The most valuable asset of any organisation is its human capital. It is the job of the management to get work done through people. Computers, and other means of technology can accentuate but cannot determine the performance of a company. A machine has a rated capacity beyond which it cannot go, no matter how much energy is applied to it. But human capacity is unlimited. It is the employees whose efforts get reflected on the growth chart.

The concept of human capital is not a recent discovery. Its origin dates back to late seventeenth century, when an economist, Sir William Petty (1623–1687), attempted for the first time to estimate the value of population of England in 1681. Petty considered labour as an important factor and stressed that it should be included while estimating the wealth of the nation. Value of human resource was then explicitly recognised and loyal personnel were treated as more important asset than a stock of merchandise.

The great eastern philosopher Kuan-Tzu, who lived in 500 BC said, “If you plan for a year, plant a seed. If for ten years, plant a coconut or fruit-bearing tree. If for a hundred years, teach the people. When you sow a seed, you will reap a single harvest. When you teach the people, you will reap a hundred harvests.” Investing in people is the basic requirement for laying a sound foundation of a steady economic growth. Countries cannot utilise their full potential without maximising their knowledge and skills of their human capital.