Performance Management: Putting Research into Action

Informal Learning and Human Capital

An interesting perspective on the importance of informal learning to an organization and the economy in general is provided by labor economists. Their view is that informal learning contributes importantly to the growth of human capital. Becker (1993, p. 12), explaining the expanding interest in human capital,¹ stated, “The main motivating factor has probably been a realization that the growth of physical capital, at least as conventionally measured, explains a relatively small part of the growth of income in most countries. The search for better explanations has led to improved measures of physical capital and to an interest in less tangible entities such as technological change and human capital.” The ...