Critical views on human capital development
Much of the literature on human capital development has focused on reporting the
voice of management or managerial views. This has been particularly prevalent in the
management consulting field, where management fads are largely created, labeled, and
embraced (Abrahamson, 1996). As noted by Gibson and Tesone (2001, p. 123): “one
author refers to those who initiate fads as fashion setters, and [those who] identify
them as consultants”. While the debate around human capital concepts seems to be a
main focus in the literature, there is no explicit theoretical framework or empirical
evidence on the link (or lack thereof) between the intentions of management and the
practical implementation of human capital development in an international
organization. This paper is intended to help fill the deficiency in the literature by
providing empirical evidence, and by identifying as well as attempting to bridge the
gap between the rhetoric and reality of developing human capital. In doing so, it is a
response to Nordhaug’s (1993) calls for an empirical investigation of the degree to
which an organization embraces the concept of human capital development and,
potentially, puts it into practice. Also, it attempts to extend traditional research into
human capital – with an emphasis on linking human capital measurement with
organizational outcomes (Fitz-enz, 2000; Friedman et al., 1998) – by drawing intention
to how human capital is developed in an international firm.