Learning Log 1: Understanding Human Capital

This is the first time I have enrolled and attended an HR-themed course since I graduated from a technical course. I find it very useful for me to understand human capital so that I can be able to cope up with the needs of the global economy. I realized that even though there are a lot of job opportunities available because of the BPO and Shared Servcies trend here in the Philippines, a lot of jobs can be easily removed and replaced.

From the Maslow’s Hierarchy of Needs, there are different levels of need a person will encounter in his life- Physiological, Safety and Security, Social, Esteem, Self-Actualization.  As he matures, he goes up to another level. A challenge or change in his life may move him up or down one level. This is the objective each person should follow. At some point in your life, you will reach Self-Actualization and won’t strive hard in toiling to live.

There are different types of skills- Commodity, Leveraged and Proprietary Skills. Commodity skills are skills that can be found in most people. Meaning, there is a big supply of it. Leveraged Skills are skills that can be found in a specific industry. Proprietary skills are skills that are necessary for a particular country to run. Obviously, we need to be able to acquire leveraged and proprietary skills.

The interesting part is the Human Capital Matrix:


(Image from Prof. Jerald Dela Rosa’s slide)

You can classify your role based on the Availability of Skills and Knowledge and Value Created to Organization.You can now easily determine whether your role is either easy or difficult to replace and it provides value to the company.

  • Easy to Replace and Low Value Added can be automated.
  • Easy to Replace and High Value Added can be outsourced.
  • Difficult to Replace and Low Value Added can be used to informate
  • Difficult to Replace and High Value Added skills are capitalized.

The ultimate goal is to have a difficult to replace and high value added skills.



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