Analysis The Contribution Of Human Resource To FAW CAR CO.,LTD

Human capital an important source of economic growth in the economic theory,and there have more and more output create by knowledge, information, science andtechnology, which are come from human capital. Nowadays, science and technologycreate by human capital has been proposed to be the first productive force in China’seconomic construction by Deng Xiaoping. The discovery and training human capitalbecomes extremely important in the context of knowledge-based economy. Forexample human capital is an important source of enterprise net profit, so theinvestment and management of human capital and has been focus by more and moreenterprises, especially by the modern or high-tech enterprises, and the managementconcept of “people-oriented” has been most vividly demonstrated.The contribution rate of human capital mainly focused in the macroeconomicfield, especially in the theory of economic growth. The researches of enterprisehuman capital contribution rate are focus on the contribution rate of the talents (suchas entrepreneurs and managers). While, the literature of quantitative estimation ofhuman capital contribution to enterprise net profit are relatively small.In our paper, we use the Cobb-Douglas production function model to analyzethe listed companies in Jilin Province in theoretical and empirical. First, we analyzethe relationship between human capital, investment, management and corporateprofits in the theoretical level. Second, we use the Granger causality test to test therelationship, and the results show that the human capital of FAW CAR CO., LTD isthe Granger reason of corporate net profit, and the contribution rate is about75%, andmuch larger than the contribution rate of material capital. Finally, we summary theproblem of the investment and management in the human capital of FAW CAR CO.,LTD by the conclusion of the empirical research, and then planning the strategy ofhuman capital. In short, human capital and corporate net profit was significantly associated inFAW CAR CO., LTD. While, for FAW CAR CO., LTD, we should improve theoperations，investment and management in human capital.