Meaning of Human Resources

In economics, human resources refer to the collective manpower or labor force of a country at a specific time, encompassing the quality education, skills, knowledge, health, physical, and mental well-being of the human population. 

According to the National Planning Commission, human resources are the knowledge, skills, competence, physical, and mental capabilities inherent in the people of a country required for productive work. 

Therefore, human resources can be defined as the human workforce, capacity, competence, skills, etc., required for operating the mechanisms of economic development.

Importance of Human Resource Development

The process of improving the quality and competence of the people or workforce of a country is called human resource development. Human resource development can be achieved through appropriate education, training, human resource planning, and management. 

Only through the development of human resources can the proper mobilization of available resources and sources lead to the economic development of the country.

The importance of human resource development is presented below:

(a) To Make Proper Use of Available Natural Resources and Sources in the Country: On the one hand, the natural resources and sources available in the country remain underutilized due to the lack of human resource development. On the other hand, people are deprived of the benefits of utilizing these natural resources and sources. 

Therefore, human resource development is essential for the proper utilization of available natural resources. In the context of Nepal, the abundant water, mineral, and forest resources have not been properly developed. 

By developing appropriate human resources, electricity can be extracted from Nepal's water resources in sufficient quantities to develop industries, factories, transportation, communication, etc. Similarly, human resource development is crucial for utilizing water resources for irrigation and drinking water. 

Along with this, human resource development is equally important for the extraction of mineral resources and the proper utilization of forests and land.

(b) To Increase Production and Productivity: Human resource development increases the capacity and competence of the labor force, leading to increased productivity. The increase in productivity leads to an increase in production. This results in an increase in the country's income as well as per capita income.

(c) To Develop Industries: The use of advanced technology is necessary for industrial development in the country. The use of advanced technology is only possible through human resource development. Some countries have achieved rapid industrial development despite the lack of adequate natural resources. This has been possible due to human resource development. Japan can be taken as an example of this.

(d) To Develop Infrastructure for Economic Development: The development of infrastructure for economic development such as roads, electricity, education, health, communication, and drinking water requires a skilled workforce. A skilled workforce is only obtained through human resource development.

(e) To Make the Country Self-Reliant: If human resource development can be achieved in the country, there will be no need to import specialized and technical services from abroad. Similarly, human resource development ensures the availability of necessary goods and services within the country. Therefore, human resource development plays a vital role in making the country self-reliant.

(f) To Raise the Standard of Living of the People: Human resource development increases the country's production as well as income. On the one hand, goods and services become available at lower costs, and on the other hand, people's purchasing power also increases. Basic needs of the people are met. The services and facilities they receive increase, leading to a higher standard of living.

(g) To Familiarize People with Up-to-Date Technology: With the changing times, modern production technologies are emerging. Due to the changes in technology, the workforce becomes unemployed. Human resource development plays an important role in adapting human resources to the evolving technology and preventing unemployment.

(h) To Achieve the Unfolding and Specialization of Inherent Talents in Individuals: Human resource development is crucial for identifying and developing the inherent potential of individuals and creating opportunities for its application. Human resource development helps in the personal development of individuals and increases motivation. As a result, they get opportunities to further enhance their capabilities, and this leads to further specialization in their work.

(i) To Formulate and Implement Economic Development Plans: Formulating development plans in the country and implementing those plans effectively requires a workforce with high knowledge, skills, and expertise. The acquisition of such a workforce is only possible through human resource development.