Reference no: EM132722594

Human capital acts as a construct in numerous fields spanning from psychology's micro scholarship to economics' micro scholarship. Both the HRM and strategy literature identify the significant human capital for facilitating firm performance (Boon et al., 2018). The paper seeks to discuss strategic "human capital and strategic human resource management."

• "Strategic Human Resource Management and Strategic Human Capital" approaches play a vital role in firms' performance. Human capital serves as a treasured resource and scrutinizes challenges linked to value capture and mobility of skills and knowledge (Nyberg et al., 2018). Strategic HRM intellectuals concentrate mostly on human capital investment to upsurge organizational performance by applying practices and systems to manage and develop its human capital.

• Moreover, both approaches also assist firms to attain a competitive advantage and eventually superior organizational-level performance. Human capital can be a chief determinant factor that can be applied in both strategies to determine the outputs' quality or operations' competence. However, factors like casual ambiguity, social complexity, and specificity can hamper human capital resources' replication and flow.

• Furthermore, both approaches are significant and positively contribute to the notion that human capital is a determining factor in the formula of competitive advantage. Individuals who use human capital resources can bargain and capture the portion of the value they form for their organization (Zehir et al., 2016). For instance, if people use human capital to assist the organization in surging consumers' perceived value for the input, they can also negotiate an upsurge in other benefits and wages.

• Similarly, "strategic human capital" concentrates on human capital movement amongst organizations and how it is accomplished to capture and create economic value. According to Delery & Roumpi (2017), both approaches investigators have started to consider numerous factors that supplement workers' human capital and their application in roles.

• In conclusion, both "human capital and strategic human resource management" play a significant role in determining a business's performance. Human capital scrutinizes problems connected to value capture and the agility of skills and knowledge. Both approaches help organizations to attain high organizational-level performance.

Discussion 1: Are there other sources of competitive advantage for an organization? What might some of those be? How can an organization best position itself to be most competitive?