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Quality of Work Life as an Instrument of Human Capital Management

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In this article, on the ground of consideration of a human as special resource for economic activity of an enterprise, the author draws a conclusion about the necessity of work on human capital increase in the direction of the growth of its amount alongside with the lowest time consumption and material expenses.  This fact has required studying peculiarities of human capital formation and involvement during the entire life cycle of human being.  The author suggests pointing out the stages of human capital formation (when it is being trained), development (during its involvement) and extinction, and this should provide the basis for the mechanism of human capital management worked out by every economic entity.      The author suggests an algorithm of the process of formation of human capital management mechanism and the scope of work at each suggested stage. Special instruments and methods are considered as the elements of human capital management mechanism. According to the type of regulatory management methods, the author marks off administrative, economic and social-psychological methods as well as combined ones. In the framework of human capital management methods, it is proposed to detach methods with direct and indirect action. The author suggests using the considered groups of methods as mutually reinforcing and mentions that their correlation should be determined by features of the economic entity and the phase of its life cycle. The result of application of management methods with indirect action is formation of the environment making it profitable for human capital carriers to enhance the value of their human capital themselves. The result of such a job organization and fulfillment is called “quality of work life” in science. Consequently, it is recommended to consider quality of work life improvement as a most important instrument of human capital management within an economic entity.

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