Are people the Asset of an Organization or not?
In asset management do we consider the employees as asset in an organization?
- 1 decade agoFavorite Answer
The term for employees has changed to "human resources." In the 19th and 20th centuries, employees were seen as replaceable cogs because they were cheap to hire and cheap to replace. Today, with a service economy that revolves around knowledge management rather than manufacturing, it is much more expensive to replace an employee. As a result, companies have recognized that employees should be treated as assets rather than expenses. The definition of an asset is "an item of economic value." A firm can invest in its employees, and if it treats them as assets by utilizing tools such as training, performance management, etc., it can turn those assets into valuable investments. Many consultants, human resource professionals, and even company mission statements state that people are the greatest asset of any company.