GENERAL KNOWLEDGE

Detailed explanation-1: -The notion that people should be regarded as assets rather than variable costs, in other words, treated as human capital, was originally advanced by Beer et al (1984). HRM philosophy, as mentioned by Legge (1995), holds that ‘human resources are valuable and a source of competi-tive advantage’.

Detailed explanation-2: -Human capital is an intangible asset not listed on a company’s balance sheet. Human capital is said to include qualities like an employee’s experience and skills. Since all labor is not considered equal, employers can improve human capital by investing in the training, education, and benefits of their employees.

Detailed explanation-3: -HR motivates workers to perform at the highest level possible and maintain an organizational culture of high morale. A primary way HR adds value to a company is by persuading company leaders to train and develop employees and reward strong performance through increased compensation and regular promotions.

Detailed explanation-4: -Therefore, employees are the most valuable assets an organization has. It’s their abilities, knowledge, and experience that can’t be replaced.