human capital

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Related to Human Capital Theory: Human Capital Management

Human capital

The unique capabilities and expertise of individuals.

Human Capital

The measure of the output an employee with a certain skill set is able to make. The concept of human capital was developed in the 1960s and is founded on the idea that hard work, education, and skill development all lead to more output. As a result, companies are encouraged to invest in human capital through various means such as education and bonuses for exceptionally good work, among others.

human capital

the notion that human capabilities may be developed along the same lines as other forms of capital (e.g. PHYSICAL CAPITAL). Education and TRAINING are key elements of the human capital perpective. An economic perspective is typically applied to the analysis of human capital, and it is suggested that there are costs and returns to investments in human capital.

human capital

the body of human knowledge that contributes ‘know-how’ to productive activity. The knowledge base of a nation is added to by research and disseminated by teaching through general education and vocational training. INVESTMENT in human capital results in new, technically improved, products and production processes that improve ECONOMIC EFFICIENCY, and it can be as significant as physical CAPITAL in promoting ECONOMIC GROWTH. See ECONOMIC DEVELOPMENT.
References in periodicals archive ?
Brown (2015) observed the implications of human capital theory for higher education are evident in: "Rising tuition rates, declining state support, the rise of for-profit and online education, the remaking of universities through corporate "best practices," and a growing business culture of "competence" in place of "certificates" have cast the ivory tower" (22).
The theories used to conceptualize the link between network competence and entrepreneurship growth are human capital theory and resource-based theory.
In line with human capital theory, an investment period with lower earnings is followed by a period with higher earnings.
The early studies by Mincer (1958, 1974) and Becker (1964) were significant contributions to the human capital theory.
One important feature of human capital theory is its distinction between specific and general or generic skills.
In contrast to human capital theory, LMS theory argues that vulnerable groups become trapped in lower or informal segments of the labour market because of mobility barriers (e.
Therefore, human capital theory provides a useful framework to explain growth and failure of business ventures.
Contingency Theory, Human Capital Theory, Knowledge-based View, Relational View, Resource-based Theory, Resource Dependence Theory, and Resource Management Theory.
Human capital theory emphasizes that human capital--the composition of employee skills, knowledge, and abilities--is a central driver of organizational performance when the return on investment exceeds labor costs.
First, according to human capital theory (Becker, 1964) and the behavioral agency model (Wiseman and Gomez-Mejia, 1998), managers' motivation to invest in their industry- and firm-specific human capital depends on their perceived return on such investment.
An individual's abilities and skills require a higher value employment, implying a higher payment for his selling, salary increases with education level, as demonstrated by human capital theory.

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