Human Capital Formation in India test - 8

Investment in human capital is expenditure on:-

• Education
• Training
• Healthcare

"Economic Development is the process by which an economy is transformed from one whose rate of growth of per capita income is small or negative, to one in which a significant self-sustained rate of increase of per capita income is a permanent and long term feature".

"Economic Growth can be defined as an increase in overtime in per capita output of material goods". This definition is given by Paul Baran. A sustained increase in real per capita income is the true index of economic growth. It talks about quantitative increase but not qualitative increase. 

An increase in the amount of goods and services produced per head of the population over a period of time is called economic growth. It includes increase in per capita production, per capita real income and structural change in economics. It talks about quantitative increase but not qualitative increase.

Kerala is more focused on Human resource development. It has given the highest importance to education and healthcare infrastructure which has contributed to human resource development in the state.  Human resource development is the part of human resource management that is concerned with training and development of employees of the organization. 

Economic development is the economic growth accompanied by imporvement in well being of man. For example just increase in national income or increase in production of goods and services is not an economic development but it is economic growth. It should be accompanied by improvement in the quality of life like improvement in the technology involved, improvement in production, improvement in distribution system.

It is characterized by Structural change in the economy and also Change in the occupational structure. It talks about quality of life.

Economic development is the economic growth accompanied by improvement in well being of man. For example just increase in national income or increase in production of goods and services is not an economic development but it is economic growth. It should be accompanied by improvement in the quality of life like improvement in the technology involved, improvement in production, improvement in distribution system.

Human resource management is normally proactive in nature. Human resource management is a strategic method. It deals with the effective management of people in an organization.
The focus of Human Resource Management revolves around men.

Human resource management involves maximizing employee performance in order to achieve an employers objectives. Human resource management includes attractions, selection, training, assessment and rewarding. 

The finance department manages the finances of an organization.The HR department consults with the core team as well as the finance department before hiring a employee.