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1)Why do senior managers often fail to realize the value of human assets vis-a-vis other assets? 2)Why do line managers often fail to realize the value of human assets vis-a-vis other assets? 3)What can HR do to make senior and line managers take more of an investment approach to human assets?

Business Feb 02, 2021

1)Why do senior managers often fail to realize the value of human assets vis-a-vis other assets?

2)Why do line managers often fail to realize the value of human assets vis-a-vis other assets?

3)What can HR do to make senior and line managers take more of an investment approach to human assets?

Expert Solution

1. The senior manager fails to realize the value of human assets due to many reasons.

a) Managers mainly equate assets and investment.

b) Managers are mostly not able to see that by viewing employees as a human asset may always increase productivity, growth, and competitiveness.

c) Another reason that the manager does not value the human assets is that the manager does not value the assets by the return on investment or cost of production.

It is tough for the company to analyze the human assets ignored by the company and manager.

2) Individuals who are involved in the important activity related to the business directly by the company are known as line managers. These managers often face difficulty in computing the value of the employee as an asset and return on investment. They neglect the human assets. The line managers concentrate on the important operation and do not consider human resources as part of the process and assets.

3) The human resource department needs to familiarize and train the managers for knowing about the value of human assets. This process helps the management to understand that employee as an asset, and it plays an essential part while making the strategy. The manager must know that without human resources, most of the operation of the business will shut down, leading to the loss and decrease in productivity.

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