IMPACT OF HUMAN CAPITAL PRACTICES ON PROJECT SUCCESS

Abstract

Human Resource is the most valuable asset to any organization. Unlike other assets, people are the only greatest potential asset and the only greatest potential liability that an organization will acquire as it moves about its business. Organizations are comprised of three types of major assets that are needful to an organization’s ability to produce goods and services, namely, financial assets, physical assets and intangible assets. Intangible asset include intellectual capital (product patents, product designs, and process technology), goodwill, and human capital. This dissertation aims on human capital, which is most valuable intangible asset, and how it affects, an organizations’ productivity. Human capital is not just the people working in an organization. It’s a broad combination of their experience, attitudes, abilities, culture.etc. For more than three decades researchers from the areas of HRM have been interested
in finding the relationship between human capital (which includes education, knowledge, experience, and skills) and the success of an organization. Since past decades researchers are struggling to find the relationship between human capital and the success of the project. This study evaluates the effectiveness of human capital development practices such as training and development, teamwork and trust and their impact on the successful completion of the project. A Number of researches suggest a positive relationship between human capital and organisational success. Thus, it is the responsibility of the firm to design such human resource practices that facilitate the development of human capital. By systematically reviewing the literature on this topic, It has been concluded that the human capital practices such as training and development, teamwork and trust, enhance the development of human capital and ultimately effect the completion of project successfully in time and efficient manner.