People As Resource – Definition, Explanation, Solved Example
Before talking about people as a resource, we have first to define People As Resources. By people as a resource, we mean to say the people who form a part of the workforce and play a significant role in the economic growth by contributing to the productive resources of the country. Thus, along with various other resources, a country also needs people who can put those resources to good use and increase production. Investment in human capital is done through training, education, and healthcare, making the workforce more productive and hence more beneficial for the economy. This is how we define people as a resource. Now let us learn about People As Resource class 9.
Human Resource Development
Human resource development refers to the program of improving the productivity of a company and increasing its productivity along with employee satisfaction. Human resource development is very important for employees and extremely beneficial for the country and the economy as a whole. By providing facilities like education, healthcare, formal and informal training, the productivity of workers would improve. A healthy worker is much more productive as compared to a worker who remains sick and is absent from work. Similarly, through training, workers can acquire new skills, and this would help them increase production. This is a brief summary of People As Resources and how it can be improved.
Economic Activities
Now to explain people as a resource, we have to divide the economic activities into three basic parts. The first category includes primary activities, which are the economic activities that are related to horticulture, poultry farming, fishing, quarrying, mining, and animal husbandry. The natural resources are very easy to extract, and there is no need for any change or modification. The second class of economic activities is secondary activities. The secondary activities are associated with natural resources, but they would need to be altered. Secondary activities include industries that may be agriculture-based industries or industries that manufacture various goods from raw materials. The tertiary activities form the backbone of the economy. Such activities include banking, transport, and various such services that do not lead to direct production but are essential for the economy.
Economic and Non-Economic Activities
An activity that is performed with the purpose of selling either a commodity or a service is simply referred to as economic activity. They are done by people to fulfill their needs in daily life. For example, any kind of profession, business, or employment can be termed as an economic activity. People are usually involved in those for the purpose of earning. It helps them live a satisfactory life.
Non-economic activities include everything that a person does apart from economic activities. Any time that is spent doing any act with family or friends can be termed as non-economic activity. Religious activities such as worshiping are also included in this category.
Acts that are not done for the purpose of earning anything are known as non-economic activities. For example, a person helping underprivileged people.
Market and Non Market Activities
The economic activities can be classified according to the production goals as well. Thus, they can be divided into market and non-market activities. When a producer produces something for sale in the market, it is called market activities. A farmer producing grains or a producer producing certain goods are all examples of market activities. The non-market activities are certain products or services which are not produced for sale in the market but for self-consumption. Food crops are an example of non-market products which are produced only for self-consumption and not a sale.
Quality of Population
We cannot explain people as a resource without describing the quality of the population. The most important parts of the population’s quality are the literacy rate, health, and skills. If people remain illiterate, they would find it difficult to adjust to new production techniques and would not be able to contribute much to the economy. On the other hand, educated citizens can make the best use of the resources, can educate and actively contribute to the development of the country. Similarly, if people are unhealthy, they would be less productive because of increased absenteeism and the lesser ability to work. Similarly, if workers are provided training, which may be formal or informal, that would improve their productivity and help in increasing the production of the economy.
Did You Know?
There is a difference between the terms of human resource development and human resource management. Human resource management is considered to be a part of human resource development, which is a larger system in an organization. Human Resource Management is a function that deals with the demands of the organization. At the same time, human resource development is seen as an essential function that seeks to improve the economy's condition as a whole. People as a resource or human resource can be seen as the people who constitute the organizations and industries in the economy.
The Issue Of Unemployment
Definition of Unemployment
Unemployment can be defined as the inability of a willing person to find work. A skilled person who is looking for a job and has all the necessary qualifications is unable to secure some work for himself is said to be unemployed. In other words, unemployment is the condition where people belonging to the working-age are incapable of finding an occupation for themselves.
The rate of unemployment in India for people above the age of fifteen is around 10%. This rate varies when different factors are involved. For example, the unemployment rate of women is more as compared to men. Similarly, more people are unemployed in rural areas as compared to urban areas.
Unemployment is the Biggest Problem
Unemployment is a bane and it can be called the biggest problem of any country. It is a waste of the human resource of a nation. It leads to many problems such as an increase in the rate of poverty and a decrease in the health of people. It is a crisis which if left unmanaged can lead to social unrest. Unemployed people can easily get involved in doing illegal things. They can also create an extra burden upon their families and the government. Therefore it is extremely important to manage the situation of unemployment in India.
Kinds of Unemployment
Unemployment can be classified into various categories. Based on the area it can be either rural unemployment or urban unemployment. Rural unemployment can be further divided into two types i.e. seasonal unemployment and disguised unemployment.
The urban areas of India are facing a unique situation. There are a lot of people that have completed their education and are unemployed. This is mainly because every year many people graduate from colleges but the employment opportunity is not generated at the same rate. This is known as educated unemployment. It is common in urban areas usually.
Seasonal unemployment can be explained as the phenomenon where people are employed only during some season in a year. This can be better explained with the example of agricultural laborers that work only in the busy season such as sowing and harvesting. This type of unemployment occurs mostly in rural areas. However, in rare scenarios, it can be found in urban areas as well.
Disguised unemployment is common in densely populated countries. This is the condition when more people are hired to do work that can be easily managed by a lesser number of people. Even if some people are removed, there would be no negative effect or impact on their productivity.
Solved Example
1. What is the Difference Between Human Resources and All Other Types of Resources?
Ans: Human resources are commonly considered more important than other resources like capital, land, or labor. It is the workers who finally put the resources to use, and while all other resources are passive and have to be used, human resources are active and are useful by themselves. This is the basic difference between the two.
FAQs on People as a Resource: Meaning and Importance
1. Why is education considered a vital component of human capital formation?
Education enhances an individual's knowledge and skills, making them more productive and efficient contributors to the economy. It leads to increased national income, better quality of life, and helps in the creation of new entrepreneurs, all of which are crucial for a nation's development. Investing in education transforms people into valuable assets for the economy.
2. How does good health contribute to the formation of human capital?
A healthy workforce is more productive and efficient, directly impacting the quality and quantity of goods and services produced. Healthy individuals are less prone to illness, leading to fewer absences and sustained contribution to economic activities. Therefore, health is a fundamental investment that converts a population into productive human capital.
3. Explain the concept of 'People as a Resource' as discussed in Class 9 Economics.
'People as a Resource' refers to a country's working population in terms of their existing productive skills and abilities. It highlights how a large population, when invested in through education, training, and healthcare, can be transformed into human capital, which is an asset for the economy rather than a liability.
4. Why is recognizing people as a resource crucial for a nation's economic development?
Recognizing people as a resource is vital because it shifts focus from population size to its productive potential. By investing in human development through education and health, a nation can enhance the skills and capabilities of its workforce, leading to higher productivity, innovation, and sustainable economic growth. This approach views people as active contributors to the economy's strength, not just consumers.
5. What are the main categories of economic activities performed by people?
Economic activities are broadly classified into three main sectors based on the nature of their production:
- Primary Sector: Involves direct use of natural resources, such as agriculture, mining, or fishing.
- Secondary Sector: Transforms raw materials into finished goods through manufacturing, like industrial production or construction.
- Tertiary Sector: Provides services that support primary and secondary sectors, and other services like trade, transport, banking, education, or health.
Understanding these classifications is important for analyzing a country's economic structure.
6. Define unemployment and describe its major types relevant to the Indian context.
Unemployment occurs when people who are willing and able to work at the prevailing wage rate cannot find employment. In India, particularly in rural areas, two prominent types are:
- Seasonal Unemployment: When people are employed only during certain seasons of the year, typically in agriculture.
- Disguised Unemployment: When more people are employed in an activity than are actually required, meaning even if some are removed, production does not suffer.
Unemployment represents a significant economic challenge due to the underutilization of human resources.
7. How does the concept of 'virtuous cycle' apply to human capital formation?
A virtuous cycle in human capital formation means that investment in education and health leads to higher productivity and incomes. This, in turn, allows for further investment in education and health, creating a positive feedback loop. For example, educated parents are more likely to invest in their children's education and health, perpetuating a cycle of improved human capital across generations.
8. What is the key difference between market and non-market activities?
The key difference lies in their economic motivation. Market activities are performed with the motive of earning income or profit, contributing directly to the national income (e.g., working for a salary, running a business). Non-market activities, on the other hand, are performed primarily for self-consumption or for social reasons, without any direct monetary gain (e.g., a farmer growing crops for personal consumption, voluntary community service). This distinction is important for understanding how national income is calculated and distributed.
9. What are the significant challenges posed by unemployment for a country's development?
Unemployment leads to a significant wastage of human resources. It can increase poverty, create social unrest, and cause a feeling of hopelessness among the youth. Economically, it means a loss of potential output and income, increasing the burden on the working population and hindering overall economic growth and development of the nation.
