The purpose of this Discussion Paper is to:
Provide an overview of the current issues and challenges that FOREX BROKER XYZ is facing regarding management of human capital.
Propose some possible options for reform
Seek further input from managers about the specific options for reform. In particular, to hear their views on the subject and achieve concise conclusions that will help the organization solve the potential issues and challenges ahead.
The intention is to use the views and ideas collected through consultation on this Discussion Paper to:
Further develop the detail of reform options which have been propose.
Make sure that all the ideas and reforms proposed are applied.
The Discussion Paper has been structured in line with the main areas of reform identified by the managers, namely:
The new requirements for employees working in the FOREX industry and how to successfully implement these changes taking in consideration the impact this will have in the organization.
The assessment and management on the new challenges ahead
The current financial crisis and how this will affect our business.
In relation to each area of reform, the Discussion Paper describes:
The current situation - given the complex nature of the current system for the environment of the FOREX Market and our company.
The objective to be achieved through reform proposed.
The possible options for reform
The key Issues and Challenges facing the management of human capital globally
Human capital is the valuable asset of competence, knowledge and information within people, which can be directly transformed into economic value for the company under the right management. For globalisation, human capital builds the foundation. To manage companies that are globally active, managers need to understand cultural diversity and build an integrative system where the company is adapting their work processes to certain needs in culturally different workforces.
Human capital can be shaped and increased through education and experience. Not only organisations profit from human capital, but also for cities and regions it is of vital importance for the increase of innovation and knowledge and regional development. One challenge countries have to face is the loss of competent and trained persons in whom they invested to another country who benefits now from them without any further investment. Unemployment may come up as a result of a discrepancy between job-specific human capital and the needs of employers. High global unemployment not only cause financial loss to nations, but also constitutes a lack of human capital which would be necessary to fill the needs of globalisation. From a long-term point of view, this gap can only be filled by giving the appropriate education to children early in their development, an ultimate long-term investment in human capital, a challenge that still needs to be faced in many countries (1). Especially labour- surplus countries, which relates mainly to developing countries or countries with high birth rates, have a highly abundant human resource which can be transformed into human capital by private and public investment in education and healthcare. Input of financial capital into human development will directly lead into economic development and improvement of the nation which can be measured with the nations Human Development Index (HDI) (2,3).
Similar positive correlations between human capital and economic growth can be seen in companies who invest in their human capital and outperform over others who show a lack in that area (4). Studies show that financial outperformance is also seen in companies with increased female leadership. There is a high potential of human capital which still needs to be unlocked as only 15% of leading positions are held by women (1). Human capital is not owned by a company that employs as the individual takes all with him when leaving the company. However,…