The alignment of human resources deliverables with the business strategy of the national research foundation
- Authors: Davids, Yolanda Crisanda
- Date: 2011-10-11T07:16:01Z
- Subjects: Human capital , National Research Foundation (South Africa) , Strategic planning , Success in business
- Type: Thesis
- Identifier: uj:7234 , http://hdl.handle.net/10210/3889
- Description: M.Comm. , The vision, values and critical success factors incorporated in the balanced scorecard (BSC) have to support the organisational strategic goals. The Learning and Growth Perspective, the foundation of the BSC, assesses organisational capital, information capital and the skills and capabilities of the Research and Innovation Support Advancement (RISA), a division of the National Research Foundation (NRF). This allows the organisation to gain insight into and understanding of what is effective and which learning and growth systems need changing. The RISA’s balanced scorecard (BSC) does not demonstrate how the Learning and Growth Perspective addresses the organisational strategic objectives. In this study, the researcher wished to identify the critical success factors (CSFs) of the Learning and Growth Perspective of RISA so as to achieve its strategic objectives. A cross-sectional, survey-based research approach was adopted. The questions formulated examined the CSFs in five critical areas of the Learning and Growth Perspective namely, information technology, leadership, organisational culture, human resources management and talent management. Two critical success areas, namely talent management and HRM were identified as having an impact on the Learning and Growth Perspective of RISA. In addressing these areas, the organisation will be able to align its organisational capital, information capital and human capital with its overall strategy.
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The effectiveness of strategic management intervention in developing profitable high growth African businesses
- Authors: Kaija, Godfrey , Nieuwenhuizen, Cecile
- Date: 2017
- Subjects: Strategic planning , Business enterprises , Small business - Economic aspects , Small business - Management , Sustainable development , Human capital
- Language: English
- Type: Conference proceedings
- Identifier: http://hdl.handle.net/10210/235963 , uj:24141 , Citation: Kaija, G. & Nieuwenhuizen, C. 2017. The effectiveness of strategic management intervention in developing profitable high growth African businesses.
- Description: Abstract: The objective of the research was to determine how the the strategic management intervention of the African Management Services Company (AMSCO) has contributed to improved profitability, growth and sustainability of businesses in African countries. Businesses ranging from very small to multinational subsidiaries that were involved in a three year AMSCO intervention were selected to participate in the study. Self-administered questionnaires as well financial and other records and documents of 55 participating businesses resulted in the findings that the intervention, especially with the placement of the AMSCO managers, was instrumental in successfully transferring business and management skills to local employees within these enterprises and organisations. During and after the intervention the profitability, growth, sustainability, employment numbers and retention of the majority of the businesses increased and training became a norm.
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Understanding the potential of adult “third culture kids” as talents in multi-national corporations
- Authors: Molteno, Louise
- Date: 2014-10-22
- Subjects: International business enterprises , Multiculturalism , Cosmopolitanism , Human capital , Executive ability
- Type: Thesis
- Identifier: uj:12664 , http://hdl.handle.net/10210/12497
- Description: M.Phil. (Personal and Professional Leadership) , Globalisation has dramatically impacted the way business is conducted. As business becomes more global, there is a growing need for employees, especially managers, with the right skillset to be successful in this international environment. Given the scarcity of internationally skilled employees, companies will have to look at new sources of potential talent. “Adult third culture kids” (ATCKs) are such a source of talent, as they have already acquired some of the skills necessary to be successful internationally, because of the way they had grown up. It appears, however, that ATCKs are an untapped talent source. The purpose of this study was to explore the perceptions of managers within multi-national corporations (MNCs) regarding the potential of ATCKs as a source of talent. The study aimed to establish if awareness existed within MNCs of the ATCK phenomenon, and to explore some of the reasons for the apparent under-utilisation of this source of talent. A qualitative approach with a case study design was chosen to answer the research question, as this was deemed the best method to obtain an in-depth understanding of the perceptions within MNCs of the potential of ATCKs. Five research participants from five different MNCs were identified, based on their expertise in human resource management (HRM). Data were collected by means of individual, semi-structured interviews and supporting field notes. Thematic analysis was employed to analyse this data. Three dominant themes pertaining to the research question were identified. The findings of the research revealed that there is limited awareness of ATCKs within the MNCs selected for this study. Research participants acknowledged the characteristic skillset of ATCKs to be a valuable asset to their organisations. Possible reasons for the under-utilisation of this source of talent are the limited awareness of the ATCK phenomenon and the lack of knowledge of the actual contribution of ATCKs in the workplace.
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The importance of effective strategic leadership in organisations
- Authors: Van Eeden, Cornelia Maria
- Date: 2012-09-06
- Subjects: Leadership , Human capital , Corporate culture , Strategic planning , Business ethics , Corporate governance
- Type: Mini-Dissertation
- Identifier: uj:9666 , http://hdl.handle.net/10210/7081
- Description: M.Comm. , This research is intended to describe the elements that underline and compromise strategic leadership. Having strategic leaders with substantive expertise in the firm's core functions and businesses is important to the effectiveness of a management team. A heterogenic management team is associated positively with innovation and strategic change and may force them to "think outside of the box" (Hitt et al.,2001:493). Key elements of strategic leadership is used to identify weaknesses and strengths within the organisation and explored. The type of effective strategic leadership that results in the successful implementation of strategies is exemplified by developing human capital through training to establish a strategic direction, fostering an effective culture, exploiting core competencies, using effective organisational control systems and establish ethical practices (Hitt et al., 2001: 509).
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The relevance of human capital in attracting FDI : evidence from BRICS Countries
- Authors: Ndlovu, Bheki Musa
- Date: 2016
- Subjects: Human capital , BRIC countries , Investments, Foreign
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/124249 , uj:20893
- Description: Abstract: This study investigates the relevance of human capital proxied by the gross secondary school enrolment in attracting FDI into BRICS countries, which include: Brazil, Russia, India, China and South Africa for the period 1980-2013. After controlling for heterogeneity, endogeneity, and spatial effects, aggregate results from different panel techniques indicate that human capital is a significant and relevant factor in attracting FDI into BRICS countries. However, gross public expenditure on education and health care are found to be negatively related to FDI. This implies that wholesale public expenditure is undesirable, but rather a more prudent targeted sectorial public expenditure can produce the desired outcomes. The spatial effects analysis indicates that there is cross sectional dependency amongst BRICS countries. Consistently, country level results indicate that human capital is significant in attracting FDI in almost all the BRICS countries. Furthermore, all the models are checked for robustness by using different diagnostic tests in order to ascertain that the results are accurate and reliable. The results are consistent with prevailing economic theory except for the outcomes of public expenditure on education and health care. Thus, the study concludes that human capital has a positive effect on FDI in BRICS countries and that policy makers are justified in seeking synergies between educational and FDI policies in order to propel future economic growth rates. , M.Com. (Economics)
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An economic analysis of the skills shortage problem in South Africa
- Authors: Sebusi, I. E.
- Date: 2010-10-04T08:32:38Z
- Subjects: Human capital , Unemployment , Ability in South Africa , Skilled labor
- Type: Thesis
- Identifier: uj:6915 , http://hdl.handle.net/10210/3426
- Description: M.Comm. , South Africa has experienced a long period of high unemployment. While the economy has achieved relatively higher GDP growth rates in the recent past, unfortunately not as many jobs have been created. This is because of, amongst other constraints, the skills shortage experienced. This shortage of skills is not solely the result of the emigration of professionals since the inception of the new political dispensation in 1994. This paper investigated the economic sectors showing high growth, with a view of identifying the sectors that can be promoted for high investment and hence the creation of employment for the country’s labour force. The secondary and the tertiary sectors have been found to contributing more to the country’s GDP growth and could create more employment opportunities if promoted by more investment. However, the unemployment experienced is mainly structural in nature and the country should concentrate on human capital development and skills development to reduce it. The education of the labour force in South Africa has been found to be concentrated in the secondary level. This has raised questions as to the ability of the country’s education system to fulfil its role of empowering the labour force. More than ten years into democracy, blacks are the most disadvantaged population group regarding the levels of appropriate educational qualifications making them contribute the most to the unemployed labour force.
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Social capital as an engine of growth : multisectoral modeling and implications
- Authors: Bofota, Youyou Baende , Boucekkine, Raouf , Bala, Alain Pholo
- Date: 2016
- Subjects: Social capital , Human capital , Economic growth
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/216716 , uj:21543 , Citation: Bofota,Y.B., Boucekkine, R. & Bala, A.P. 2016. Social capital as an engine of growth : multisectoral modeling and implications.
- Description: Abstract: We propose an endogenous growth model incorporating social capital. Social cap- ital only serves as an input in the production of human capital and it involves a cost in terms of the final good. In contrast to alternative specifications, this model en- sures that social capital enhances productivity gains by playing the role of a timing belt that drives the transmission and propagation of all productivity shocks. We find that, depending on the measure of social capital, the elasticity of human capital to social capital varies from 6% to 10%. Finally, we investigate the short-term dynamics and imbalance effect properties of the model, depending on the value of this elastic- ity. In particular, we show that when the substitutability of social capital for human capital increases, the economy is better equipped to surmount initial imbalances as individuals may allocate more working time to the final good sector without impeding economic growth.
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Challenges facing auditing firms in retaining chartered accountants (CAs)
- Authors: Phungwayo, Albertina Duduzile
- Date: 2012-10-30
- Subjects: Chartered accountants , Accounting standards , Accounting firms - Personnel management , Human capital , Labor turnover
- Type: Mini-Dissertation
- Identifier: uj:10472 , http://hdl.handle.net/10210/7944
- Description: M.Phil. , Orientation: This study is an exploration of the factors that lead to staff turnover amongst chartered accountants (CAs) in auditing firms. Research purpose: Its aim was to investigate the factors that might have led to CAs‟ leaving these firms. Motivation of study: There is an increased concern in the South African auditing industry as more CAs are leaving their employ for the greener pastures of commerce and industry. An understanding of the factors leading to high CA turnover will aid employers in developing retention strategies. Research design: The auditing division of BDO was selected for the study. A randomly selected sample consisted of 11 auditing managers and was selected from a population of 26 auditing managers. Tables 3, 4 and 5 in Chapter 4 depict the profile of the participants. Method: A qualitative research method was adopted with the aim of identifying turnover causes. This approach allowed the researcher to understand the meaning that underlies the turnover of CAs, and to interpret the meaning and intentions of this. Interviews with open ended questions were used to collect data. Responses were subsequently grouped into themes and categories, comparisons made, and interpretations of these were then formed. Main findings: The results of the study indicated the importance of incentives, career advancement, the term of employment contracts, as well as interesting, stimulating and diverse projects. These were found to lead to a decision to leave auditing firms, and for this reason required urgent attention. The study noted that personal factors had stronger impact on a decision to leave than job-inherent factors. This might signal that CAs prefer to control their own careers. None of the employer factors were found to be push factors. Practical/managerial implications: It is suggested that management of auditing firms should investigate matters that staff members consider to be important, or even investigate what other auditing firms are doing to retain staff. A limitation of the study is that its results are not generalisable to a larger population. v Contribution and value add: The main contribution of the study was to investigate the initiatives that were important enough to CAs to convince them to remain with their employers rather than leave them. Key words: Human Resources, Employees, Skills shortages, Staff turnover, Employer Value Propositions, Qualitative research, CAs.
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A comparative study of integrated reporting capitals and related financial reporting information
- Authors: Makgae, Jeridah
- Date: 2016
- Subjects: International financial reporting standards , International Accounting Standards Board , Financial statements , Human capital , Intellectual capital , Infrastructure (Economics)
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/237184 , uj:24298
- Description:
M.Com. (International Accounting)
, Abstract: The International Integrated Reporting Framework (
Framework) was issued in December 2013 by the International Integrated Reporting Council (IIRC). The Framework lists six capitals that entities use. Entities often include those capitals that are more important or are used more frequently than others. Although the Framework was recently issued, the concept of integrated reporting is not a new concept in South Africa. The King Code of Governance (King III) was issued in 2009 and it has a requirement for entities to publish integrated reports. The purpose of this study is do a comparison between the information provided on the six capitals of integrated reporting and the related financial reporting information. A full list of International Financial Reporting Standards (IFRSs) that were used in this comparative study is listed under heading 4.2.3. The International Accounting Standard Board’s (IASB) IFRSs do not address all the capitals in detail. The accounting treatment of each capital is prescribed in relevant IFRS standards. A content analysis has been performed by comparing the information on the six capitals of integrated reporting and the relevant IFRSs identified. The results of the study indicate that the information that is presented and disclosed in the annual financial statements does not always give a true reflection of the results of the entity. This is mainly because of certain expenditures that do not meet the definition of an asset or liability, or that the recognition and measurement criteria of IFRSs will not lead to presentation on the statement of financial position. The study indicates additional information that should be disclosed in the notes to the financial statement or in the integrated report for each capital. - Full Text:
Strategic management intervention towards the transitioning of African enterprises into profitable and sustainable enterprises
- Authors: Kaija, Godfrey
- Date: 2016
- Subjects: Strategic planning , Business enterprises , Small business - Economic aspects , Small business - Management , Sustainable development , Human capital
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/237611 , uj:24348
- Description: M.Com. (Business Management) , Abstract: As most African economies emerge from conflict, subsistence and most recently from the financial crisis, it has become apparent that enterprise is going to play a key role in aiding economic recovery and success. It should be appreciated that Africa as a continent has emerged post the conflict era with a big shortage of human capital. The objective of the research was to understand how the African Management Services Company (AMSCO) with the patronage of the United Nations Development Program (UNDP), the International Finance Corporation (IFC) the private arm of the World Bank and the African Development Bank (AfDB) has spearheaded the fight of the challenges of human capital development on the continent. The problem statement was that Enterprise is an important driver of growth in economies across Sub Saharan Africa (SSA) and SMEs account for up to 90% of all enterprises in these markets. In southern African research, it is estimated that only 1% of new enterprises will make the transition to a successful established profitable enterprise (Fatoki 2014). This study aimed therefore to establish the relationship between strategic management interventions as well as the role these interventions play in helping transition selected enterprises into profitable and sustainable enterprises. The research study purposively sampled 100 enterprises that have benefited from a Strategic management intervention from AMSCO. It engaged the enterprise owners, and relevant business heads within the intervention process. The objectives of the study were geared towards analysing the process and ensuring that the results achieved during the AMSCO interventions had been properly executed and that the various SME’s that AMSCO set out to satisfy had been adequately served. The study achieved a response rate of 55% which offered credible and dependable information about AMSCO assisted enterprises. According to the findings, most of the respondents were males i.e. 74.5%, with only 23.6% of the respondents being females. The respondents indicated a high number of respondents within the age group of 36 – 55 years. The research found that the strategic management intervention by AMSCO especially with the placement of the AMSCO managers was instrumental in successfully transferring business and management skills within these enterprises and organisations. And after 3 years, many were turned into profitable and sustainable enterprises. A large percentage of respondents i.e. 70% indicated that after the intervention by AMSCO, training became a norm. With the seconded manager expected to pass on skills to the local staff.
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A manpower planning model to predict future workforce behaviour and retention : a Markov chain approach
- Authors: Okaekwu, Emeka David
- Date: 2016
- Subjects: Manpower planning , Manpower planning - Case studies , Manpower planning - Evaluation , Human capital , Markov processes
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/233637 , uj:23858
- Description: M.Phil. (Engineering Management) , Abstract: Proper manpower planning is a key factor in the demand and supply of workforce in every organization. It probes the skills and capability sets, the right quantity, location, timing, and quality of the needed manpower. It is evident according to empirical studies that undivided attention has been given to manpower planning in the last decade. Different bodies involved include government parastatals, academic and industrial organizations and institutions performing some form of manpower planning research and activities to maintain stability and retention in the system. Whether these inputs are reflected in the manpower policies and make a significant contribution in this regard is yet to be seen. Several analytics and methods of modelling manpower planning exist, however, Markov chain has been used widely and accepted in various facets and domains. In this research, Markov Chain is used as a tool to analyse the manpower data from an academic institution as a case study with the aim to unearthing the hidden details regarding existing manpower policies and hence, its fairness and robustness towards staff training, promotion, and ultimately retention. A 9-year stage of manpower data split into states is used and matrix operations employed in analysing the manpower data obtained. Bayesian probability is also used for establishing the transition probability matrix (TPrM), and these matrix transformations are carried out repeatedly to achieve stability. The results of the analysis show that manpower policy in the participating organization towards overall staff retention is rigid and stern. The results clearly satisfy the purpose of the study which is to predict the trend in the manpower practice, the potential cause of manpower loss and subsequently, the flow and fairness of the existing manpower policy.
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Foundational assumptions in selecting human capital metrics
- Authors: Chrysler-Fox, Pharny D.
- Date: 2011-08-25T06:44:23Z
- Subjects: Human capital , Human capital measurement , Personnel management
- Type: Thesis
- Identifier: uj:7173 , http://hdl.handle.net/10210/3784
- Description: M Com (Human Resources Management) , The aim of this study was to explore and describe foundational assumptions in selection of human capital metrics, unpacked within three broad categories of meaning, namely: why?, what?, and how? we measure human capital. A literature study was conducted to demystify conceptual elements and to report on the status quo. A modernist qualitative research methodology, with purposive and snowball sampling to recruit a limited number of practitioner experts in the field of HC and HC measurement in South Africa, was employed. With the aid of computerised qualitative data analysis software, thematic analysis was inductively applied to data generated during unstructured, in-depth interviews. Twenty-four assumptions found and positioned within the three broad categories of meaning (why?, what?, and how?) provide some understanding of selection in human capital metrics. Significant clusters of findings are: the supply of decisionlevel specific human capital information (which originated heuristically and inferentially), the limited value attached by senior managers to transactional and compliance information, the systemic integration (vertical and horizontal) of the business strategy into the business value chain, supported by multiple and parallel value chains, and an emerging measurement framework within HR. These clusters are representative of two emerging and overarching paradigms, namely: the current and entrenched Performance Measurement Paradigm (transactional), and the aspiration towards the fruition of a Human Capital Contribution Paradigm. It is clear from this study that there is still conceptual confusion regarding the terms human capital and metrics as presented in literature and understood and applied in practice. Recommendations are offered to eradicate conceptual confusion and to assist HR in moving towards a Human Capital Contribution paradigm.
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Integrated competence and human capital value
- Authors: Clark, Suzette M.J.
- Date: 2015-03-17
- Subjects: Human capital
- Type: Thesis
- Identifier: uj:13425 , http://hdl.handle.net/10210/13460
- Description: M.Phil. (Human Resource Management) , The purpose of the study was to establish the Human Capital Value’s competence construct theoretical underpinnings by investigating perspectives, definitions, frameworks, models, variables, and measures based on levels of analysis. The research design followed on a theoretical (non-empirical) research approach, based on a systematic literature. The approach allowed for a content analysis, via the application and computer assisted qualitative data analysis software, ATLAS.ti. The findings revealed that individual and team level competence consists of variables such as knowledge, skills, abilities, and attributes that include both the application of behavioural and functional capabilities. Organisation level competence relies on core competencies’ resources and capabilities responsible for maintaining its competitive advantage. Furthermore, the findings have established that there is a significant lack of standardised competence frameworks, models, and measures. The implication of this study needs to be empirically validated, since it was based on a non-empirical systematic literature review.
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Analysing the human capital capabilities in the enterprise risk management function of South Africa’s public institutions
- Authors: Moloi, Tankiso
- Date: 2018
- Subjects: Enterprise risk management , Human capital , Public sector
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/278361 , uj:29869 , Citation: Moloi, T. (2018). Analysing the human capital capabilities in the enterprise risk management function of South Africa’s public institutions. Business and Economic Horizons, 14(2), 375-388. http://dx.doi.org/10.15208/beh.2018.27 , ISSN: 1804-5006
- Description: Abstract: The weak control environment in South Africa’s public sector has, in the past, resulted in high levels of irregular, fruitless and wasteful, and unauthorised expenditure. In order to make a contribution to the discourse of mechanisms that could be deployed to reduce high levels of irregular, fruitless and wasteful, and unauthorised expenditure, this study analysed the capabilities of the human capital deployed in South Africa’s public sector. Together with the National Treasury in the Office of the Accountant General, a questionnaire was designed and administered to the public institution’s Chief Risk Officers in the first quarter of 2017. The findings of the study are that inadequate risk management processes and ineffective practices that are partly responsible for the weak control environment in public institutions, could also be attributed to the capabilities of the human capital deployed in enterprise risk management functions. In this regard, the study found that some of the reasons for the inadequate risk management processes and ineffective practices stemmed from: the inadequate staffing of the enterprise risk management function; positions not being filled by candidates with adequate academic qualifications and experience; the time it takes to fill a vacant position; and inadequate budget allocations. When institutions address risk maturity, policies, processes, and practices, focus must simultaneously be directed to the human capabilities deployed within the risk management function.
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The role of human resources in knowledge-driven organisations : an analysis of identified companies that operate in the South African chemical industry
- Authors: Govender, Yoganathan Kaniappen
- Date: 2014-07-28
- Subjects: Knowledge management , Intellectual capital , Human capital
- Type: Thesis
- Identifier: uj:11845 , http://hdl.handle.net/10210/11577
- Description: M.B.A , The aim of this study is to conduct a literature study on knowledge management with specific reference to the Human Resources environment and compare these practices in the various identified companies that operate In the Chemical Sector in South Africa. Knowledge management has demonstrated to be an essential contributor to business success in many global companies. As an evolving discipline within organisations, the Human Resources function can benefit from this by adopting the appropriate knowledge management tools and principles to ensure maximum Human Capital output is achieved. The foundation of this dissertation is based on the literature review, where the researcher attempts to highlight important aspects relevant to this topic. These include concepts associated with the Human Resources function - but are viewed in perspective of a knowledge-driven organisation. The focus will be primarily on Learning and Development, Compensation and Benefits, Recruitment and Placement, and Performance Management and associated concepts that support these Human Resources technologies. In order to gain a better understanding of currant practices in the identified South African companies, the researcher will survey these companies. Both the providers of Human Resources services (Human Resources Professionals) and recipients of the Human Resources services (Employees) will be surveyed. From the findings, the researcher will provide appropriate recommendations based on the expertise provided by the authors in the literature review so that the companies may adapt and implement these. Since South Africa is a developing economy, these companies can learn from the tried and tested methodologies as illustrated in the literature review, to enhance their competitive edge.
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Economic experiences and sustainable livelihoods of single mothers employed in the formal work sector in Germany and South Africa
- Authors: Raniga, Tanusha , Boecker, Michael , Mthembu, Maud
- Date: 2019
- Subjects: Single mothers , Sustainable livelihoods , Human capital
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/405869 , uj:34100 , Citation: Raniga, T., Boecker, M. & Mthembu, M. 2019. Economic experiences and sustainable livelihoods of single mothers employed in the formal work sector in Germany and South Africa.
- Description: Abstract: This article seeks to disrupt the dominant discourses of victimhood related to single-mother family status. Drawing on a sustainable livelihood framework, we present data from in-depth interviews held with 25 single mothers sampled in Hagen, Germany, and in Gauteng and KwaZulu-Natal provinces in South Africa. We discuss how participants engaged in positive human capital development, building social capital and tapped into multiple income streams for economic security. Given the intersectional injustices that single mothers face, the strengths the women drew on in their lives is worth noting. We conclude that single mothers have created a new narrative for themselves beyond a pathological one.
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A holistic model of human capital for value creation and superior firm performance : the Strategic factor market model
- Authors: Esho, Ebes , Verhoef, Grietjie
- Date: 2020
- Subjects: Human capital , Strategic factor market , Knowledge
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/415825 , uj:35150 , Citation: Esho, E., Verhoef, G. A holistic model of human capital for value creation and superior firm performance : the Strategic factor market model.
- Description: Abstract: , Understanding the link between human capital, competitive advantage and firm performance is a major focus of research in strategic human capital studies in strategic management and Strategic Human Resource Management (SHRM). Indeed, much progress has been made in understanding this link. However, strategy scholars have emphasized firm-specific human capital as the most strategic form of human capital, and mobility constraints as the route to human capital-based competitive advantage and superior performance. SHRM, on the other hand, have been primarily focused on human resource policies, practices and systems, and more recently on the ability, motivation, and opportunity framework. Consequently, there has been an implicit assumption that there is already an understanding of how human capital actually creates value in firms. This article presents a succinct review of extant studies and a model that explores value creation from human capital. The model, based primarily on the theory of strategic factor market, holds promise in furthering extant understanding of the link between human capital, competitive advantage and firm performance. The model takes a more holistic approach to the role of human capital in value creation in firms.
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