The transformation of raw human resource into highly productive human resource with these inputs is the process of human capital formation. The problem of scarcity of tangible capital in Ghana can be resolved by accelerating the rate of human capital formation with both private and public investments in education and health sectors of the National economies. There are two types of human capital and these are tangible and intangible. The tangible financial capital is an effective instrument of promoting economic growth of Ghana.
The intangible human capital, on the other hand, is an instrument of promoting comprehensive development of the nation because human capital is directly related to human development, when there is human development, the qualitative and quantitative progress of the nation is inevitable. Human capital when invested in, promotes good health, education and quality of standard of living. Human capital is also the backbone of Human Development and enhances the economic development in every nation.
In Ghana if the government invest greater part of its revenue into human capital in terms of educating the citizens it will go a long way to improve the economy. This is so because if a country has a very good human capital base whereby employees are well trained and have acquired enough knowledge and have good skills they will perform very well and this will boost the performance and as a result it increase the output of production. If there is increase in productivity it will also reflect in the standard of living of the workers in Ghana.
Employees will be paid well, given incentives and this will afford the employees the opportunity to even save money for future projects, individuals can even sponsor themselves for training. On the contrary, a country whose human capital base is not well developed it affects the country’s economic activities because employees are not well trained and also do have enough knowledge and good working skills. This affects the development and growth of the country. Employees as a result of this will be demotivated because they will not treated well by their employers and will have an impact on their standard of living.
Most of the employees will not be able to even make ends meet. |There will be increase of poverty rather than prosperity. Employees in both the public and private sectors in Ghana should be trained to enable them develop their skills by way of acquiring more knowledge. If this is done employees in various organizations and institutions will be efficient and will be more proactive by way of taking initiatives and be innovative. Organizations will benefit tremendously out of this because they will be able to achieve their goals and set targets and this will give them competitive advantage over their competitors.
If the human capital base of Ghana is well developed it will even reduce the foreign influence on the economy because certain duties and functions could be performed by Ghanaians themselves instead of always going to seek assistance from foreign countries to develop our country. This could also minimize the importation of goods from outside world and Ghanaians migrating from Ghana to seek greener pastures in the developed countries and the problem of brain-drain will be curbed. In talking about investing in human capital, good health cannot be left out since human capital is mainly concerned about education and health.
If the health needs of the citizens of Ghana are well taken care of they will become healthier and this will enable employees to also perform well by giving out their best. On the contrary, if employees health are not satisfied this will affect their performance because employees who are unfit will definitely not have healthy and sound mind to work thereby this will affect productivity and will cause a lot of harm to organizations because their employees will not be able to give out their best in terms of their output. This will affect their goals and set targets.
The persistence of many of the problems in spite of the various policy formulation and responses points to the need for a more focused, responsive, functional and qualitative educational system. To contribute significantly to the growth and development, education must be of high quality and also meet the skill-demand needs of the country. We will therefore recommend that investing in human capital should be the priority of government in the public sector and employers in the private sectors should also put in systems to be adhered to by top management to see to the training and development of employees to enable them acquire more knowledge.