People As Resource

People As Resource – Definition, Explanation, Solved Example

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Before talking about people as a resource, we have first to define people as resources. By people as a resource, we mean to say the people who form a part of the workforce and play a significant role in the economic growth by contributing to the productive resources of the country. Thus, along with various other resources, a country also needs people who can put those resources to good use and increase production. Investment in human capital is done through training, education, and healthcare, making the workforce more productive and hence more beneficial for the economy. This is how we define people as a resource. Now let us learn about people as resource class 9.

Human Resource Development 

Human resource development refers to the program of improving the productivity of a company and increasing its productivity along with employee satisfaction. Human resource development is very important for employees and extremely beneficial for the country and the economy as a whole. By providing facilities like education, healthcare, formal and informal training, the productivity of workers would improve. A healthy worker is much more productive as compared to a worker who remains sick and is absent from work. Similarly, through training, workers can acquire new skills, and this would help them increase production. This is a brief summary of people as resources and how it can be improved.

Economic Activities

Now to explain people as a resource, we have to divide the economic activities into three basic parts. The first category includes primary activities, which are the economic activities that are related to horticulture, poultry farming, fishing, quarrying, mining, and animal husbandry. The natural resources are very easy to extract, and there is no need of any change or modification. The second class of economic activities is secondary activities. The secondary activities are associated with natural resources, but they would need to be altered. Secondary activities include industries that may be agriculture-based industries or industries that manufacture various goods from raw materials. The tertiary activities form the backbone of the economy. Such activities include banking, transport, and various such services that do not lead to direct production but are essential for the economy. 

Market And Non Market Activities

The economic activities can be classified according to the production goals as well. Thus, they can be divided into market and non-market activities. When a producer produces something for sale in the market, it is called market activities. A farmer producing grains or a producer producing certain goods are all examples of market activities. The non-market activities are certain products or services which are not produced for sale in the market but for self-consumption. Food crops are an example of non-market products which are produced only for self-consumption and not a sale. 

Quality of Population

We cannot explain people as a resource without describing the quality of the population. The most important parts of the population’s quality are the literacy rate, health, and skills. If people remain illiterate, they would find it difficult to adjust to new production techniques and would not be able to contribute much to the economy. On the other hand, educated citizens can make the best use of the resources, can educate and actively contribute to the development of the country. Similarly, if people are unhealthy, they would be less productive because of increased absenteeism and the lesser ability to work. Similarly, if workers are provided training, which may be formal or informal, that would improve their productivity and help in increasing the production of the economy. 

Did You Know?

There is a difference between the terms of human resource development and human resource management. Human resource management is considered to be a part of human resource development, which is a larger system in an organization. Human Resource Management is a function that deals with the demands of the organization. At the same time, human resource development is seen as an essential function that seeks to improve the economy's condition as a whole. People as a resource or human resource can be seen as the people who constitute the organizations and industries in the economy. 

Solved Example

1. What is the Difference Between Human Resources and All Other Types of Resources?

Answers: Human resources are commonly considered more important than other resources like capital, land, or labour. It is the workers who finally put the resources to use, and while all other resources are passive and have to be used, human resources are active and are useful by themselves. This is the basic difference between the two.

FAQs (Frequently Asked Questions)

1. What role does education play in human capital formation?

Education is a very important part of the human capital formation of the country. An educated person is much more productive and actively contributes to the development of the economy. Education helps individuals make better use of opportunities and help in the creation of more entrepreneurs who would help in the development of the country. The national income of the country improves with educated people, and the workers become more efficient. The quality of work of individuals improves and they can produce a larger quantity of goods and services than before. Thus, people as resources become better and more beneficial to the economy with the help of education.

2. What role does health play in human capital formation?

Health is a very important part of human capital formation. Human capital constitutes all the workers that are a part of various organizations and industries. With better human capital, the quality of production in the country improves. Healthy workers are more productive and efficient than unhealthy workers. A healthy person is considered an asset for the economy, while an unhealthy person is a liability. When a person is healthy, he/she has a better immune system and would be absent less. This would allow the workers to be more productive. Health is directly related to the quantity of work that an individual can do and is hence important.