Full Length Research Paper

Determining Principle Components of Human Capital Management using Principle Component Analysis: The Case of Foolad Technic International Engineering Company

Farzad Movahedi1, Mohammad Mehdi Tavakoli1*, Naser Ghasemi1, Negin Berjis2

Abstract

Different surveys have indicated the necessity of paying heed to Human Capital Management (HCM) and considered it as a competitive advantage for the organization and implied that one of the procedures to gain competitive advantage for the organization is to pay proper attention to human capital. On the same basis, this study aims to specify principle components of HCM. For this purpose, Foolad Technic International Engineering Companyhas been selected as the research’s case and initially the level of HCM has been evaluated through using Bassi and McMurrer questionnaires. Then, applying One Sample T-test each of human capital management indices level has been checked.In the next step, principle components of human capital management has been designated utilizing Principle Components Analysis method and significant indicators in the formation of HCM principle components have been determined. The results of this study indicate that among all HMC measurements, knowledge accessibility has the highest level. Furthermore, parameters of workforce optimization and employees engagement have the most impact to signify the principle component of HCM.

Key words: Human Capital Management, principle components analysis, Leadership Practices, Employees Engagement, Knowledge Accessibility, Workforce Optimization and Learning Capacity

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