Arthur Lewis is said to have begun the field of development economics and consequently the idea of human capital when he wrote in 1954 "Economic Development with Unlimited Supplies of Labour. Human capital is the stock of habits, knowledge, social and personality attributes including creativity embodied in the ability to perform labour so as to produce economic value.
Human capital is unique and differs from any other capital. It is needed for companies to achieve goals, develop and remain innovative. Companies can invest in human capital for example through education and training enabling improved levels of quality and production.
Human capital theory is closely associated with the study of human resources management as found in the practice of business administration and macroeconomics.
The original idea of human capital can be traced back at least to Scottish economist and morel philosopher Adam Smith author of Wealth of Nations in the 18th century.
In many cases, human capital is accumulated specific to the nature of the task (or, skills required for the task), and the human capital accumulated for the task are valuable to many firms requiring the transferable skills. This concept can be applied to job-assignment, wage dynamics, tournament, promotion dynamics inside firms, etc.
In the same vein, former President Benjamin Mkapa has called on African leaders to recognise human capital as one of Africa’s greatest treasures and therefore pursue development accordingly.
Mkapa made the remarks when speaking to the 16 candidates of the CEO Apprenticeship Programme (CAP), an initiative being driven by the CEO Roundtable of Tanzania (CEOrt) and in partnership with Strathmore University Business School (SBS).
CAP is an initiative designed to train talented Tanzanians through mentorship and coaching sessions and prepare them to become future CEOs.
The former Tanzanian leader, who was the president of Tanzania from 1995 to 2005, said the future CEOs must have integrity of purpose and conduct.
He also urged the upcoming CEOs to demonstrate three key leadership aspects in order to strive for excellence in their purpose and goals as leaders.
“In leadership, it is imperative to identify the right people to work with and make sure you know them thoroughly. Also learn to acknowledge those who have served in leadership and seek to understand the qualities that have made them stand out.
“Finally, it is necessary to revisit decisions you have made or decisions made by your superiors in order to make corrections or improvements where necessary in order to achieve your goals” he said. Upon completion of the 12-month programme, participants will have acquired the right blend of skills, thus enhancing their leadership capabilities. CAP aims to identify CEOs in waiting and through capacity building and knowledge transfer, equip them with the necessary skills to lead.
With their wealth of knowledge and expertise these upcoming CEOs can make a significant impact towards developing the next generation of Tanzanian leaders.
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