Question

“Ravya was initially working as an office clerk in a firm. In the pursuit to attain, a higher position and income, she attended a few on the job training sessions. These sessions contributed positively to her skills and expertise."

Explain the impact of Ravya’s decision on human capital formation.

Answer 1

On-the-job trainings have become an integral part of work environment in the recent times as they add to the productive capacity of employees. Firms encourage such trainings, as the benefits outweighs the cost of these trainings. It enables employees to develop skills and adapt modern technologies/ideas.

Thus, Ravya’s decision to attend on-the-job training sessions will have a positive impact on human capital formation.