What is basic responsibility of managers? Regardless how you explain about its will deduced to investing limited resources available in selected area for unknown or sometimes unknowable return... two things need to be consider here, first their prerogative which is selection of area to invest and on the other hand the risk... the unknown and unknowable return but that the most critical,....the bottom line or result.
Basic question need to be answer is how he or she strategically chose the area to invest.... since its involve asset of the company in form of tangible or the intangible they may have though time in convincing the BOD.. Investing in human asset may appear very costly and lots of uncertainty in the future buts in long runs its pay off handsomely. Some of our past study shows that those who investing in human asset will gain competitive advantage in term of capacity and competencies when switching direction needed. Just like in the tangible form, how fast intangible asset turn over also will determined level of profitability of the venture.
I am not sure how good our companies maintaining their human asset accounting to begin with, my study on this not conclusive enough to argue with, because its not easy to put values for your intangible asset and most companies considered human as cost rather than investment... if you do not have an investment how can you harvest for profit? There are 3 strategic area in human asset can be turn over for profit namely:
i) Human Physical forces
ii) Human Competencies
iii) Human interaction and networking
All of the above will give values to the companies to exploited as property or asset than can be capitalized and turn its over for profit... we will examine this later..... DMY
