human capital

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Related to human capital: 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 ?
Chart 2 shows the ratio of the stock of working age human capital to physical capital.
Ed Chaffin, HCI's founder and president, will become senior consultant at the Human Capital Group and will set up a new branch office in Baton Rouge, Louisiana.
Wallenborn analyzes the role of EU neighboring countries' vocational education and training (VET) in contributing to human capital development in order to benefit better from the globalized economy, focusing on functional dimensions of VET that are relevant to achieve development goals (cooperation needs to build on existing VET structures, and must contribute to an effective reform implementation).
Given the many critical decisions that need to be made, it is important that a board carefully monitors the condition of the organization's human capital and how it is being managed.
Comprehensive human capital management approaches also are being enabled via a core Human Resource Information System, which establishes a common database and integrated information management across all human resource functions.
Citing evidence that cognitive and non-cognitive deficits appear early in life, they argue that human capital policy should focus on families, not just schools.
But its message is clear, and the authors base their human capital management strategies on six factors they consider essential: people, work processes, management structure, the company's grasp of information and knowledge, decision-making process, and extrinsic rewards or economic stimulants, such as salary increases, promotions and bonuses, as well as non-economic stimulants, such as recognition or honorable mentions.
Human capital does not just spring into being, nor is it simply a product of higher education.
It depends on past investments in physical capital, like industrial plants and machinery; human capital, the economist's term for workers' education and skills; and the pace of technological innovation.
The standard model of human capital investment, formalized by Ben-Porath [1967], results in monotonically decreasing investments in human capital.

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