Reference no: EM132692128 , Length: word count:300

Human capital is defined when an intangible asset or quality is not listed on a company's balance sheet (Kenton, 2020). The best example I can think of during the lockdown of COVID-19. Our company was not completely shut down, but we were running a skeleton shift, which in better terms in a shift with limited employees. The company had to go through which employees would stay working and who would be laid off until we can generate more income, and better yet work. Which our major suppliers' shutdown, this meant we finished old projects, and little projects. They decided to keep the long-term employees for the most part, but the odd employee was based on their skill and education. They decided that skill, knowledge meant more to them then money. Giving training to employees allows personal growth and allows them to benefit the goals that the company has.

Most companies where faced with this decision I feel. Some companies may have to lay off skill trades due to seniority if they are in a union. They have to follow specific rules. Skill trades and educated employees are more important to a company than money. Without these employees what would your company be? The company is running due to the work that is being completed.

Responses may begin at any time

From my point of view, one of the great examples of human and non-human capital interaction is the manufacturing industry. In the past, factories were filled with skilled and unskilled workers who were performing a wide range of duties and processes that depended on their abilities. Those who had more experience or had unique skills or qualifications were responsible for more complex tasks. At the same time, unskilled workers were engaged in simpler tasks and processes. Back then non-human capital was generally represented as raw material and capital that was not part of the production process. In the above case, human capital is superior to non-human capital as workers were the primary force of production.

Nowadays, manufacturing has changed dramatically. Due to dramatic technological advancement, numerous processes were either simplified, optimized or eliminated. Today, factories tend to substitute workers with machines whenever and wherever it is possible. Such substitution is driven by the capitalistic desire to maximize the profits of the corporation. Hence it is no wonder that today, we continue to see a continuous drop in manufacturing jobs all across North America and other developed states. Hence for the past twenty to thirty years relations between human and non-human capital had equal importance as both parties tend to be involved in the manufacturing process. In the future, I believe that the manufacturing industry will be dominated by non-human capital.
When the pandemic began a lot of the services were shut down which left a surplus of human capital at my work. It is a government organization and most of the employees are unionized therefore, management had to deploy those workers to other places to keep them working. It would have a great loss of human capital if all those experienced, knowledgeable, and well-qualified staffs were laid off. Therefore, the employees were given other duties that were not part of their own job description this way there were no layoffs and loss of employment, and the areas that required additional workers such as the health administration and clerical work at the long term care homes was done by the existing employees. The management decided to not fill any vacant positions to save money.

Non-human capital can be the tools, types of equipment, machinery, and office supplies. as it's separable from the owner, its constant use can be the result of depreciation. human capital is all about the knowledge, talent, and skills of the employee or the owner. I had experienced in the accounts department for electronics companies. one time all employees in the production department were asking for an increase in pay. but our owner us the strategy that who will give targeted production will get bonus otherwise no increase in pay. that was a tough option for employees.they started quitting their job in our company and it was affecting our production and supply order. then our employer noticed the area of production which has less labor to complete production. they set up a machine that gives them initial setup for fixing the screws so that other labor can work on the rest of the part of that product. the reason for installing the machine was that the screw as part of over 50 products. if they were not enough labor to do that job they set up the automatic machine which fixes screws.

so, here we can say the power of non-capital was heavy on human capital. labor was using their skills to fix screws and they'd demand an increase in pay, but the owner uses his strategy by setting machines. that machine took place of 10 employees.

Attachment:- Peer Responses.rar