Developing Human Capital in the Workplace

Although it is necessary for companies to focus on various aspects of organizational design, people are the only resource within an organization that appreciate over time.  Therefore, the purpose of organizational development is to leverage human capital, creating an organization which engages its intelligence, and motivates employees to exceed a company’s competitors. What steps can leaders take to develop human capital, and increase a company’s bottom-line?  

Senior leaders must see the need to function as a cohesive team.  As executive teams build experience, each member must share the responsibility for building the entire organization as well as managing their specific areas.  In other words, leaders must develop a holistic mindset which requires developing interpersonal skills to help collaborate more effectively.  When leaders understand and practice constructive interpersonal and team principles, it is easier to develop a high performing organization.

Second, leaders must develop communication systems to share information.  One of the keys to motivating employees is to empower individuals, making them “contributing partners” in an organization.  When employees are given strategies, plans and information about the organization in which they work, they become partners in helping to build and improve the organization. Sharing such information is an ongoing process which requires spending time with people, to ensure they have the necessary understanding and training to implement information properly.

Third, leaders must move from controlling, directing, and top-down decision making to encouraging participation, developing people, to allow people at all levels of the organization to take greater responsibility in the company.  Although it can be challenging for leaders to make this shift, it can be accomplished through focused support and training.

Finally, leaders must achieve self-mastery.  Masters are the victors of life who step up to challenges with courage, purpose and wisdom.  Achieving self-mastery means a leader is taking personal responsibility for his/her choices and personal growth, and contributing to the growth of others around them.

Building human capital builds organizational success. Click here for more information on developing human capital in the workplace.

Happy Monday!

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