THE IMPORTANCE OF PROFESSIONAL COMPETENCIES IN THE HUMAN CAPITAL EFFECTIVE USAGE

Authors

  • Valentina Pavlovska BA School of Business and Finance

DOI:

https://doi.org/10.17770/sie2014vol2.674

Keywords:

Human capital, labour market, qualification compliance, skills mismatch, unemployment, the job training

Abstract

The research was done on how the effectiveness of human capital exploitation is influenced by the relevance of skills required by employer. The research problem: the mismatch of employee skills to employer’s requirements gives cause to an inefficient use of human capital, causing damage to both employers and employees. Study objective: To ascertain employees, working in the banking sector, skills, education and qualification compliance with industry requirements and determine how discrepancies affect employee motivation. The ability to make impartial self-appraisal of own activities and competences, is particularly important, because only a man who is able to impartially assess may plan the future, choose the right career directions, evaluate own characteristics, and identify cumbersome obstacles.

Author Biography

  • Valentina Pavlovska, BA School of Business and Finance

    Mg.sc.edu., Assistant Professor

    BA School of Business and Finance,
    Department of entrepreneurship and IT

    K.Valdemara Street 161, Riga, LV-1031, Latvia

References

Becker, G.S. (1975). Human Capital / G. S. Becker. NY.: Columbia University Press.

CEDEFOP (2010). The skill matching challenge: analysing skill mismatch and policy implications. Luxembourg: Publications Office of the European Union.

Latvia’s Sustainable Development Strategy until 2030. (2010). Retrieved from http://www.latvija2030.lv/upload/latvija2030_saeima.pdf

New skills for new jobs: better matching and anticipating labour market needs, European Commission (2010). Retrieved from http://ec.europa.eu/education/news/news1110_en.htm

Schultz, T.W. (1961). Investment in Human Capital. The American Economic Review 1(2), 1-17.

Sgobbi, F. (2009). A methodological contribution to the measurement of skill (mis)matc. A draft presented at the Decowe Conference: Ljubljana, Slovenia.

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Published

2015-07-24