Theory E is in Tension with Human Capital
Jaap de Jonge, Management Consultant, Netherlands
Well put and I agree with you Professor. Theory E is at odds with building organizational capability and any firm should reconcile both sides of the equation (economic capital and human capital). See the summary of the knowledge center for ideas on how to do that.
Certainly if you focus only (or way too much) on (short term) profitability, not investing in developing your people individually and your organizational capability at large, you're going to pay for it in the long run.
As the English say: "Penny wise, pound foolish" (~to be extremely careful about small amounts of money and not careful enough about larger amounts of money).