Why human are the unauthorized capital in the organization?

Humans are often considered the unauthorized capital in organizations because they possess unique insights, creativity, and problem-solving abilities that are not formally recognized or fully utilized by management. Employees may have valuable ideas or skills that remain untapped due to rigid structures or lack of communication. This can lead to inefficiencies and missed opportunities for innovation, as the potential of the workforce is not fully harnessed. Recognizing and empowering this "unauthorized capital" can drive organizational success and foster a more engaged workforce.