Enterprise Human Capital Investment Decision

In the 21st century, Knowledge-based Economy becomes the themes of the present era. And human, as the vehicle for the knowledge, become the most important resource of economic development, In the wake of developments in economic globalization, the market competition has become more and more fierce. The survival and economic development of enterprises in the fierce market competition will depend on the human capital. The existing problems in our enterprise human capital investment are mainly as follows: shortage of total size, unbalance of stock structure, less investment benefit and waste seriously. It is showed that there is lack of interrelated theory to conduct the investment. So it is very necessary for enterprise to analyze the management of human capital investment. It will give the manager scientific and feasible prop for concrete practice of human capital investment.Based on the important of human capital to economic development and its position in the competition, this paper explains the urgency and the necessity of making rational decision to invest human capital. First of all, it reviews the theory of human capital and its investment, and lays special stress on analyzing the connotation and the particularity of the human capital investment in enterprises. It analyzes the demand and supply of human capital investment for enterprises, and the interrelated factor to the demand. And it advances six methods to forecast the demand through the combination quantitative analysis with qualitative analysis. Secondly, it researches the model of human capital investment based on the costs and revenue. It adopts the analysis of regression and residual to divide the profit made from the human capital investment and the material capital investment. Then the paper defines the risk of human capital investment, and applies the risk prevention mechanism. Thirdly, based on the analysis of static and dynamic research of human capital investment in the Sichuan Oil Company, the paper draws the conclusion that the stock of human capital investment in the company has made a great change. Finally, the paper gives advices to the Sichuan Oil Company to invest human capital in terms of the notion, the emphasis, and the management of the human capital investment and the prevention to loss of the human capital. This paper would do help to the other oil companies.