Proceedings of the 3rd European Conference on Intellectual Capital

The Influence <strong>of</strong> Human Capital in Achieving Corporate
Performance
Anca Mândruleanu
Academy <strong>of</strong> Economic Studies, Bucharest, Romania
anca.mandruleanu@fabiz.ase.ro
Abstract: It is hardly surprising that linking corporate performance to Intellectual Capital can help increase
employees’ productivity, attain superior reliability, build organizational commitment to quality, create leaders, set
goals, create incentives and achieve superior innovation. The organizational management is responsible for
transforming <strong>the</strong> influence <strong>of</strong> Human Capital, one main component <strong>of</strong> <strong>the</strong> Intellectual Capital, in an increase <strong>of</strong>
<strong>the</strong> corporate performance. This paper analysis <strong>the</strong> perception <strong>of</strong> some Romanian stakeholders regarding <strong>the</strong>
influence <strong>of</strong> Human Capital over <strong>the</strong> corporate performance. All <strong>the</strong> stakeholders are in an exchange relationship
with <strong>the</strong> company, <strong>the</strong>y supply <strong>the</strong> organization with important resources and, in exchange, each expects its
interests to be satisfied. In <strong>the</strong>ory, an efficient firm succeeds in achieving both <strong>the</strong> stakeholders’ expectations and
an increased corporate performance. This article will disseminate <strong>the</strong> results obtained from a research
concerning <strong>the</strong> Romanian business environment, more precisely <strong>the</strong> role <strong>of</strong> <strong>the</strong> stakeholders over <strong>the</strong> corporate
performance. A company cannot always satisfy <strong>the</strong> claims and <strong>the</strong> expectations <strong>of</strong> all stakeholders. The goals <strong>of</strong>
different groups may conflict and, in practice, few companies have <strong>the</strong> financial resources to manage all <strong>the</strong>
stakeholders. Often companies must choose. To do so, companies must identify <strong>the</strong> most important
stakeholders’ influence and give <strong>the</strong> highest priority to pursuing strategies that satisfy <strong>the</strong>ir needs. Stakeholders’
impact analysis can enable a company to identify <strong>the</strong> stakeholders most critical to its financial growth. Typically,
<strong>the</strong> analysis follows <strong>the</strong>se steps: identify <strong>the</strong> stakeholders, identify <strong>the</strong>ir interests and concerns, analyze <strong>the</strong>
claims stakeholders are likely to make on <strong>the</strong> organization, identify <strong>the</strong> stakeholders who are <strong>the</strong> most important
from <strong>the</strong> company’s perspective, identify <strong>the</strong> resulting strategic challenges.
Keywords: corporate performance, management’s perception, Romanian business environment, stakeholders
1. Introduction
Multibusiness companies consists <strong>of</strong> businesses, many <strong>of</strong> which could exist independently and a
corporative hierarchy <strong>of</strong> managers, functions and staff. It is <strong>the</strong> company’s hierarchy, that we refer to
as <strong>the</strong> Human Capital, which is responsible for making corporate strategy decisions. It is <strong>the</strong>
stakeholder who decides what new business to support, what acquisitions to make and whe<strong>the</strong>r to
form joint ventures or alliances. It determines <strong>the</strong> structure <strong>of</strong> <strong>the</strong> corporation, defines budgeting and
capital expenditures processes and sets <strong>the</strong> tone for corporative values and attitudes. The Human
Capital <strong>of</strong> a company has <strong>the</strong> potential to both create and destroy significant amounts <strong>of</strong> value: it can
ensure <strong>the</strong> increase or decrease <strong>of</strong> <strong>the</strong> corporate growth and renewal, identify or miss development
opportunities, expand or isolate <strong>the</strong> business.
The issue <strong>of</strong> determining a valid role for <strong>the</strong> Human Capital in <strong>the</strong> organization is now on <strong>the</strong> agenda
<strong>of</strong> many companies. It has become a topic <strong>of</strong> central importance for managers who are eager to
improve <strong>the</strong> corporate performance. It is a matter <strong>of</strong> increasing debate among stakeholders, who are
no longer prepared to remain passive. If performance is unsatisfactory, corrective steps are now being
taken more rapidly.
The paper presents <strong>the</strong> perception <strong>of</strong> <strong>the</strong> Romanian stakeholders concerning <strong>the</strong>ir influence over <strong>the</strong>
corporate performance. They represent <strong>the</strong> Human Capital, one <strong>of</strong> <strong>the</strong> three components <strong>of</strong> <strong>the</strong>
Intellectual Capital, and it is very interesting to see <strong>the</strong> bound and <strong>the</strong> connections between <strong>the</strong>
Human Capital and <strong>the</strong> corporate performance in <strong>the</strong> Romanian business environment.
2. Corporate performance
The primary wealth creation takes place at <strong>the</strong> business level and all <strong>the</strong> internal stakeholders must
work toge<strong>the</strong>r to create value. The first test is <strong>the</strong>refore whe<strong>the</strong>r <strong>the</strong>y create any value in <strong>the</strong> business.
Successful stakeholders create significant value. Managers do so by realizing specific performance
improvement opportunities that exist in <strong>the</strong> business, for example: apply tighter controls, facilitate <strong>the</strong>
sharing <strong>of</strong> complex know-how, streng<strong>the</strong>n <strong>the</strong> organizational culture, involve <strong>the</strong> employees in <strong>the</strong>
procedures <strong>of</strong> obtaining <strong>the</strong> final organizational goals and create awareness about this, encourage
innovation and so on. Not only large companies, but now also small and mid-sized ones must grow
internationally in order to gain market shares. This has become necessary because markets in <strong>the</strong>
industrial countries are highly saturated. Often, market growth is only possible abroad. Development
216