HUMAN CAPITAL THEORY: THE THEORY OF HUMAN RESOURCE DEVELOPMENT, IMPLICATIONS, AND FUTURE

Abstract

In the knowledge-based economy, human resource is viewed as an invaluable asset capital that firm invested. Human capital theory seeks to explain the phenomena using the economics point of view. This view asserts that to invest in human capital a competitive advantage and sustainability in the complex business world will be gained. The purpose of this literature review is to clarify, investigate, and discuss by identifying and synthesizing the human capital theory and its implication for the benefit of both human resource development and management practitioners. The human capital theory which is a current human capital measurement has many human capital and human resource development implications The future of human capital, its success and failure, and certain conclusions, including other related human resource development concepts, are also presented.