My personal capital
My personal capital
Capital is generally referred by the people to the financial assets and resources, however besides the money; personal capital is also a part of capital. Capital is basically the ability to do something and it allows a person to make his own selections and if it is not available, it is very hard or almost impossible for one to make selections.
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To evaluate the performance of an individual, capital is an important concept. However, personal performance is not normally termed as capital but it does function in the same way as the financial resources but as for the financial resources, we must build up these resources if we want to accomplish something but the personal capital of an individual is his skills, intelligence, his network of contacts, education, or relationships, etc. (Productivity 501 2007).
We have certain options from where we can choose and these options are interdependent on the amount of capital we have actually acquired. For instance, let’s consider the skill capital. This can further be explained by an example of the skill to perform a particular task to accomplish a particular goal. This can also be to sail all around the world. However, this can only be made possible if the person knows how to sail. If this person does not even know how to sail in a lake along with strong winds, he would never be able to sail around the world. Same applies to the other skills that come under personal capital.
Personal capital is something that an individual need to develop personally and is not present in a person from the start. This is basically about polishing the skills you already have in you and is all about increasing our skills as well as the level of intelligence that can be done by various activities such as by reading, studying, taking courses, etc. (Rae 2007).
As for the relationships, they can be improved by investing some more time in them. In order to build up a relationship, giving time, taking care of the person and showing love is very essential and without all these factors it would be hard to maintain any relationship as these are the core factors that are required to make up and then to handle a relationship.
To increase our network of contacts, it is a must that we reach out people after which we must stay in contact with them because just reaching them out won’t work effectively. Therefore, we must also remember our past acquaintances and should keep in touch with them as well. The activities mentioned above helps to increase our personal capital and so it also increases the opportunities that we might get.
According to Tom Peters, “everyone lives by selling something.” (Peters 1999). People normally retreat when they hear about the word sales as it sounds devious. However, when you convince the other person and you sell, it develops more pleasure and satisfaction and it is all about moving your resources to the ones who need them.
Personal capital is basically an ability in a person to make a difference and it can be either processing ability or leverage. The processing ability is basically the extent to which a person achieves a desired result with the resources available to him. It is all about achieving a task based on the thinking skills, energy, character of a person, the level of knowledge and know-how about an activity, thus it is all about achieving the targets within the given resources. This furthermore increases the value of a person as when an individual is different from the others and is able to do tasks effectively, it gives him an edge over others and this can even be his core competency.
For instance, let us consider an example of a person who has stared with a new job and as the job is new, the person would need some guidance in order to achieve the targets. Therefore, as assistance is needed by the employee, the results would not be totally based on his skills but later after the employee develops understanding and know-how; he would be able to do the same task without getting help from any other person and can work independently. This shows that his processing ability has been increased. (Cameron 2008).
The second part of personal capital is leverage, it raises the productivity of others by using your expertise and further explaining it, we can say that it amplifies your processing ability through others and this can either be done by coaching an employee who is new or by guiding him with the way in which the task is to be performed. Leverage can be measured in a way as our ability to transfer our knowledge to the other party, for example leverage of an economics teacher who teaches the course at a university can be judged in way how he teaches the student and does that really benefit the student or not i.e. does it increase the knowledge of the student or not. Furthermore it is also about using your own previous experience to teach the new employees and help them out to reduce chances of errors or mistakes and when this is achieved, a person achieves leverage. (Nonaka & Takeuchi 1995).
Personal capital can only be built only by learning and trying, it is about the way in which an individual is supposed to take a process and further turn it into a better work process and it is also about adding value to the ideas proposed by the others.
People can take courses that could help them to increase knowledge and their processing ability and the way they can share their knowledge that in turn increases their leverage.
The reason why personal capital should be built is because of the value we place in making a difference in the tasks we are assigned and the better personal capital an individual has, the better can he perform and achieve he desired goal. Moreover, people have better personal capital will also be able to accomplish tasks that are more complex and challenging. This is not just the only requirement, however a person should keep on improving his personal capital so that they can benefit from it and fulfill his responsibilities as a team member. (Southon & West 2005).
Cameron,S., 2008, The Business Student’s Handbook Learning for skills and employment, Harlow:FT/Prentice Hall.
Nonaka,I. & Takeuchi, H., 1995, The knowledge – creating company: how Japanese companies create the dynamics of innovation, Oxford University Press, New York.
Peters, T., 1999, The Brand You 50: Or: Fifty Ways to Transform Yourself from an’Employee’ into a Brand That Shouts Distinction, Commitment, and Passion! 1st Edn, Knopf, Hardcover.
Productivity 501, 2007, Why You Need Personal Capital. October 20, 2008. Retrieved from: http://www.productivity501.com/why-you-need-personal-capital/108/
Rae, D.,2007, Entrepreneurship: from opportunity to action, Basingstoke: Palgrave Macmillan.
Southon, M. & West C., 2005, The Beermat Entrepreneur: What You Really Need to Know to Turn a Good Idea into a Great Business, 2nd Ed, Harlow:Prentice Hall.