Employees are the ones who the support mission of their firm and do the work that makes their company successful, thus human capital is the most significant resource of any given business. As part of a team and as individuals, all employees must utilize each others’ strengths to overcome weaknesses and barriers found within the workplace. Although not all employees are as equally critical to business operations as others, management does need a solid workforce to achieve success while no business can be successful without a competent management team. As such, human capital is a piece of business infrastructure that must be built up and maintained.
The day to day operations of a business depend on the individual contributions of each and every employee. When all levels of employment can connect as individuals to work as a group, there is a greater chance of understanding what each and every employee needs in order to achieve success in their individual roles for their company. Accordingly, when a stronger, healthier workplace community exists within a business, success for the business is more likely. This means managers must recognize contributions of all their subordinate employees as these members of the team are just as important to the business as the management team members, because bring their own unique characteristics to the work community.
At the same time, it is important to remember managers are more than decision makers as they serve as a bridge between all members of the business community. Consequently, the role of managers as leaders makes them some of the company’s most important human resources. If a supervisor or manager is not respected, disliked, viewed to be incompetent, and/or seen as unethical, he or she will be undermined as a leader, thus hurting productivity. Beyond how a superior wields the power the firm affords him or her, the demeanor, tendencies, and other personal attributes of the manager determine how effective that supervisor can be. It is, therefore, essential to build the capacity of the management team with highly valued, respected employees.
After all, a successful manager must be a dynamic individual who can adapt to changing circumstances in his or her environment and be flexible enough to work under various conditions with diverse people. The ability to select the right strategy at the right time under the right conditions is what leads to success. With dynamic skill sets, which allow an individual to effectively engage others, recognize opportunities, and comprehend how an idea can be successful, a manager is in the best condition to achieve success for his or her company and self. Without these attributes, individual managers cannot help develop the human capital of his or her business nor can such an individual be assets to a firm as a manager.
Furthermore, a failure to build an effective management team and quality workforce results in costs associated with lost opportunities. Creative problem solving and innovative thinking are necessities, yet an underlying failure to appreciate and capitalize on the value of all employees inhibits these human contributions. Only an effective team effort, fostered by quality leaders, enables a good idea to be expressed, recognized, and developed. Because a team can exploit the strengths of all members, the relationships of team members allow them to accomplish their goals as well as explore alternatives. These alternatives are what make businesses competitive in the long run.
Consequently, businesses must address their human capital needs on a constant and consistent basis. From executive managers down to the guys cleaning the floors, every business depends upon its employees. While other assets can be purchased or sold when needed, human capital is far more difficult to build up and retain as people must be treated properly in order for them to support the mission of the company. Due to this reality and the fact that each individual brings his or her own unique contributions to the workplace, employees are the most critical piece of a business’s infrastructure.