Understanding Human Resource Capital
The term "capital" is commonly used to refer to a bank account, a hundred shares of stock, assembly lines, or industrial facilities. They are assets that generate income and other useful outputs over an extended period, making them all kinds of capital.
However, such tangible forms of capital are not the only types available. Schooling, computer training, medical expenses, and lectures on the principles of punctuality and honesty are all considered capital in some way. This is because they increase wages, enhance health, or increase a person's spending on education, training, medical care, and investments in human capital. They are referred to as human capital because people cannot be separated from their knowledge, skills, health, or values in the same way they can be separated from their financial and physical assets.
Individuals and groups within a given community have intangible collective resources, referred to as "human capital." These resources include all of the knowledge, talents, skills, abilities, experience, intelligence, training, judgement, and wisdom that individuals and groups have, the balance of which represents a form of wealth that nations and organisations can use to achieve their objectives. These resources are available to nations and organisations to help them achieve their objectives.
Human capital is the ability to generate material wealth for an economy or a private company. In a public organisation, human capital is available as a resource to provide for the general welfare of the community. How human capital is generated and managed maybe one of the most critical economic and organisational performance variables. On a broad scale, where investments in human capital are perceived as having an impact on national and global economic performance, or on a more specific scale, where investments in people are viewed as being critical to organisational performance, this approach can be utilised.
According to a human resource capitalism model, the primary source of productive capacity in an economy or organisation is human capacity. Therefore, methods must be established to maximise the potential of this resource by building learning systems that will sustain the capacity of human capital in the future. For a national economy, this may mean changing educational institutions to assure the availability of a skilled workforce that meets industrial requirements for high economic output and the preservation or development of national quality of life. This concept indicates that an organization's high productivity and performance are contingent upon building learning systems that represent the organization's commitment to its people resources. As a result of continuing investments in training, skill development, and job enrichment (rather than expansion), members develop a shared commitment to the organization's aims and objectives.
A shift in thinking away from the assumption that human resources, like other nonhuman resources, are to be consumed, and that members of an organisation must be managed in order to ensure compliance with organisational standards, is represented by this development. People should be developed instead, in order to achieve a mutual commitment where concrete investments by the organisation are favoured and then rewarded by its members with higher levels of performance. When it comes to performance, human-resource capitalism acknowledges that having a sufficient supply of highly qualified employees, employing management practises that prioritise both quality and efficiency, and establishing organisational structures that promote both are crucial. Beyond simply finding and compensating the most competent employees possible, an organization's emphasis on human capitalism entails making significant investments in their growth, managing them intelligently, and, ultimately, retaining them for the long term.
India's development trajectory is inextricably connected to investments in healthcare and education. At the heart of achieving the Sustainable Development Goals (SDGs) is a commitment to human capital development and inclusive growth. The government is dedicated to enhancing educational and skill outcomes and providing universal access to affordable healthcare to maximise the demographic dividend. It is well established that eradicating poverty requires efforts to strengthen health and education and reduce inequality. Child development is a lifelong process that begins with teenagers' preconceptions of health and well-being and continues through the next generation of young people who grow up and become parents.
This blog has been authored by Bhakti Jain.