Definition (1):
The human element is an important factor in every system of internal control. A good system can become ineffective as a result of employee fatigue, carelessness, or indifference. For example, a receiving clerk may not bother to count goods received and May just “fudge” the counts. Occasionally, two or more individuals may work together to get around prescribed controls. Such collusion can significantly impair the effectiveness of a system. Eliminating the protection offered by segregation of duties. No system of internal control is perfect.
Definition (2):
The human element gives a personal feel or touch, making everyone feels relatable and accessible. It is attaching staff photos on a professional website, applying I/We language on social websites or media, using your name, not only the tagline of your business while signing newsletters, and letting all know why and how you started your business and so on.
A business can develop the human element within its area of operation in many ways. It needs the human element because of the following reasons:
- For developing a person-to-person relationship with the customers.
- For making itself relatable.
- For making itself accessible.
- For creating a consistent and distinct voice.