The Potential of Neuro‑Linguistic Programming in Human Capital Development

Abstract

Human capital (HC) represents the cumulative tacit knowledge that is embedded in the minds of people in organisations. HC is important to organisations because it serves as a source of innovation and strategic renewal. Individuals carry HC when they join an organisation and take their talent, skills and tacit knowledge with them when they leave the organisation. Thus HC is volatile in nature. Organisations are therefore keen to do what they can to foster and develop HC as a means of achieving sustainable competitive advantage. This paper argues that neuro‑linguistic programming (NLP) has the potential of developing and enhancing the stock of HC in organisations. NLP emerged in the 1970s from the University of California, USA. NLP suggests that subjective experience is encoded in terms of three main representation systems: visual, auditory, and kinaesthetic (VAK). NLP practitioners claim that people tend to have one preferred representation system over another in a given context. Despite that previous research has shown that NLP can assist in facilitating knowledge and learning capabilities, very limited research is conducted using NLP in nurturing HC in organisations. This paper critically reviews the literature and theoretically argues that NLP can be used as a practical approach to develop HC in organisations. This is because NLP primarily focuses on individual internal learning and that learning likely leads to the accumulation of HC in organisations. In other words, organisational members may find it more effective to enhance their tacit knowledge, both individually and collectively, if they adopt the NLP approach in their day‑to‑day work. Examples on how NLP may be used to develop HC in organisations will be provided. Future research direction and limitations will also be discussed.