HUMAN CAPITAL MANAGEMENT IN THE 21ST CENTURY

Abstract

This academic paper aimed to present the concept of human capital management in the 21st century in which today’s organizations are driven by humans, creating human beings as the strengths of the organization, using human beings as the driving force of the organization to success. Managing an organization in the midst of changes in the 21st century is increasingly complex and challenging. Organizations must adopt the concept of human capital management, which is to bring together the knowledge, skills, abilities, expertise and experience of each person that has accumulated within them and can bring these together to create the organization potential. It is a new dimension that comes to change the concept of human resource management to extract human competence to create intellectual capital value. In human capital management, it must be consistent with the strategy, goals, vision or in line with the creation of competence, core competency and functional competency of staffs in the organization. It will help the organization to gain competitive advantages, known, reliable and internationally recognized. The approach to human capital development in the organization is that human capital development in the organization must be responsive to the organization's strategy and goals, retention of talented personnel with the organization, creating more value for human capital, maintaining human capital to stay with the organization as long as possible, and generating return on investment in human capital.