ARE PEOPLE ARE THE MOST VALUABLE ASSET OF AN ORGANISATION?
An organisation is a social unit of people systematically structured and managed to meet a need or to pursue collective goals on a continuing basis. An asset however is something valuable an entity owns, benefits from, or has use of in generating income.
The notion that people should be regarded as assets rather than variable cost should not be generalized, as generalizations are usually incorrect. What is considered the most valuable asset depends on the organization and the composition of the people in the organisation.
People are certainly an extremely valuable asset in an industry that depends on highly skilled professionals a service firm. In other industries, the factory and machines, the business systems are considered very important just as the people.
Bruce Crager, an upstream oilfield executive, affirms the fact that people are organisatons most valuable asset. He states “Among other reasons, a motivated employee can make a significant difference to the company’s bottom line in terms of bringing in new orders, meeting customer needs, developing new products and performing heroic efforts to achieve a company goal” People also bring new information and ideas into the organization and turn that information into profit.”
It might be assumed that professionals in the workforce somehow magically acquire the critical adaptive skills, including the information-gathering skill of connectedness, naturally. A study
strongly indicates otherwise. From the perspective of new employee entering the workforce, to mid-career professionals struggling to re-enter the workforce, to mainstream employed professionals who continuously must add value to their employer, the issues are unswerving. They need to learn how to develop an independent image and reputation; build a “structure of connectedness” to gain access to information and develop foresight to remain viable in the workforce in...
References: Michael Armstrong – 2006, a handbook of H uman Resource Management Practice , 10th
E dition, Cambridge University Press
K NUST IDL C EMBA 555 H uman Resource Study Textbook
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