Pre-record Interview Case Study 2022

Running Head: HUMAN CAPITAL A ASSET 0
Pre-
recorded
interview
Student Name

Case Study 2
TV Reporter: It is our pleasure to get an interview from such an esteemed personality. Welcome
to our night show, sir.
Student: Thank for inviting me.
TV Reporter: We have read your remarkable article about Human capital in a local newspaper
“Creative Times”. Andwe would like to ask afew questions regarding the same and enriching the
audience from your knowledge.
Student:Yes, sure please ask.
TV Reporter: In your article, you have placed emphasized on recognizing human capital as an
asset. But before going ahead we want you to explain to our audience what do you mean when
you talk about the word asset?
Student:In simple terms, asset means anything that has value and capacity to create value. For
example, your house is your asset it contains a value. Moreover, if take it as a corporate example
then let say machinery. It has value too and using such a machine a manufacturer creates
products and gets value in return too. Assets, however,can be divided into two parts, which are
current assets and non-current assets. Current assets are for the short term that is the consumption
of whom shall do in a period of one year. Non-current assets are further divided into two parts.
One is tangible assets and another is intangible assets. The first one means the tangible assets,
whichcan be seen or touched which are for a long term and which also; depreciate with time like
equipment, machinery or building. The latter on the other hand means the assets, whichcannot be
seen or touched which are also for long-term purpose and this is where human capital falls
(Bragg 2019).

TV Reporter:Thank you very much, for giving such an easy explanation for this complex term.
Moving on to the next question, since now we have understood the meaning of asset, everyone
would now like to know your opinion, should human capital be recognized as an asset?
Student:Well, if I ignore the contradicting points then definitely I support treating it as an asset.
Human capital is nothing but the knowledge, expertise, skills, and talents of the individuals
whichare one embodied with. These capital are then used by the organization to increase their
profit and hence which is reflected in the balance sheet. In the current knowledge-based
economy humans are the only ones who do the creative and innovative process in the
organization and adds value in the organization (Hossain, Islam & Bhuiyan 2015). Employee
competencies, valuable aspects such as know-how, education, work-related knowledge, and
experience are said to be human capital. Besides, it is also influenced by such dynamics as
average age and turnover (Sollosy, McInerney & Braun 2016). The environment is dynamic,
continuous efforts are put to align an organization’s goal with the environment which can be
done by keeping work force updated. It is the knowledge, experience, and efforts of the
employees which allows an organization to function in an ever-changing environment which
helps them to achieve not only organization’s goal of value creation but also to edge over
competitions.All knowledge-based companies like APPLE, MICROSOFT, and others,
understand the need and value of the human resource. Steve Jobs the ex CEO of APPLEis still
considered as one of the best employees of that company, it was his personal attributes that took
the company to the next level. Financial statements are called performance evaluators but it just
shows the material aspect leaving out the nonmaterial but very vital and sensitive information
that is the main value creation drivers ‘the employees’ of the organization.
TV Reporter: In your knowledge,is there any other perspective that contradicts your views?