MPC DATA

Human Capital in the Software Industry: The case of MPC Data



Human Capital in the Software Industry: The case of MPC Data

Introduction

The report critically analyze, using the material in the case study, the effectiveness of the HR approach within the Organization and if this approach adds value to human capital management. It is necessary for an enterprise to enhance its competitiveness if it wants to be in an invincible position in the world market (Zhou 2003, p. 65). Human resource management based on human capital is a relatively higher level of management, which has many strong advantages. It can radically enhance enterprises' international competitiveness by targeting human capital, increasing human capital stock, adding value for human capital investment and improving efficiency in the use of human capital, etc.

Discussion

Their research shows that temporal changes in strategic goals must be considered in determining whether a selection system contributes to the alignment of resources required to meet that need. In conclusion, whether a “best fit” or a “best practice” perspective is adopted, the strategic human resource management (SHRM) literature suggests that there is a link between HRM processes and firm performance (Chengjin 2000, p. 65). Furthermore, the prevailing model deployed in recent SHRM research is a contingency based, “best fit” perspective which suggests that organizational strategies and goals should be aligned with and affect the design of HR systems and processes. In this vein, the SHRM literature argues for the development of distinctive competencies within the human resources function that are aligned with firm-specific objectives and strategies.

Making use of this contingency perspective, Lepak and Snell's HR Architecture Model further suggests that firms will prefer to invest in human capital, and to develop the employment practices needed to support this investment, only when it possesses valuable and unique characteristics. In this sense, then, the strategic human resource management literature would suggest that the selection system is one of the HR systems that should be redesigned to support firm-specific goals in firms desiring superior performance.

The Case Study

This essay would focus on a case study on Human capital in the software industry: the case of MPC Data by Juani Swart. This case study will be used to critically analyse to what extent MPC Data establishes a human capital advantage. This will be achieved by looking at the meaning of human capital advantage, the impact of human capital advantage on employees in the MPC Data organisation and the effect it has on power and leadership, human resource management, motivation, team and group working and recruitment and selection process. The strengths and weaknesses will be discussed followed by recommendation. This essay write up will be derived from using relevant textbook, articles, and journal and internet website (Zhou 2003, p. 65). “Human Capital is defined as the capacity of human beings as productive agents to promote and increase income, production and development through acquisition of skills and accumulation of knowledge”

“Human capital advantage is a term used to depict an organisation's ability to leverage on an employee's fullest ...