Case Interview Prep

Category - Management

Which term best describes the economic value of the abilities, skills, and competencies of a company’s work force?
  1. Company overhead
  2. People management
  3. Human resources
  4. Human capital
Explanation
Answer: D - Human capital is defined as the economic value of the skills, abilities, and competencies of the company’s work force.

Key Takeaway: Often, it is difficult to place a value on the human capital within an organization. However, many companies are starting to realize that the human element (including the skills and abilities) do represent a real monetary value. Human capital is one method to help a company evaluate the monetary value of their people.
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