03. War for Energy as Capital!

War for Energy as Capital! 

 

 

This book proposes five Lemmas to explain the secrete of human relations - War for Energy as Capital. 

 

LEMMA

 

1. People struggle for ‘Energy’
2. Energy is ‘Capital’
3. Capital is ‘Multidimensional ’
4. Becoming Energy Drain or Energy Source is ‘Habitual’
5. Habit is ‘Constructing’ rather than constructed

 

 

People struggle for "Energy" (Lemma #1).

 

Individuals often experience difficulty in maintaining their energy levels. In particular, those who employ the tactic of energy vampirism can harmfully drain the energy of others.

 

Energy vampires, also referred to as psychic vampires or energy predators, are individuals who negatively impact the energy levels of those around them through draining interactions.

 

 

 

Energy is "Capital" (Lemma #2) 

 

Capital can refer to a variety of resources that are used to produce goods and services, such as financial capital (money or assets), human capital (skills and knowledge of individuals), and natural capital (natural resources). In the context of energy vampires, capital can refer to the various forms of energy or resources that individuals have available to them.

 

Energy vampires can be said to drain multiple forms of capital through negative or draining interactions, leaving individuals feeling physically, emotionally, and mentally exhausted, and damaging social connections.

In regards to multiple forms of capital, energy vampires are known to deplete: Financial, Organizational, Social, Human, Psychological, Physiological, and Spiritual Capital from people.

 

 

Capital is 'Multidimensional' (Lemma #3) 

Multiple Capital Theory: 

The multiple capital theory is a framework that proposes that organizations have multiple types of capital that they can draw upon in order to achieve their goals. This theory was developed in response to the traditional view of capital, which sees it as a single, homogeneous resource that can be quantified in financial terms.

 

The multiple capital theory suggests that organizations can use these different types of capital in combination in order to create value and achieve their goals. For example, an organization might use its financial capital to invest in new technology, its manufactured capital to build new facilities, its human capital to train and develop its employees, and its social capital to build relationships with key stakeholders.

 

Origin: The multiple capital theory is a framework that was developed by a group of researchers in the field of organization studies. The origins of the multiple capital theory can be traced back to the work of sociologists and economists in the late 20th century, who recognized that organizations rely on a variety of resources beyond just financial capital in order to create value and achieve their goals. In the early 21st century, the multiple capital theory was further developed by organization scholars who sought to provide a more comprehensive framework for understanding the various types of capital that organizations have at their disposal.

 

Today, the multiple capital theory is widely recognized as a valuable framework for understanding the complex and multifaceted nature of capital in organizations, and it is widely used by researchers and practitioners in the fields of business, management, and organization studies.

 

The International Integrated Reporting Council (IIRC) is an international organization that promotes the use of integrated reporting as a way for organizations to provide a more comprehensive and transparent view of their performance.

 

As part of its work, the IIRC has developed a multiple capital framework that identifies six types of capital that organizations can draw upon in order to create value and achieve their goals.

 

The six types of capital identified by the IIRC's multiple capital framework are:

 

1. Financial capital: This refers to the financial resources that an organization has at its disposal, including cash, investments, and other financial assets.
2. Manufactured capital: This refers to the physical assets that an organization owns, such as buildings, machinery, and equipment.
3. Human capital: This refers to the knowledge, skills, and abilities of the people within an organization, as well as their motivation and commitment to achieving the organization's goals.
4. Intellectual capital: This refers to the intangible assets that an organization has, such as patents, trademarks, and copyrights.
5. Social capital: This refers to the relationships and networks that an organization has with other organizations and individuals, including customers, suppliers, partners, and regulators.
6. Natural capital: This refers to the natural resources that an organization uses, such as land, water, and raw materials.

The IIRC's multiple capital framework is designed to help organizations understand the various types of capital that they have at their disposal and how they can use these different types of capital in combination to create value and achieve their goals. It is widely used by organizations around the world as a way to report on their performance in a more comprehensive and transparent manner.

 

 

In here, seven multiple capitals are proposed for the purpose of ‘people and organizational’ studies.

 

1. Financial capital
2. Organizational capital
3. Social capital
4. Human capital
5. Psychological capital
6. Physiological capital
7. Spiritual capital

 

Multiple Capitals: Financial capital

Financial capital refers to the financial resources that an organization has at its disposal, including cash, investments, and other financial assets.

 

Financial capital is a critical resource for organizations, as it enables them to fund their operations and make investments in order to achieve their goals.

 

Organizations can use their financial capital in a variety of ways, such as investing in new technology, expanding their operations, or paying for marketing and advertising efforts.

 

 

Multiple Capitals: Organizational capital 

Organizational capita is the integrated organizational capability that turn assets into financial capital adding to the manufacturing capital (physical assets that an organization owns, such as buildings, machinery, and equipment) and Intellectual capital (such as patents, trademarks, and copyrights).

 

Organizational capital is a term that is often used to refer to the intangible assets that an organization possesses, such as its brand, culture, and reputation. These intangible assets are seen as a key source of competitive advantage for organizations, as they can be difficult for competitors to replicate or imitate.

 

In the context of the multiple capital theory, organizational capital can be seen as a subcategory of intellectual capital. Intellectual capital refers to the intangible assets that an organization has, such as patents, trademarks, and copyrights. Organizational capital, on the other hand, refers specifically to the intangible assets that are related to the organization itself, such as its brand, culture, and reputation.

 

 

Multiple Capitals: Social capital 

Social capital refers to the relationships and networks that an organization has with other organizations and individuals, including customers, suppliers, partners, and regulators.

 

Social capital is seen as a valuable resource for organizations because it can provide access to a wide range of benefits, such as new sources of information, expertise, and resources. Social capital can also help to build trust and cooperation, which can lead to improved efficiency and effectiveness.

 

 

Multiple Capitals: Human capital 

 

 

Human Capital refers to the knowledge, skills, and abilities of the people within an organization, as well as their motivation and commitment to achieving the organization's goals.

 

Human capital is a valuable resource for organizations because it can contribute to improved performance and productivity. For example, employees with high levels of knowledge and skills can be more effective at carrying out their tasks, while motivated and committed employees can be more likely to go the extra mile to achieve organizational goals.

 

Multiple Capitals: Psychological Capital

Psychological capital is a term that refers to an individual's personal resources, including their confidence, hope, optimism, and resilience. These personal resources are seen as important factors in an individual's ability to cope with and recover from stress, adversity, and other challenges. In the context of the multiple capital theory, psychological capital can be seen as a subcategory of human capital.

 

1. High levels of psychological capital within an organization can have a number of positive effects. In an organizational context, high levels of psychological capital can lead to a number of benefits, including: Improved performance: Employees with high levels of psychological capital are likely to be more motivated, engaged, and productive.
2. Increased well-being: Employees with high levels of psychological capital may be more likely to experience positive well-being, such as happiness and life satisfaction.
3. Enhanced resilience: Employees with high levels of psychological capital may be better able to cope with and recover from stress and adversity.
4. Stronger relationships: Employees with high levels of psychological capital may be more likely to build positive relationships with their colleagues, which can lead to improved teamwork and collaboration.

Overall, high levels of psychological capital within an organization can contribute to a positive and productive work environment, which can ultimately lead to improved organizational performance.

 

 

Multiple Capitals: Physiological Capital

Physiological Capital (a.k.a. Health) refers specifically to the physical and mental well-being of individuals. Good health can be an important factor in an individual's ability to contribute to an organization. For example, individuals who are in good health are likely to be more productive, able to work more consistently, and less likely to experience absenteeism due to illness.

 

In addition, good employee health can contribute to a positive work environment and contribute to overall employee well-being. This can lead to increased morale and job satisfaction, which can in turn lead to improved retention and reduced turnover.

 

Overall, investing in the health of employees can be seen as a way for organizations to enhance their human capital and improve their overall performance. This can be achieved through a variety of means, such as offering wellness programs, promoting healthy behaviors, and providing access to quality healthcare.

 

 

Multiple Capitals: Spiritual Capital

Spiritual Capital (a.k.a. purpose; meaning) is an important factor within organizations because they provide a sense of direction and motivation for employees.

 

A clear sense of purpose and meaning can help employees to understand the value of their work and how it contributes to the overall goals of the organization.

This can lead to increased motivation and engagement, which can in turn lead to improved performance and productivity.

 

In addition, a sense of purpose and meaning can contribute to a positive work environment and overall employee well-being. When employees feel that their work has meaning and purpose, they are more likely to experience job satisfaction and a sense of accomplishment. This can lead to increased morale and a sense of belonging within the organization.

 

Overall, spiritual capital can contribute to the success of an organization. They can help to drive employee engagement, motivation, and productivity, and can create a positive work environment that supports the overall goals of the organization.

 

 

 

 

** Lunthans et al. (2024),  Psychological, physical, and social capitals: A balanced approach for more effective human capital in today’s organizations and life. 


Organizational Dynamics 2024 Pages 101080
DOI: https://doi.org/10.1016/j.orgdyn.2024.101080

https://www.sciencedirect.com/science/article/pii/S0090261624000536

Redirecting

 

Balanced Human Capital Framework: HERO-MEND-FRONT 

 

The article proposes a framework combining Psychological, Physical, and Social Capital (PsyCap, PhyCap, SocCap) to improve individual and organizational well-being and performance.

Psychological Capital (PsyCap): PsyCap consists of four key components – Hope, Efficacy, Resilience, and Optimism (HERO) – which together drive positive outcomes like increased engagement, reduced burnout, and improved performance.

Physical Capital (PhyCap): The article emphasizes the importance of Mindfulness, Exercise, Nutrition, and Deep Breathing (MEND) to enhance mental and physical health, which in turn boosts productivity.

Social Capital (SocCap): Faith, Relationships, Organizational Culture, Noncognitive Empathy, and Teams (FRONT) foster social connection and support, which are crucial for well-being and teamwork.

Synergy Between Capitals: The framework suggests that the combined and balanced use of PsyCap, PhyCap, and SocCap leads to synergistic benefits, producing resilient and high-performing human capital.

Positive Outcomes Across Domains: The article supports its arguments with research showing how these capitals improve work performance, well-being, and life satisfaction.

Practical Application: Organizations are encouraged to invest in these capitals to meet today’s challenges, fostering environments that support holistic growth and performance.

 

 

 

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References: 

 

Source: 1) IIRC's Multiple Capital Framework:  https://www.integratedreporting.org/;

Integrated Reporting

2)https://www.sosteniblepedia.org/index.php/Multiple_capitals_model#:~:text=The%20concept%20of%20multiple%20'capitals,sense%2C%20to%20broader%20sustainability%20issues.

Multiple capitals model - Sosteniblepedia

 

 

 

 

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