Question

Why is it important for HR managers to realize the importance of human assets? How do human assets contribute to a competitive advantage? In what ways do HR manages ensure employees are satisfied and the company has highly skilled staff?

Answer 1

The most valuable component of an organization is it’s resources. Sustainable resource help an organization build competitive advantage by producing product better than it’s competitors. HRM role is to help an organization to build and sustain a workforce than meet business need of the organization. A sustainable a well skilled workforce help an organization perform better than it’s competitors build competitive advantage over competitors.

Organization can establish HRM strategy to build and nurture the workforce. Following strategies can help organization to improve competitive advantage-

1. Recruitment of highly capable workforce.
2. Work life balance and constant motivation of the workforce.
3. Maintaining transparent performance management system.
4. Compensation matching industry standard.

HR is always linked with achieving overall organization goals and strategies. HR done it in all phases like- recruitment, talent development, appraisal process and taking care of employees.

HR build it policies based on organization end objective. For an example if organization is working toward becoming a analytically driven , HR will recruit people with prior analytical experience and making training schedule to make employee aware of analytical tool and approaches.

A specific human capital management practice can be recruitment process. It is done to inject fresh talent or workforce in the organisation.

HR manager can ensure that by mapping the right talent to the right job. Also, giving the right compensation according to skill set also providing acknowledgement when needed. Also, involving them in the training to make them relevant and highly skilled.