Human Capability And Human Capital Case Study

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It is important to note that human capability and human capital are not the same. Their differences will be further discussed below.
Firstly human capability cannot be taught or transferred from one person to the other. A human beings capability affects how they live their lives on daily basis as well as what kind of decisions they take, it is mostly tacit. It is how they deal with conflict, stress and even time management and human beings will take decisions according to their personality and preference.
With human capital however, this can be transferred through formal institutions such as schools, universities, organizations, government or even training facilities to teach people certain skills which may help them in being employable and economically active. Most skills that are taught are in line with certain occupations to deal with skills bottleneck. According to Sen (1997: 1959), “human capital concentrates on the agency of human beings through skills and knowledge as effort in augmenting production possibilities.”
Secondly, …show more content…

Knowledge can also be tacit through the creation and exchange of inflexible knowledge that is not written. The benefits of human capabilities and human capital in the evolution of systems of innovation is that learning can be transferred face-to-face while others may be through communal sharing. It is sometimes difficult for knowledge to be transferred in firms but becomes easier to share through similar belief systems, values as well as language. This makes it easier for human capabilities and capital to be developed as individuals will better understand the institutions and firms around them and ultimately be able to make a meaningful contribution to them with the knowledge they

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