Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)

Research Article: 2021 Vol: 24 Issue: 1S

Obstacles Impeding the Process of Measuring the Importance of Human Capital Through the Exhibition of Knowledge Assets

Marwan M. Shammot, University of King Saud


This research paper talks about a significant subject spoke to in the human capital, which is handled as a cutting-edge ide which thinks about people's capacities, possibilities, and abilities as the foremost capital of present-day Organizations. Managing the job of "personnel undertakings human resources" is not any more limited to how to draw in, select, enlist, train labor force, and follow up their profession issues. Such job has changed in the light of the new impression of the human capital, which is recognized as: total people's perspectives, mastery, knowledge, innovativeness, energy, and eagerness towards their professions. It encompasses the intrinsic and acquired capacities of each individual and incorporates education, knowledge, training, experiences, talents, energies, creativity, and core competencies of organizations’ human resources. The paper likewise centers on the connection between human capital and knowledge. It shows a solid contact between the scholarly capital and the human capital which lies in the way that the scholarly capital tends to the organization's knowledge. Besides, it centers around development and imagination and persuades confronting difficulties and danger taking at work and looks to accomplish the upper hand through producing groundbreaking thoughts. The human capital is the sole asset that can accomplish this since its principle trademark is the assortment and variety of gifts and aptitudes, which require exceptionally experienced work force, different knowledge and quality capacities which are the primary segments of the human capital. Moreover, the exploration tends to the human capital as a novel source which is inimitable and difficult to copy and it additionally features the authentic phases of interest in human capital. At last, the exploration inspects the issue of estimating the human capital and its significance in the Organizations techniques to recognize their human resource and limits. In this specific situation, the measurement issues are recognized, the fundamental essentials and prerequisites are resolved, and the most applied measurements are finished up.


Human Capital, Performance of Knowledge Assets, Human Capital Measurement, Human Resource, Competences, Competitive Advantage


Truly, the interest in the capital has been centered around monetary capital, which incorporates unmistakable assets, and there was overall premium in instruction, experience, and abilities of people as one of the attributes of the labor force. In any case, after the upsurge of the data and innovation transformation, experts have moved to manage these capacities as a "capital" that can be estimated, created, and lost if people quit their work. Besides, the interest expanded in developing relations and binds with others including the public authority, customers, contenders, shippers, and others being viewed as a feature of segments of the capital that are quantifiable kept up and created. So, the recently utilized phrasing of the capital as characterized by Fitz-enz (2002) incorporates the Unmistakable Assets and the Theoretical Assets, for example, the Scholarl Capital, Silvan Winkler, Cornelius & Martin Kleinmann (2013) recognize the Scholarly Capital to be the general elusive assets that comprise of the Human Capital, the Social Capital, the Mental Capital, and the Authoritative Capital. In accordance with the time of innovation, the human asset has become the genuine influencer and essential for associations' prosperity. The criticalness of the human capital for these associations comes from the way that they rely upon human asset as a basic driver and spark for their business intensity. Human capital speaks to the people's characteristic and gained limits, which whenever contributed properly will prompt expanding the monetary added estimation of all territories of business. This exploration presents the meaning of human capital, notwithstanding characterizing its relationship with knowledge, scholarly capital, and the interest in this issue over history just as its significance. What's more, the exploration paper handles methods for estimating it by distinguishing measurement troubles, necessities, and difficulties other than recognizing the most relevant models for such measurement.

Human Capital

Human capital is viewed as one of the significant ideas that are being the center of interest of numerous associations. Specialists in administration sciences have zeroed in on this idea through their investigations and examination works, as they give numerous definitions to characterize its importance. These definitions vary starting with one master then onto the next as far as deciphering human capital. A few specialists think about it as a piece of crafted by the association's business or area of industry, while others think of it as a bunch of segments identified with the human creatures. A few analysts accept that it grasps people's schooling, experience, and aptitudes while some contend that human capital is straightforwardly connected to work. A bunch of various methodologies identifying with the meaning of human capital will be clarified as below:

1. Human capital is viewed as an important part of the work of the organization’s business or domain of industry.

2. Human capital is a set of basic ingredients relevant to people.

3. Human capital is directly linked to work.

Kleinmann (2013) characterize human capital as the aggregate estimation of open knowledge of the organization, be that as it may, this definition didn't accentuate people's accessible knowledge. Notwithstanding, the definition finished up by the analysts Fernandez, et al., (3:2004) is extraordinary. They contend that the human capital is the collective or total knowledge possessed by the association and they are substantial in the brains of its workers. Then again, Weatherly (2003) recognizes the human capital expressing that it is a bunch of mentalities, encounters, knowledge, inventiveness, energy, and excitement that individuals attempt to put resources into their business.

The OECD (1999: 19) contends that human capital incorporates people's knowledge, abilities and limits exemplified in their financial action, and this definition is like Schultz, et al., (2002) who banter that human capital incorporates the knowledge, aptitudes and limits of laborers who put forth a valiant effort to give clients suitable arrangements. XU, et al., (2002) give a similar definition expressing that the human capital incorporates knowledge, ability and limits spoke to in by the staff of the Association. Different scientists characterize three fundamental segments of human capital, as Ratch, et al., (2005), bring up that human capital incorporates schooling, experience and ability controlled by the staff of the association, and this was in accordance with the meaning of Xuan Zou, Xinyue Ye & Guangwei Yin (2019) who accept that the idea of human capital involves individual’s instruction, experience and aptitude.

Some creator's connection human capital with work, as Charles (2016) who contend that human capital is all workforces and their knowledge, which comprise of abilities, aptitudes, and perspectives towards work, instinct, and inspiration. Paola Paoloni (2011) likewise add to the previously mentioned: Human capital is a bunch of encounters, knowledge, energies, eagerness, imagination, attributes, and characteristics put by representatives in their work.

As per Fitz-enz (2000: 171-179) call attention to that human capital of any association speaks to the ability, knowledge, aptitudes and limits controlled by people and put resources into creation cycles, and which can be estimated through preparing, advancement, and motivators' frameworks. Peter Dallimore (2010) accepts that the human capital is a mix of knowledge, schooling, legitimacy, and center abilities of people that are utilized to accomplish the targets, projects, and capacities allocated to them. Thus, the human capital of any association incorporates: schooling, knowledge, preparing, experience, skill, limits, energies, energy, imagination, and center capabilities of the association's accessible human assets. We dare say that all definitions center around these attributes identifying with laborers. Table 1 summarizes these definitions.

Table 1
Summary Of Definitions Of The Human Capital
Author Definition of Human Capital
Philip (2009)  Organization’s available aggregate value
Thomas (2008) Human capital is a gathering of mentalities, encounters, knowledge, energies, eagerness, innovativeness, and energy put by representatives in their work.
Basak Denizci (2006) Blend of knowledge controlled by the association and profoundly established in the psyches of people and identified with their financial exercises
Kenneth (2006) Human capital incorporates people's knowledge, aptitudes and abilities identified with their monetary exercises
Peter (2010) Human capital incorporates the knowledge, aptitudes, and limits of laborers who put forth a valiant effort to give clients fitting arrangements
Xu, et al., (2002) Human capital incorporates the knowledge, aptitudes and limits of the association's laborers
Paola Paoloni (2011)  Education, experience, and ethics possessed by key employees in the association
Greve, et al., (2006) Experience and aptitudes controlled by laborers in the association
Reinhardt, et al., (2001) All workforces and their knowledge, which comprises of capabilities, abilities, mentalities towards work, instinct and inspiration.
Charles (2016) Human capital is a bunch of encounters, knowledge, energies, energy, imagination, attributes, and characteristics put by representatives in their work.
Fitz-enz (2000) Human capital of any association speaks to the ability, knowledge, aptitudes, and limits controlled by people and put resources into creation cycles, and which can be estimated through preparing, advancement, and motivating forces' frameworks
Fernando Augusto Silva Marins (2017) Human capital is a blend of knowledge, schooling, legitimacy, and center abilities of people that are utilized to accomplish the targets, projects and capacities appointed to them.

There is a cozy connection among knowledge and human capital, as human capital is a combination of knowledge and aptitudes controlled by people working in any association. As needs be, the extravagance of the scholarly brain is described by its creation of the knowledge which is basic for the endurance and advancement of the association as explained by Sullivan et al., (1998: 6). The connection between human capital and knowledge can be resolved as follows:

1. Human capital is essential in adding up information.

2. capital has an imperative and key job to encourage the way toward dividing knowledge between the association's workers.

3. Human capital is a basic requirement for knowledge management success.

4. The availability of human capital facilitates knowledge management by developing the organization's strategies.

Knowledge, as characterized by Charles (2016) is a space of compelling convictions about connections between ideas identified with explicit regions, and furthermore incorporates realities, convictions, viewpoints, discernments, decisions, assumptions and techniques possessed by the staff of associations. Chou-Yu Tsai (2020) feels that knowledge can be deciphered from numerous regards. Financially, knowledge is the scholarly capital if it is changed into down to earth exercises that are completed inside the association, where it is viewed as an additional worth when contributed proper. From an authoritative point of view, knowledge is viewed as one of the association's assets, and in this manner, it mirrors the workers' abilities inside the association just as the association's capacity to get issues and act or take choice.

This is to state that it successfully achieves its errands in the workplace, and this implies making an interpretation of knowledge after insight into exercises and practices which empower the association to accomplish its upper hand. As contended by Lucier & Trosilier (1997). The specialists likewise contend that overseeing such knowledge is the obligation of chiefs and the exceptionally experienced and qualified workers who own human capital and do their most extreme for their association's endurance.

In this specific situation, the scientist Julie Cogin (2020) calls attention to that knowledge centers around the efficient psyche in its extensive idea which assurances changing knowledge starting with one brain then onto the next and changing data into knowledge through the improvement of the human capital.

Len Tiu Wright (2020) states that one of the most important requirements, components and tools of knowledge management is the availability of the essential human resources, upon which the success of knowledge management is based in achieving its objectives. Furthermore, the efficient and competent knowledge system as indicated by Survary (1999) is not sufficient to guarantee the company’s success unless it is invested properly. This is to say that the availability of the human capital leads to inevitable success in knowledge utilization.

The relationship between human capital and knowledge, as Hung-Che Wu (2020) argues, lies in the fact that knowledge shares human capital in managers' understanding of fundamental principles, values, and key strategies that include the development of the enterprise strategies and specialized knowledge management, in addition to working out to strengthen relations among the organization’s staff.

Human Capital and Intellectual Capital

There is a strong connection between scholarly capital and human capital, since the scholarly capital is a more extensive and more complete term and alludes to all knowledge sources possessed by the association and empower to keep up its position. Ralf Burbach (2019) characterizes scholarly capital as a bunch of thoughts, innovations, innovation, general knowledge, PC projects and software, plans, information aptitudes, cycles, inventiveness, and the organization applications. It is all knowledge that could be transformed into profit and gains.

Human capital is a combination of encounters, knowledge, energies, energy, innovativeness, and the characteristics put by the organization representatives in their business. The connection between them lies in the way that the scholarly capital arrangements with the association's knowledge, which is spoken to, in assets, projects and organizations of relations, notwithstanding the knowledge and capabilities of the representatives. It likewise centers around advancement, empowers confronting difficulties and danger making an in move, and looks to understand the upper hand through starting groundbreaking thoughts. Even though the human capital, as Manlio Del Giudice (2019) contend alluding to Yin (1997) is the solitary asset that can achieve the previously mentioned, in light of the fact that one of its most striking qualities is the variety of abilities. This requires people with grouped encounters and knowledge, exceptionally particular limits, which are the principle qualities and segments of the human capital.

Kaifeng Jiang (2018) as expressed by Manlio Del Giudice (2019) distinguished the scholarly capital demonstrating that it comprises of: human capital, underlying capital, and customers' capital. This is predictable with the meaning of the Canadian Joint Gathering as pioneers of knowledge and technique and the definition gave by Jenna Rodrigues (2018) who contends that the human capital involves: Human capital, customers' capital, and underlying capital. Additionally, this definition concurs with Allen (2017) who expresses that the idea of scholarly capital comprises of three classes of elusive assets, in particular:

• Human assets that speak to human capital.

• Organizational assets that incorporate clear knowledge, frameworks, strategies, and work methods.

• Social assets that identify with the association's associations with clients, providers, and partners, which alludes to what exactly is called alleged the social capital.

Taking into account that, the human capital is one part of the association's scholarly capital segments, so the essential connection between them is that the human capital is the most immediate methods for building up the scholarly capital in general, in its two measurements: the underlying capital and the (social) capital.

Significance of Human Capital

What recognizes the twenty-first century, as Martin (2021) contend is the rise of the influence of knowledge, how it is utilized in knowledge-based associations, and the significance of knowledge specialist's knowledge creators) in the development of abundance and force together. The need given to human capital in the knowledge economy will prompt a worldwide battle to pull in abilities. In this manner, governments and associations are giving a lot of significance to developing a knowledge base through zeroing in on instructive educational plans that build up and uphold inventiveness, in schools, or colleges, through preparing and improvement of human assets subsequent to joining their work. This will guarantee their energy and viability, and hold them to confront rivalry, and then again help imagination and advancement.

Many analysts in managerial sciences have focused on the significance of human capital and its huge job in accomplishing the associations' objectives. The significance of human capital to the association by and large can be summarized as follows:

1. It is a basic and novel asset that impacts performance.

2. It assists with producing new knowledge.

3. It is an asset which is hard for others to copy.

4. It assists with accomplishing the upper hand of the association.

5. It expands the effectiveness of resource usage and accomplishes higher efficiency and gives better client support.

6. It directly affects the capacity of businesspeople and scholars of novel plans to guarantee the monetary capital needed to begin new ventures.

The essentialness of human capital stems from three key necessities:

1. Making progress

2. Achieving competitive advantage

3. Staying updated with new knowledge

Interest in Human Capital

The interest in the human asset has experienced a few stages, as of recently when it is being treated as a capital that can be estimated and has a worth, for example, different assets of the association. These stages can be examined as follows:

a. The start of the industrial phase: Toward the start of the modern upheaval in Europe, when the development of huge machines and production lines began, the laborers were chosen based on specific aptitudes that they need to have to play out their undertakings properly.

b. The period of the development of work relationship: Since the rise of work affiliations, the disposition towards laborers has been improved, and the human asset is getting a huge situation in associations. What's more, with the rise of the school of logical administration, which was started by Frederick Taylor, the connection between the organization and the representatives has been coordinated based on suitable determination, enrollment and preparing of laborers. Accordingly, the subject of laborers' preparation and qualifying turned into the center of consideration of a few associations. This worry is likewise identified with the structure up of human relations' developments, which accept that the profitability of people is influenced by the size of consideration given to them to meet their various requirements.

c. The period of change from the modern unrest to the data upheaval: After the change from the mechanical upset to the data transformation, the advancement of human assets has been given more prominent consideration and imperative part in the worldwide economy. Furthermore, the interest in knowledge has gotten higher and more significant for the advancement and improvement of associations being an indispensable asset for any association if not the main asset. Human assets have been given a particular significance in the advanced age, just as the improvement of human assets for present day associations, as it helps independent companies, particularly the family business visionaries, to make progress.

The cycle of human assets advancement is a significant factor in upgrading the beneficial and serious limits of associations just as countries. Hence, pulling in, utilizing, holding, preparing, and persuading this asset has been given more prominent thought. As the focuses of influence and energy have changed from holding characteristic abundance to having knowledge and the ability to create, recharge and contribute this knowledge. Consequently, the overall bit of leeway of nations has transformed from the extravagance of regular assets to the wealth of the scholarly psyche and the knowledge created by human assets. In addition, business associations that looks to accomplish greatness, advancement, endurance and development, need to apply their endeavors to gain and create manageable knowledge and lead a course towards the improvement of human assets to assess their unmistakable and genuine status and afterward decide how to advance its position and accomplish wanted advancement.

Moreover, the development of associations isn't just controlled by their authentic monetary records, yet in addition by different factors, for example, the board abilities, innovativeness, and aggregated knowledge of the workforce. These immaterial assets give numerous advantages to business associations and comprise the premise of scholarly and human capitals of these associations.

Measuring Human Capital

The measurement of human commitments has been restricted for long an ideal opportunity to their use of monetary guidelines and working on bookkeeping rules, overlooking the human capital as an additional worth, and managing this asset as a cost part. Be that as it may, today, the monetary development models have been zeroing in on the significance of putting resources into human creatures by offering need to instruction and preparing of human assets (Areiqat et al., 2011). The new monetary models depend on the way that people make an incentive through their own endeavors, abilities, encounters and inside inspirations, and this prompted presenting new bookkeeping rules that emphasis on added financial estimation of human assets.

Today, the issue of estimating human capital is given more significance since associations need to know their human resource, for its centrality in completing their different exercises. What's more, recognizing associations' human capital causes them in building up their tentative arrangements. In this way, associations which try to accomplish change and achieve hierarchical improvement need to adjust their view towards measurement of human assets and to consider the human capital the most significant and fundamental asset (Areiqat et al., 2012). It is basic that associations create and change their bookkeeping frameworks, the strategy for ascertaining their equilibrium and assets and consider the noteworthiness of human asset.

Interest in preparing and training was at the highest point of markers that are applied for assessing human capital being a simple quantifiable asset, and this encourages the cycle to appraise the expense and returns of such speculation, since the people's abilities and knowledge speak to the human capital and putting resources into the human asset will positively build profitability. There are a few numerical models which measure speculation expenses and yields in human asset from the point of view of business organizations. As a matter of fact, any movement which intends to build the profitability of laborers can be considered as an interest in human capital (Areiqat et al., 2010).

The way toward estimating human assets is considering two methodologies (Areiqat & Naji, 2016):

1. Depends on estimating the expense of interest in these assets.

2. Measures the kept-up incomes of this speculation, mulling over that the human asset is a resource whose cost and returns can be effortlessly estimated. Interest in instruction and preparing is the key factor that impacts human asset performance levels, as it makes it simpler to appraise the expenses and advantages connected to interest in this asset.

The process of measuring human capital involves two basic stages:
1. The first stage depends on the suspicion that human capital is a financial asset that produces incomes which can be estimated in a substantial manner or analyzed in an elusive way.
2. The second stage depends on the thought that human capital is an expense spent on acquiring these assets. In this unique situation, the measurement of human capital will be tended to in this exploration by distinguishing the measurement issues, at that point deciding fundamental necessities, lastly talk about the main applied and accessible rules.

Measuring Obstacles and Problems

The area of human asset measurement is today a test for the associations' higher organization on account of the trouble in estimating this asset. Albeit this asset is huge for associations and for the local area as a rule, there are numerous troubles and difficulties confronting its measurement suitably, for its theoretical assets. There are two principle explanations for these troubles:

A. Conventional and regular measurement frameworks that measure material assets and are limited to straightforward markers on representatives, their capabilities, and the significance of interest in preparing. Measurements for immaterial assets are still at their start and should be created.

B. Obstacles that are related to the human capital:

1. Trouble in measuring innovation in the traditional learning process.

2. Trouble in measuring accumulated learning.

3. Trouble in measuring the richness of accumulated education.

4. Trouble in instant measuring of skills and capabilities.

Due to the enormous number of immaterial assets and the trouble in estimating them, the Office of Advisor Studies, Chou-Yu Tsai. (2020) recommended to gather these measurements in four significant gatherings called, model ABBA (Resource, Advantages, Benchmark, Activity). They mean assessment of knowledge as a resource, evaluation of knowledge advantage, making examinations and measurement of accomplished performance individually.

Concerning the explanations for troubles confronting the interaction of human asset measurement in associations, an investigation led by the Counseling and Think-tank ISR (2005) demonstrated that the issues confronting a few organizations in estimating their human assets are:

1. Lack of frameworks spent significant time in measurement and the absence of measurements mindfulness.

2. Lack of studies identified with measurements.

3. The need to examine contextual analysis and pragmatic measure to decide why human asset measurement is fundamental.

Most of today’s organizations experience the ill effects of troubles in estimating the profitability and performance of scholarly performance. An investigation directed by R. Ruggles containing American and European organizations on knowledge the executives, uncovered that the fundamental trouble confronting these organizations is identified with estimating the knowledge assets' worth and performance, including estimating the human capital. The trouble of estimating the profitability of scholarly performance has been distinguished by the trouble of customization, i.e., the failure to relate the performance of the organization in an immediate manner to the knowledge related with such performance.

When all is said in done, the issues confronting human capital measurement can be summarized in two significant issues:

1. Adopting another idea, as there is no agreement on explicit measures on one hand.

2. Then again, the bookkeeping pointers are yet unfit to quantify theoretical assets.

Requirements of Human Capital Measurement

Human capital measurement process requires specific necessities to ensure an effective measurement process. The Office of Specialist Studies, Julie Cogin. (2020) showed that there were some fundamental necessities that make human capital measurement simpler and endorsed by associations, including:

1. Developing more comprehension of the job of knowledge and the idea of human assets.

2. Creating a joint language of issues that are much of the time tended to in the association.

3. Identifying the most fitting and significant pointers to get knowledge.

4. Creating HR measurement models.

5. Using measurement systems that adopt the used managerial steps and procedures in the organizations.

Identifying with vital essentials required by associations to build up their measurement strategies, the Counseling and Research Company ISR (2005) ISR (2005) expressed that associations ought to:

1. Develop explicit measurement techniques.

2. Provide predictable surveys for the associations' staff to be dispersed among them occasionally.

3. Consider the undertaking of creating measurements as one of the fundamental chiefs' errands, just as chipping away at the advancement of schooling and ceaseless preparing.

4. Focus on human assets coming down as a particular goal in business methodologies.

5. Define the essential measurements of human assets and relate them to monetary measurements.

The International Union of Experts and Consultants (INTEC) distinguished a set of fundamental standards to gauge human capital, among them are the accompanying:

a) Consider people and data the main thrust of the knowledge economy: Today is the data time, when human creatures are the main assets, without which development can't be kept up in all areas of business. Subsequently, associations should robotize every one of their exercises to encourage their measurement.

b) Recognize that administration can't be successful without information: Considering the difficult business climate in the here and now which requires quick reaction to crisis circumstances, it is basic to set up a data set for the human capital.

c) Consider human capital information the key segment of each achievement: Since the obligation of dynamic is carried by human assets, at that point their practices are the reason for each action, regardless of whether positive and negative. To create something, one needs to realize how to deal with it relying upon data sets identifying with the expense, time, number, and nature of the human capital in any association.
d) Focus on the adequacy and legitimacy of human capital measures: These scales are being scrutinized due to their error, contrasted and monetary measures, and this is ascribed to the usage of specific scales whose unwavering quality and exactness are not so far checked. In like manner, stable measurements are to be set up and applied for quite a while.

e) Human capital is viewed as the main thrust of the additional worth: no worth can be added to the association without the contribution of human capital, on the grounds that the human assets' abilities, encounters, and knowledge and the level of their internal inspirations, make the additional worth. The executives give primary capital at the best expense, and the laborers resuscitate the underlying capital.

Human Capital Measurements

There is no agreement on applying explicit sizes of human capital, as it is the situation of monetary measures, so a few analysts in managerial sciences have attempted to set various scales or measures. Len Tiu Wright (2020) has ordered human assets scales into large scale measures and fractional measures. Halfway scales include:

1. Conventional human assets measures.

2. Scholarly human assets scales.

3. Proportions of proficient models.

4. Measures to change over models that are productive into cash.

5. Measures to ascertain the income accomplished by human assets.

Macro measures include:

1. Traditional administrative principles.

2. Scales for of the work force the executives rehearse.

3. Measurement to gather fiscal summaries.

4. Measures of people and assets' administration.

5. Measures of any adjustment in labor esteem.

6. Measures of outside difficulties confronting the association.

Some professionals consider and label the processes used to measure human resources into two stages:

1. The first stage, which is the most well-known and called the principal rank scales.

2. The second stage, the least regularly known as the second-position scales, Hung-Che Wu (2020) recorded these two stages as follows:

3. (Areiqat et al., 2011) First-position scales which include: inventiveness, work patterns, work cycle, interest in human assets, experience, schooling, skills, scholastic level, authority, and efficiency.

4. Second-position scales which comprise of: Advantages of workforce, functional life cycle, absolute of operational expenses, by and large worker returns, work opportunities, achievement elements, wellbeing and security, faculty connections, representative maintenance, and times of workers. Ralf Burbach (2019) expressed that estimating human capital includes estimating knowledge, expertise, and lead.
Manlio Del Giudice (2019) contended that the measurement of human capital of laborers in the associations is controlled by: Ascertaining the absolute levels of schooling, preparing and useful experience of laborers who join associations, where the all-out human capital saved by the workers to their association being the all out of (instruction+experience+preparing), and the estimation of human capital is determined by the accompanying condition. Gross human capital of an organization=(education+experience+training) for all people working in the association. These segments are assessed as follows:

1. It is assessed based on the quantity of long periods of instruction passed by people, as follows:

2. (9 degrees) for the overall optional school or beneath, since there are a few people who have a lower instruction capability than auxiliary school, so the degree (9) is given to this gathering.

3. (14 degrees) for the recognition, as the certificate holder has finished 14 scholastic years.

4. (17 certificates) for four-year certification or more, there are a few majors that require over four years at the college. There is likewise a not many numbers of holders of master's or doctorate certificates, so (17 degrees) was determined for this classification.

Moreover, gauges are given to various majors dependent on the level of relationship between the specialization and the idea of the company\'s business, as follows (Areiqat, 2009):

1) (5 degrees) for the specialization in Organization or its branches, as they are straightforwardly identified with the matter of the organization.

a) (3 degrees) for the major of designing, for the need of modern organizations for this specialization.

b) (Two degrees) for the specialization in law, due to the need of certain organizations to achieve its business tasks.

c) (One degree) for the specialization of schooling and writing, because the Organizations requirement for such majors in restricted. It is assessed dependent on absolute long stretches of work insight in the organization or outside since youth and (one degree) is allowed for every time of involvement.

2) (1 degree) is offered for each instructional class went to by the representative, since these courses and preparing workshops are held with the end goal of professional creating and are concentrated significant. In this manner, the workers' experience and knowledge in these courses is identical to one scholastic year or one year of reasonable experience.

Figure 1: Estimates Of Gross Human Capital For One Corporation


Human capital is a phrasing that centers around the all-out limits, mastery, knowledge, abilities, inventiveness, energy, and excitement claimed by people working in associations, since they have the limits, possibilities and encounters are the certified capital and generally persuasive. The connection between human capital and knowledge can be deciphered as twins' relationship, since one of them supplements the other. Human capital addresses the knowledge and abilities of people working in an association, and the extravagance of the scholarly psyche is described by the creation of knowledge which is fundamental for the endurance of the association and its turn of events. Such combination between human capital and knowledge is a help and a driver towards accomplishing the upper hand that persuades producing groundbreaking thoughts.

The paper featured the significance of human capital for associations as a basic and one-of-a-kind source that is hard to duplicate or imitate. It likewise shed light on the patterns of estimating human capital and its significance in developing the associations' propensity towards understanding their human assets. Moreover, the exploration paper zeroed in on distinguishing the measurement troubles at that point examining their prerequisites just as giving instances of measurement techniques applied by current business associations.


I would like to express my gratitude to Deanship of Scientific Research at King Saud University for their support through writing my paper.


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