EDU 3101

8th Lecture by Abd Razak Kaprawi 2012

Concept of Human Capital

Definition of 'Human Capital'

A measure of the economic value of an employee's skill set. This measure builds on the basic production input of labor measure where all labor is thought to be equal. The concept of human capital recognizes that not all labor is equal and that the quality of employees can be improved by investing in them. The education, experience and abilities of an employee have an economic value for employers and for the economy as a whole. Education is an economic good because it is not easily obtainable and thus needs to be apportioned. Economists regard education as both consumer and capital good because it offers utility to a consumer and also serves as an input into the production of other goods and services. As a capital good, education can be used to develop the human resources necessary for economic and social transformation. The focus on education as a capital good relates to the concept of human capital, which emphasizes that the development of skills is an important factor in production activities. It is widely accepted that education creates improved citizens and helps to upgrade the general standard of living in a society. Therefore, positive social change is likely to be associated with the production of qualitative citizenry. This increasing faith in education as an agent of change in many developing countries, has led to a heavy investment in it. The pressure for higher education in many developing countries has undoubtedly been helped by public perception of financial reward from pursuing such education. Generally, this goes with the belief that expanding education promotes economic growth. Human capital theory emphasizes how education increases the productivity and efficiency of workers by increasing the level of cognitive stock of economically productive human capability which is a product of innate abilities and investment in human beings. The provision of formal education is seen as a productive investment in human capital, which the proponents of the theory have considered as equally or even more equally worthwhile than that of physical capital. According to Babalola (2003), the rationality behind investment in human capital is based on three arguments: i. that the new generation must be given the appropriate parts of the knowledge which has already been accumulated by previous generations; ii. that new generation should be taught how existing knowledge should be used to develop new products, to introduce new processes and production methods and social services; and iii. that people must be encouraged to develop entirely new ideas, products, processes and methods through creative approaches. According to Fagerlind and Saha, (1997) human capital theory provides a basic justification for large public expenditure on education both in developing and developed nations. The theory was consistent with the ideologies of democracy and liberal progression found in most Western societies. Its appeal was based upon the presumed economic return of investment in education both at the macro and micro levels. Efforts to promote investment in human capital were seen to result in rapid economic growth for society. For individuals, such investment was seen to provide returns in the form of individual economic success and achievement.

Teachers career as religious obligation: Religious perspective Worship (`ibadah) Let us first ascertain the significance of the topic under study through an example. Suppose someone has been employed to perform a certain number of tasks, and he does only half of the given tasks in a particular day. Even if he has performed his tasks efficiently, meticulously, sincerely and painstakingly, his job will remain undone. Furthermore, it is likely that the missed duties are the most important and vital ones to his company or employer. For this reason, we must reassess our obligations to God, since it is likely that our condition is not too different from the one in the above-mentioned example. Before commencing with the subject, however, let us understand its importance from yet another angle. There are two main factors that determine ones actions: (1) Intentions and (2) Clarity of purpose. Intentions, no doubt, occupy the pride of place. These should be driven by our faith in God, and ones intention to obey all of Gods commands. It plays a central and decisive role in the worthiness of ones actions. Equally important is the related point that one should have a clear understanding of his/her responsibilities on the basis of which there will be a Reckoning. If ones understanding is limited or faulty, the performance will also be limited or faulty, resulting in potentially devastating consequences in the Hereafter. This is perhaps the most comprehensive term regarding personal submission. As a term it might be defined as, To surrender oneself completely out of love. The Qur'an declares that the very purpose of the creation of human beings is to worship God. The Arabic word "`ibadah" stands for both worshipping and praising, embracing the twin connotations of obedience and love. A persons relationship with God is similar to the relationship between a master and his slave. Therefore, to all teachers out there, let's frame our career so that it has 'ibadah' value, it provides valuable meaning, it sustains our motivation to be closer to God and it sparks the spirit of giving. Let's change our perception, our world view of what we are doing now. As for teachers, a few examples relief class: previously -- a burden, have no time to rest now -- extra time for me to write good messages to my students (to be closer to Allah) meeting: previously -- a long, tiring, waste of time session now -- brain storming, solutions finding, information clarifying session clerical work: previously -- tedious, never ending tasks now -- practice to be a well organized person, an effort for improvement measures in the future and the list should be longer. Please give a few more examples. Let's purify our intention, give the best we can and we will be happy in the end.