The Impact of Human Capital on Enterprise Management

China is the country with the largest population in the world. It has abundant human resources, but it is very scarce in terms of human capital, which is lower than that of the most developed countries. The scarcity of human capital directly affects the enterprise growth. Human capital plays a key role in the operation and development of enterprises. Giving internal employees of businesses full credit for the value of their human capital may act as a powerful engine for their growth. Human capital indicates the market’s demand for labor and the value that labor may provide to the economy, whereas human resources reflect the number and caliber of laborers in a nation. It has to do with how supply and demand on the market are changing. Investment in human resources produces human capital. This paper discussed an all-encompassing notion of human capital, as well as it’s required conditions of transformation of human resources into human capital. It also emphasizes the integration of human capital within a dynamic multi-loop nexus of social capital, learning, and knowledge management. In addition, the characteristics of human capital management in modern enterprises and the feasibility of human resource transforming into human capital were also discussed. The transformation of human resources into human capital shows that labor has played its own role in the production system. The employee is not only an important condition for enterprise growth, but it can also promote the progress of science and technology and increase the efficiency of the productivity.