Montero Inc.,an automobile manufacturing company,had the largest number of employees in the manufacturing sector last year.Instead of hiring more employees,the company decided to invest heavily in training its employees on automotive maintenance and design.Which of the following beliefs has led the company to take this decision?

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Quizplus · Accepted Answer

Human capital means the organization's employees, described in terms of their training, experience, judgment, intelligence, relationships, and insight-the employee characteristics that can add economic value to the organization. In other words, for an organization to succeed at what it does, it needs employees with certain qualities, such as particular kinds of training and experience. This view means employees in today's organizations are not interchangeable, easily replaced parts of a system but the source of the company's success or failure. In this case, Montero Inc. decided to invest heavily in training its employees on automotive maintenance and design instead of hiring more employees because employees are the source of the company's success or failure.