The Influence of Human Capital on Organizational Performance

Abstract

Currently, the economic downturn in various parts of the world has made human capital increasingly important with increasing globalization and the saturation of the job market.In order to increase economic growth by giving more time and effort, both developed and developing countries place an emphasis on human resource development.To enter the international arena, human resource development is one of the basic solutions.For this, companies need to invest the necessary resources to develop human resources that have a greater impact on performance.This paper reviews the effects of human capital having a direct impact on firm performance from various critical perspectives.Company performance in terms of financial and non-financial performance.Finally, this paper proposes an initial model that explains the relationship between human capital and firm performance.