Quite often, people talk about human capital in organizations. Human Capital or the Human Equation can be defined as those skills which people bring to the organization. The skills can be divided into two: the technical side and the behavioral part of it. The technical side is made up of educational trainings. The behavioral part is composed of the level of committment of the individual and his ability to work in group. The two parts are very important and complimentary in order to reach the desired objective. Quite often, leaders of organizations emphasize only the behavioral aspect by using the words such as a good team player to supercede the other qualities.
Here is an example to illustrate what I mean. In order to provide the highest service, one must have enough knowledge and skill about his job. However, only knowledge without teamwork ability, an organization becomes dysfunctional. On the other hand, no matter how one may be very sympathetic and good to everyone, a lack of knowledge implies he cannot solve any problem technically. This is also disastrous. The reason is that customers want organizations to solve their problems and relate to them in a humane way. Solving a problem is technical, but relating to customers is a behavioral issue.
In the next post, we will look at how the tehcnical and the behavioral components can be constructed.
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