The paper 'HRM in the Knowledge Economy" is a great example of a human resources annotated bibliography. According to the author, human capital is defined as the skills, abilities, attitudes, qualities and competencies of an organization's employees and a system that can be used to manage employees of an organization as a resource that enhances its operations. Human-capital experts such as Human Resource professionals have a strategic communication responsibility to synthesize and interpret the net knowledge value of a firm’ s human capital. O’ Donnell explains that recent developments concerning intangible reporting and investments have increased the investor demand for intangible value-drivers in HC information.
The disclosure of intangible value-creation has increased and gained momentum. This analysis is inclusive of HC management, corporate governance and value creation and destruction during acquisitions and mergers. According to the author, the assessment of human capital enables investors to identify companies that have the capacity to outperform other companies. Drawing from past literature, he explains that applied capital social responsibility is related to high financial returns and provides a means of measuring management quality and management systems. O’ Donnell explains that though important, increased research on humans is not of greater importance than practices that are socially sustainable.
Such practices build the human skills and capability needed to sustain high-level company performance and enhance societal and community well-being. The Star Model is a research-based response that helps investors and executives in understanding how the future value of the organization can be created from the human capital at hand. This model supports the fact that different organizational strategies will call for different combinations of Human Resource practices and has a management-system focus as Human capital management systems are most likely to be the drivers of value-creation in most organizations the world over.