Human Capital

Human capital is defined as the knowledge, skills, abilities, and other characteristics (e.g., personality, interests, values) possessed by individuals that can be put to use to produce economic value. At an organizational level, human capital is the stock of these attributes possessed by the individuals employed by the organization and, therefore, available to the organization in the production of goods and services. Human capital can be developed within an individual through experience, education, training, or other types of activities. Individuals can invest in developing their own human capital to increase the economic value of their labor. Fundamental issues of human capital within an organization predominately concern how a firm acquires, deploys, develops, and retains it to generate the maximum possible return on its investment.

Adam Smith, ...