Question

The field of HRM was founded on the idea that the competitive advantage of the organization relies on the following source of capital:

• A. Cultural, human and system capital
• B. Social, cultural and human capital
• C. cultural, source capital and system capital
• D. Cultural, human and source capital

Answer 1

The correct option is B Social, cultural and human capital

Human resource management is the evaluation of the organization's human resources, performance, needs, grievances, etc. It aims at the overall development of the employees so that they contribute more to the company's growth and help it compete with the outside market. It relies on the idea of social, cultural, and human capital. Social capital is the customer's satisfaction and loyalty toward the organization which helps it win over the competitors. Cultural capital is the unique method followed by the organization or the unique ideas which provide it an edge over its competitors. Human capital increases the income of individuals by enhancing their technical skills and generating more job opportunities.

Hence, option (B) is the correct answer.