1. Role in Managing Human Capital

Todays Human Capital Management approach perceives employees as assets (human capital) whose current value can be measured with metrics and whose future value is also measurable and can be enhanced through investing in the development of employees.

At the same time, the HR department must show compassion for the various situations in which employees find themselves.

Small organizations often have team members performing multiple HR roles, such as benefits administration, recruitment, selection, payroll, and employee development/training. Normally, larger companies have at least one person in each of these areas. If a companys HR team is too small for its number of employees, it is likely that employee dissatisfaction will rise because of delayed response times regarding resolution of issues. For example, an HR manager may not understand the timeliness needed for hiring replacement employees for various departments. If that happens, improvement in communications among departments is needed. If a new employee must wait for a busy HR staff member to update insurance records, filing deadlines could be missed.

2. Legal Compliance

All organizations, however, must follow employment laws and regulations related to discriminatory practices, retaliation for whistle blowing, or other serious issues.

The following video discusses five manager mistakes that could lead to noncompliance issues.

(Business Management Dailey, 2013)

Business Management Daily. (2013, May 21). The top five manager mistakes that cause lawsuits [Video file]. Retrieved from

3. ADP. (2015, March 3). Rethink human capital management [Video file]. Retrieved from

Lets compare this concept with an adverse management practiceutilizing children as workers. Think about companies that do business overseas, and more specifically ones who use child labor. Phillpott (2019) explains that the following U.S. companies overseas still use child labor: Nestle, Philip Morris, Microsoft, Apple, and Hersheys.

Phillpott (2019). 10 Companies that Still Use Child Labor. Retrieved from