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The Classification of Human Capital according to the Strategic Goals of Firms: An Analysis

Many companies nowadays derive their competitive advantages mainly from human capital. And it becomes critical for companies to select human capital that matches their strategic goals. Human capital must be identified, invested and maintained. This paper first defines and classifies company's human capital in line with a theoretical framework we provide; sort out company's human capital investments according to cost development stages in human resources. Finally, we argue that some human capital should be treated as investments instead of expenses in accounting records, and suggest ways for business to select human capital that meets their strategic target.

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