The theory of human capital originated from economic research. In 1960s, American economists Schultz and Becker founded the theory of human capital, which opened a new concept of human productivity.
The theory holds that material capital refers to the capital on material products, including factories, machines, equipment, raw materials, land, money and other securities. Human capital is the capital embodied in people, that is, the sum of producer's expenditure on education and vocational training and the opportunity cost when receiving education, which is reflected in the sum of all kinds of production knowledge, labor and management skills and health quality contained in people.
A summary of human capital theory
Human capital management is not a brand-new system, but based on human resource management, which combines the two analytical dimensions of "return on capital investment" of human management and economics, invests and manages people in enterprises as capital, and adjusts management measures in time according to the changing information of human capital market and return on investment, so as to obtain long-term value return. Traditional human resource management is not only out of date, but also the technical basis of human capital management.
Human capital management is to realize a higher level of value realization by integrating various human resource management means. Human capital management pays attention to the interactive relationship between investment and return, and makes investment plans in combination with market analysis. Therefore, it is relatively more rational, more sensitive to market changes, and clearer in focus and measurement. It can also be combined with economic analysis model to make longer-term predictions and take forward-looking actions.