Managing Human Capital Is Important Element Of The Intangible Assets Of An Organization

1861 WordsMar 6, 20178 Pages
CHAPTER ONE 1. Introduction 1.1. Background of the study The success and failure of every organization depends on the type of employees they have and their ability to add values to achieve their organization objective. Human capital is an important element of the intangible assets of an organization (Armstrong and Baron, 2007). Managing human capital is therefore an approach to managing people that regards them an asset and stress that; competitive advantage is achieved by strategic investments in those assets through employee engagement and retention, talent management, learning and development programs (Armstrong and Baron, 2007). Pratheepkanth (2011) noted that organizations are realizing that they have to establish an equitable…show more content…
2011) Reward management is related to factors that can indulge the unsatisfied needs of employees. This will encourage employees to deploy themselves towards an organization to achieve organizational goal, building up trust and being committed toward the organization, which can induce them to be retained long term in the organization. Oromia International Bank (OIB), the company on which this study has been carried out, was licensed on September 18, 2008 G.C. The bank was established in accordance with the pertinent laws, regulations and the 1960 Commercial Code of Ethiopia, by the Monetary and Banking Proclamation No. 83/1994 and by the Licensing and Supervision of Banking Proclamation No. 592/2008. At the time of its establishment, OIB’s authorized capital was ETB 1.5 billion, whereas its subscribed capital was ETB 279.2 million, and its paid-up capital ETB 91.2 million. OIB began operation on October 25, 2008 by opening its first branch at the Dembel City. However, as of June 2016, the banks paid-up capital reached ETB950 million and deposits were ETB9.6 billion. The bank overall goal is to maintain its level of investment and growth and striving to have short and long-term plans to reach out to large portion of the population. The total branch in the industry has reached 4,000, up from 600 some six years ago. (Ethiopia Business overview, 2016) The total staff strength of the
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