Define human capital and social capital and give examples of

Define human capital and social capital, and give examples of each. Explain at least three ways that each can be developed.

Solution

Human Capital refers to the capabilities and skills that the employees of a company posesses and brings to the operation of the organisation.

Example: Assemply line workers use equipments as well as skills acquired through training and practices.

3 ways to develop human capital

1) Give education to you employees. eg: Higher education schemes in organisations

2) Cultivate human network : The more the employees will interact with each other the more they will know about each others skills ans abilities and better team formations will take place and right opporutnity will mean right skill set.

3) Motivate you employees to stay helathy and fit as it can directly effect your bottom line because if they will be unhealthy productivity and efficiency of employees will decrease.

Social Capital refers to the relationship people have with each other and their desire to do things for each other and with others in their social network.

Example: Taking care of health of your employees.

3 ways to develop social capital

1) Start a group in your department to discuss issues

2) Volunteer to drive someone home.

3) Say hello to colleagues at workplace everytime you cross paths