Human Capital Strategy

We all need to recognize the importance of people in building and developing a business. As well as any system that is created in a company, it will be determined by the people behind it.

Good leadership would be very concerned about human capital strategy in developing human resources. Human resource development strategy will be useful separately achieve the business strategy. In this case, the process of transformation in human capital made man as engine in the transformation process.

Based on the statements, it could be understood that the employee is no longer a cost but as human capital. The major role of every employee has provided many innovations that can provide added value to the company. This can be shown by the results from transformation of the human being is considered a cost. Continue reading

What is “Capital Asset Pricing Model” ?

In finance, Capital Asset Pricing Model has been commonly used as a term that determines the price of risky securities and evaluates the bond between the risk and expected return. An equation is being used by investors to specifically determine the time value and risk of money that corresponds to their compensation.

On the other hand, an investor is more likely to spend money hoping that the initial investment will gain profits. The Capital Asset Pricing Model (CAPM) will now be responsible in determining these profits. Continue reading

What is Capital Budgeting? Key Principles in Capital Bugdeting

Capital Budgeting is relatively known as an investment appraisal, a significant process in planning that is used in order to determine if the investment made by an organization is worth pursuing.

These investments may include replacement machinery, new products, new plants, new machinery and development projects. Capital budgeting simply includes a budget for expenditure, major capital and investment. Continue reading