Here is a combinatorial proof of this identity.
Imagine a group of $n$ people. You are to elect a head for this group, and then create a committee(of any size, even zero) from the remaining people.
In how many ways can this be done? One is this : choose the head in $n$ ways, and then choose a subset of the remaining $n-1$ people to form the committee. This is done in $2^{n-1}$ ways, since there are $2^{n-1}$ possible subsets. So one answer would be $n2^{n-1}$.
The other way would be this. Let's fix the number of people in the committee first. Call this number $n-k$. Clearly, $k = 0$ is not possible, since at least the head is not in the committee. Now, once this is done, pick the committee in $\binom {n}{n-k} = \binom{n}{k}$ ways. Then, a head must be one of the $k$ people left. So, for each $k$, the number of ways of doing things is $k \binom nk$. We sum from $k=1$ to $n$, and then get $\sum_{k=1}^n k \binom nk$.
But then, we are counting the same thing in two different ways. Hence, the answer follows i.e. $\sum_{k=1}^n k \binom nk = n2^{n-1}$.