Gary Becker was a leading theorist on human capital. He defined human capital broadly to include investments in education, training, health, and other factors that increase productivity. Becker argued that investments in human capital are a form of capital expenditure that can generate monetary returns through increased productivity and earnings. Measuring returns to human capital is important for assessing its value and impact on firms and economic growth. Becker's work demonstrated that investments in education and training had high returns across many countries and were important drivers of economic development.
Economics of Education is the concept that lead us why do we go for education and what do we achieve from it. Please, take it only for your exploring your mind, keep in mind that your mental process can make better than this.
Economics of Education is the concept that lead us why do we go for education and what do we achieve from it. Please, take it only for your exploring your mind, keep in mind that your mental process can make better than this.
Thematic Presentation on "Family farming"Amit Yadav
Welcome to the Thematic Presentation on “Family Farming”. We the MSW II year student of School of Social Work Roshni Nilaya select this topic for thematic presentation because 2014 is The”International Year of Family Farming”. Through this presentation our focus is to inform about the family farming, importance of family farming, what is International Year of Family Farming, 2014, Objectives of family farming and so on.
School as a social organization and its bereaucratic interpretation রোকন দৌলা
In this paper i have discussed about the school and its social and bureaucratic structure of school and its weakness and solutions , hope you will enjoy reading
Definition Nature Scope and Significance of Economics, Business Economics - D...Divyansh Agrawal
Definition Nature Scope and Significance of Economics, Wealth Definition, Welfare Definition, Criticism, Scope of Economics, Economics a science or an artScience teaches us to know and an art teaches us to do. Science and art are complementary to each other, A Positive or a Normative Science, Business Economics,Methodology of Economics, Nature of Business Economics, Scope of Business Economics, Divyansh Agrawal, Divyansh Agrawal Shivpuri, PIMR, Prestige Institute of Management, Indore
A Literature Review On Human Resource Accountingijcite
Human resource accounting is of recent origin and is striving for
acceptance. Human resources accounting is an accounting analysis
system and in the last decade a large body of literature has been
published for setting the various procedures for analysis. At the same
time from academicians the theory and underlying concepts of
accounting measurement have received sizeable attention and a
considerable body of literature has developed. The conventional
accountings of human resources are not perceived as physical or
financial assets. This paper reviews the literature available on the
perception of human resource accounting. In worth, previous study have
shown and debated various magnitudes related to valuing human
resource. For accounting human resources, different models have been
developed which are helpful to identify and report investment made in
the human resource of an organization that are not presently accounted
for under conventional accounting practice.
Thematic Presentation on "Family farming"Amit Yadav
Welcome to the Thematic Presentation on “Family Farming”. We the MSW II year student of School of Social Work Roshni Nilaya select this topic for thematic presentation because 2014 is The”International Year of Family Farming”. Through this presentation our focus is to inform about the family farming, importance of family farming, what is International Year of Family Farming, 2014, Objectives of family farming and so on.
School as a social organization and its bereaucratic interpretation রোকন দৌলা
In this paper i have discussed about the school and its social and bureaucratic structure of school and its weakness and solutions , hope you will enjoy reading
Definition Nature Scope and Significance of Economics, Business Economics - D...Divyansh Agrawal
Definition Nature Scope and Significance of Economics, Wealth Definition, Welfare Definition, Criticism, Scope of Economics, Economics a science or an artScience teaches us to know and an art teaches us to do. Science and art are complementary to each other, A Positive or a Normative Science, Business Economics,Methodology of Economics, Nature of Business Economics, Scope of Business Economics, Divyansh Agrawal, Divyansh Agrawal Shivpuri, PIMR, Prestige Institute of Management, Indore
A Literature Review On Human Resource Accountingijcite
Human resource accounting is of recent origin and is striving for
acceptance. Human resources accounting is an accounting analysis
system and in the last decade a large body of literature has been
published for setting the various procedures for analysis. At the same
time from academicians the theory and underlying concepts of
accounting measurement have received sizeable attention and a
considerable body of literature has developed. The conventional
accountings of human resources are not perceived as physical or
financial assets. This paper reviews the literature available on the
perception of human resource accounting. In worth, previous study have
shown and debated various magnitudes related to valuing human
resource. For accounting human resources, different models have been
developed which are helpful to identify and report investment made in
the human resource of an organization that are not presently accounted
for under conventional accounting practice.
BS 76001 HR Professionals invited to shape development of British Standard fo...demingcertificationa
Human resource management (HRM or HR) is the strategic approach to the effective and efficient management of people in a company or organization such that they help their business gain a competitive advantage. It is designed to maximize employee performance in service of an employer's strategic objectives. Human resource management is primarily concerned with the management of people within organizations, focusing on policies and systems. HR departments are responsible for overseeing employee-benefits design, employee recruitment, training and development, performance appraisal, and reward management, such as managing pay and employee-benefits systems. HR also concerns itself with organizational change and industrial relations, or the balancing of organizational practices with requirements arising from collective bargaining and governmental laws.
Chapter 5 Human capital managementLEARNING OUTCOMESOn complet.docxrobertad6
Chapter 5: Human capital management
LEARNING OUTCOMES
On completing this chapter you should be able to define these key concepts. You should also understand:
· The nature of human capital management
· The concept of human capital
· Characteristics of human capital
· Constituents of human capital
· Significance of human capital theory
· Importance of human capital measurement
· Reasons for interest in human capital measurement
· Approaches to measurement
· Measurement elements
· Factors affecting choice of measurement
· Criteria for HCM data for managers
Introduction
As defined by Baron and Armstrong (2007: 20), human capital management (HCM) is concerned with obtaining, analysing and reporting on data that inform the direction of value-adding people management, strategic, investment and operational decisions at corporate level and at the level of front-line management. It is, as emphasized by Kearns (2005), ultimately about value.
The nature of human capital management
The Accounting for People Task Force report (2003) stated that HCM involves the systematic analysis, measurement and evaluation of how people policies and practices create value. The report emphasized that HCM should be regarded as an approach to people management that deals with it as a high-level strategic issue rather than a matter to be left to HR. However, Wright and McMahan (2011: 102) warned that human capital should not be treated as a form of capital owned and controlled by the firm: ‘To do so would miss the complexity of the construct and continue to ignore the “human” in strategic HRM.’
The defining characteristic of HCM is the use of metrics to guide an approach to managing people that regards them as assets and emphasizes that competitive advantage is achieved by strategic investments in those assets through employee engagement and retention, talent management and learning and development programmes. HCM relates HR strategy to business strategy. The concept of HCM is underpinned by the concept of human capital, as explained below.
The concept of human capital
Adam Smith, cited by Schultz (1981: 140), originated the idea of human capital (like so many other economic concepts) when he wrote that: ‘The acquired wealth of nations derives from the acquired abilities of people – their education, experience, skills and health.’ Individuals generate, retain and use knowledge and skill (human capital) and create intellectual capital. Their knowledge is enhanced by the interactions between them (social capital) and generates the institutionalized knowledge possessed by an organization (organizational capital). This concept of human capital is explained below.
Human capital defined
Human capital consists of the knowledge, skills and abilities of the people employed in an organization. As Wright and McMahan (2011: 101) explained:
Each individual in the organization has characteristics that comprise human capital. He/she also engages in the processing of information, interpr.
This article extends research exploring progressive models of reproducing economic life by reporting on research into some of the infrastructure, practices and motivations for Islamic charitable giving in London. In so doing the article: (i) makes visible sets of values, practices and institutions usually hidden in an otherwise widely researched international financial centre; (ii) identifies multiple, hard-to-research civic actors who
are mobilising diverse resources to address economic hardship and development needs; and (iii) considers how these charitable values, practices and agents contribute
to contemporary thinking about progressive economic possibilities.
2013 building the_right_high_potential_pool_white_paperRye Cruz
As leaders our main job is not only to lead people but to develop the right people to be leaders as well. Hope this white paper can help add knowledge and ideas to it.
MBA student writes sustainability thesis on Cranmore Foundation
Mr Charles V Towle, a graduate student at San Francisco State University has received a distinction for his thesis on sustainability and the work of Cranmore Foundation. Mr Towle’s thesis makes the case for the need for a new quality of thinking in addressing today’s complex global problems, which he describes as ‘wicked problems’. He explores emerging models of thought aimed at creating sustainability solutions such as the work of Michael Porter and Mark Kramer as well as Umair Haque. His thesis goes on to explore the premise of Cranmore Foundation’s work with wisdom traditions. Further he presents the conceptual outline of one wisdom model articulated by the foundation that supports sustainability.
These clinical notes explain the role played by conflicts as a causative factor in the psychoneuroses and war neuroses in Freudian psychoanalysis.
The Freudian theory of conflict, I argue, is useful not only to clinicians, but also to central bankers who are trying to formulate a theory of stability and stabilization.
What psychoanalysis makes available for these central bankers is a formal theory of the subject that incorporates the structure and function of the unconscious.
It also explains the macro-economy of the symptom given that clinicians have a lot of exposure to neurotic forms of instability.
The main wager in these clinical notes is that it will make possible a theoretical discussion between psychoanalysts and financial analysts in order to develop a comprehensive theory of stability.
Shiva Kumar Srinivasan has a PhD in English Literature and Psychoanalysis from the University of Wales at Cardiff.
These clinical notes describe the differences between the 'desire of the subject' and the 'desire of the symbolic Other' in Lacanian psychoanalysis by inverting the conventional subject-object distinction within a theory of the subject.
The theoretical goal here is to identify the forms of libidinal excess that are generated in the act of speech in analysis; and then relate this excess to a theory of stability.
Such an exercise should be of interest to central bankers like Mark Carney of the Bank of England who must not only work out a theory of stability; but must also ponder on the ontological differences between stability at the levels of the individual, the institution, and the macro-economy as a whole.
These ontological differences matter, I argue, lest central bankers forget the importance of the 'fallacy of composition' in economic theory. This fallacy cautions us to avoid the conflation of micro-economic phenomena with macro-economic aggregates while doing economic theory.
These notes also draw a compelling analogy between the forms of libidinal regulation that characterizes clinical interventions in Lacanian psychoanalysis with the role played by counter-cyclical policies in monetary theory and practice in the attempt to regulate interest rates by central bankers.
The burden of the argument here is to show that while the stabilization of systemically important stakeholders in necessary, it is not sufficient. What is required are regulatory mechanisms that will serve a protective function (even if stakeholders act out their conflicts in the symbolic) like circuit breakers that regulate trading in stock exchanges.
These notes conclude by describing psychic mechanisms like 'alienation, separation, and traversing the phantasy' that constitute not only the Lacanian theory of the subject, but also the clinical trajectory that represents the end of analysis.
These notes should be useful not only to clinicians but also to those interested in formulating a theory of stability that is informed by the ideological concerns and clinical themes of Lacanian psychoanalysis.
Needless to say, these notes on the need for a psychoanalytic approach to stability are dedicated - for what they are worth - to Gov. Mark Carney of the Bank of England.
Shiva Kumar Srinivasan has a Ph.D. in English Literature and Psychoanalysis from the University of Wales at Cardiff.
These clinical notes summarize the main points raised by the Lacanian analyst Robert Samuels on the question of analytic technique.
These clinical notes should make it possible for both beginners and clinicians to relate Freudian concepts with Lacanian terms like the real, the imaginary, and the symbolic more effectively.
Shiva Kumar Srinivasan has a Ph.D. in English Literature and Psychoanalysis from the University of Wales at Cardiff.
This review sets out the importance of a special issue of Umbr(a) #1, 1998, on 'Identity and Identification' from the Center for Psychoanalysis and Culture at SUNY, Buffalo for students of law, management, and business.
It explains how a Lacanian theory of the subject can make it possible to manage in a 'psychoanalytically informed manner' by making a case for incorporating the insights of Lacanian psychoanalysis in the mainstream professions.
Shiva Kumar Srinivasan has a Ph.D. in English Literature and Psychoanalysis from the University of Wales at Cardiff.
This review essay on Sigmund Freud's 'Group Psychology and the Analysis of the Ego' describes how an understanding of psychoanalysis can further the reader's ability to situate and intervene in the context of group dynamics.
It lists the differences between individual and group psychology before describing the dangers of crowds and the contagion effect before setting out the structure and forms of identification between members in groups.
The main argument in the essay is that groups should guard against regression to more primitive forms of organizational life that Freud characterized as crowds and herds that are subject to the contagion effect.
In instances of such regression, groups will be able to repair themselves more effectively if they are psychoanalytically informed.
That is why this review essay on Freudian psychoanalysis is aimed at not only analysts but to an audience of bankers, economists, and social scientists.
Shiva Kumar Srinivasan has a Ph.D. in English Literature and Psychoanalysis from the University of Wales at Cardiff (1996).
This book review explores the relationship between psychoanalysis and history.
It makes a case for why historians should be interested in psychoanalysis; and explains why the quest for freedom as an existential or historical state is mediated by negation in the Freudian theory of subjectivity.
This review should be of interest to historians, psychoanalysts, and students of the human sciences.
Shiva Kumar Srinivasan has a Ph.D. in English Literature and Psychoanalysis from the University of Wales at Cardiff.
This book review describes the theoretical challenges involved in incorporating the Lacanian model of the subject within mainstream American ego psychology (given the huge amount of philosophical knowledge that Lacan assumes in his readers).
It will be of use to clinicians, literary critics, and philosophers who want to engage with Lacanian theory and practice.
This paper analyzes what Sigmund Freud was trying to do both as an an analyst and as a writer in his autobiography of 1925. It describes Freud's compositional ratio, fantasies in writing about psychoanalysis, early life, the Freudian clinic, the Freudian subject, and concludes that reading Freud is still the best way to learn psychoanalysis.
Shiva Kumar Srinivasan has a Ph.D. in literature and psychoanalysis from the University of Wales at Cardiff, UK (1996).
Shiva Kumar Srinivasan has a Ph.D. in English Literature and Psychoanalysis from the University of Wales, Cardiff (1996).
His thesis was titled 'Oedipus Redux: D.H. Lawrence in the Freudian Field.'
These clinical notes should be of use to both theorists and practitioners of psychoanalysis in the tradition of Sigmund Freud and Jacques Lacan.
Shiva Kumar Srinivasan has a Ph.D. from the University of Wales at Cardiff in English Literature and Lacanian Psychoanalysis (1996). His Ph.D. thesis was titled ‘Oedipus Redux: D. H. Lawrence in the Freudian Field.’
This series of 'clinical study notes' summarize the main points raised in important psychoanalytic texts.
They should be of use to students, theorists, and lay practitioners of psychoanalysis who are preparing to read or re-read the psychoanalytic literature associated mainly (though not only) with the theories of Sigmund Freud and Jacques Lacan.
These clinical notes describe the main points raised by Jacques-Alain Miller of the University of Paris VIII in the first Paris/Chicago psychoanalytic workshop on the analytic cure on July 25, 1986.
Miller starts by addressing common misconceptions about Lacanian theory and practice before explaining the structure, the techniques, and the forms of interpretation that constitute the analytic clinic.
Miller concludes by explaining why the definition of the analytic cure is not reducible to the biological model of adaptation or the invocation of borderline categories. The most important challenge of psychoanalysis will always be to explain hysteria.
Shiva Kumar Srinivasan has a Ph.D. from the University of Wales at Cardiff in English Literature and Lacanian Psychoanalysis (1996). His Ph.D. thesis was titled ‘Oedipus Redux: D. H. Lawrence in the Freudian Field.’ These clinical study notes summarize the main points raised in important psychoanalytic texts. They should be of use to students, theorists, and lay practitioners of psychoanalysis who are preparing to read or re-read the psychoanalytic literature associated mainly (though not only) with the theories of Sigmund Freud and Jacques Lacan.
These clinical notes summarize the main arguments in Jacques-Alain Miller's Paris-New York Workshop of 1988 titled 'A and a in Clinical Structures.'
Shiva Kumar Srinivasan has a Ph.D. from the University of Wales at Cardiff in English Literature and Lacanian Psychoanalysis (1996). His Ph.D. thesis was titled ‘Oedipus Redux: D. H. Lawrence in the Freudian Field.’ These clinical study notes summarize the main points raised in important psychoanalytic texts. They should be of use to students, theorists, and lay practitioners of psychoanalysis who are preparing to read or re-read the psychoanalytic literature associated mainly (though not only) with the theories of Sigmund Freud and Jacques Lacan.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
This presentation poster infographic delves into the multifaceted impacts of globalization through the lens of Nike, a prominent global brand. It explores how globalization has reshaped Nike's supply chain, marketing strategies, and cultural influence worldwide, examining both the benefits and challenges associated with its global expansion.
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Nike Logistics and Transport
1. 1
GARY BECKER ON HUMAN CAPITAL
INTRODUCTION
Gary Becker was a leading theorist of human capital at the University of Chicago; he
is best known for extending the scope of economic analysis from market to non-
market phenomena to include crime, education, law, racial discrimination, and
human capital.1 Though Becker wrote extensively on human capital from as early as
1962-64, much of his empirical work is extremely technical.2 This brief essay will set
out a simple introduction to the concept of human capital that will be of interest to
both economists and experts in human resources. In order to do so, I will invoke the
main arguments in two important papers in which Gary Becker tried to explain in a
nontechnical way what he was doing for both academics and the layperson by
developing the concept of human capital. The first of these papers is an excerpt from
the third edition of his book on human capital; the second paper is based on a lecture
that he delivered at the World Bank on December 16, 1994.3 The former is an
introduction to the concept of human capital; the latter is an attempt to deploy the
1 See Gary S. Becker (1993). ‘The Economic Way of Looking at Life,’ Coase-Sandor Institute
for Law and Economics, John M. Olin Law and Economics Working Paper No. 12, Second
Series, University of Chicago Law School.
2 Gary S. Becker (1962). ‘Investment in Human Capital A Theoretical Analysis,’ The Journal of
Political Economy, Vol. 70, No. 5, Part 2: Investment in Human Beings, pp. 9-49.
3 Gary S. Becker (1964, 1975, 1993), ‘Human Capital Revisited,’ Human Capital: A Theoretical
and Empirical Analysis with Special Reference to Education, Third Edition, (Chicago: University
of Chicago Press), pp. 15-26 and Gary S. Becker (1995). ‘Human Capital and Poverty
Alleviation,’ Human Resources Development and Operations Policy, Working Papers Series,
HROWP 52, World Bank.
2. 2
concept of human capital in the context of poverty alleviation in third world
countries. There are both microeconomic and macroeconomic dimensions to the
concept of human capital. Both firms and economies need a strategy to identify and
deploy human capital as a form of value addition and value generation. And,
needless to say, there is a growing literature on human capital for those who would
like to explore this topic further in the contexts of economics, human resources, and
strategy though this essay focuses mainly on Becker’s formulation of human capital.4
HUMAN CAPITAL & STRATEGIC HUMAN RESOURCES
The relationship between human capital, human resources, and competitive
advantage has also been explored by experts in strategic HR.5 What theorists of both
human resources and human capital share in common is the need for developing
adequate HR and human capital metrics. They also have to make an effective case
for demonstrating that human resources do have an impact on a firm’s bottom-line.
It would not be an exaggeration to say that this is, in fact, the main problem in
dealing with both human resources and human capital. The theoretical challenge is
to move the analysis of firms and a firm’s performance from an intangible model of
human resources and human capital to one that is susceptible to measurement. In
the absence of objective measures, experts in these areas fear that they will at best be
4 See, for instance, the working paper by Philip Stiles and Somboon Kulvisaechana (1999,
2003), ‘Human Capital and Performance: A Literature Review,’ The Judge Institute of
Management, University of Cambridge. The authors provide a broad based introduction to
the literature on human capital including intellectual capital, social capital, organisational
capital, and knowledge. They then go on to evaluate the role played by human capital in
increasing a firm’s level of performance. This paper also has an analysis of what is at stake in
measuring the existence, levels, and deployment of human capital in firms. It concludes with
an annotated bibliography of the different forms of human capital. Those who are interested
in situating how Gary Becker’s concept of human capital relates to his work in economics
might want to look up Steven Pressman (1999). ‘Gary Becker,’ Fifty Great Economists
(London: Routledge), pp. 185-189 and Richard A. Posner (1993). ‘Gary Becker’s
Contributions to Law and Economics,’ The Journal of Legal Studies, Vol. 22, No. 2, pp. 211-215.
5 Patrick M. Wright, Gary C. McMahan and Abagail McWilliams (1993). ‘Human Resources
and Sustained Competitive Advantage: A Resource-Based Perspective,’ Centre for Effective
Organizations, Marshall School of Business, University of Southern California, Los Angeles.
3. 3
champions, evangelists, or humanists but not scientists.6 Furthermore, attempts to
measure and assess the value of human capital are related to the ongoing attempts to
think through the value of intellectual capital in a knowledge-based economy.7 The
main impetus for such forms of research is to manage and increase the levels of
‘knowledge-worker productivity’ since knowledge is increasingly thought to be the
only sustainable source of competitive advantage in firms.8 In other words, the
preoccupation with HR and human capital necessarily culminates in theories of
learning and in the learning organization as the paradigm of the knowledge
economy that is highly dependent on human capital in constituting its value chain.9
This knowledge-based model of the firm that emphasizes a relentless approach to
learning has important implications for organizational hierarchy. These knowledge-
based firms believe that ‘the authority of ideas’ is more important than ‘the idea of
6 On these themes, see Dave Ulrich (1997). Human Resources Champions: The Next Agenda for
Adding Value and Delivering Results (Boston: Harvard Business School Press) and Dave Ulrich
and Wayne Brockbank (2005). The HR Value Proposition (Boston: Harvard Business School
Press). For an analysis of HR metrics, see Mark A. Huselid, Brian E. Becker, and Richard W.
Beatty (2005). The Workforce Scorecard: Managing Human Capital to Execute Strategy (Boston:
Harvard Business School Press. The background to ‘analytics’ as an approach to enterprise
management is available in Thomas H. Davenport, Jeanne G. Harris and Robert Morison
(2010). Analytics at Work: Smarter Decisions Better Results (Boston: Harvard Business School
Press).
7 Thomas A. Stewart, ‘Human Capital,’ Intellectual Capital: The New Wealth of Organizations
(New York and London: Doubleday), pp. 79-106. See also Stewart’s ‘appendix’ for a
description of measuring tools for intangible forms of capital including human capital, pp.
223-247.
8 Peter F. Drucker (1999). ‘Knowledge-Worker Productivity,’ Management Challenges for the
21st Century (New York: Harper Business), pp. 133-159.
9 Thomas H. Davenport (2005). Thinking for a Living:Howto Get Better Performance and Results
from Knowledge Workers (Boston: Harvard Business School Press). See also David A. Garvin,
‘Building a Learning Organization,’ Harvard Business Review on Knowledge Management
(Boston: Harvard Business School Press, 1998), pp. 47-80 and Morten T. Hansen, Nitin
Nohria, and Thomas Tierney, ‘What’s Your Strategy for Managing Knowledge?’ Harvard
Business Review on Organizational Learning (Boston: Harvard Business School Press, 2001), pp.
61-86.
4. 4
authority.’10 That is why it is important to appreciate the links between knowledge,
learning, and talent and develop a strategy to manage them more effectively.11 This
is especially the case in professional service firms that are based purely on the
availability and management of human capital.12
HUMAN CAPITAL & THE ECONOMICS OF EDUCATION
It is hard to believe when we look back that the theory of human capital began as a
specific topic in the economics of education in Gary Becker’s work in 1962-64. Becker
incidentally was interested both in schooling and non-schooling investments in
human capital. Becker’s definition of human capital includes not only returns to
schooling and a college education, but also investments in education, on-the-job-
training, increasing women’s participation in the workforce, reducing the different
forms of discrimination, analysing the decline in fertility rates (contra Malthusian
predictions), and in the provision of medical services and child care to workers.
Becker emphasizes that most of us think of ‘capital’ only in terms of physical and
financial capital, but the invocation of human capital is more than just a figure of
speech. The work of economists at the University of Chicago has been revolutionary
in that the concern with human capital has moved to the mainstream of economic
thought. It is now possible to at least consider treating investments on different
aspects of the workforce as a form of capital expenditure. But whether human capital
will become a financial concept or remain just a figure of speech depends on the
availability of accounting conventions in firms. In the absence of the requisite accounting
conventions, expenditures in human capital will be treated as a cost or an expense
rather than as an investment. So in order to find a place for human capital in a firm’s
10 See, for instance, Lawrence H. Summers (2004).‘The Authority of Ideas,’ Harvard Business
Review on Leadership in a Changed World (Boston: Harvard Business School Press), pp. 189-
191.
11 See Jeffrey M. Cohn, Rakesh Khurana, and Laura Reeves (2008). ‘Growing Talent as if
Your Business Depended on It,’ Harvard Business Review on Talent Management (Boston:
Harvard Business School Press), pp. 43-62.
12 See Thomas J. Delong, John J. Gabarro, and Robert J. Lees (2007). When Professionals Have to
Lead: A New Model for High Performance (Boston: Harvard Business School Press), passim.
5. 5
value chain, it is important to relate how a new concept is accommodated within the
existing and emerging conventions of accounting.
MEASURES OF HUMAN CAPITAL
What this means is that it is important for economists and HR experts to find
measures of human capital on the basis of which firms can calculate their
investments and returns on investment. That is basically the link between what
economists mean by human capital and what those in HR mean by human capital,
and why the quest for effective HR metrics is the locus of interaction between these two
professions. Becker points out that the concept of human capital was at first
misunderstood as a form of exploitation of labour by capital. But, subsequently, the
concept of human capital was taken up across the ideological divide. It is now used
in all parts of the world – both capitalist and communist – and is essential for how
economic reformers think about the macro-economy when they calculate the costs
and benefits to investments in education, on-the-job training, skill-building on a
large scale, and in providing health care for their workers. Becker’s empirical
research has tried to demonstrate that the returns to schooling and college education
are high not only in the United States, but in ‘over one hundred countries with
different cultures and economic systems.’ So, contrary to those who think that the
Americans are ‘overeducated,’ Becker argues that the main concern going forward is
whether given the present levels of economic competition, American workers are
getting adequate training in the workplace. A further cause for concern is the decline
in levels of performance in standardised tests amongst school children in the United
States seeking college admission.
MONETARY RETURNS TO EDUCATION
Another important trend in human capital studies is the increase in the number of
women (including married women) who are going to work. Women are increasingly
moving away from the more feminine occupations and moving into professional
schools of business, engineering, law, and medicine. These trends are not specific
only to the United States, but encompass a number of countries including emerging
6. 6
economies. The gains that accrue for women from participation in the workforce go
a long way to explain ‘the behaviour of women than have traditional ideas about the
proper role of women.’ Women are to be found in both full-time jobs and highly
skilled jobs now than ever before. These trends accelerated in the late 1970s and
constitute an important feature of the contemporary workforce in the United States
and elsewhere. The civil rights movement has also played an important role in
empowering women and in bringing them into the workforce in large numbers.
Some of the demographic factors that affect women’s participation in the workforce
include the rate of fertility, the rate of divorce, and the expansion of the services
sector. What analysts of human capital assume at the outset of their empirical
studies on these trends in the workforce is that education increases not only
productivity, but also earnings by providing workers with new forms of
‘knowledge, skills, and a way of analysing problems’ that are not reducible to merely
picking up credentials. This formal education is accompanied by on-the-job training
for most workers since schools cannot anticipate and provide all the skills that
employers seek in their workforce.
RETURNS TO ‘ON-THE-JOB TRAINING’
Becker points out that, according to recent estimates, ‘the total investment in on-the-
job training may be almost as large as the investment in education.’ It is usually on-
the-job training and learning that makes it possible to bond workers with their
employers for the long haul. Skilled workers are less likely to job-hop than unskilled
workers; the former are likely to find that the recruitment practices of their
employers are more highly differentiated than the latter, and therefore an
inducement to stay on longer. It is important to remember that though Becker
emphasizes monetary returns to investment in human capital in his empirical and
theoretical studies on the economics of education, he does not discount the
importance of non-monetary returns. Investments in human capital enable workers
to not only be more productive and earn more, but also ‘to appreciate literature,
culture and the good life.’ The monetary side of human capital analysis has however
7. 7
got more attention because it is easier to measure and not because human capital is
reducible to the monetary returns to education and training.
THE ROLE OF THE FAMILY
Another important factor in the analysis of human capital is the role played by
supportive families. Children from supportive families usually do much better at
school and college. It is therefore imperative for families to develop good habits in
their children as early as possible. Families characterized by low levels of education,
early pregnancy, and marital instability are less likely to generate high levels of
human capital than those who emphasize the cultivation of good habits in their
children. Families with low levels of education and income are also less likely to
invest in their children or make only conditional investments in the next generation.
It is therefore important for the government to supplement investments that families
make on their children with long-term financing in the forms of loans, grants, and
scholarships. There is an extensive loans program, for instance, in the United States
to make college affordable for the majority of Americans who may not otherwise be
able to attend college. Many of these programs are tied to social security programs
for the elderly; so when students repay their loans it becomes possible to provide
welfare and retirement benefits for the elderly.
INVESTING IN CHILDREN
The patterns of spending and investment on human capital in families are also
important; typically families share the total resources available for education and
health with their children. The main decision parents have to make is the trade-off
between the quality of upbringing that they can provide and the number of children
that they have. The fewer the children, the higher the standards of living for the
family as a whole; and the quality of attention that children get from their parents in
their quest for a better life. The success of certain ethnic groups in the United States
in educating their children, and in raising their levels of income, relates to the fact
that they have as few children as possible. Rising levels of education and income
then are usually accompanied by a decline in rates of fertility. That is what Malthus
8. 8
did not anticipate when he feared that the population would expand faster than a
society’s ability to feed its members. In other words, a macroeconomic approach to
human capital studies has important implications for areas like demography and
governance since it will be able to predict trends in fertility rates and population
patterns much more effectively.
ECONOMIC DEVELOPMENT & POVERTY ALLEVIATION
An important problem in growth theory is to explain why some countries grow
consistently year after year while others lag behind. The factor that makes such
growth possible is not science and technology as such (since underdeveloped
countries have their share of these), but the deployment of science and technology in
the context of both industrial production and in the generation of human capital. In
other words, systematic investments in human capital are a prerequisite to
increasing output amongst ‘scientists, scholars, technicians, and managers.’ Societies
who understand the importance of human capital invariably have universal
schooling for all sections of the population; attending school is not a function of
whether the parents can afford to get the children educated. Increases in per capita
income are related to the fact that the educational system can prepare students for
life in a knowledge-based society. Becker points out that the rise of many Asian
economies which lack natural resources indicates the importance of human capital
as an important factor in economic growth. Japanese companies for instance
invested heavily in their workers and provided life-time employment as a way of
investing in their stock of human capital. But this was not always the case; in the first
half of the twentieth century, for instance, it was common for Japanese workers to
hop between jobs.
HUMAN CAPITAL & AGRICULTURAL GROWTH
Becker also explains the importance of human capital in the context of agriculture.
Unlike traditional farms where children learn all that they have to from their own
parents, modern approaches to farming require a high level of training and the
ability to ‘deal with hybrids, breeding methods, fertilizers, complicated equipment,
9. 9
and intricate futures markets for commodities.’ That is why in modern economies,
farmers are well educated. In the absence of education and training, farmers will
neither be able to cope with changes in agricultural science and technology nor be
able to compete effectively in terms of their total output. Educating farmers then in
the modern ways of agriculture is an important tool for the alleviation of rural
poverty. The alleviation of poverty, incidentally, happens to be the main goal of
economics; the tool that will make this possible is systematic investments in human
capital and in providing the markets that will value and enable commercial
transactions in any given instance of agricultural produce or industrial output. The
pervasiveness of poverty in an underdeveloped country is a symptom of inadequate
investments in human capital since the systematic need for investment in human
capital has been understood only late in economic history. That is why, according to
Becker, we are increasingly moving into the Age of Human Capital.13
THE AGE OF HUMAN CAPITAL
The main challenge in the Age of Human Capital is to find ways of harnessing ‘the
skills, knowledge, health, and habits of its population.’ It is not widely known or
understood that the bulk of the wealth of the advanced nations is in the form of
human capital. Becker estimates this amount to be almost eighty percent of the total
wealth. That is why no country in the world can afford to neglect its stock of human
capital. Poverty alleviation is however not the same as wealth maximization. What
emerging economies need is a strategy to do both. Becker is full of praise for many
Asian economies that have been able to develop and deploy their human capital
despite lacking in natural resources to generate financial capital. What these Asian
economies have is ‘a well-trained, educated, and hard-working labour force, and
dedicated parents.’ The success of many Asian, Latin American, and a few African
economies is all the more interesting because it was thought for long that they were
socio-culturally incapable of making progress because they were easy going or too
13 Gary S. Becker (2002). ‘The Age of Human Capital,’ available at:
http://media.hoover.org/sites/default/files/documents/0817928928_3.pdf
10. 10
hierarchical by temperament; they were therefore thought of as traditional societies
that are incapable of modernization. Increase in per capita incomes in countries
which lack natural resources invariably demonstrates the importance of human
capital in explaining higher levels of economic performance. The importance of
elementary education, secondary education, and health turned out to be crucial. It
took a while to understand what appears to be obvious in hindsight because the
model of economic development in closed economies was dependent on ‘physical
capital, heavy machinery, and import substitution.’ This approach led to a distortion
of the model of growth that would be necessary for underdeveloped economies to
utilize their stock of human capital more effectively. That is why it was important for
Becker to not only share his research findings with the World Bank, but also
encourage them to continue to invest in human capital through their ‘lending
practices’ given that human capital is the ‘engine of economic growth.’
HUMAN CAPITAL & GROWTH THEORY
What growth theory needs to do, according to Becker, is to formally represent ‘the
relationship between development and human capital investment.’
The importance of these formal representations is that it helps a country to choose
between the path of high or low growth rates by moderating the levels of birth,
education, marriage, fertility, and health. An important tool to make development a
reality is to encourage the active participation of women in education and the
11. 11
workplace. It is therefore extremely important to close the gap between the levels of
education for male and female children in traditional societies. This will increase the
probability that a virtuous cycle can be initiated since the more educated a married
couple is, the more likely is it that they will invest in the education and health of
their children. This will have an important effect in increasing the average life
expectancy in a given society and reduce bad habits amongst the population. So, for
instance, Becker observes that eating habits tend to be healthier amongst the
educated; they are also less likely to smoke; and more likely to use contraception and
practice safer forms of sex thereby reducing rates of HIV infection in the population.
The decrease in rates of adult and infant mortality in the developed world is related
to compulsory schooling.
HUMAN CAPITAL & THE MARKET SYSTEM
But while education and health are important factors in generating human capital, it
is also important to deploy human capital effectively. The economic system of
incentives, wages, organizational design, and the existence of competitive markets
are also important factors in alleviating poverty and generating economic growth. In
the absence of these market-based factors, communist countries could not grow
despite investments in education and health. It is therefore important for growth
theorists to identify what forms of interactions are required between human capital
and public policy as preconditions for economic growth and prosperity. Education
policy, in other words, can play an important role in reducing income inequality. An
important aspect of education policy that Becker analyses is the importance of
vouchers to enable poor families to access private schools since they may happen to
be in a neighbourhood which does not offer the type of schools that they are looking
for. Unlike rich families, they cannot afford to move to another neighbourhood to
merely get their children admitted in public schools; that is why it is important to
have a ‘voucher system that is limited to poor families.’ Comparative studies of
public and private schools in the United States and elsewhere show that children
from poor families gain a lot by ‘attending private schools.’
12. 12
CONCLUSION
And, finally, Becker concludes by pointing out that education in developing
countries must have a ‘broad reach’; it is absolutely important that ‘the vast majority
of the population attain decent schooling levels.’ Developing countries are more
likely to attract foreign investment if they have a population that ‘are sufficiently
skilled or can be taught’ and ‘that they can be used to produce the products that the
companies are thinking of locating there.’ Both training and re-training programs are
important; it is important to involve the private sector in this since the rates of return
are higher in the private sector than in the public sector. Becker is in favour of
vocational schools and on-the-job training and the part that can be played by
vouchers in making this possible. Becker emphasizes vouchers ‘because a voucher is
just a general technique of using government funds to finance private activity.’ So
while vocational training is important in building skills on a ‘very large scale,’ it may
not be possible for schools to carry the entire burden of training for vocational skills;
instead the government must ‘harness that to the private sector.’
These steps will ensure, Becker points out, that there is huge increase in the total
stock of human capital in any given knowledge-based economy.
SHIVA KUMAR SRINIVASAN