We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Are the Different Types of Human Capital Systems?

By A. Lyke
Updated Feb 08, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

The term “human capital” refers to the valuable employees that make up a workforce. The different types of human capital systems include administration, manual labor, human resources and accounting personnel. Human capital systems might also refer to an organization’s specific system of human resource management applied to technology that is designed to cut costs. Generally, human capital systems integrate the various functions of each type of employee while maximizing the value of the employees’ skill sets.

The management of human capital is similar to human resource management, except that the human capital management is geared toward economic value and getting more value for the money spent on an employee. The emphasis might be on recruiting or training an employee with the exact skill set needed for his or her job. More skills than necessary might be wasteful for both the employee and the company, and fewer skills than necessary might be insufficient.

Human capital systems help to manage and control employees through predetermined processes. Employee handbooks, worker education and training might all factor into the human capital management. Managers create the systems by studying the production factors of each type of labor and discovering the most cost-effective ways of performing the job.

Software that is used in human capital systems replaces some of the functions of human resource management. Some systems are databases of human resource information, such as benefit plans, employee orientation and codes of conduct. Sophisticated systems keep tabs on worker productivity, allowing managers to look over workforce data and determine where the company can save time and money.

An executive, department head or project manager might oversee job-specific or division-specific human capital systems. These systems might be geared toward individual employee motivation and value driven goal setting. Employee evaluations from supervisors tend to emphasize productivity and economic goals. The company will hire new employees only when the human resources department or the specific department head determines that productivity would increase with the new hire.

For example, administration capital systems tend to focus on the short-range performance objectives of the administrative personnel and some of the longer-term goals of the executives and upper-level managers. Administration duties might include customer service, office management, secretarial work and data entry. A human capital system for administration would focus on training administrative employees to multitask, maximizing the organizational skill set.

Factory or manual labor employees are another example of a type of human capital system. Systems for these types of employees put priority on per-hour unit production and team efficiency. Accident prevention also is a concern for many types of manual labor.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Discussion Comments

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.