In: Economics
Gaining the support and input of staff and cultivating a culture of sustainability is important to integrating sustainability into the organization’s business processes. Discuss some actionable areas in a) workforce planning, or b) organizational performance, or c) workplace culture that you would focus on to improve sustainability in the business processes, clearly identifying the expected results in the category you chose.
Ans.
There are five important sources of growth for an economy - Labor supply; Human capital; Physical capital; Technology; and Natural resources.
These sources of growth determine the capacity of the economy to supply goods and services on sustainable basis.
Similarly for a company the rate of sustainable rate of economic growth is measured by the rate of increase in the company’s productive capacity.
We will discuss some actionable areas in a) workforce planning to improve sustainability in the business processes :
- In addition to the quantity of labor, the quality of the labor force is important.
- Human capital is the accumulated knowledge and skill that workers acquire from education, training, and life experience. It measures the quality of the workforce.
- In general, better- educated and skilled workers will be more productive and more adaptable to changes in technology.
- A Company’s human capital is increased through investment in education and on- the- job training. Like physical capital, investment in education is costly. Studies show that there is a significant return on education. That is, people with more education earn higher wages.
- Moreover, education may also have a spillover or externality impact: Increasing the educational level of one person not only raises the output of that person but also the output of those around him or her.
- The spillover effect operates through the link between education and advances in technology. Education not only improves the quality of the labor force but also encourages growth through innovation. Investment in health is also a major contributor to human capital
- All these factors help in productivity , creating leaders within the organization, retention of top performenrs and career progressions leading to sustainable better results over long term.