Learn in the textbookManagement Philosophy and Purpose
DefinitionHuman Capital Management (人的資本経営) is a way of running a company that treats people as capital that creates value, and draws out that value to raise corporate value over the medium to long term.
ExplanationIt treats spending on training, placement and the working environment as an investment that creates future value. What sets it apart is that management strategy and HR strategy are considered together.
AnalogyLike an orchard that puts effort into the soil and young trees rather than this season's yield, so the harvest grows in a few years.
Memory hookThe Japanese wording moves from the 費 (expense) in 人件費, personnel costs, to the 本 (principal) in 人的資本, human capital. People stop being seen as something spent and gone and become capital to build up.