The Human Capital
Human capital is getting wider attention with increasing globalization. Developed and developing countries put emphasis on a more human capital development and usage towards accelerating economic growth and efficient public service delivery. The term “human capital” has been defined as a key element in improving a firm’s assets and employees in order to increase productive as well as sustain competitive advantage. To sustain competitiveness in the organization, human capital becomes an instrument used to increase productivity. Human capital refers to processes that relate to training, education and other professional initiatives in order to increase the levels of knowledge, skills, abilities, values and social assets of an employee which will lead to the employee’s satisfaction and performances, and eventually on an organization’s performance.
To most people capital means a bank accounts, shares stocks, assembly lines, or factories etc. . These are all forms of capital in the sense that they are assets that yield income and other useful outputs over long periods of time. These tangible forms of capital are not the only ones. Schooling, a computer training course, expenditures of medical care, and lectures on the virtues of punctuality and honesty also are capital. That is because they raise earnings, improve health, or add to a person's good habits over much of his lifetime. Therefore, economists regard expenditures on education, training, medical care, and so on as investments in Human Capital. They are called human capital because people cannot be separated from their knowledge, skills, health, or values in the way they can be separated from their financial and physical assets.
Human Capital is an essential factor to the operation of any type of business. It is the economic value that an employee provides to an employer. The assessment of this value is related to the body of skill, knowledge, and experience...