An asset is something which provides potential value
for an organization. Here we considered human capital as an intangible asset of
an organization. From early notion of people management employees are
considered as a cost to the business. When the economy was changed from
agriculture base to industry base with the Industrial Revolution of the
mid-eighteenth, there was huge emergence of large factories and more demand for
the productions. The factor owners struggled to maximize the production of
factories to supply products continuously according to the increasing market
demand. The employees had to work as hard as
they could to increase production of factories. This led to increase
many labor riots due labored and untidy work infrastructure in the factories.
According to the scientific management theory of Frederick
Winslow Taylor also merged to increasing the production of the factories. He
believed that the employees were motivated by money and implemented the idea of
“a fair day’s pay for a fair day’s work. Every task was broken into
small and simple segments and employees are considered as a wheel of a big machine
of production.

 From the evolution of Human Recourses
Management, it is tended to recognize the employees are as an asset to the
organization. When the industry identified that their productions are higher
than the market demand, they found the competiveness among their products and
services. Competitive advantage came to the picture which makes the uniqueness
of the products and services. Again it is recognizes that the human capital is
the only intangible asset which can make the uniqueness of the organization as
well as its product and services. The engaged employees are identified as the
most valuable asset of a company. Further Disengagement employees are identified
as a cost for the business. An organization must
create an environment that allows their employees to grow and it is
needed to organize training and
development programs to convert disengaged employees to Engaged employees. The knowledge, talents, skills, innovation and creativity are
the capabilities of Employees.
According to VRIN framework of Barny, those are considered as
valuable, rare, costly to imitate and non-substitutable assets which bring the sustainable competitive advantage for
an organization

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