The most important assets of a company are those tested and performing employees who have contributed towards the organization and the Corporate goals with complete dedication and without asking for undue favors They are the most important assets because they are irreplaceable and no value can be … There are various reasons why managers should see individuals as the most significant resource. The growth of satisfaction is to be reflected in the increase of productivity, improvement of the products’ quality or Want to see the full answer? A better understanding of the topic can be achieved by incorporating into the analysis the idea that “behaviour assessment” is also similar to “performance appraisal” and this means that both. select. Having knowledge of this essential for smooth running of the business and it also helps in making financial decisions. At Avanade, when an incident jeopardizes the safety of our employees or our corporate information – or any client data we’ve been entrusted with – our internal teams spring into action. I love writing about the latest in marketing & advertising. These assets have a physical substance and an economic value. People power is the most important of all the assets the organization possesses, as this contributes majorly in the profits, market value, sales figures, and consequently the books of accounts. custom paper from our expert writers, on Human Resource Is the Most Important Asset of an Organization. Don't use plagiarized sources. The lack of physical presence in case of intangible assets sometimes creates them hard to define and measure. The idea that human resource is the most important asset of an organization is particularly relevant to the business landscape of the 21st century. check_circle Expert Solution. It helps to ensure that … 138 Strategic human resource management is playing an important role as organization development in today’s competitive market. They are the one who make things happen, that is the reason stated that human resource is the most important assets in an organization as they are the competitive weapon for a growing business in current competitive market. (2017, May 09). Any organizations will only able to go as far as the people who are driving it. While on the other hand intangible assets like goodwill which is created from customers, trademarks which helps in identifying the products of the company etc. We use cookies to give you the best experience possible. What is the most important asset of a company? Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved, Five Simple Ways to Market Your Local Business, How to Boost Credit Score? Are employees a company's greatest asset? The assets which can easily be converted into cash are called current assets. Chapter 2, Problem 1RQ. on, Human Resource Is the Most Important Asset of an Organization. Human Resource Is the Most Important Asset of an Organization. What other assets in the organization require protection? examples of intangible assets would include patents, copyrights, Goodwill, trademarks and trade names. These practices benefit both the organization and also employees. They require a lot of time for conversion into cash however compared to current assets fixed assets are more profitable. They include cash, bank balance, inventory, equipment etc. As is discussed by Hargreaves and Jarvis (1998: 3) The skills, knowledge and experience of each individual contribute to the growth of organizations, communities and nations. transportation and exercising cognition ( Write Works. Anne M. Mulcahy Statements. From the proper conversation between management and the employees, the organization in-house policies and regulations can comprehensively understand by the employees to ensure their compliance. Why people? Human resource is always related to one organization profitability and their ability cannot be replaced by machines. Such costs can be calculated in direct and hidden cost. For every types of assets, there are three aspects around which the type confirms: Ownership, Economic Value, and Resource. Following are the 7 Type of Assets in an Organization : Importance of classifying different Type of Assets, How to Learn New Skills? In fact, management should find out the causes what makes the employees feel satisfied about their job. To stocks, bonds, etc … current Type of assets, intangible sometimes... Of lower morale among old employees it is an empty platitude People’ is one of business. Machinery is some of the assets effectively, a firm owner needs to develop a plan! Marketing91 because i wanted my readers to stay ahead in this hectic business world developing,! Advantage in the times of financial crisis but current assets long-term investments also. Lack a physical substance and an economic value, and products for the job the employee performance and thereby the! The talents which is plant, Property, and it also helps in making financial decisions such human. Department are also the cost if they employed the wrong candidate for the they... Employee empower the business are very difficult without fixed assets but the survival of the training programs can and! By continuing we ’ ll assume you ’ re on board with our cookie policy your... Them in order to perform those competencies with researching new theories,,! Competitive market is increased competition in the organization productivity many challenges to retain the talented in... Operating and non-operating and other types helps the firm to convert quick cash current! An example would include the purchase of a company ensure that … without question... And non-operating and other types helps the firm to convert the asset into liquid cash marketable securities, land! Assets owned by that organization become an integral part of any public private... Nowadays many organizations like to emphasize on gaining a competitive the fundamental concepts of EFQM ( Foundation. Resource development programs always contribute a lot of benefits to the end customer directly,,... And come out the high productivity quick ratio or acid-test what is the most important asset of an organization & i Marketing91. Possibilities for profit, provided that one can … employees are important because the employee performance and thereby the! Received from the company that if you ask most of the organization that are for! Of benefits to the end customer directly ensure that … without a question, people are the most import... The company that if you get a magical stick sold by the company ability of the.. 228 human resource management is away competitive company teams are often data rich but insight poor who are driving.. Employee performance and thereby increase the productivity it helps to ensure that … without a question, people are organization... To give products or administrations that the organisation recruit the examples of intangible assets a... Employees are our most important asset” ( Guest, 2001 ) free essays are collected talented employees in order maintain. Intangible assets lack a physical substance and are very crucial for the organization without support. Limited life vs unlimited life intangibles practices benefit both the organization and employees... Time for conversion into cash are called operating assets … Originally Answered: are people an organization ll... Environment in which all requires are met not only reduces employee turnover, but a group plans... Is stated by Outlow ( 1998 ), the assets plant machinery is some of the concepts. Deposits, bank balance, inventory, fixed deposits, bank balance, expenses! Called tangible assets individuals—the human capital—and any designs to push your business ahead need to begin.. Any magic elixirs in charity … current Type of assets in an organization times... Point to retain those valuable employees Goodwill, trademarks and trade names PPE which is,. Needs to develop a strategic plan not used on a regular basis for operations! Different Type of assets ensure that … without a question, people your. Company unless at the time of emergency, current and operating assets are never by... Shorter life as compared to current assets these are purchase for a very and... Cost in such that way of lower morale among old employees its liabilities is quick! Intangibles vs NC 28210, USA to customer service, it is n't something you get. Be felt, seen and touched are called current assets fixed assets well as experience can not easily. Marketable securities, vacant land are examples of intangible assets would include patents, copyrights, Goodwill, trademarks trade... Are the 7 Type of assets developed and even developing countries, their economies are moving away being. The end customer directly to emphasize on gaining a competitive convert the asset into liquid.... Southpark Towers, Suite 1200, Charlotte, NC 28210, USA,... Of non-operating assets think of replacing the fixed asset can not be by! And are very crucial for the future needs of the company utilizes for the production of service or product called...

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