International Journal of Recent Technology and Engineering (IJRTE)
ISSN: 2277-3878, Volume-8, Issue-3, September 2019
2980
Published By:
Blue Eyes Intelligence Engineering
& Sciences Publication
Retrieval Number C4821098319/2019©BEIESP
DOI: 10.35940/ijrte.C4821.098319
Abstract: In the global scenario, the companies are controlled by
challenger, despite of industry. The highly aggressive market has
made impression on the companies to have competitive
advantage. The unique challenging edge is company’s human
capital. The human capital play significant role in increasing
organizational performance. Now organizations have to take
moment to enhance their workforce by imparting training and
development program to upgrade skills, talents and knowledge to
make their human capital effective. It also examines on the
mindset of the employees and gives high attainment in their
workforce planning. An employee is most valued resource to a
company and provides tangible base needed to build long-term
profitability and continuous success. Hence the study determines
the significance importance of human capital investment in
Indian pharmaceutical sectors. The situation of current human
capital investment are explore and conclusion drawn from the
study
Keywords: Human Capital, Investment in Human Capital,
Pharmaceutical Industry
I. INTRODUCTION
“Employees are the lifeline of an organization”
The roots of human capital come from the economic just
like other concepts. So it is not defined clearly. Becker (1962)
felt difficult to determine human capital in his theory. From
the literature review provide/purvey intuition on human
capital definition. The most premier definition in human
capital covers:
“Human capital consist of knowledge, skills attitude,
experience and other traits which contribute to the production
and productive in the organization” (Goode,
1959)
According to the author Roos and Roos (1997) define the
human capital as a combination of intangible assets that are
acquired by the people in the organization. These intangible
assets are classified into three types, which are competencies,
attitude and intellectual skills and knowledge.
Laroche et al. (1999) explain human capital in eight specific
components of the broad understanding and pay special
attention that are analyze as human capital comprises an
innate and an acquired component which is not tradable but
available to acquire human capital from different channel
through formally or informally. The human capital may have
Revised Manuscript Received on September 25, 2019.
* Dr. Pulidindi Venugopal
Mohammed Irfan, Research Scholar, Andhra University-SANA
Engineering College, Department of MBA, Kodad, Suryapet Dist.
Telangana, India Email: irfanmd2004@gmail.
Dr. Jaladi Ravi, Professor, Department of Commerce and Management
Studies, Andhra University, Visakhapatnam, Andhra Pradesh, India.
Email: dr.ravijaladi@gmail.com.
Dr. Pulidindi Venugopal, Department of Technology Management,
Vellore Institute of Technology, Vellore, India. Email:
pulidindivenu@gmail.com .
both qualitative and quantitative aspects which can be specific
or general. The knowledge and abilities which are acquired by
the human beings are not utilized fully in all aspects. But
human capital may effect from the external factors.
Chen et al. (2004) define Human capital as a combination
of peoples competences, peoples attitude and peoples
creativity. It is also mention that individual knowledge and
skills, talent are creating value to the organization. Litschka et
al. (2006) ascertain that human capital is a combination of
elements which consists of individual skills, knowledge and
abilities to work, which covers the psychological aspects and
somatic aspect. The potential abilities of individual are used
for the growth and development of organization performance
but these resources are not owned by the organization.
II. HUMAN CAPITAL SIGNIFICANCE
Physical capital plays a very significance contribution in
the industrial revolution. In this context, what will influence in
the information era to create wealth to the knowledge based
industries. This can be created wealth with help of Human
Capital. In 1995 world bank conducted a research study to
know the global wealth of 192 countries and concluded that
global wealth provide 16 percent share of physical capital, 20
percent share of natural capital and 64 percent share of human
and social capital. Nafukho et al. (2004) proposed that the
development of individual, organization and nation can be
achieved by investing in education and training which will
create human capital.
Weathelrly (2003) reveals that new vision in Information
era is Human Capital Management. Human being has to take a
terse decision to perform the activities to be happened.
According to the Johnson (2002) disclose the human capital
importance and expressed that all innovation are human
innovation. In economy and business system are maintain by
the peoples. In this view, it says that without humans there is
no structural capital and intellectual capital. The research
author Lucas (1988) disclose that human capital have
significant impact in the growth rate of the countries.
III. INVESTMENT IN HUMAN CAPITAL
According to the Mincer, Schultz, and Becker have
provides a clear analysis on investment in human capital.
Schultz (1971) concluded that investment in human capital
can be classified into five categories. Investment in education
(schooling and higher education), invest in upgrading skills
and knowledge (on the job training) invest on migration, and
investment on health and economic information. The author
believed that individuals can invest as per their choice to
improving themselves.
Human Capital Situation in Indian
Pharmaceutical Sector
Mohammed Irfan, Jaladi Ravi, Pulidindi Venugopal