ABSTRACT
The importance of human capital to economic development has long been recognised. Adam Smith considered a man’s talents to be part of his fortune and that of the society to which he belonged. Alfred Marshall believed that the most valuable of all capital is that invested in human beings. Economic rationales for human resource planning revolve around three main goals:
1) to balance labour supply and demand; 2) to contribute to social equity; and 3) to improve the trade-off between inflation and unemployment.
