10. Link between Human Capital and Human Resource Development
10. Link between Human Capital and Human Resource Development In the current organizational context, people bring different levels of education, skills, knowledge and abilities where organizations rely on employee knowledge, skills and abilities as a key from of value creation. McConnell, C, Brue S and Macpherson D, 2009, p.85 has asserted that a more educated, better trained person is capable of supplying a large amount of useful productive efforts than one with less education and training. The great economist, Adam Smith has defined the human resource as a production factor and the term “human capital” has been introduced by Theodore W. Schultz. Human capital theory has been initiated by Gary Backer. Human capital is the knowledge and skills that people acquire through education and training and this capital is a product of deliberate investment that yields return. (Shultz T.W, 1961) Link between Human Capital and Human Resource Development ...