Human Capital for Institutional Sustainability: Transformation of Ancient Concepts in Modern Management for Fostering Efficiency

Ram Chandra Rupakheti

Key words: Human Capital, Bhagwat Gita, karma Yoga

1. Introduction

Human capital is the ability of the human beings inherent within themselves in the form of knowledge, abilities, skills, education, training, experience, judgment, wisdom, and creativity. Since human civilization, the management of human resources has been in existence. There are four factors of production: land, labor, capital, and entrepreneur. One of the major factors of production is labor which is termed as human capita here. All other resources are only passive instruments. Only the active human resource or capital activates these resources. All institutions are established and developed by human capital.

2. Ancient Human Capital Concept

Before the war of ‘Mahabharata’, Duryodhana choose Lord Krishna’s large army (Krishna Sena) for his help during the war, while Arjuna chosen the Lord of Wisdom (Krishna) for his support. Resources are limited and select wisely and utilize limited resources optimally (Mukherjee, 2017). Wisdom, knowledge, righteousness, and karma were the means of human assets. From ancient times, human capital plays play a vital role in the effective management of the organization. In the Mahabharat epic, Lord Krishna was the key human resource manager who strategically uses such human resources for the development and formation of a new empire. The strategic role of human capital was brilliantly glorified in the great Indian epic Mahabharata in which the Pandavas preferred Lord Krishna as a single person to all his army and the final victory was on Pandava’s side. Likewise, during the Maurya empire, the Kautilya used his human capital to build the Maurya empire by using his policies. During the Maurya empire, Kautilya’s economic policy was the main tool of economic prosperity.

3. Modern Human Capital Concept

The theory of human capital should reflect different approaches to the consideration of a man in all the coherent multitude of its properties and qualities. On the other hand, an unduly broad interpretation of the human capital leads to insufficient attention of the scientists to the economic content of this notion and phenomena of the economic life (Vyacheslav et. al., 2016). The transformation of human beings into Human capital is very simple in modern human capital concept since the modern period started during 15th century. It begins from the family and individuals. They afford school fess, material and equipment, other cost for their education. The government makes the capital expenditure for education, facilities, training. Internship, training, opportunities for exposure are the key to human development. The entities, private or public, NGOs, and INGOs provide training for skill development. However, the formation of the human capital process consists of trust, culture, operation, reputation. According to G.M. Meier, Human capital formation is the process of acquiring and increasing the number of persons who have the skill, education, and experience which are essential for the economic and political development of a country.

4. Importance of Human Capital Development

Human Capital Management is defined as a set of practices for human resource management, to achieve organizational competency for workforce acquisition, management, and optimization. Resources like buildings, machines, policies, rules, regulations, etc of any organization are only passive factors by their very nature in not only in day-to-day activities but also in the development of the organization. The only factor that is active by their nature is the human resource. It is only this active resource that turns all other passive resources into active resources to carry out the basic functions of an organization. The role of the human factor has gained importance only very recently and hence is aptly renamed as human capital. Investment in human capital benefits individual workers as well as the economy in which they participate, creating greater earning potential and an increased ability to build wealth. This is particularly true of education.

5. Concept of Bhagawat Gita

‘Bhagavad Gita’ is one of the essential Indian ancient scriptures like Vedas, Puranas, and Upanishads. It guides us by showing various spiritual paths through which we can gain self-knowledge as well as inner-peace (Mukherjee, 2017). The literal meaning of yoga is to unite. The word ‘Yoga’ is derived from the Sanskrit root ‘Yuj’, meaning ‘to join’ or ‘to yoke’ or ‘to unite’. The Bhagavad-Gita consists of 18 chapters. Each chapter is called yoga. It is the science of consciousness. The one to the sixth chapter has been classified as Karma Yoga. Middle six chapters are classified as Bhakti Yoga. The remaining six chapters are classified under gyana yoga. The cardinal principles of the right to work, yoga is a skill in action and the concept of sacrifice amply demonstrate that the fundamental requirements of good management are contained in the Gita (Mahadev, 2008). It means the human resources have the right to work that is an authority that should be given to perform certain tasks. The next one is no control over the outcome. The sacrifice of the fruit is essential for karma yoga.

6. Dimensions of Karma Yoga for Human Capital

There are five dimensions of karma yoga as per the Bhagwat Gita. First of all, each individual has to continue on focusing the process without considering its results. No one should be focused on the expected results of their activities. Second, the second dimension is a responsibility towards society and others. Each individual with their works, powers, money, authorities, and know-how have to perform their duties for the other without and selfishness. Accountability was the main tool of this Karma Yoga. Third, all human beings should not be panic in every situation. They should perform their duties calmly with a high level of patience. They should not be frustrated everywhere and anytime. Fourth, the clear and finishing works should be performed with due care and cautions. The action should be meaningful. The last one is the work which is an offering to a higher Self. The Higher Self is generally regarded as a form of being only to be recognized in a union with a divine source. They are associated with multiple belief systems.

7. Way of transformation of Karma Yoga into Human Capital

Organizations need to focus on the up-gradation of their employees through effective training and development (Mukherjee, 2017). Concepts of Karma Yoga and transformational leadership are highly correlated and have great promise for organizational development (Satpathy, 2008). Work or duty is a sacred responsibility that surpasses our immediate materialistic wants and helps in fulfilling the larger goals of life that are liberation (Mukti). Karma-yoga which has been mentioned in Bhagavad Gita, stresses how one should perform one’s duty without any desire for the result and how one should maintain a sense of equanimity in the face of crisis or ecstasy. Although it would be insensible to deploy the lessons of karma-yoga in today’s business setting without adjusting it to the needs of the present generation.

8. Enhancing the Efficiency Level of Human Capital

Encourage employees to participate in training, seminars, conferences, or any other initiatives which would help them acquire new learnings. Human resource professionals or team managers need to convince employees as to how various training programs would help them develop their skills and benefit them in the long run. Achieving this environment is not as easy as it sounds, but this investment in employees can harness the full value of the workforce, promoting loyalty and retention. Developing employees’ self-worth can promote attachment, loyalty, and enthusiasm. It should also make the majority of employees keen to structure their learning and development so that it meets organizational needs. Staff at the beginning of the entry time, they are highly motivated, they have extra energy, tannings are given for the skill development. They produce a high level of outcome. At a certain time, they may get de-motivated, depressed, and frustrated for many reasons like Arjuna syndrome. The teaching of Bhagwat Gita can simply transform them into fresh, motivated, and fostering the efficiency level. The Bhagwat Gita was delivered by Sri Krishana to boost Arjuna’s declining morale, motivation, confidence and increase his (Arjuna’s ) effectiveness. The lesson from the Bhagawat Gita will be a permanent solution for the motivation and fostering the efficiency level of staff which leads to organizational sustainability. It is because only the financial and non-financial means of motivating factors can not be a permanent solution. For example, highly-paid staff may get frustrated even in the most comfortable situation for their esteem needs. Bhagawat Gita gives everyone a straightforward simple answer to what should be the motivation to work.

9. Conclusion

Human capital has focused on the need of the organization. Right people in right place is the old philosophy which is more relevant in the present world. Too much of result orientation breeds a sense of fear and discomfort as several of us are wary of failures. Moreover, a desire to have control of the fruits of action will invariably force us to focus on ends instead of means. Because of this, process orientation will give ways for result orientation. Getting results somehow will dominate an individual’s behavior (Mahadev, 2008). Transformational leadership characteristics that emanate exclusively from the personal qualities of the leader have a very strong positive relationship with Karma-Yoga. Managers practicing Karma-Yoga can very easily practice Transformational Leadership and vice-versa and they have a great promise for organizational development (Satpathy, 2008). The key aspects of modern human capital management are talent acquisition, talent management, and talent organization. The talent human resource, talent management, and organization may get frustrated at any time.   Therefore, in such a situation the ancient human capital maintenance philosophy should be allied for retaining and enhancing the efficiency level of human resources. The teaching of karma yoga plays a vital role to foster the further utilization of human capacity and development. If we carefully study the Gita, we infer that the central issue is all about doing work (karma yoga), most efficiently.

References

Mahadevan, B. (2008). Management Lesson-from the Bhagavad Gita. The Vedanta Kesari,          December.

Mukherjee, S. (2017). Bhagavad Gita: The Key Source of Modern Management. Asian J. Management; 8(1), January-March.

Perepelkin, V., A., Perepelkina, E., V., and Morozova, E., S. (2016). Evolution of the        Concept of             “Human Capital” in Economic Science”. International Journal of     Environmental &         Science Education, 11(15), 7649-7658.

Satpathy, (2008). Transformational Management and Karma-Yoga Linkage. Sri Lankan    Journal of Human Resource Management, 2(1).