Terms to describe an organization's employees have changed from "staff" to "human resources" and, lately, "human capital". Human capital is the recognition that people within an organization and business represent an important resource that plays an important role in the development and growth of an organization. It can be said that the importance of human capital is equivalent to other resources within an organization such as buildings, financial profits and machinery. There is no denying that people's skills, abilities and knowledge contribute significantly and productively to an organisation's performance and success. Therefore, organizations allocate large sums of money and time to offer adequate training courses to their staff, considering it a long-term investment for the organization. Inevitably, people within an organization are needed and expected to maintain the existence and growth of an organization. In situations where organizations focus attention and interest only on competition and financial performance, neglecting individuals within the organization can pose many challenges. Consequently, having capable, good, consistently motivated and passionate people in an organization makes a significant difference. Additionally, updating staff with the latest technology and knowledge enables them to perform better. The value and contribution of people in an organization must be recognized by organizations. Treat every person in the organization as important. People in an organization should be valued as an asset rather than an expense. Every effort of people should be taken and evaluated formally or informally to further develop their skills and abilities to make a great contribution to the organization. Organizations that invest in training for their jobs......middle of paper......f salaries and wages at every level to arrive at asset value. The replacement cost method evaluates human resources based on the cost that would be required to replace the organization's existing human resources. Finally, the economic value method states that the organization's future revenues are directly linked to human resources. Therefore, the present value of future profit is calculated by applying a factor considered the value of human resources. Works CitedStockley, D. Human Capital Concept. Retrieved from http://derekstockley.com.au/newsletters-05/018-human-capital.htmlBrocaglia, J. Human Capital Risk Managers Specializing in Information Security Recruiting. Retrieved from http://www.altaassociates.com/pdf/06-AUG-CC.pdfSardhar, M. Human Resource Evaluation. Retrieved from http://www.citehr.com/94178-valuation-human-resources.html