Lesson Notes By Weeks and Term - Senior Secondary 3
Human capital development
Human capital development
Term: 1st Term
Week: 2
Class: Senior Secondary School 3
Age: 17 years
Duration: 40 minutes of 2 periods each
Date:
Subject: Economics
Topic:- Human capital development
SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to
INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source
INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures
INSTRUCTIONAL PROCEDURES
PERIOD 1-2
|
PRESENTATION |
TEACHER’S ACTIVITY |
STUDENT’S ACTIVITY |
|
STEP 1 INTRODUCTION |
The teacher reviews the previous lesson on a brief history of the Asian tigers |
Students pay attention |
|
STEP 2 EXPLANATION |
She defines human capital development. She states and explains the types of human capital development
|
Students pay attention and participates |
|
STEP 3 DEMONSTRATION |
She gives examples of human capital development. She further discusses how human capital development relates to the economy |
Students pay attention and participate |
|
STEP 4 NOTE TAKING |
The teacher writes a summarized note on the board |
The students copy the note in their books |
NOTE
ECONOMIC HISTORY OF THE ASIAN TIGERS AND JAPAN (1960-2000)
hat Is Human Capital?
The term human capital refers to the economic value of a worker's
experience and skills. Human capital includes assets like education,
training, intelligence, skills, health, and other things employers value such
as loyalty and punctuality. As such, it is an intangible asset or quality that
isn't (and can't be) listed on a company's balance sheet. Human capital is
perceived to increase productivity and thus profitability. The more
investment a company makes in its employees, the chances of its
productivity and success become higher.
Understanding Human Capita
An organization is often said to only be as good as its people from the top
down, which is why human capital is so important to a company. It is
typically managed by an organization's human resources (HR) department,
which oversees workforce acquisition, management, and optimization. Its
other directives include workforce planning and strategy, recruitment,
employee training and development, and reporting and analytics.
The concept of human capital recognizes that not all labor is equal. But
employers can improve the quality of that capital by investing in employees.
This can be done through the education, experience, and abilities of
employees. All of this has great economic value for employers and for the
economy as a whole.
Since human capital is based on the investment of employee skills and
knowledge through education, these investments in human capital can be
easily calculated. HR managers can calculate the total profits before and
after any investments are made. Any return on investment (ROI) of human
capital can be calculated by dividing the company’s total profits by its
overall investments in human capital.
For example, if Company X invests $2 million into its human capital and
has a total profit of $15 million, managers can compare the ROI of its
human capital year-over-year (YOY) in order to track how profit is
improving and whether it has a relationship to the human capital
investments.
Special Considerations
Human capital tends to migrate, especially in global economies. That's why
there is often a shift from developing places or rural areas to more
developed and urban areas. Some economists have dubbed this a brain
drain or human capital flight. This describes the process that keeps certain
areas underdeveloped while others become even more developed.
Human Capital and Economic Growth
There is a strong relationship between human capital and economic
growth, which is why it can help boost the economy. That's because people
come with a diverse set of skills and knowledge. This relationship can be
measured by how much investment goes into people’s education.
Some governments recognize that this relationship between human capital
and the economy exists, and so they provide higher education at little or no
cost. People who participate in the workforce with higher education will
often have larger salaries, which means they can spend more.
Does Human Capital Depreciate?
Like anything else, human capital is not immune to depreciation. This is
often measured in wages or the ability to stay in the workforce. The most
common ways human capital can depreciate are through unemployment,
injury, mental decline, or the inability to keep up with innovation.
Consider an employee who has a specialized skill. If they go through a long
period of unemployment, they may be unable to keep these levels of
specialization. That's because their skills may no longer be in demand
when they finally reenter the workforce.
An individual's human capital may depreciate if they can't or won't adopt
new technology or techniques. Conversely, the human capital of someone
who does adopt them will.
History of Human Capital
The idea of human capital can be traced back to the 18th century. Adam
Smith referred to the concept in his book An Inquiry into the Nature and
Causes of the Wealth of Nations, in which he explored the wealth,
knowledge, training, talents, and experiences of a nation.
1 Adams
He suggested that improving human capital through training and education
leads to a more profitable enterprise, which adds to the collective wealth of
society. According to Smith, that makes it a win for everyone.
In more recent times, the term was used to describe the labor required to
produce manufactured goods. But the most modern theory was used by
several different economists including Gary Becker and Theodore Schultz,
who invented the term in the 1960s to reflect the value of human
capacities.
improve the quality and level of production. This would require an
investment in the education, training, and enhanced benefits of an
organization's employees.
Criticism of Human Capital Theories
The theory of human capital has received a lot of criticism from many
people who work in education and training. In the 1960s, the theory was
attacked primarily because it legitimized bourgeois individualism, which
was seen as selfish and exploitative. The bourgeois class of people
included those of the middle class who were believed to exploit those of the
working class. The theory was also believed to blame people for any
defects that happened in the system and of making capitalists out of
workers.
What are examples of human capital?
Examples of human capital include communication skills, education,
technical skills, creativity, experience, problem-solving skills, mental health,
and personal resilience.
What is the relationship between human capital and the economy?
Human capital allows an economy to grow. When human capital increases
in areas such as science, education, and management, it leads to
increases in innovation, social well-being, equality, increased productivity,
improved rates of participation, all of which contribute to economic growth.
Increases in economic growth tend to improve the quality of life for a
population.
How can I increase my human capital?
Ways to increase your own human capital include more education,
automating finances to improve efficiency, expanding your horizons outside
of your social and workplaces, obtaining more experience, increasing
participation in a multitude of activities or organizations, improving your
communication skills, improving your health, and expanding your
Factors Affecting the Efficiency of Human Capital
Brain Drain and its Effect on the Nigeria Economy
Brain drain is the large scale emigration, over a comparatively short period,
of a large number of highly skilled intellectuals and technical labour to more
favourable geographic, economic and professional environment. E.g. large
scale movement of Nigerians health-care professionals to India, America
and other high income countries. It is also referred to as “capital flight”.
Reasons for Human Capital Flight
Effects Brain Drain on Nigeria Economy
Effects of Brain Drain on the Destination Country
EVALUATION:
CLASSWORK: As in evaluation
CONCLUSION: The teacher commends the students positively