<div><span style="font-size: 1rem;">Organizations are shifting their perspective away from seeing people as a cost of doing business and toward seeing them as human capital instead because this perspective gives them a better chance of standing out from the competition and gaining an edge in a cutthroat market. </span><br></div><div><br></div><div>High-quality individuals or workers offer value to the company. By study after study it’s found that the organization's ability to create value is largely dependent on its ability to manage its human capital, which includes hiring, deploying, and keeping employees in good positions. </div><div><br></div><div>Human capital is basically a way that is attached to education, training, and other professional initiatives to enhance the levels of knowledge, skill, abilities and social assets of an employee. </div><div><br></div><div>The constantly changing business environment requires firms to strive for superior competitive advantages via dynamic business plans which incorporate creativity and innovativeness. It is basically significant for long term sustainability. </div><div><br></div><div>Human capital is defined in the Oxford English Dictionary as “the skills the labor force possesses and is regarded as a resource or asset.” Companies must effectively use their personnel as a tool for competitive advantage in order to differentiate themselves in the market. To increase value for the business, organization must develop a plan with a key focus on labor productivity. </div><div><br></div><div>There are some ways developing human capital to improve organizational effectiveness. Firstly Organization must understand Elements of Human Capital such as Skills, Qualifications, and Education, Work Experience, Communication Skills, Habits and Personality Traits, Individual Fame and Brand Image, Competitive advantage. </div><div><br></div><div>Secondly organization have to understand its Functions of human capital management some of them are Job design and analysis, Employee hiring and selection, Employee training & development, Compensation and Benefits, Employee performance management, Employee engagement and communication, Succession Planning, Employee retention, Effective performance appraisal and feedback then organization have to go for development of human capital through Invest in current employees, Utilize technology, Aligning human resource development with corporate objectives, Talent Pools development, Training and Development. By this Human Capital Development keep Impact on Organizational Goal or Performance, through Value Creation Benefits from Human Capital, competitive advantage, enhanced organic growth, impact on finances, and increased success in achieving goals. </div><div><br></div><div>After interviewing some organizations top level professional who are directly involved this activity, it’s found that all of them are looking for developing human capital to improve organizational effectiveness through different way like constantly placing a strong emphasis on hiring human resources and looks for KSAOs—key success factors—that will enable them to accomplish his objectives now and in future. </div><div><br></div><div>So the development of human capital must be a priority for the organization, and this intangible asset must be looked after. Businesses must keep in mind that if they invest in their employees' growth and care for them, they will in turn take care of their clients and increase revenue and for this importance of developing human capital very much important to improve organizational effectiveness.</div><div><br></div><div>bnbd24/fas</div>