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Differences between
Human Resources
and
Human Capital
By Xavier BARILLER
Differences between
Human Resources and Human Capital
First answer:
not that easy for a
novice
Differences between
Human Resources and Human Capital
Both of them are dealing with People
within an organization.
And so???
Differences between
Human Resources and Human Capital
So, let me share with you
a conversation I had.
Differences between
Human Resources and Human Capital
A friend of mine
financial job
(prestigious French education)
asked me
human capital practitioner
(master level + various ...
what difference I make
between
Human Resources and Human
Capital.
Differences between
Human Resources and Human Capital
So I asked him:
what difference do you make
between
“resource” and “capital”?
Differences between
Human Resources and Huma...
About “resource”
My friend: a resource is USED
Me: it’s utility, same as equipment?
My friend: yes
About “capital”
My friend: a capital must be GROWN
Me: the purpose is to increase
your capital?
My friend: yes!
About self-consideration from self point of
view
Me: so, as an employee, how do
you prefer to consider yourself:
resource ...
About self-consideration from organization
point of view
Me: as an employee, how do you
think you are considered:
resource...
Does it
remind you
anything?
Differences between
Human Resources and Human Capital
Is it clearer now?
Differences between
Human Resources and Human Capital
It’s a
MINDSET!
Differences between
Human Resources and Human Capital
What is Human Capital
not about?
Not about payroll
Not about tax and tax optimization
Not about working hours regulations
...
What is Human Capital
not about?
All these are about
management of
resources
… management of
human resources
Is management
of human resources
enough to sustain any
organization development?
HR management enough for sustaining
development?
NO
Why “NO”?
First,
Because, we are no more in a
production economy.
It’s no more only about
“using arms, hands and
legs”!
We are
in a global knowledge economy
Why “NO”?
We are
in a “using knowledge” economy
Why “NO”?
It’s a BRAIN economy!
And you’d better not make the economy
of the brain*! ;-)
Why “NO”?
Second,
In many countries,
organizations of any size
are
facing the
following challenges:
Why “NO”?
Following challenges
- war of talent
- succession planning
- effective leadership
- employee engagement
- motivation
- ret...
So what makes the human capital?
They are different layers,
different angles/perspectives
to solve different problems.
Mainly human capital
is not tangible
but observable
in terms of results.
So what makes the human capital?
It’s not tangible because human mind is
one of the most complex things in the
Universe.
So what makes the human capital?
“If the human brain were so simple that
we could understand it,
we would be so simple that we couldn't.”
~ Emerson M. Pugh...
To make things simple and accessible,
your human capital
(as an individual or as an organization)
is the sum of:
So what m...
- Thoughts, feelings, beliefs and
perceptions regarding self and others,
emotional intelligence, personal maps
of the word...
- the Transformation of previous list
in terms of actions and behaviors –
social behaviors, professional
behaviors- , the ...
- the conceptual thinking,
value judgment,
decision making styles,
the ability to see how things works
together, …
So what...
All these are Identifiable and
Measurable; there are
Ways to Develop them!
So what makes the human capital?
Human Capital Purpose
The purpose of
a Human Capital
Management / Optimization Department
is
toto aalignlign, to, to ooptimizeptimize thethe hhumanuman ccapitalapital
with thewith the bbusinessusiness ggoalsoals and...
Sustainability
Moreover, the Human Capital Management /
Human Capital MINDSET is
not just trendy!
IT’S SUSTAINABLE.
IT MAKES ORGANIZATIONS
SUSTAINABLE.
Because it puts People First.
Sustainability
“Putting People First”
And
“Putting People First”
is both a matter
- of
LEADERSHIP
,
“Putting People First”
- and answering a global demand from
individuals* requiring for
“Less Finance and More Human oriented
decisions and action...
So, >, = or < ?
Some people asked me:
So,
Human Resources
>, = or <
to Human Capital ?
They are the
2 different faces
of the same coin.
So, >, = or < ?
So, >, = or < ?
So, >, = or < ?
This is the same question as
“Is Leadership more important
than Management?”
Leadership without management:
not that much happens!
So, >, = or < ?
Management without leadership:
things happen, but what for?
Loss of meaning
loss of motivation and
then ruin of everything...
? Human Capital practitioners
Some people asked me:
“Are HR professional
more predisposed
to be HC practitioners?”
Do you think years of experiences
in payroll,
in recruiting process,
…
are particularly relevant or more than
… (let’s say...
If so,
explain me! ;-)
? Human Capital practitioners
Human Capital practice requires:
Tools,
Methodologies
and Business Acumen
(successes and failures experiences)
? Human Cap...
Human Capital practice requires:
Openness,
Desire for helping others,
Reflective Work on Self,
? Human Capital practitione...
Human Capital practice requires:
Superior Empathy skills,
Communication skills,
Strategy and Practical skills
? Human Capi...
The end
I whish
differences are clearer
now
for you.
Have
a
great day!
The end
You
have
Great
People!
The end
The end
You
are a
Great
Person!
Need HELP ?
Want to identify your Human Capital?
More?
Take action now!
xavier.bariller gmail.com
The end
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Differences between Human Resources and Human Capital

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Published on

Understanding the differences between human resources and human capital.
Because there are differences!
Sometimes the words "human capital" are used instead of "human resources", because it sounds trendy.
But don't be duped!
They cover different realities, mindsets and different practices!
And this is what this presentation is about.
Enjoy!

Published in: Business, Technology

Differences between Human Resources and Human Capital

  1. 1. Differences between Human Resources and Human Capital By Xavier BARILLER
  2. 2. Differences between Human Resources and Human Capital First answer: not that easy for a novice
  3. 3. Differences between Human Resources and Human Capital Both of them are dealing with People within an organization.
  4. 4. And so??? Differences between Human Resources and Human Capital
  5. 5. So, let me share with you a conversation I had. Differences between Human Resources and Human Capital
  6. 6. A friend of mine financial job (prestigious French education) asked me human capital practitioner (master level + various certifications) Differences between Human Resources and Human Capital
  7. 7. what difference I make between Human Resources and Human Capital. Differences between Human Resources and Human Capital
  8. 8. So I asked him: what difference do you make between “resource” and “capital”? Differences between Human Resources and Human Capital
  9. 9. About “resource” My friend: a resource is USED Me: it’s utility, same as equipment? My friend: yes
  10. 10. About “capital” My friend: a capital must be GROWN Me: the purpose is to increase your capital? My friend: yes!
  11. 11. About self-consideration from self point of view Me: so, as an employee, how do you prefer to consider yourself: resource or capital? My friend: I’m a human being, Xavier! As an employee, I’m not just a facility! But, I’m not sure what capital I represent, I worth...
  12. 12. About self-consideration from organization point of view Me: as an employee, how do you think you are considered: resource or capital? My friend: not sure… maybe as an expense…
  13. 13. Does it remind you anything? Differences between Human Resources and Human Capital
  14. 14. Is it clearer now? Differences between Human Resources and Human Capital
  15. 15. It’s a MINDSET! Differences between Human Resources and Human Capital
  16. 16. What is Human Capital not about? Not about payroll Not about tax and tax optimization Not about working hours regulations Not about compensation Not about signing recruitment contract Not about supervising the training attendance sheet Not about employment laws …
  17. 17. What is Human Capital not about? All these are about management of resources … management of human resources
  18. 18. Is management of human resources enough to sustain any organization development?
  19. 19. HR management enough for sustaining development? NO
  20. 20. Why “NO”? First, Because, we are no more in a production economy. It’s no more only about “using arms, hands and legs”!
  21. 21. We are in a global knowledge economy Why “NO”?
  22. 22. We are in a “using knowledge” economy Why “NO”?
  23. 23. It’s a BRAIN economy! And you’d better not make the economy of the brain*! ;-) Why “NO”?
  24. 24. Second, In many countries, organizations of any size are facing the following challenges: Why “NO”?
  25. 25. Following challenges - war of talent - succession planning - effective leadership - employee engagement - motivation - retention - feeling of recognition - culture problems - cross-culture problems - lost productivity - lost creativity - time, money and resources wasted -…
  26. 26. So what makes the human capital? They are different layers, different angles/perspectives to solve different problems.
  27. 27. Mainly human capital is not tangible but observable in terms of results. So what makes the human capital?
  28. 28. It’s not tangible because human mind is one of the most complex things in the Universe. So what makes the human capital?
  29. 29. “If the human brain were so simple that we could understand it, we would be so simple that we couldn't.” ~ Emerson M. Pugh So what makes the human capital?
  30. 30. To make things simple and accessible, your human capital (as an individual or as an organization) is the sum of: So what makes the human capital?
  31. 31. - Thoughts, feelings, beliefs and perceptions regarding self and others, emotional intelligence, personal maps of the words, personal and professional values, higher sense of purpose, different layers of culture,… So what makes the human capital?
  32. 32. - the Transformation of previous list in terms of actions and behaviors – social behaviors, professional behaviors- , the ability to produce results and what kind of results,… So what makes the human capital?
  33. 33. - the conceptual thinking, value judgment, decision making styles, the ability to see how things works together, … So what makes the human capital?
  34. 34. All these are Identifiable and Measurable; there are Ways to Develop them! So what makes the human capital?
  35. 35. Human Capital Purpose The purpose of a Human Capital Management / Optimization Department is
  36. 36. toto aalignlign, to, to ooptimizeptimize thethe hhumanuman ccapitalapital with thewith the bbusinessusiness ggoalsoals and businessand business nneedseeds to achieveto achieve ssuperioruperior pperformanceerformance,, and so, by the way, to improve the quality ofand so, by the way, to improve the quality of life inside and outside the organization.life inside and outside the organization. Human Capital Purpose
  37. 37. Sustainability Moreover, the Human Capital Management / Human Capital MINDSET is not just trendy!
  38. 38. IT’S SUSTAINABLE. IT MAKES ORGANIZATIONS SUSTAINABLE. Because it puts People First. Sustainability
  39. 39. “Putting People First” And “Putting People First” is both a matter
  40. 40. - of LEADERSHIP , “Putting People First”
  41. 41. - and answering a global demand from individuals* requiring for “Less Finance and More Human oriented decisions and actions in business life” * wherever they are from – from developed countries to emerging economies (such as Bangladesh) “Putting People First”
  42. 42. So, >, = or < ? Some people asked me: So, Human Resources >, = or < to Human Capital ?
  43. 43. They are the 2 different faces of the same coin. So, >, = or < ?
  44. 44. So, >, = or < ?
  45. 45. So, >, = or < ? This is the same question as “Is Leadership more important than Management?”
  46. 46. Leadership without management: not that much happens! So, >, = or < ?
  47. 47. Management without leadership: things happen, but what for? Loss of meaning loss of motivation and then ruin of everything on the long run … So, >, = or < ?
  48. 48. ? Human Capital practitioners Some people asked me: “Are HR professional more predisposed to be HC practitioners?”
  49. 49. Do you think years of experiences in payroll, in recruiting process, … are particularly relevant or more than … (let’s say) sales or public relation experiences? ? Human Capital practitioners
  50. 50. If so, explain me! ;-) ? Human Capital practitioners
  51. 51. Human Capital practice requires: Tools, Methodologies and Business Acumen (successes and failures experiences) ? Human Capital practitioners
  52. 52. Human Capital practice requires: Openness, Desire for helping others, Reflective Work on Self, ? Human Capital practitioners
  53. 53. Human Capital practice requires: Superior Empathy skills, Communication skills, Strategy and Practical skills ? Human Capital practitioners
  54. 54. The end I whish differences are clearer now for you.
  55. 55. Have a great day! The end
  56. 56. You have Great People! The end
  57. 57. The end You are a Great Person!
  58. 58. Need HELP ? Want to identify your Human Capital? More? Take action now! xavier.bariller gmail.com The end

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