Question

3 differences between human capital and human capital formation​

Answer 1

Answer:

Human capital practice requires tools, methodologies, business acumen, openness, desire for helping others, reflective work on self, and more of leadership skills. Human capital develops employee's knowledge and skills, while human resource helps improve employee's quality life in organization.

Answer 2

In general sense,human capital is considered as one of the factors or resources of production.Human capital formation refers to the growth or increase in the population of qualified and educated individuals who can be currently and potentially be used in the production process in the economy.

Explanation:

Key difference between human capital and human capital formation:-

1. Human capital is considered as factor or resource that is used or employed in the production process by firms,companies or business organisations.Human capital formation refers to the expansion of the human capital in an economy through a rise in the population of qualified,skilled and educated individuals who can be hired by firms or companies for production and operational purposes.
2. Human capital is a narrower or relatively smaller concept but human capital formation is a broader concept and relate to the entire economy.
3. Human capital does not usually relate to the overall economic growth of a nation but human capital formation is an extremely essential component or determinant of economic growth of any nation.