No organization can own its human capital the way it owns its other assets. And, inevitably, there is a constant 'flight of capital'. Here we have all the trappings of perpetual dynamics when compared to static assets whose tenure can be safely projected. For instance, the only loyalty the silicon generation exhibits is to the Silicon Valley itself, not to any individual organization within its bounds. The imperatives of attrition have to be accorded due recognition, and this is the other dimension an organization has to focus on.
Employers have to understand the value that is lost when a key employee leaves.
So, we will also examine the cause of attrition in the new knowledge-oriented organization and what can be done to motivate loyalty. Capital redefined An organization is made up of competencies which we can loosely call 'capital'. Its key components are 'customer capital', 'structural capital' and 'human capital'. Broadly a company's strength arises out of its customer base which purchases its products. This customer capital triggers a number of key decisions such as new product and service packages, new designs in anticipation of customer preferences and new locations from which a number of customers could be profitably served.