HUMAN CAPITAL INVESTMENT

2.3.1 Human Capital Structure

Just like financial capital structure, which consist of various types of capital, the human capital
structure consist of various types of employees employed in an organization. The types of employees
may be executives, supervisory, artisans, clerical and skilled-staff or semi-skilled staff. The
composition and proportion of various types of employees play an important role in the development
of an organization.
People are the greatest asset the only real difference between one organization and the other is the
performance of the people. The survival, development and performance of an organization depends
heavily upon the quality of manpower, Right from Alfred marshal a century ago, down to the
management Guru Peter Drucker, focusing attention knowledge workers and knowledge industries
come out clear message that “Knowledge” is the key to development. We are in the knowledge era
where the new wealth of matrons is tied directly up with the creation, transformation and
capitalization of knowledge.
Knowledge based industries especially in the science and technology based units are expanding
faster than many other industries and contribute towards the transformation of a country‟s
economic infrastructure. As there is greater demand for knowledge based products the role of
knowledge in achieving competitive advantage has become a very important matter in all sections
of management. Knowledge, a primary competitive factor in business, which is non-traditional and
intangible, and its accumulation, transformation and valuation lie at the heart of intellectual capital
management. A recent study 66