Human Resources vs Human Capital: A Philosophical Review of Human Conception in the Industrial World

Abstract

This paper attempts to systematize the literature to understand the differences between the conceptions of human resources and human capital and their implications for human resource management in the industrial world. This study uses the literature review method in collecting and evaluating data relevant to the research topic. The result of this paper shows that organizations need to pay attention to the role of individuals as important capital and maintain a balance between organizational needs and individual needs in managing human resources. The development of the concept of partnership in the industrial world makes companies have to change their point of view regarding human resources from workers to human capital. Besides that, the concept of humanizing humans also needs to be considered by managers because humans have an advantage over other resources.