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Capital is a well-known term in commercial world. It plays a vital role to start any economic activity. Mainly two kinds of capital exist in this economy.
- Financial capital
It is the monetary resource which is essentially needed to do any kind of business activity. It can be found in the form of cash, share, equity, bond, assets, etc.
- Human Capital
This is other types of resources comes from workforce or human labour. It can be measured in the form of employee’s and labour’s education, intelligence, ability, strength, experience, etc.It also plays a significant role in running a business.
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Something more about the subject topic
The performance of all types the employees and labours never can always be equal. It is because of their diverse capacity. The production, warehousing, distribution, sales and marketing and administration these ate most important task for smooth running of a business organisation. And these tasks are done only by the workforce, which means human capital.
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Significance
Human capital and its measurement is quite a significant factor in commercial field. A company’s prosperity and development stand on the pillars of diverse skills and qualities of its employees. So companies need to realise the necessary skills required for their business and how to exploit them for the maximum profit and for rapid growth.
It is most challenging task
Generally, good name of an organisation is judged by its staff.This is because company staff is solely responsible for producing and providing quality products and services to their customers.Hence, it can be said that workforce or human capital plays a significant role in company’s growth and success. So, selecting company employees and labours as per company’s requirement is very tough and challenging job.The specific authority that handles these activities are commonly termed as Human Resource Department.
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