Many years ago companies had departments called "Personnel". This term was replaced with “Human Resources” as the official title of the department responsible for a variety of activities including benefits administration, recruitment, and employee relations. The reason for this change was the realization that a company’s most valuable resources are its employees.
How does a company protect its most valuable resource? How does anyone protect something that has value to them? You care for it, nurture it and protect it.
Happy, content, and fairly-compensated employees are more motivated and productive than their unhappy counterparts. The relationship between manager and employee is such an important one that if given the proper attention and care, will benefit both the employee and the company.
Susan Fronk in Just One Thing discusses the effect of happy employees on a company’s bottom line.