1 FEM 4204 HUMAN CAPITAL AND NATIONAL DEVELOPMENT ZURONI MD JUSOH RESOURCE MANAGEMENT AND CONSUMER...

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FEM 4204FEM 4204HUMAN CAPITAL AND NATIONAL HUMAN CAPITAL AND NATIONAL

DEVELOPMENT DEVELOPMENT

ZURONI MD JUSOHZURONI MD JUSOHRESOURCE MANAGEMENT AND CONSUMER RESOURCE MANAGEMENT AND CONSUMER

STUDIES, STUDIES,

FACULTY OF HUMAN ECOLOGYFACULTY OF HUMAN ECOLOGY

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OBECTIVESOBECTIVES

• To understand the importance of human To understand the importance of human capital to development at various levelcapital to development at various level– Individuals/familyIndividuals/family– OrganizationOrganization– CommunityCommunity– NationalsNationals

• To examine the current status of human To examine the current status of human capital development in various capital development in various countriescountries

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REFERENCESREFERENCES

• Asnarulkhadi, A.S (2003) Asnarulkhadi, A.S (2003) Pengenalan Pengenalan Pembangunan KomunitiPembangunan Komuniti, Serdang, Selangor: , Serdang, Selangor: Percetakan selasehPercetakan selaseh

• Begg, D., Fischer, S., and Dornbusch, R. (1987) Begg, D., Fischer, S., and Dornbusch, R. (1987) EconomicsEconomics, McGraw Hill, McGraw Hill

• Rahmah Ismail (1996) Rahmah Ismail (1996) Modal Manusia dan Modal Manusia dan Perolehan BuruhPerolehan Buruh, , Dewan Bahasa & PustakaDewan Bahasa & Pustaka

• Deacon, R.E and Firebaugh, F. M (1988) Deacon, R.E and Firebaugh, F. M (1988) Family Family Resource Management: Principles and Resource Management: Principles and ApplicationsApplications, 2, 2ndnd ed., Boston, NY: Allyn and ed., Boston, NY: Allyn and Bacon Bacon

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OUTLINEOUTLINE

• Human capital and national Human capital and national development development – Individual and family, organization and Individual and family, organization and

community, nationcommunity, nation

• Human capital development in Human capital development in various countriesvarious countries– Less developed, developing and Less developed, developing and

developed developed

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..

Human/Family EcosystemHuman/Family Ecosystem

FamilFamily y SysteSystemm

MICROENVIRONMMICROENVIRONMENTENT

MACROENVIRONMACROENVIRONMENTMENT

Physical Physical Social Social

Societal Societal systemsystem

EconomicEconomic PoliticalPolitical

SociocultSocioculturalural

TechnologTechnologicalical

Natural/Natural/structuredstructured

BiologicalBiological

MACROENVIRONMACROENVIRONMENTMENT

PhysicalPhysicalHuman Human mademade

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Human/Family Ecosystem …Human/Family Ecosystem …contcont

• The microenvironmentThe microenvironment– The immediate setting of the familyThe immediate setting of the family– The component:The component:

• Physical habitatPhysical habitat – i.e. occupy spatial territory (hse)i.e. occupy spatial territory (hse)– Changes in hh composition can influence the Changes in hh composition can influence the

location and nature of housinglocation and nature of housing

• Social aspectSocial aspect– The interaction family system members have with The interaction family system members have with

relatives, friends etc and the variation w.r.t family relatives, friends etc and the variation w.r.t family life cycle stages, socio-demographic and economic life cycle stages, socio-demographic and economic backgroundbackground

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• The macroenvironment (societal The macroenvironment (societal system)system)– The component:The component:

• SocioculturalSociocultural – Culture define meaning and content of society: the values Culture define meaning and content of society: the values

and accumulative experience, knowledge, skill & material and accumulative experience, knowledge, skill & material gds ~ heritagegds ~ heritage

– The sociocultural sys involves the processes through which The sociocultural sys involves the processes through which the meaning and content of any society are reinforced or the meaning and content of any society are reinforced or changedchanged

• PoliticalPolitical– Affecting families through law, regulation, policies and Affecting families through law, regulation, policies and

provision of other svc (e.g. public goods)provision of other svc (e.g. public goods)– Political system encourage politically responsible citizen and Political system encourage politically responsible citizen and

requires adherence to laws & regulationsrequires adherence to laws & regulations

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• EconomicsEconomics – The sys is based on the purchase of goods and svc, The sys is based on the purchase of goods and svc,

and aggregate choices make up market demandand aggregate choices make up market demand– The family expects that the economic sys will provide The family expects that the economic sys will provide

opportunity for them to participate in the productive opportunity for them to participate in the productive processes through their labor and investmentprocesses through their labor and investment

• TechnologicalTechnological– It functions as a tool or a means through which It functions as a tool or a means through which

knowledge, material and energy may be usefully knowledge, material and energy may be usefully appliedapplied

– Sc & Tech relate to the dev of product, while mgr Sc & Tech relate to the dev of product, while mgr promotes their considered choice and usepromotes their considered choice and use

– Changing tech has both personal and welfare Changing tech has both personal and welfare implication and increases the significance of mgtimplication and increases the significance of mgt

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• The macroenv (natural & structured The macroenv (natural & structured sys)sys)– The social system e.g family interact in a The social system e.g family interact in a

physical setting.physical setting.– Are the physical and biological surrounding Are the physical and biological surrounding

within which related societal syswithin which related societal sys– The issuesThe issues

• Environmental concern Environmental concern • Energy consumption and conservationEnergy consumption and conservation• Household wasteHousehold waste• Environmental effectEnvironmental effect• Weather and climate effects on familiesWeather and climate effects on families

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• The system is dynamically The system is dynamically interacting with each other that it interacting with each other that it goes through changes, adaptation goes through changes, adaptation and developmentand development

But, how does it relate But, how does it relate

to to HUMAN CAPITALHUMAN CAPITAL? ?

Family Ecosystem and Family Ecosystem and DevelopmentDevelopment

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• Human capital development is a Human capital development is a prerequisite to achieve satisfying political, prerequisite to achieve satisfying political, social, cultural and economic goals social, cultural and economic goals (Harbinson and Myers, 1964)(Harbinson and Myers, 1964) at different level of at different level of analysis (e.g. individual, community, analysis (e.g. individual, community, nationals) nationals) (Asnarul,2003)(Asnarul,2003)

– Why?Why?• Individual/community (collective) Involvement and Individual/community (collective) Involvement and

participation towards achieving developmental goalsparticipation towards achieving developmental goals

– Thus, the “quality” and “characteristics” of Thus, the “quality” and “characteristics” of the “participants” mattersthe “participants” matters

– This is especially true in the K-economyThis is especially true in the K-economy

Human Capital and Human Capital and DevelopmentDevelopment

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• K-economyK-economy– Is about knowledge and the ability to use it Is about knowledge and the ability to use it

to create new value and wealth. Wealth is to create new value and wealth. Wealth is measured by the result of knowledge that is measured by the result of knowledge that is inventively appliedinventively applied

• The comparisonThe comparison– Agricultural economyAgricultural economy – wealth was measured – wealth was measured

by land and produceby land and produce– Industrial economyIndustrial economy – wealth was measured – wealth was measured

by industrial outputby industrial output

Human Capital and DevelopmentHuman Capital and Development …cont…cont

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• The K-economyThe K-economy– Include all human economic activities of Include all human economic activities of

previous era/economies and take one step previous era/economies and take one step further further

– For examples,For examples,• K-economy agricultureK-economy agriculture, knowledge could be put to , knowledge could be put to

work more effectively through better planting work more effectively through better planting materials, improved horticultural practices or materials, improved horticultural practices or enhanced means of trading agricultural productenhanced means of trading agricultural product

• K-based industriesK-based industries, the traditional modes of , the traditional modes of delivering services (e.g. medical, education) – delivering services (e.g. medical, education) – improved, e.g. telemedicine or web-based learning. improved, e.g. telemedicine or web-based learning. Thus, enabling consumers and users to access them Thus, enabling consumers and users to access them directly in cheaper and easier waydirectly in cheaper and easier way


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• In knowledge environment, you determine In knowledge environment, you determine your “wealth’ by how you use your brain, your “wealth’ by how you use your brain, and how fast you gain, manage and apply and how fast you gain, manage and apply knowledge.knowledge.

THUS,THUS,

““The present illiterate are those who cannot The present illiterate are those who cannot read and write, but the future illiterate will read and write, but the future illiterate will most likely be those who cannot learn, most likely be those who cannot learn, unlearn and relearn” unlearn and relearn”

(Alvin Toffler)(Alvin Toffler)


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• Human capital developmentHuman capital development – Can increase Can increase

individual/household incomeindividual/household income– Producing “the right” (attitude, Producing “the right” (attitude,

skills, personality etc) skills, personality etc) individuals/members – e.g. individuals/members – e.g. empowered, resilient and self empowered, resilient and self reliant reliant • family, community, labors and family, community, labors and

citizenscitizens– Upward mobilityUpward mobility– As a strategy to eradicate As a strategy to eradicate

povertypoverty

Human Capital and Human Capital and Individual/Family DevelopmentIndividual/Family Development

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What is Empowerment??What is Empowerment??

• Empowerement refers to increasing political, Empowerement refers to increasing political, economic and social strength of individuals and economic and social strength of individuals and group that have been marginalized, exploited, group that have been marginalized, exploited, discriminated or excluded from the main power discriminated or excluded from the main power structure in a society (including the marketplace structure in a society (including the marketplace and civil society in a consumer culture) and civil society in a consumer culture) (McGregor, (McGregor, 2005).2005).

• As a process, empowerment refers to the process As a process, empowerment refers to the process of which individuals, households or communities of which individuals, households or communities “equipping themselves with the knowledge, skills “equipping themselves with the knowledge, skills and resources they need in order to change and and resources they need in order to change and improve the quality of their own lives and their improve the quality of their own lives and their community” community” (Quest, 2006).(Quest, 2006).

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• Human capitalHuman capital ~ the abilities, behaviors ~ the abilities, behaviors and energies of workers is the chief and energies of workers is the chief engine of prosperity for most engine of prosperity for most organizationorganization

• Thus, organization involve in HRD toThus, organization involve in HRD to– Improved business resultsImproved business results

• Gain competitive advantageGain competitive advantage• Increase profit/financial performanceIncrease profit/financial performance

– Increase productivityIncrease productivity– Prevent obsolescence of skill at all levelPrevent obsolescence of skill at all level– Preparation for higher level tasksPreparation for higher level tasks

Human Capital and Human Capital and Organizational DevelopmentOrganizational Development

Cont.Cont.

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Human Capital and Human Capital and Organizational Development Organizational Development ……

contcont

Human Capital ProcessHuman Capital Process

Competency mgt; Career devt; performance appraisal; succession planning/leadership devt; recruiting; workforce planning; workplace design; rewards and recognition; human capital strategy; learning mgt; knowledge mgt; human capital infrastructure

Human Capital CapabilitiesHuman Capital Capabilities

Leadership; workforce proficiency; workforce performance; employee engagement; workforce adaptability; talent mgt; human capital efficiency

Key Performance DriversKey Performance Drivers

Productivity; quality; innovation; customers

Business ResultsBusiness Results

Economic value added; price earning ratio; sales growth; net operations profit after taxes

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Human Capital and Community Human Capital and Community DevelopmentDevelopment

• Community Development:Community Development:– ““A process by which community effort is A process by which community effort is

combined with that of government agencies combined with that of government agencies to improve the community’s economic, social to improve the community’s economic, social and cultural conditions so as to integrate and cultural conditions so as to integrate them into the mainstream and to enable them into the mainstream and to enable them to contribute fully to the national them to contribute fully to the national development” development” (United Nations, 1960)(United Nations, 1960)

– ““An effort to provide opportunity for the An effort to provide opportunity for the community to empower themselves so as to community to empower themselves so as to change their living conditions through the change their living conditions through the development of skills, experience, confidence, development of skills, experience, confidence, knowledge and cooperative spirit (among knowledge and cooperative spirit (among themselves or with relevant agencies offering themselves or with relevant agencies offering assistance)” assistance)” (Asnarulkhadi, 2003)(Asnarulkhadi, 2003)

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Human Capital and Human Capital and Community DevelopmentCommunity Development

• The objectives:The objectives:1.1. Membawa perubahan sosial untuk individu, komuniti atau Membawa perubahan sosial untuk individu, komuniti atau

rakyat supaya bersama menuju dan menikmati faedah rakyat supaya bersama menuju dan menikmati faedah kemudahan pembangunan e.g. kesihatan dan pendidikankemudahan pembangunan e.g. kesihatan dan pendidikan

2.2. Menyedarkan komuniti bahawa utk mencapai Menyedarkan komuniti bahawa utk mencapai pembangunan, usaha sendiri adalah pentingpembangunan, usaha sendiri adalah penting

3.3. Usahasama antara komuniti, kerajaan, organisasi dan Usahasama antara komuniti, kerajaan, organisasi dan pertubuhan supaya sama-sama menyumbang ke arah pertubuhan supaya sama-sama menyumbang ke arah kemajuan negarakemajuan negara

4.4. Mendidik masyarakat supaya berdikari dan Mendidik masyarakat supaya berdikari dan mengembelingkan tenaga utk mencapai sesuatumengembelingkan tenaga utk mencapai sesuatu

5.5. Mendidik dan memberi peluang komuniti utk Mendidik dan memberi peluang komuniti utk mempertajamkan kebolehan, kemahiran dan keupayaan mempertajamkan kebolehan, kemahiran dan keupayaan supaya dapat menguasai keadaan kehidupan sekelilingsupaya dapat menguasai keadaan kehidupan sekeliling

• Why?Why?– Community development as a planned “reformation” can Community development as a planned “reformation” can

be used as a strategy to get away from the economic be used as a strategy to get away from the economic slowdownslowdown

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Human Capital and Community Human Capital and Community DevelopmentDevelopment..cont..cont

• What is important in the process?What is important in the process?– Participation and involvement in the process of bringing Participation and involvement in the process of bringing

about progressive changes (i.e. from being backward, about progressive changes (i.e. from being backward, marginalized to a better living conditions) ~ requires marginalized to a better living conditions) ~ requires proper attitudesproper attitudes

– Changing the community’s common practices that hinder Changing the community’s common practices that hinder development e.g. superstitions ~ through educationdevelopment e.g. superstitions ~ through education

– Empowerment ~ to enable them to be in control of their Empowerment ~ to enable them to be in control of their lives and environment, so that they are able fulfill/settle lives and environment, so that they are able fulfill/settle their own needs/problemstheir own needs/problems

– Govt support ~ advisory and consultancy, financial Govt support ~ advisory and consultancy, financial allocation, training ~ especially in the initial stage in allocation, training ~ especially in the initial stage in effort to cultivate community initiativeeffort to cultivate community initiative

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Human Capital and National Human Capital and National DevelopmentDevelopment

• HRD is important as human is a capital HRD is important as human is a capital that can mobilize economic growththat can mobilize economic growth

• A known fact:A known fact:– The main obstacle to the implementation The main obstacle to the implementation

and progress of developmental projects and progress of developmental projects and dynamic economic development and dynamic economic development activities are:activities are:• Insufficient skilled laborInsufficient skilled labor• The low use of technologyThe low use of technology

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Human Capital and National Human Capital and National Development …Development …contcont

• Human capital is an important input in the Human capital is an important input in the nation’s economic growth and developmentnation’s economic growth and development– Educational level and training (incl. nutrition Educational level and training (incl. nutrition

and health) is linked toand health) is linked to• Laborers productivity ~ (+)Laborers productivity ~ (+)• Level of national product and economic growth (+)Level of national product and economic growth (+)

– Why?Why?• Mobilizer of other input e.g. physical capital and raw Mobilizer of other input e.g. physical capital and raw

materialsmaterials• Human capital increases worker’s mobilityHuman capital increases worker’s mobility

– To balance the labor market, thus reduces unemployment To balance the labor market, thus reduces unemployment raterate

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Human Capital and National Human Capital and National Development …Development …contcont

• Thus, human capital needs to be developedThus, human capital needs to be developed– ESPECIALLY ESPECIALLY when the nations have when the nations have

limited/inadequate physical capital limited/inadequate physical capital • E.g. Singapore, Hong Kong, Korea have achieved economic E.g. Singapore, Hong Kong, Korea have achieved economic

development through a well planned development of its development through a well planned development of its human capitalhuman capital

• The other evidence:The other evidence:– Some countries fail to achieve satisfactory Some countries fail to achieve satisfactory

economic development despite having a sound economic development despite having a sound economic resources ~ e.g. some OPEC economic resources ~ e.g. some OPEC countriescountries

– Why?Why?• The human capital development program in such countries The human capital development program in such countries

were ineffectivewere ineffective

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Human Capital and Malaysian Human Capital and Malaysian Economic DevelopmentEconomic Development

• Human capital is emphasized in economic Human capital is emphasized in economic development process in Malaysiadevelopment process in Malaysia– Education and training were used as a strategy Education and training were used as a strategy

to achieve the goals of Dasar Ekonomi Baru and to achieve the goals of Dasar Ekonomi Baru and dasar pembangunan Negaradasar pembangunan Negara

– Lack of education leads to lack of one’s ability to Lack of education leads to lack of one’s ability to improve one’s QoL and economic statusimprove one’s QoL and economic status

– Lack of education ias an impt indicator of and Lack of education ias an impt indicator of and factor leading to povertyfactor leading to poverty

• Thus, education play a vital role in achieving Thus, education play a vital role in achieving our nation’s developmental objectivesour nation’s developmental objectives

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Human Capital and Malaysian Human Capital and Malaysian Economic Development …Economic Development …contcont

• In RM7In RM7 – had achieved sustained – had achieved sustained economic growth through: economic growth through: – Increase productivity – from increased Increase productivity – from increased

investment in HRD and new technologyinvestment in HRD and new technology– Efficiency in use of labor (as indicated Efficiency in use of labor (as indicated

by unemployment rate)by unemployment rate)– Strengthening the human resource base Strengthening the human resource base

• Thus, the SS of highly skilled and trained Thus, the SS of highly skilled and trained manpower increased due to expansion in manpower increased due to expansion in education and training institutionseducation and training institutions

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• RM8 RM8 – The economy moves towards higher – The economy moves towards higher capital-intensity and knowledge-based capital-intensity and knowledge-based production process.production process.– Thus, vital to create a critical mass of trained, skilled Thus, vital to create a critical mass of trained, skilled

and knowledge manpower with the right motivation and knowledge manpower with the right motivation and attitude– i.e. and attitude– i.e. to optimize the use and to optimize the use and development of new technologies and materialsdevelopment of new technologies and materials

– Why?Why?• To sustain economic growth and resilience of the economy To sustain economic growth and resilience of the economy

(i.e. productivity-driven growth)(i.e. productivity-driven growth)• To increase competitivenessTo increase competitiveness

Cont.Cont.

RMK9 – The economy moves to k-economyRMK9 – The economy moves to k-economyPembangunan modal insan dan anjakan minda Pembangunan modal insan dan anjakan minda

pemikiran warga merupakan salah satu cabaran pemikiran warga merupakan salah satu cabaran terbesar. Sekiranya kita ingin melangkah ke arah terbesar. Sekiranya kita ingin melangkah ke arah ekonomi berpaksikan pengetahuan, jika kita mahu ekonomi berpaksikan pengetahuan, jika kita mahu menjadi lebih maju dan kekal pada tahap bersebut, menjadi lebih maju dan kekal pada tahap bersebut, pembangunan modal insan harus diutamakan. pembangunan modal insan harus diutamakan.

((RMK-9 Ucapan PM, 31 Mac 2006)RMK-9 Ucapan PM, 31 Mac 2006)

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GDP Growth - being forecasted by MIER

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Sectoral Growth Trends

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But, how much education But, how much education and training contributes and training contributes

towards the economic towards the economic performance at performance at

the macro level??the macro level??

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• Why?Why?– Factors influencing economic development are Factors influencing economic development are

interconnectedinterconnected• Development is linked to educational attainment of the Development is linked to educational attainment of the

citizen. At the same time, allocation for education is citizen. At the same time, allocation for education is dependent on the amount of development/econ growthdependent on the amount of development/econ growth

– Measurement of economic dev should consider Measurement of economic dev should consider time as factors since through time, time as factors since through time, • Changes in technologyChanges in technology• Market expansion Market expansion • Improvement in the quality of our productivityImprovement in the quality of our productivity

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• However, various study indicated thatHowever, various study indicated that– Education and training are important factors that help Education and training are important factors that help

increase production in agricultural and manufacturing increase production in agricultural and manufacturing sectors sectors

– Unemployment can be reduced by improving the Unemployment can be reduced by improving the academic achievement academic achievement (to a certain point)(to a certain point)

• Currently, due to the nature of k-economy where Currently, due to the nature of k-economy where knowledge changes all the time and becomes knowledge changes all the time and becomes obsolete very quickly, education and learning is a obsolete very quickly, education and learning is a continual and lifelong process and that it is continual and lifelong process and that it is VERY VERY IMPTIMPT to our economic competitiveness, survival and to our economic competitiveness, survival and continual development continual development

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~ The End~~ The End~

Thank you Thank you

☺☺

1 FEM 4204 HUMAN CAPITAL AND NATIONAL DEVELOPMENT ZURONI MD JUSOH RESOURCE MANAGEMENT AND CONSUMER...

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