Nashbramhall
Learning & Teaching Fellow (retired)
+4 Others

Respected Seniors,
i am presently working in a express cargo company which is in a inception phase. Right now we are creating the organization culture and also our department with respective to it.
Being an Human Resource Personal i hard the term "Human Capital".
I am not able to understand the differences between the Human Capital and Human Resource as in a practical manner.
It would have been a great help for me if you kindly help me regarding the above mentioned manner.
Thanks & Warm Regards
Alin
5th May 2012 From India, Delhi
Hello Alin,
What do you think is Capital and what is resource??
I shall say human resource and human capital used alternatively, no much difference is observed in usage.
But technically speaking, Human resource is the human STOCK, ASSETS, RAW MATERIAL or Material in hand to use when ever the requirement arises. The property in hand for use, the resource, the potential to be used when needed.
Where as, Human Capital, is that part of the human resource which already being INVESTED, already being in use, the important part of the resource from which you are expecting your returns. The actual resource underproduction, utilisation, conversion of potential in to results.
Hope, I have tried to make it clear.....
5th May 2012 From India, Bangalore
Hi,
I am working as HR & ADMIN Executive in a retail manufacturing company, based in Dubai. I also heard the term called "HUMAN CAPITAL" and there are some organizations has named their Human Resource Department as " Human Capital Department".
I requested anyone can give a clarification between HUMAN CAPITAL and HUMAN RESOURCE
Thanks and Regards,
Sankar
5th May 2012 From United Arab Emirates, Dubai
Sankar, If you are not satisfied with the above explanation, as k the question in specific, excluding already being discussed......
5th May 2012 From India, Bangalore
Hi BSSV,
Thanks for your valuable reply. I didn't notice the reply which you had given.,
I have a small clarification that, as you mentioned Human Capital is the part of the Human Resource, which means that,, Human Resource we can compare with the new recruitment and Capital to the existing employees.
Hope the question is clear...
Regards,
5th May 2012 From United Arab Emirates, Dubai
I told you in the pragmatic sense, we hardly see any difference but use the terms alternatively/synonymously.

But technically, yeah, its like the process, Acquire, Utilise/invest (retaining), disposal.....

And, yeah new recruitment is the process of acquisition, acquiring human resource, that is why you search for a potential candidate expecting the good returns in future. so you look for a good raw material to come with a standard finished good right!! just like that, right candidate, right job, right time (Capitalization process ) once they start producing the expected (they are converted in to capital) and when the production is successful you get the returns (return on investment)........

Infact, company do calculate the return on investment of human resource, you have a formula for that, ( net Benefit divided by cost is the return on investment [and net benefit you get when you deduct total benefit from total cost])...........Since, that fall under the matter of potentiality and quality, it is preferred to be considered under Training and development. Do not get confused, if you could understand well and good, otherwise you will get it gradually, not much important........
5th May 2012 From India, Bangalore
Here is the answer for the question - these are gathered from various sources and presented here for your information and understanding.

Human Resource is simply human potential. Potential with infinite capabilities and capacity with the possibility of beneficial engagement. Potential however, it must be noted does not have to be productive and that an opportunity has to be provided to translate potential into real value.

Human Capital is a well employed human resource that is actively engaged in meaningful, worthwhile work and delivering some level of desired productivity. Human Capital is a question of factoring knowledge and application to physicality.

Human Investment is determined by the degree to which the human capital is productive and producing dividends. Human Investment is a question of physicality, knowledge and application channeled towards great returns on investment.

"Resources" have been defined as "The total means available for economic and political development, such as mineral wealth, labor force and armaments. An available supply that can be drawn on when needed."

"Capital" is defined as "Any form of wealth employed or capable of being employed in the production of more wealth."

Simply put, resources are finite. We can strip coal, gold and iron mines until the supply is exhausted. Capital can be infinite, as it can be used to produce more and more capital.

Human capital is partially comprised of skills, understanding, knowledge and experience - some of which may be innate. From a broader perspective, human capital includes the character, ethics, personality and creativity of a human being. Even if we are born with these attributes, it is often required we spend time, effort and money to retain or to grow them - thereby, increasing human capital.

We may accumulate, maintain and increase human capital in many ways; through education, job training, work experience, life experience, investment in health, etc. Time, money and effort are spent acquiring human capital.

Capital is capital - you spend something now, in hopes of getting a return on your investment later. Many companies have come to recognize their investment in human capital may be the most important investment they will ever make. When it comes to human capital, you are investing in people and the "return" you receive most likely is much more than financial gain. You may also gain knowledge, a larger group of contacts, more productivity, increased happiness and security.

M.J.SUBRAMANYAM, BANGALORE


6th May 2012 From India, Bangalore
Like Aussiejohn keeps reminding us, we should search before asking the question. For example I found the answer at The Manoj Sharma Blog: The Difference Between Human Resources, Human Capital and Human Investment by Manoj Sharma by Googling.
6th May 2012 From United Kingdom
human resource refers to all the functions such as recruitment and selection, staffing, training and development. performance management and appraisal, career development etc
while Human capital refers to the education, experience, knowledge, skills, certifications and achievements that employee holds for performing different jobs.
7th May 2012 From Pakistan, Rawalpindi
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