A closer examination of how human resource management systems impact social and human capital in organisations

Abstract

This research aims to develop an organisational-level theoretical model that links two ubiquitous kinds of HR systems with two different forms of social capital emergence in organisations, which consequently influence human capital. Our conceptual model shows that commitment HR systems that draw more on collaborative work and employee involvement facilitate generation of social capital as a public good (i.e., public social capital). Conversely, cost reduction HR systems with less reliance on employee collaboration and involvement facilitate generation of social capital as a private good (i.e., private social capital). In turn, these two forms of social capital differentially impact the level, distribution, and nature of human capital in organisations.