a common purpose
Human Capital is an? - ✔️✔️Intangible assent, unlike tangible assets like. building and
equipment. However, both tangible and intangible assets have economic value
Human Capital Theory - ✔️✔️Investment in individuals in the form of training,
education, and well being will lead to future positive returns
ESG company - ✔️✔️Environmental, Social, and Corporate Governance refers to the
three central factors in measuring the sustainability and societal impact of an investment
in a company or business
Classical Economics - ✔️✔️Assume that the most important factor in a products price
is its cost of production. Cost determines value
Physical Capital - ✔️✔️Man-made goods that assist in the production process. Cash,
real estate, equipment, and inventory theory are examples of physical capital
Knowledge Management process - ✔️✔️- Information: relates to description, definition,
or perspective
- Knowledge: compromises strategy, practice, method, or approach
, - Wisdom: embodies principle, Insight, moral, or archetype
Explicit Knowledge - ✔️✔️Codified knowledge found in documents, databases, etc.
Tacit Knowledge - ✔️✔️Intuitive knowledge and know-how, which is rooted in context,
experience, practice and values
Product Function - ✔️✔️Y = y(K,L)
L- persons hours, education training
K- Units of capital, physical capital
Y- Outputs, productivity
Marginal Productivity - ✔️✔️Refers to the additional amount produced when you add
one additional unit of a particular factor, such as an additional man hour of labor
Opportunity Cost - ✔️✔️The forgone benefit that would have been derived by an option
not chosen
Human Resources - ✔️✔️Charged with finding, screening, recruiting, and training job
applicants, as well as administering employee-benefit programs
HR responsibilities - ✔️✔️Include compensation and benefits, recruitment, firing, and
keeping up to date with any laws that may affect the company and it employees
Goal of HCM - ✔️✔️To optimize and maximize the economic, or business, value of an
organizations human capital in order to gain a competitive advantage
Human Resource Management - ✔️✔️A comprehensive approach to managing
employees and an organizations culture and environment. It focuses on the recruitment,
management, and general direction of the people who work in an organization
HCM goals Vs. HRM Goals - ✔️✔️HCM- Optimize and maximize the value of ROI of
the employees in an organization
HRM- Create and manage the systems, processes, and policies requires to hire, train,
retain and enable employees to do their jobs
Leadership Critical Success Factor - ✔️✔️How the organization will approach its
employees and work on the human capital development
Talents Critical Success Factor - ✔️✔️Deliver the best potential candidates to hire
- Internal: what might be some issues
- External: what are talent pools
