Describe human capital theory and its relationship to a seniority pay system. What weakness can you see with this system?
Human Capital Theory & Seniority Pay System
Human capital theory is a theoretical framework which is mainly responsible for the all-inclusive adoption of education and expansion plans. This theory depends on the supposition that official education is extremely influential and even essential to advance the production capability of people. The theorist that believes in this theory confers that a well-informed population is more productive rather than the population that is not educated. Human capital theory accentuates that education can augment the output and competence of workers by raising their capability of understanding and considering (Olaniyan & Okemakinde, 2008). In this theory, the stipulation of formal education is seen as a prolific outlay in human capital. Human capital theory furnishes an introductory ...
The expert describes a human capital theory as it relates to a seniority pay system.