Investing in Your Company’s Human Capital: Strategies to Avoid Spending Too Little—or Too Much

Chapter 6. What We Know from Logic and Intuition

While all of the chapters in this section underscore the importance and value of human capital, this one examines the importance and value of human capital from a logical, intuitive basis, and introduces several arguments for why human capital is king or queen. It begins by looking at the role of people in organizations, and then explores issues such as how human capital is (or is not) accounted for. The role of human capital in highly successful organizations is examined in popular lists such as the Best Places to Work and the Most Admired Companies. In almost all cases, logical arguments point toward the importance of people to an organization, as people contribute most, if not all, of the organization’s ...