Question

Recent days the organization started to invest in human resource of the organization due to change organization perception about human resource management.                                       

1. Explain the reasons of this change in the value of human resource?

2.As an HR specialist explain how these change in perception affects organization’s work force and support your answer with a proper example

Answer 1

1. The fundamental reasons behind the change in outlook of the overall business world and the value of Human Resource is as follows:

· The organizations have realized the importance of the most critical asset of the company – the human asset. The human asset facilitates the competitive advantage of the company and hence managing them effectively is quite crucial.

· The company costs can be considerably lowered if the manpower planning has been done effectively

· The 21st century brings quite volatile business environment. HR analytics helps in assessing the environment and coming up with strategic plan of workforce to cater to the same

· Effective HRD helps in retaining the talent of the company and preparing them for future roles in business. The employee attrition is also maintained at minimal level

2. Earlier the HRD was considered to be a support and administrative function. It was considered as a cost center of the company and if the company was resorting to cost cutting, the costs allotted to HRD were usually compromised first. With time, however, the company has realized the importance of HRD. HRD has started contributing and adding value to the company’s strategic objectives. The interventions of HR analytics and forecasting have started projecting the value addition of HR in numbers. This quantitative representation has been accepted and trusted by the overall business and has led HRD to the C-Suite of the company. For example: In an organization, back in 1990s, HR was primarily given the role of employee timekeeping. But now the overall employee lifecycle is handled by the HRD. The HRD assesses and selects the best fit for the company, thus facilitating the company’s culture and value system. The employer value of the company is also supported by HRD efforts. Talent management efforts of HRD help in keeping the employees motivated and enhancing their performance. Hence now the policies, interventions as well as rules set by HRD re taken seriously by the overall company. HRD has transitioned from being a cost center to a profit center of the company.

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