What is the role of human capital?

The role of human capital in the economy as a whole and in individual organizations simply refers to the contribution of people to the development of economics or individual companies and organizations over time. This role of human capital includes the use of knowledge and experience that helps shift society and the country forward. Another explanation of the role of human capital can be achieved by looking at various forms of human capital.

Human capital is a way to describe an investment in human beings that can be a government or individual organizations. An example of human capital is education or training that can be formal or informal. Earth with large human resources or populations may lack sufficient human capital, leading to insufficient development of these countries. On the other hand, some countries may have less than half of human resources in undeveloped countries, yet they could be very developed in terms of success and economicic. The reason is the role played by human capital,that uses its knowledge and experience to help the country in different ways.

also benefits from investing in human capital. Most companies have established systems where new employees are trained or further educated in the methods of a particular sector. Over time, these employees become more valuable and productive for the increase in their human capital gained from training and experience. Companies are also experiencing more innovations and financial turnovers from the increased pace of productivity and the role of human capital in their organizations.

Another form of human capital is investment in the health of the population or employees. Nations with a fixed framework of prevention and health management will also be a correlate increase in the number of healthy people, who will then apply full attention to the nation or full productivity at their workplace. This is unlike countries where the health care systemE is not well structured and there are many losses of human capital by deaths and sick leaves from work.

Good moral values ​​are also investments in human capital, which results in raised citizens who do not deal with excessive activities without the law. This can be contrasted with a country where moral values ​​are lax and human capital is lost by imprisonment, murders and other forms of human capital and waste on human resources. Another reason why good morality is beneficial is that such human capital minimizes the amount of taxpayer's money, which is assigned to prison and other outflows of moral values ​​in society.