People in an organization is that organization's most important asset! Organizations have operating capital, growth capital and human capital; some organizations don't recognize their human capital.
Human capital is the knowledge, education, training, skills and expertise of the organization's workforce. Successful organizations recognize and appreciate their human capital and ensure that their people have
"Business Literacy".
Every member of the management team, including the first-line supervisors, and any other employees who have an interest, should know:
* The organization's mission, objectives, its long and short term goals, i.e., why they are in business.
* What the organization's plans are as related to human resources growth.
* What's in the operating budget and why. Show that salaries, wages and benefits are the majority
expenditure in the operating budget.
* What's in the capital budget and why. Show the organization growth plan and how it relates to its
mission, objectives and goals.
* How the monies come in and goes out of the organization and why.
* Why and how tough budget decisions are made, and
* Employees should be educated, i.e., given "business literacy" via training, constant communications
( i.e., news letters, bulletins, CEO's state of the organization address, etc.) and meetings with
senior management.
Business Literacy is necessary for an organization's Human Capital to acheive success !!
Howard W. Lewis,
Labor Relations Consultant
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