The Essence and Role of Human Capital in Increasing Production Efficiency

Abstract

The article discusses the origin of the concept of "human capital". In the economic and social sciences, the first place is always occupied by human capital, whose creative qualities, abilities, strengths can improve one's personality and the world around it. But the development of the material and technical base of accelerated production overshadowed the problems of human development and its productivity capabilities. As a result of all this, for many years the capabilities of the producer were considered as one of the quantitative factors of production. At the same time the main task was only a qualitative combination of labor, working capital and fixed assets. The idea of human capital has long been rooted in the history of economic thought. One of his formulations can be found in William Pete's "Political Arithmetic", which was later reflected in Adam Smith's "Studies on the Nature and Causes of People's Wealth", in the Principles of Economics by Alfred Marshall and many other scholars. The theory of human capital was developed at the turn of the 50s and 60s of the 20th century. The paper analyzes the structural elements of human capital from the point of view of various authors. The author has studied the characteristics of human capital that distinguish it from other capital. The characteristics of the human capital of the organization were examined, the evaluation methods were determined, the role of human capital in the improvement of the efficiency of the organization was determined. It has been found that the effectiveness of human capital management depends on the mobility of working resources. As a result of the research, the author presented a model of human capital management of the organization. Keywords: human capital, organization, efficiency, formation, management, system.