Human Capital

Definition of Human capital

The definition of human capital characterizes the stock of knowledge, social and personal attributes, habits, also creativity, and the performance of employee and his capacity produce economic value where the all labor thought to be equal. It is assumed that the quality of performance of employees can be uplifted by making investment in them.

Books on Human capital

Book 1 –

Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education By Gary S. Becker (published by University of Chicago Press, 2009)

Book 2 –

Human Capital Management: Achieving Added Value Through People By Angela Baron, Michael Armstrong (published by Kogan Page Publishers, 2007)

How Human Capital works?

There are two kinds of human capital identified,

Specific human capital represents the knowledge and skills that few realize as useful and willing to pay for, for example, ABC Company owned and operated a propriety machine, and only ABC Company is willing to pay for the knowledge of operating proprietary machine.

General human capital reflects the knowledge and the skills that many find it useful and willing to pay for, such as accounting.

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