bring out the difference between humam capital and human development
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Difference between Human Capital and Human Development
Human capital and human development are terms that are used in economics for representing human resources. This is an important concept of economics, which deals with the way human resources are perceived by these terms.
Meaning of Human Capital
Human capital is referred to as the measure of the capabilities of labor which includes skills, working capacity, education, health and intelligence.
The concept of human capital focuses on the point that not all resources are equal, but with proper training and investment that gap can be fulfilled.
For a business, the skills, experience and education of an employee are extremely important, these create economic value for the business and economy as a whole.
Human capital is considered as important for business because they help in increasing the productivity which is responsible for profitability.
Therefore, according to human capital concept, by investing more in employees, a firm can become more profitable.
Meaning of Human Development
Human development is referred to as the process of expansion of the capabilities of humans in terms of abilities, rights.
The purpose of human development is to provide an appropriate environment for the people to enjoy a healthy, creative and long life.
The following points of differences between human capital and human development can be discussed