Towards the Practice of Human Capital Management: Proposing a New Employment System by Expanding the Value Co-Creation Concept

Abstract

Behind the promotion of human capital management is the demand for companies to reform their existing sustainable management pattern in line with the rapid shift to a service economy. The core of this corporate transformation is to view employees as “capital” rather than “assets” or, more precisely, to shift to using human resources that respects employee autonomy rather than corporate convenience. The purpose of this paper is to present a conceptual framework that promotes change based on the essence of human capital management. The concept of the framework is based on value co-creation of the Nordic school, which recognizes the importance of human capital in service management, but it is applied by correcting its inadequacies. In other words, we will expand the concept of human capital to include employees and customers as “natural persons” and companies as “legal persons” and create a new foundation for corporate value creation through a tripartite system by focusing on these organic functions. In addition to demonstrating this, we also propose a concrete concept for reforming the existing employment system.