Which concept focuses on the capabilities and costs of the workforce as an asset?

• A. Business-level strategies
• B. Human capital
• C. Built to change organizations
• D. Executive Information System

Answer: (B)

Human capital focuses on the capabilities, skills, knowledge, and experience of employees, and on the costs tied to acquiring and developing that workforce. Viewing people as an asset means considering not just salaries and benefits, but the value they create through their abilities and potential, and the investments needed to enhance and retain those capabilities—training, recruitment, development, and turnover costs. This perspective helps organizations align people investments with long-term performance and competitive advantage. The other concepts don’t center on the workforce as an asset: business-level strategies relate to how the firm competes in its market, an executive information system is a decision-support technology, and “built to change organizations” describes an approach or capability rather than focusing on treating the workforce as a valued asset.