In today's competitive global economy, companies are placing more emphasis on developing the potential of their people than ever before. In full appreciation of the financial impact of this effort has come the term human capital management. The emphasis on that keeping employee (human capital) happy and working at their full potential enhances the company's performance and bottom-line results. It is sound business practice to nurture these human assets and understand when and why they are not happy i.e. working at potential or at risk of leaving. Adam smith defined four types of fixed capital (which is characterized as that which affords a revenue or profit without circulating or changing masters). The four types were: first-useful machines, instruments of the trade; second- buildings as the means of procuring revenue; third- improvements, of land and fourth- human capital.
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