Human capital theory suggests that it takes time for investments in human capital to produce financial or productivity-based returns to an organization.What is the reason for this?
A)Firm-specific human capital takes time to develop into generic human capital.
B)Specialized human capital takes time to develop into generic human capital.
C)Generic human capital takes time to develop into firm-specific human capital.
D)Generic human capital takes time to develop into specialized human capital.

Question

Quizplus · Accepted Answer

According to human capital theory, generic human capital takes time to develop into firm-specific human capital, which is the specific knowledge, skills, and abilities an individual has developed that are specific to a particular organization or industry. This is because employees need time to learn about the organization's unique requirements, culture, and processes. It is only after this time that the organization can fully benefit from the employee's human capital investment.

Human Capital Theory Suggests That It Takes Time for Investments