Proposed Framework for Assessing Human Capital: Derivation of the Human Capital Index and Its Application

28 Pages Posted: 6 May 2014

See all articles by Shujaat Mubarik

Shujaat Mubarik

IoBM, Karachi; University of Malaya (UM), Faculty of Economics & Administration (FEA); Mohammad Ali Jinnah University

Vgr Govindaraju

University of Malaya (UM) - Department of Development Studies

Evelyn Shyamala Devadason

University of Malaya (UM)

Date Written: May 5, 2014

Abstract

The measurement of human capital is a challenging task for both researchers and professionals. Numerous studies have been undertaken to formulate a technique which can comprehensively encapsulate the various dimensions of human capital. However, there is a need to develop a technique that measures human capital by capitalizing on its intangibles aspects. The study therefore proposes a framework that captures both the qualitative and quantitative aspects of human capital by assigning weights for different dimensions of human capital. By applying the Analytic Hierarchy Process (AHP) technique to the case of the textiles industry in Pakistan, we have derived a human capital index, consisting of 9 main dimensions and 36 sub-dimensions. Each of the dimensions and sub-dimensions of human capital has been prioritized according to its importance. The results for the textiles industry in Pakistan reveal that the sub-dimensions of experience rank highest, followed by skills and turnover. The framework introduced in this study can be adopted to derive the human capital index for various industries and sectors.

Keywords: human capital dimensions; human capital sub-dimensions; AHP; human capital index; textiles; Pakistan

JEL Classification: J24, B41

Suggested Citation

Mubarik, Muhammad Shujaat and Govindaraju, Vgr and Devadason, Evelyn Shyamala, Proposed Framework for Assessing Human Capital: Derivation of the Human Capital Index and Its Application (May 5, 2014). Available at SSRN: https://ssrn.com/abstract=2433166 or http://dx.doi.org/10.2139/ssrn.2433166

Muhammad Shujaat Mubarik (Contact Author)

IoBM, Karachi ( email )

Korangi Creek,
Karachi, Sindh 75190
Pakistan

University of Malaya (UM), Faculty of Economics & Administration (FEA) ( email )

University of Malaya
Kuala Lumpur, Wilayah Persekutuan 50603
Malaysia

Mohammad Ali Jinnah University ( email )

22E
Block 6 PECHS
Karachi, SC Sindh 75400
Pakistan

Vgr Govindaraju

University of Malaya (UM) - Department of Development Studies ( email )

Kuala Lumpur, Wilayah Persekutuan 50603
Malaysia

Evelyn Shyamala Devadason

University of Malaya (UM) ( email )

Kuala Lumpur, Wilayah Persekutuan 50603
University of Malaya (UM)
Kuala Lumpur, Wilayah Persekutuan 50603
Malaysia
+603-79673721 (Phone)

HOME PAGE: http://https://umexpert.um.edu.my/evelyns.html

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