Abstract: This article argues that traditional definitions of human capital ignore one critical element: the global mental disposition of employees, a facet of social capital. Global mental disposition can be defined as the motivation of employees to involve themselves in the activities of the company. It is the will to share knowledge and opportunity in order to address the complex issues they face. We explain our new definition of human capital and why this new definition is appropriate for the complex, rapidly changing, and increasingly competitive environment facing modern businesses. We then present a new analytical tool, The Management Compass, with which we explain the complex interaction and inter-relationship between employees’ aspirations of autonomy, employees’ perceptions of autonomy, and the level of complexity useful in the work process.

Full article with charts downloadable here (PDF document)