Arizona State University (ASU) MGT302 Principles of International Business Exam 3 Practice

The term 'people' in an organization primarily refers to the employees and the strategies that focus on their recruitment and retention. This encompasses the workforce that contributes to the daily operations and the overall performance of the organization. Understanding the importance of employees includes recognizing their roles, talents, and motivations and adopting effective human resource management practices to attract and keep skilled workers. Since employees are the backbone of any organization, their well-being and engagement directly impact productivity and organizational success.

While stakeholders, customers, and upper management are part of the broader context of an organization, they do not encapsulate the specific focus on employees that is critical in human resource management discussions. Thus, the correct answer highlights the central role of employees relevant to organizational structure and effectiveness.