Human Capital
Human :
From the Latin hominen, for man means of or relating to people
Capital:
From the Latin caput, for head has many nuances. In its simplest usage, it means the first, biggest, or best. In modern accounting, it means net worth-the remaining assets of a business after all iabilities have been deducted
Human Capital within company (or other organization) implies many things:
Human beings are dynamic assets that can increase in value over time, not inert assets that depreciate in value
Human being are prime among all assets.Capital, is synonymous with net worth-the remaining assets of business after all liabilities have been deducted
Human being and the system created to recruit,reward and develop them, form a major part of any company’s value as much as or more than other assets such as cash, land, plants and equipment

Understand the Performance
Performance
Judging performance starts with defining work --creating jobs.
To enable us to ensure that we have a fully performing organizationwe must develop a clear understanding of what our customers, shareholders and associatesrequire people to do and how well they are doing it.
We therefore need to :
Describe the job
Everything inside this circle represents a job. Everything outside is someone else’s job. If we add these circles up we, as a corporation, would be delivering all that the customers, shareholdersand associatesrequire -no moreand no less.
Describe the Performance Criteria
Each slant represents a task or job dimension well done. A complete job has several. These may have to do with operating results, customers, risk and business proficiency, execution, leadership etc.

Performance Levels
EXCEPTIONAL PERFORMANCE
FULL PERFORMANCE
CONTRIBUTING PERFORMANCE

The line extends beyond circle. All dimensions are
performed fully with several exceeding the full
performing standards.
A complete line across the circle.
All dimensions are of the job are being fully performed.
An incomplete line across the circle. All dimensions are not
being done fully or perhaps not at all.

PERFORMANCE PROBLEM
Performance Gap
Some dimensions are not being done, or are not adequatelydone.
This creates an important development agenda for us --left unsolved, we are short-changing customers, shareholders and / or associates

Inappropriate Ambition
Doing elements outside their jobwhile not fully performingelements within their current scope.
This creates a development and motivational agenda :
-their energies and interests should be re-channeledtowards full performance of their current job.
-they become a problemfor others within the corporation in addition to not pulling their own weight in the delivery of corporate results

Narrowly-Defined Jobs
A job is defined too narrowly, sometimes by inappropriate agreement between an individual and his / her boss. (e.g. take out costs vsinvest for the future).

Growth Potential
An inherently unstable condition.
Need to move to larger jobs, if not they’ll leave to do it elsewhere, or stop doing the less interesting aspects
of their current job.
The issue : ensuring performance at higher levels -- the question of promotability.

From : Arthur Andersen and other referenc