Abstract
In recent years, Human Capital Management has been rapidly gaining popularity among Japanese companies. However, the relationship between human capital theory, which is considered its theoretical foundation, and Human Capital Management as practiced in Japan has not been sufficiently examined. In this study, we conducted a literature review focusing on key works of human capital theory and the Ito Report and Human Capital Management Report series published by the Ministry of Economy, Trade and Industry (METI). The analysis reveals that human capital theory, which originally focused on education investment and capability formation, was reinterpreted within the context of Japanese management policy and transformed into a framework of management resource allocation aimed at enhancing corporate value. This paper organizes the process of this conceptual transformation and examines the formation process of the concept of Human Capital Management in Japan.
