|
This element can be defined as the size (or number) and internal characteristics of:
• employees,
• plant and offices,
• equipment and tools,
• land,
• inventories, and
• money.
Two factors have a major effect on organization processes:
• amount of such resources, and
• condition of such resources.
An organization with 10 employees simply cannot have the volume and diversity of processes than an organization with 10,000 employees.
The same is true for a company with modern computers compared with a company with old computer equipment.
The same is true for a company with a personnel highly specialized in the company process versus a company with amateur personnel.
To determine a state of organization’s employees and other tangible assets requires the management to inventory those assets.
For non-human assets, it is important to determine their physical condition and their cash value.
With human resources, it is important to identify not only their background and skills, but also their feelings about the organization, and their expectations about their future at work (which closely relates to Social System).
Questions to Determine the Present State of Tangible Assets
1. What assets does organization own, lease, or employ? Catalogue all the organization’s owned or leased tangible assets, including:
a. land,
b. buildings,
c. equipment,
d. supplies,
e. inventories,
f. cash, and
g. securities.
2. What condition are the nonhuman assets in? How well have they been maintained? How liquid are they? What price could each obtain if converted quickly into cash?
3. What are the backgrounds of different employee groups? What are their skills and abilities? How do they feel about the organization? What are their expectations regarding the organization and their future?
|