A Study On Investment & Development Strategy Of Human Capital--The Basis Core Competence

From 1990's, the development of multinational company attracted a lot of concerns. Many companies hope to establish its competitive advantage by learning from these big multinational companies. However, the reason why multinational companies succeed is not obvious.According to those foregoing researches, the technology, intelligence, resources, organization, and enterprise culture all can affect the enterprise's core competence in some content. But if these five sources really affect the core competence, if a corporation can cultivate its core competence through them? Those theories can't give an obvious answer. In this article, company human capital is deemed as the base of establishing, transplanting and proliferating, and developing the core competence. Company strategy must base on human capital but finance, capital and others. Only human can develop technology, integrate resources, learn knowledge, manage organization and establish enterprise culture. We can draw a conclusion that the company human capital is the real source of core competence.So, companies must pay more attention to the investment in human capital. The article defines the term "company human capital" and analyzes the content and range, the investor and the measure of value and return of human capital investment. At last, provides some useful advices on investment in human capital in order to help our company to establish core competence.The article comprises seven parts:Introduction, briefly introduce the content of this article.Part 1, Introduction of Core Competence Research. Firstly, introduces existed theories of core competence and comments on them briefly. The difficulty these theories face is how to use them in practice. They pay more attention to the importance of knowledge creation and learning process. But they face the limits that their employee can't be equal to the knowledge-intensive tasks. Then, sums up the nature of core competence. It's a competence that can bring companies continue competitive advantages in fact,.Part2, Company Human Capital Is the Real Source of Core Competence. This part defines the term "Company Human Capital":Company Human Capital = CoMpetence Endeavorand analyzes the nature, the essence function of human capital. Then, focuses in analyzing the establishment, transplantation and proliferation, and development of the core competence to demonstrate the proposition that the company human capital is the real source of core competence.Part 3. the Importance of Company Human Capital for Company Strategy. Though the human capital is the real source of core competence, company strategy should base on human capital but finance, capital and others. Company strategy has gone through three stages: compete for product and market, compete for resource and competence and compete for human and dreams. In a new era of information, companies should change incorrect opinions of strategy resource to cultivate core competence.Part 4, Analysis of Investment in Company Human Capital. This part mainly explains the range, investor and measure of investment in company human capital.Part 5, the Choice for Chinese Company to Develop Company Human Capital. This part analyzes some problems existed in the process of cultivating core competence through investing in human capital in our companies, Gives three principles that companies always ignore in the process of constituting new strategy. At last, some advices are provided for those who want to establish core competence.Epilogue, sums up main opinions in this article.