Management of Human Capital and its Impact on Firm Performance

Nowadays human resources are getting wider attention in order to accelerate economic growth, mainly after, the economic practice of developed countries proved that they possess direct impact on firm’s potential to achieve its strategic, operational, and financial goals. However, investments spent upon employee’s skills, expertise, and competences, still recognized as an expense instead of capital in traditional method of accounting, but why is that? And how this trend can be changed?