Study On The Relationship Between Corporation Human Capital Investment And Corporation Performance

Many corporations do not quiet sure how to managing human resource (including how to investing and allocating). Does HR Management only mean cutting labor cost? Or does hunting people really work? Many companies invested a lot in human resource but even gains little.These situations made me want to find out what is the relationship between corporation human capital (especially corporation human capital investment) and corporation performance. And that is the objective of this paper.The definition of HC in this thesis is that corporation HC means the knowledge and ability of a person in the corporation that was valuable. Under the direction of resource-based view, we can divide corporation Human Capital into general human capital and special human capital. The formal one means those human resources can be achieved easily from outside, and most of these abilities and knowledge were obtained from general work and training. On the other hand, the special human capital means those special skills and knowledge according to the industry or the company which can only attained by enterprise special training and so on. As different kinds of HC have their own character, their impacts to the corporation performance are also different.As to the company, there are several ways to invest in or to get human capital. The normal ways are developing from insideand purchasing from outside. Thinking about different characters of each kind of human capital, we can find out that, developing HC from inside always get special HC, and on the contrary, purchasing from outside always get general HC. So we can see, different kinds of investing methods have different influence on corporation performance.And our investment strategy should consist with our corporation strategy. That is to say, under the exploiting strategy we should choose purchasing method, and under the sustaining strategy, we should develop our special HC from our own company. This consistent is to maximum our performance.Besides the academic analysis, we use the listed companies' data and a typical case to support findings above. All these data made me more clearly with the human capital reality and the management reality in China. Although the demonstration analysis does not approve those suppose mentioned above completely, but many reasons caused this, and the results and the case study basically confirmed findings in this paper.And hoping these findings should be useful for our Human Capital Management practice!...