A Study Of The Human Resources Development And The Investment In Human In The Era Of Knowledge Economy

In today's language of economic development, the definition of strategic resources is shifting from one based on traditional forms of capital to one based on human capital. By developing high value-added products and generating returns through professional skill and innovation, human capital is becoming the prime engine of economic growth in this era of the knowledge-based economy. In China, natural resources are relatively scarce while reserves of human resources are extraordinarily rich. Only through rational development and deployment can this potential productivity be tapped, making the transition from population quantity into quality, burden into strength.This qualitative change depends on institutional guarantee, policy steering, and the development of a human resources market. The key to exploiting the potential of human resources is motivation, with self-motivation being the ultimate goal. The process is systematic: through a series of measures carried out administratively, behaviors and drives are modified while self-direction among employees is promoted. As a result, the standard of internal organization within the enterprise is raised at the same time efforts are made to reach the goal of self-motivation. As this process is also a process of capitalizing manpower, employees must be viewed as human capital rather than tools.Unlike material resources, human capital by definition does not occur in a natural state nor is the result of natural forces: it is the result of conscious investment, development, and directed growth. As this form of capital is composed of physical and mental energy, health and education are the pathways that lead to its formation and accumulation. Because of human capital's characteristic appreciation in value, education must be considered an investment rather than an expenditure. The principal investors in education are government, families, and individuals. Government investment in education is a scarce public resource and must compete for funds with other government expenditures. With limited resources available, optimizing their allocation and taking advantage of alternative sources of funding are effective means to make up for shortfalls in education investment and to stimulate economic development. To achieve robust economic and social development, the government should pragmatically determine and set the ratio of investment in material and human capital and keep both the present situation and future demands of development in mind while planning these investment strategies.