Indicators Affecting the Assessment of Human Capital

Human resource is the only investment that can improve itself, and at the same time, change or stabilize other production investments, provide a basis for initiation, and result in an economical growth.This research is intended to identify and classify the factors and indicators which affect the assessment of human capital. Important factors and indicators related to assessment of human capital, the effect of each one on the assessment of human capital, and classification of the factors and indicators are all presented in this paper. Identifying the factors and indicators drawn from research literature, the factors affecting human capital were determined by factor analysis. Then, considering the identified factors as well as the twenty indicators, structural equation method was applied to measure the amount of effects of them on assessment of human capital. The findings indicated that the importance and effectiveness of the indicators could be classifies in the following order: the leadership capability and knowledge of the managers, competency of the employees, the employee's capabilities, and professional knowledge of the employees.