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Even the creepy business terminology "human capital" implies something that a business actively wants to grow. That is in stark contrast to how most businesses
by runako 2y ago
Even the creepy business terminology "human capital" implies something that a business actively wants to grow. That is in stark contrast to how most businesses manage their people today.
- maxerickson 2y agoNot entirely. Businesses don't try to grow things like buildings and inventory, they try to manage them at levels that make sense for their present and projected sales. (So the same sort of mercenary treatment that employees get)
- runako 2y agoInventory is part of working capital. Companies generally understand that they want to expand working capital. Buildings are often leased and are therefore not capital at all.
- sokoloff 2y agoCompanies who pay attention to free cash flow will typically try to manage inventory and non-cash/equivalent working capital down, not up.
- keeda 2y agoI find "human capital" better than "human resources", as it has connotations of something valuable to be invested carefully as opposed to something simply to be consumed and discarded. Of course, in the end it doesn't really matter, it is all Orwellian anyway.
- hilux 2y agoHow do you improve your "return on capital"? That's right - by keeping output constant (e.g. through automation) while reducing capital!