Premium Essay

New Economy

In: Business and Management

Submitted By Monsay
Words 579
Pages 3
New Economy

Grantham University

September 15, 2013

New economy can be meaning of many way. It can be defines knowledge based economy, globalize economy, digital economy. When economy need knowledge more than other tangible assets, the human resources are become the vital resource and assumed as an asset to an organization. Knowledge workers or called human capital have different characteristics contrast to non-knowledge workers. To be competitive advantage in present marketplace, human capital should be treat as a capital to an organization and must be managed significantly and neatly. Human Resource Department becomes an important part to deal with a lot of challenges in managing human capital in new economy.

In this 21st century, the global economy was shift to new economy or be known as knowledge – based economy (k-economy) There is no longer agricultural and industrial economy but we are now entering to knowledge society which is work is linked to knowledge and learning. The rise of the new economy, the knowledge component of products and services has increased dramatically in importance and has become the dominant component of customer value. Due to tacit knowledge as in human brain, thus, human capital needs to be managing considerably. Human resources are not a mere cost factor.

In new economy, Human Resource Management (HRM) has a very prominent challenging role that is more efficient and can quickly turn the strategy into action, manages all process more efficiently, as well as maximizing the commitment to create the challenging changes that has come forth. HRM should also become a partner in strategy executions by impelling and guiding serious discussions of how the company should be organized to carry out its strategy (Gloet, 2000).

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