Study On The Investment Of Enterprise's Human Capital

Under the circumstance of ever increasing global economic development and economical competition, many economists and researchers discovered from documents and data of example that the effects of economic quality related connotative variations have been playing more and more important roles among the variations of increase in economy and influential factor of sustainable development. Except for those factors we have already known, the connotative factor revealed by economists is the human capital. As a result, researchers from all over the world have emphasized researches on human capital since the middle of the 21st.With the ever increasing development in our country's economy, the effects of human capital on economy has been already realized by Chinese economists and are gradually becoming key research subjects. Owing to the underdevelopment of human capital market in our country, we found that most of these researches mainly focused on nature of human capital and the important influence of human capital exerted on economic development, but few researches had been done as views from microeconomic, especially from an industry. Manufacturing industry plays important roles in our national economy. It is the foundation of our national productivity and economy. In 21st century, the economy will develop fast and the competition will be more intense. Therefore, study on current status of the investment of manufacturing industry's human capital is significant not only for the whole industry, but also for the whole national economy.Taking theory of human capital and human capital investment as research premise, this thesis has anatomized the status of the investment of manufacturing industry's human capital. Some suggestions have been put forward in order to solve problems at presents.This thesis includes five parts as following:The introduction The author aims at drawing the theme of full text, the importance of study on current status of the investment of manufacturing industry's human capital. This section provides an overview of literature on investment of human capital. And it shows a clear picture of the current research situation.Chapter 1: Human capital and investment of human capitalFirstly, the formation and development of human capital theory are introduced. Based on the predecessors'study, the meaning of human capital has been discussed. The human capital is a non-material capital based on human resources, representing as quantity and quality of human resources. The quality of human resources means the knowledge,experiences and skills held by human resources. Secondly, the investment of human capital is argued from three aspects: the concept,investment forms and the investment subjects.Chapter 2: The investment of enterprise's human capitalAt first, after analyzing the concept and characters of investment of enterprise's human capital, the importance of investment's analysis is emphasized. Investment of enterprise's human capital means that enterprise obtains human resources,makes them sustain to work and improves their abilities through investment, in order to enhance the enterprise's throughout and maximize the enterprise's profit. The investment of enterprise's human capital has some special characters, including: 1) specialties and practicality of investment content; 2) multiplicity of investment forms; 3) complexity of investment object; 4) long-term investment payoff period. To invest in human capital costs a lot, not only money. And physical capital should be considered because human's ability is nothing without physical capital. Thus, it is necessary to do investment analysis.Secondly, the cost of investment of enterprise's human capital is studied. The cost is what enterprise pays for enhancing the human resources'efficiency, sustaining and increasing the quantity of human capital. It includes three parts: cost of obtaining, sustaining and exploiting. As far as it goes, the cost of obtaining is listed as the overhead charge in most enterprises. Therefore, in this thesis, the summation of sustaining cost and exploiting cost is used to measure cost of investment of enterprise's human capital.Accordingly, it is necessary to measure the investment income. In this part, where the income comes from and what are its characters are discussed. And it is reasonable to use the influence to financial condition to measure the income.At last, the marginal profit decreasing law is proved to be applicable to investment of enterprise's human capital. It is believed that a balanced status of human capital's investment is existent, although it is usually an ideal status.Chapter 3: Analysis of Chinese manufacturing industry's current statusIt is the hard core of this thesis.The importance of analysis of Chinese manufacturing industry's current status is expounded at the beginning. Manufacturing industry is the basis of the national economy. To some extent, increase of economy and enhancement of nation status are depends on manufacturing industry's development. Human capital is the most important resource in enterprise. The investment of manufacturing industry's human capital must be reasonable and efficient.Then, data capture is done. The data about manufacturing industry's listed companies'financial condition from 2001 to 2005 are collected. Using those data, the current status of Chinese manufacturing industry's human capital investment is analyzed. The condition of companies in different time,different industry and different countries are compared.According to the analysis of data, it is found that there are still some problems existed although the importance of human capital investment is realized by more and more people. Those problems decrease the investment profit and weaken the enterprise competitive power. They are: 1) the quantity of human capital is not enough; 2) the structure of investment is unreasonable; 3) the proportion of investment items is unreasonable; 4) the difference between different areas is large.Chapter 4: Conclusions and suggestionsIn this chapter, some suggestions are advanced: 1)to emphasize the importance of human capital; 2)to increase the investment of human capital and take the improvement of human's ability as the key point; 3)to balance investment of human capital and physical capital; 4)to strengthen the support to middle and western areas in order to abate the gap.The contribution of this thesis is mainly the following aspects:1) In the process of studying the investment of human capital, a new viewpoint of investment cost's components is brought forward. Analyzed from the process of using human resources, the cost of human capital investment includes there parts: cost of obtaining, sustaining and exploiting. In addition, three assessment indexes are put forward to evaluate the investment benefit.2) Depending on the data and materials collected, the current status of human capital investment of Chinese manufacturing industry has been studied. It could be valuable reference to manage the investment not only for enterprises but also for the government.Because of the limitation of time and author's competence, the discussion of the reason is a little superficial, and the suggestions are not concrete enough. The study will be continued.