Human Capital: The Capital of Success

Abstract

This academic article aims to study human capital, perspectives on human resource development, factors affecting human capital development, and the importance of human capital for economic and social development. The goal is to raise awareness and emphasize the importance of human resources as well as approaches to developing human resources into human capital for the development of society and the country. Human resources are the most crucial driving force in the development and creation of society. Humans are the creators of innovation, technology, art, culture, and various systems that make up society. Developing humans into human capital is therefore important for the development of organizations, the economy, and society. Human capital consists of three main components: intellectual capital, social capital, and emotional capital, which are valuable resources in driving organizations towards success in the era of globalization. The evolution of human resource development from the past to the present has shifted from viewing people as costs to viewing them as human capital. Factors affecting human capital development can be categorized into three groups: individual factors, internal organizational factors, and external organizational factors. The role of human capital in economic development is to increase productivity, promote innovation, and promote good governance. The role of human capital in social development is to reduce inequality, promote health, create a learning society, promote democracy, and promote morality and ethics. Human capital development must be carried out at all levels, including individual, family, and national levels, to create a strong society and a sustainable economy.