Answer to Question #251845 in Management for Judy

Question

There are other things more valuable in an organization besides the people who work there

Answer 1

There are other things more valuable in an organization than the people who work there

For any business activity of organizations to run, they rely on capital. Capital is a company's asset that is helpful to the organization in achieving its objectives and generating a profit. Capital includes goods, equipment, cash, and plant among others. For example, the manufacturing industry will use the plant, and a retail store will utilize inventory and registers. The thing that all companies have in common despite the industry they belong in is they require people as assets to ensure the capital is working for them. People working for a company are called the human capital. Human capital comprises the skills and knowledge of an individual necessary in enhancing the goals of a company. Despite all other forms of capital being important, they cannot achieve the goals without human capital. Hence, in an organization, there are no other things more valuable than people.