Investment in human assets and the effect of the human behavior to the Essay

Investment in human assets and the effect of the human air to the auditing care for - Essay ExampleHuman capital is the stock of skills and knowledge possessed by individuals that eventually helps to complete labor, generating economic value (Human Capital, par.1). Labor non only refers to the physical work done in the production phase (which is replaceable), but also encompasses all work done by an employee in socio-economic class of his job for the entity. Ultimately, it is the ingenuity and hard work of the people that profits the business. Rating people as substantive investment is a very viable argument since they are using their skills to work for prosperity of the entity. It makes mind to invest more in training and development of the human assets in an organization, to conduct workshops and to offer them motivational incentives as in the long run, the money spent on them is expected to give a go past easily in access of the incurred expense.However, putting a financia l value to human assets is just not that easy. Financial managers can recognize handy investments decisions to switch to new procedures, acquiring new equipment or strategical mergers can be evaluated using financial and non-financial models. Human resource investments, one of the most vital assets of a company are difficult to value though. This is because unlike machines and projects, one cant reliably predict the future events and behavior of a person and neither can it reliably calculate the benefit that a person could chip in to the company. Moreover, it is also difficult to attribute an accurate proportion of revenue to a particular employee to mea trustworthy enough how a companys investment on that employee is paying off. As a result, training and development allocations are often drop in the budgeting process and are likely to be the first costs that are to be eff when faced with a budget crunch (Clarke, par.2). Many officers and managers see costs incurred on humans i n the form of payroll, added benefits, training and development simply as an unavoidable expense that must be controlled. This onset is contrary to the idea that people are the actual perpetrators of a companys growth and profitability. They miss the link between their employees deeds and the customers perception of the entity. Even while this happens, organizations have realized the need for employee training and the need for continuing professional development. Investing in people also has other factors, some of them which do not tinct to budgeting. In the recent years, there have been many scandals of fraud and negligence from service providers, especially when you lambast about Medical Care and the issue of compliance with laws and regulations. In these areas, it is absolutely necessary to make sure the employees understand their responsibilities and know to whom they, and the organization as a whole is accountable. This is more important for organizations involved in Health Care to view their staff as investments because heavy expenditure must be incurred to make sure the staff is compliant with standards and hygiene and competency standards as their actions would directly affect people that place credence on the organization. Investment in this regard could save organizations millions of