2.

2 LITERATURE REVIEW

1. According to Olga Kalinina and Olga Valebnikova

Effective human capital management system is one of the key factors of

business success of any enterprise. Human capital is very important part of
each person. During the whole life, people invest in it, both consciously and
unconsciously. To become successful, people have to develop in professional
way. Municipal enterprises show less ways for professional development, and
consequently have more problems with competitive staff. Article defines ways
for improvement of human capital system in municipal enterprise to attain
competitive advantages and grow effectiveness.

2. According to Zhuo Ren and Jia-jun He

The paper tried to investigate the relationship between human capital and
economy development in Yunyang reservoir area from the perspective of human
capital. A composite evaluation indicator system of human capital for Yunyang
is formed on the basis of previous research, according to which the regional
human capital evaluation model and human capital index (H) is obtained by
factor analysis and regression analysis. Furthermore, a mathematical model is
built through correlation Analysis between H (as well as three key elements)
and the regional per capita GDP, which make it possible to provide quantitative
advices on the policy decision-making with respect to the effect of human
capital investment on economic development in Yunyang reservoir.

3.According to Beth Dietz-Uhler and Audrey J. Murrell

This study examined three explanations for evaluations of an affirmative

action university applicant: type of policy, the human capital model, and social
identity. Seventy-nine (84% white, 11% black, 3% Asian, and 2% other)
participants read a university's admissions policy that varied the type of policy
(quota or standard), qualifications of the applicant (weak, strong), and group
affiliation (ingroup, outgroup). Then they rated the applicant, policy, and
university. Results indicated support for the social identity perspective. The
ingroup applicant was evaluated more favorably when the affirmative action
policy was perceived to be fair. But the ingroup member was derogated when
the affirmative action policy was perceived as unfair. The perceived fairness of
the affirmative action policy seemed to have little effect on evaluations of the
outgroup member. The implications of these findings are discussed.
4. According to Pietro Giorgio Lovaglio and Giorgio Vittadini

Method for the evaluation of relative and impact external efficiency of

university studies as effects of education on the long-term income of
graduates. In order to evaluate the “ceteris paribus” levels and growth we
applied a multilevel longitudinal model with random effects. The variables
used in our analysis refer to Human Capital studies. The Bank of Italy has
collected the data used for the analysis in the years 1998, 2000 and 2002.

5.According to Galina V. Golikova,Valery G. Larionov and Svetlana

In the modern conditions, competitive advantages of economy and

possibilities for its modernization are determined by the accumulated and
realized human capital. Human capital can be determined as a totality of
knowledge, competences, and qualities, embodied individually in each
employee, which stimulate the creation of personal, social, and socio-cultural
economic well-being of the society. Intellectualization of economy destroys the
foundations of the anthropogenic civilization – motives and goals that formed
its integrity and were the driving force of the progressive movement. The
imperative of maximization of material well-being was replaced by realization
of the possibility for self-affirmation through possession and use of knowledge.

6.According to Flevy Lasrado and Vijay Pereira

In this chapter its explained that how people and teamwork can be
leveraged for human excellence in organisations. The business excellence (BE)
maturity of an organisation depends on embedded organisational changes,
which in turn affect the way human resource (HR) considerations are formed in
relation to strategic quality goals. It is now evident that quality experts,
researchers, academics, and practitioners have realised that human capital
development should be at the core of the quality philosophy and that employee
involvement and commitment is essential to the successful introduction and
implementation of quality initiatives, programmes, or practices and techniques.

7. According to Jing Wang,Jing Chen,Xue Jiang

Scientific and technical human capital is the key capital of high-tech

enterprises. Evaluation of scientific and technical human capital value is
conducive to enhancing the competitiveness of enterprises. Considering key
performance and comprehensive quality, this paper constructs value evaluation
model of scientific and technical human capital based on key performance
indicators, including three-level index system with a total of 25 indexes. It
uses analytic hierarchy process (AHP) to evaluate human capital value, and
evaluation results can reflect the differences between individual’s value and
provide the basis for human resource management and development.

8.According toN. V. Suvorov,A. V. Suvorov and V. G. Grebennikov

This paper presents updated figures on the dynamics of human capital in

the Russian economy. Time series of human capital are obtained for major types
of economic activity that cover up to 85–90% of the total human capital in the
Russian economy for 1992–2012. An analysis of the impact of accumulated
human capital on economic dynamics is performed by means of the production
function model. An original approach to assessing the production function based
on the method of principal components is introduced.

9.According to Wojciech Koziol

For many years, the intangible assets are becoming an increasingly

important source of competitive advantage between contemporary enterprises.
This limits the relevance of financial measures based on data from traditional
financial statements and increases the need for hard data on intangible assets.
One such area is human capital (HC). The article is a response to the emerging
information gap. The article presents a method for measuring HC, along with
the outline of the reporting system, which is illustrated using a practical case.
The last part of the article presents the results of a case study of the Polish
company. It includes a simplified report on (HC) and examples of basic financial
indicators taking into account the data on the (HC).

10.According to Bas Jacobs

Understanding the life-cycle interactions between investments in human

capital, retirement choices and pension savings is highly policy-relevant. Most
Western governments will be confronted with the consequences of demographic
ageing in the upcoming decades. Tax bases will shrink, due to the retirement of
older generations of workers. Outlays on state pensions and healthcare will rise
substantially. Pension systems with strong intergenerational risk sharing face
difficulties as well, since it will become more difficult and costly to smooth
pension risks over different generations by means of contribution adjustments.
At the same time, individuals do not invest in skills, because they expect to retire
early. And, individuals retire early because they have not invested in skills. As
a result, many European countries are confronted with a vicious circle of low
investments in on-the-job training of older workers and strong incentives to
retire early.

11.According to Yu-Chen Wei

Human resources are the most valuable intangible assets which can
improve organizational competitive advantage. Therefore, the toughest
challenge for an organization is managing human capital mobility and retention.
This chapter integrates tie and fit perspectives to present some descriptive
examples of Chinese and Taiwanese individuals and business cases ranging
from ancient to modern times.

12.According to Regina Osranek and Klaus J. Zink

Sustainable HRM needs an implementation by using appropriate practical

methods and actions. If these methods and actions are effective, has to be proven
by measurement. Human capital approaches can be useful for this because their
general focus is to measure the contribution of human resources (HR) to
organizational objectives. Newer approaches additionally consider employees’
needs and their protection and further development. Both topics are related to
purposes of a Sustainable HRM.

13.According to Sherwin Rosen

Human capital refers to the productive capacities of human beings as

income producing agents in the economy. The concept is an ancient one, but the
use of the term in professional discourse has gained currency only in the past
twenty-five years. During that period much progress has been made in extending
the principles of capital theory to human agents of production. Capital is a stock
which has value as a source of current and future flows of output and income.
Human capital is the stock of skills and productive knowledge embodied in
people. The yield or return on human capital investments lies in enhancing a
person’s skills and earning power, and in increasing the efficiency of economic
decision-making both within and without the market economy.

14.According to Deniz Ucbasaran,Paul Westhead and Mike Wright

Extending human capital approaches to entrepreneurship, an

entrepreneur’s “inputs” relating to their general (i.e. education and work
experience) and entrepreneurship-specific human capital profile (i.e. business
ownership experience, managerial capabilities, entrepreneurial capabilities and
technical capabilities) are presumed to be related to entrepreneurial “outputs” in
the form of business opportunity identification and pursuit. Valid and reliable
independent variables were gathered from a stratified random sample of 588
owners of private firms. Ordered logit analysis was used to test several
theoretically derived hypotheses. With regard to the number of business
opportunities identified and pursued, entrepreneurship-specific rather than
general human capital variables “explained” more of the variance.
Entrepreneurs reporting higher information search intensity identified
significantly more business opportunities, but they did not pursue markedly
more or less opportunities. The use of publications as a source of information
was positively associated with the probability of identifying more opportunities,
while information emanating from personal, professional and business networks
was not. Implications for practitioners and researchers are discussed.

15.According to Aliaa El Shoubaki,Issam Laguir and Matthijs den Besten

Human capital has been amply discussed in the literature as a crucial

factor for the growth of small and medium-sized enterprises (SMEs). However,
the factors mediating the relationship between human capital and small business
growth are rarely addressed. Based on the logics of the interlock between
abilities, intent and effort, and goals; mediation models; and data from 46,412
French small businesses, we find evidence that reasons to start a business
mediate the relation between firm growth and SME owner-managers’ human
capital (discriminating between specific and general human capital). The
mediation effect is particularly important in the case of general human capital.
The obvious and important implication is that without a proper assessment of
the reasons to start a business, the dimensions of human capital cannot be used
to their full potential to understand firm growth.
2.2 LITERATURE REVIEW

1. According to Olga Kalinina and Olga Valebnikova

Effective human capital management system is one of the key factors of

business success of any enterprise. Human capital is very important part of
each person. During the whole life, people invest in it, both consciously and
unconsciously. To become successful, people have to develop in professional
way. Municipal enterprises show less ways for professional development, and
consequently have more problems with competitive staff. Article defines ways
for improvement of human capital system in municipal enterprise to attain
competitive advantages and grow effectiveness.

2. According to Zhuo Ren and Jia-jun He

The paper tried to investigate the relationship between human capital and
economy development in Yunyang reservoir area from the perspective of human
capital. A composite evaluation indicator system of human capital for Yunyang
is formed on the basis of previous research, according to which the regional
human capital evaluation model and human capital index (H) is obtained by
factor analysis and regression analysis. Furthermore, a mathematical model is
built through correlation Analysis between H (as well as three key elements)
and the regional per capita GDP, which make it possible to provide quantitative
advices on the policy decision-making with respect to the effect of human
capital investment on economic development in Yunyang reservoir.

3.According to Beth Dietz-Uhler and Audrey J. Murrell

This study examined three explanations for evaluations of an affirmative

action university applicant: type of policy, the human capital model, and social
identity. Seventy-nine (84% white, 11% black, 3% Asian, and 2% other)
participants read a university's admissions policy that varied the type of policy
(quota or standard), qualifications of the applicant (weak, strong), and group
affiliation (ingroup, outgroup). Then they rated the applicant, policy, and
university. Results indicated support for the social identity perspective. The
ingroup applicant was evaluated more favorably when the affirmative action
policy was perceived to be fair. But the ingroup member was derogated when
the affirmative action policy was perceived as unfair. The perceived fairness of
the affirmative action policy seemed to have little effect on evaluations of the
outgroup member. The implications of these findings are discussed.

4. According to Pietro Giorgio Lovaglio and Giorgio Vittadini

Method for the evaluation of relative and impact external efficiency of

university studies as effects of education on the long-term income of
graduates. In order to evaluate the “ceteris paribus” levels and growth we
applied a multilevel longitudinal model with random effects. The variables
used in our analysis refer to Human Capital studies. The Bank of Italy has
collected the data used for the analysis in the years 1998, 2000 and 2002.

5.According to Galina V. Golikova,Valery G. Larionov and Svetlana

In the modern conditions, competitive advantages of economy and

possibilities for its modernization are determined by the accumulated and
realized human capital. Human capital can be determined as a totality of
knowledge, competences, and qualities, embodied individually in each
employee, which stimulate the creation of personal, social, and socio-cultural
economic well-being of the society. Intellectualization of economy destroys the
foundations of the anthropogenic civilization – motives and goals that formed
its integrity and were the driving force of the progressive movement. The
imperative of maximization of material well-being was replaced by realization
of the possibility for self-affirmation through possession and use of knowledge.

6.According to Flevy Lasrado and Vijay Pereira

In this chapter we focus on how people and teamwork can be leveraged

for human excellence in organisations. The business excellence (BE) maturity
of an organisation depends on embedded organisational changes, which in turn
affect the way human resource (HR) considerations are formed in relation to
strategic quality goals. It is now evident that quality experts, researchers,
academics, and practitioners have realised that human capital development
should be at the core of the quality philosophy and that employee involvement
and commitment is essential to the successful introduction and implementation
of quality initiatives, programmes, or practices and techniques (Blackburn and
Rosen 1993; Soltani et al. 2004; Soltani 2003). Thus, BE has a high HR context,
and this quality movement recognises the importance of HR utilisation and
states a conceptual and well-defined image concerning human behaviour and
motivation (Pfeffer 1994). Research evidence also suggests that as total quality
management (TQM) improvement efforts proceed, a change in the corporate
culture occurs, resulting in the establishment of a work climate in which
participation, trust, responsibility for goal achievement, and employee
involvement take place (Lawler 1994).

7. According to Jing Wang,Jing Chen,Xue Jiang

Scientific and technical human capital is the key capital of high-tech

enterprises. Evaluation of scientific and technical human capital value is
conducive to enhancing the competitiveness of enterprises. Considering key
performance and comprehensive quality, this paper constructs value evaluation
model of scientific and technical human capital based on key performance
indicators, including three-level index system with a total of 25 indexes. It
uses analytic hierarchy process (AHP) to evaluate human capital value, and
evaluation results can reflect the differences between individual’s value and
provide the basis for human resource management and development.

8.According toN. V. Suvorov,A. V. Suvorov and V. G. Grebennikov

This paper presents updated figures on the dynamics of human capital in

the Russian economy. Time series of human capital are obtained for major types
of economic activity that cover up to 85–90% of the total human capital in the
Russian economy for 1992–2012. An analysis of the impact of accumulated
human capital on economic dynamics is performed by means of the production
function model. An original approach to assessing the production function based
on the method of principal components is introduced.

9.According to Wojciech Koziol

For many years, the intangible assets are becoming an increasingly

important source of competitive advantage between contemporary enterprises.
This limits the relevance of financial measures based on data from traditional
financial statements and increases the need for hard data on intangible assets.
One such area is human capital (HC). The article is a response to the emerging
information gap. The article presents a method for measuring HC, along with
the outline of the reporting system, which is illustrated using a practical case.
The last part of the article presents the results of a case study of the Polish
company. It includes a simplified report on (HC) and examples of basic financial
indicators taking into account the data on the (HC).

10.According to Bas Jacobs

Understanding the life-cycle interactions between investments in human

capital, retirement choices and pension savings is highly policy-relevant. Most
Western governments will be confronted with the consequences of demographic
ageing in the upcoming decennia. Tax bases will shrink, due to the retirement
of older generations of workers. Outlays on state pensions and healthcare will
rise substantially. Pension systems with strong intergenerational risk sharing
face difficulties as well, since it will become more difficult and costly to smooth
pension risks over different generations by means of contribution adjustments.
At the same time, individuals do not invest in skills, because they expect to retire
early. And, individuals retire early because they have not invested in skills. As
a result, many European countries are confronted with a vicious circle of low
investments in on-the-job training of older workers and strong incentives to
retire early.

11.According to Yu-Chen Wei

Human resources are the most valuable intangible assets which can
improve organizational competitive advantage. Therefore, the toughest
challenge for an organization is managing human capital mobility and retention.
This chapter integrates tie and fit perspectives to present some descriptive
examples of Chinese and Taiwanese individuals and business cases ranging
from ancient to modern times.

12.According to Regina Osranek and Klaus J. Zink

Sustainable HRM needs an implementation by using appropriate practical

methods and actions. If these methods and actions are effective, has to be proven
by measurement. Human capital approaches can be useful for this because their
general focus is to measure the contribution of human resources (HR) to
organizational objectives. Newer approaches additionally consider employees’
needs and their protection and further development. Both topics are related to
purposes of a Sustainable HRM. In this chapter, two exemplary measurement
approaches of human capital, a monetary (Saarbruecken Formula) and an
indicator-based approach (Human Potential Index), are introduced and analyzed
in what way they can be adopted for Sustainable HRM. A main result of the
theoretical analysis is the finding that in contrast to the monetary approach an
adequate measurement of Sustainable HRM additionally has to integrate
measurement of supportive circumstances for developing human capital (human
potential). The indicator-based instrument can give valuable hints, but has to be
extended. A final measurement framework will show a recommendation for
such a comprehensive improvement.

13.According to Sherwin Rosen

Human capital refers to the productive capaCities of human beings as

income producing agents in the economy. The concept is an ancient one, but the
use of the term in professional discourse has gained currency only in the past
twenty-five years. During that period much progress has been made in extending
the principles of capital theory to human agents of production. Capital is a stock
which has value as a source of current and future flows of output and income.
Human capital is the stock of skills and productive knowledge embodied in
people. The yield or return on human capital investments lies in enhancing a
person’s skills and earning power, and in increasing the efficiency of economic
decision-making both within and without the market economy.

14.According to Deniz Ucbasaran,Paul Westhead and Mike Wright

Extending human capital approaches to entrepreneurship, an

entrepreneur’s “inputs” relating to their general (i.e. education and work
experience) and entrepreneurship-specific human capital profile (i.e. business
ownership experience, managerial capabilities, entrepreneurial capabilities and
technical capabilities) are presumed to be related to entrepreneurial “outputs” in
the form of business opportunity identification and pursuit. Valid and reliable
independent variables were gathered from a stratified random sample of 588
owners of private firms. Ordered logit analysis was used to test several
theoretically derived hypotheses. With regard to the number of business
opportunities identified and pursued, entrepreneurship-specific rather than
general human capital variables “explained” more of the variance.
Entrepreneurs reporting higher information search intensity identified
significantly more business opportunities, but they did not pursue markedly
more or less opportunities. The use of publications as a source of information
was positively associated with the probability of identifying more opportunities,
while information emanating from personal, professional and business networks
was not. Implications for practitioners and researchers are discussed.

15.According to Aliaa El Shoubaki,Issam Laguir and Matthijs den Besten

 Human capital has been amply discussed in the literature as a crucial
factor for the growth of small and medium-sized enterprises (SMEs). However,
the factors mediating the relationship between human capital and small business
growth are rarely addressed. Based on the logics of the interlock between
abilities, intent and effort, and goals; mediation models; and data from 46,412
French small businesses, we find evidence that reasons to start a business
mediate the relation between firm growth and SME owner-managers’ human
capital (discriminating between specific and general human capital). The
mediation effect is particularly important in the case of general human capital.
The obvious and important implication is that without a proper assessment of
the reasons to start a business, the dimensions of human capital cannot be used
to their full potential to understand firm growth.