Reported by:Luis Carlo P. Francisco

Organisations are created by the rules and resources drawn upon and enacted by people, and the nature of organisation is a result of people’s actions. Thus an organisation’s behaviour reflects people’s PSYCHOLOGICAL, ETHNIC, RACIAL, CULTURAL, POLITICAL and SOCIAL MAKE-UP.

PEOPLE ARE THE MOST IMPORTANT ASSETS OF AN ORGANISATION but because of our insecurities and fantasies organisations now are becoming larger than life and take on their own characters, images, attitudes and intelligence.

Large corporations are taking it further and becoming very influential in making decision on economic, political, social, technological, environmental and legal affairs.

The importance of people in organisations is immense because it is the people than plan, design, implement, sustain and end an organisation’s life. It is in management of the human resource that a business may survive.

In the late 1980’s business and management research began to highlight that some organisations are managed better than others because they discovered that managers are better at getting the job done through establishing relationship with the clients and employees.

Dissatisfaction with the quality of services is one of the main reasons why effective people management is necessary in organisations. The changing expectations of customers, growth in Internet usage, and rapid development of e-Commerce have pressured Organisations in every sector to improve services and employee effectiveness.

Human capital often refers to the characteristics and skills people bring to the organisation such as commitment, loyalty, expertise, and etc. but as mentioned earlier people have different background, values, beliefs, knowledge and level of experience, so, their contribution to the organisation as a resource is highly unpredictable, unique, and has potential for further development.