In: Economics
1. 'People are an asset not a cost'.
People are the basic elements that make up an organisation and help in its functioning. However, often seen is that people are seen as a cost incurred by firms than as an asset to the firm. Strategy if often the process of defining the terms and intentions and thereby allocating resources for the successful implementation of those resources. Resource based strategies often depend on the resource capabilities of the firms. It is often the case that human capital ever holds a place in the balance sheets of firms, even though they form the basic resource of the firm. As there is no asset value assigned to people as a resource, many improvements to it have been seen as an expense rather than as a skill for enhancement of the human capital .
The approach by Hekimian and Jones suggested a biding process would help in valuation the people as a resource. The process included were various departments would bid for each other's members. Here people are being seen as a commodity. Another approach is that of Lev and Schwartz who proposed valuations on the basis of future earnings.
People have their own minds and can take decisions on their own. And it bases on those human resource management that people often find ways to value the human improvement.
2. Human Resource Managers can help make capitalism human.
Arguments for:
HR can prepare the raw human employees to develop themselves into human capitalist who would be capable of generating the intellectual or the mind capital which represents more than half of the value of modern companies.
HR can prepare the workers to focus on their work by which they would be able to solve and achieve the desired result that the corporation wishes for. This Human capitalist would be helpful in achieving the sustainable success in the corporations progress.
HR can fuction to help the human capitalist to realign the strategies, re work of the work force as when it is needed not only by the society but also by the economy. They are required to stay vigilant and look into the progress that the economy keeps making.
Arguments against:
The major problem with the human capitalist is the unreliability on these workers. After acquiring the state of best qualifications and training from the HR, these human capitalist run the risk of diving into another corporation which mayor may not be the rival of the earlier firm. This way the human capitalist not only gives an irreparable loss to the parent company from where they defected but also pose the risk of divulging the internal matters to the rival corporation.
3. HR should not be defined by what it does but what it delivers.
The focus of the author Ulrich here by saying HR is defined not by what it does but what it delivers means that he focusses on the outcome rather than the traditional methods of staffing and other processes. The new way of outcome should try to enrich the customers, investors and also the employees.
1. The HR should try to get along with the senior members of the firm and get involved in the strategy planning.
2.Expertise in its area by properly organising and executing work and also deliver administrative efficiency through which it will be possible to reduce cost without compromising on the quality.
3. Should function as the first line of resort to the company workers by representing the concerns of the workers to the senior employers of the company.
4.HR should become a source of inspiration to others through their dedicated work through out and ushering in continuous change and transformation to enhance the capability of the firm and its people.
4.
The Human resource management practices have undergone severe changes with the advent of the IT revolution and also with globalisation. The challenges being faced HRM today include:
1. Establishing an uniform culture in the organisation- With the advent of newer technologies and infusion of human resources from various areas with differing cultures, there is an increasing need to maintain the cultural environment within the organisation. They have focus on the flexibility limit of the workers, support orientation, cohesion among the co workers and the element of innovation brought by these resources all have to be taken under consideration.
2. With larger number of corporations coming up there is an increasing requirement to better and efficient ways to deal with the competition with others. There have to be ways through which they would be able to tackle the competition by reducing the cost but not the quality that it provides.
3. These organisations should promote career development. It helps in developing the professional career of an employee. If the HR managers can assure their employees about their career development it would have a positive impact on the organisational structure of the firm.
4. With the advent of 21st century greater is the demand for gender parity and diversity. Corporations have to be willing to recruit their employees without discriminating on their genders and cultural differences. Globalisation has reduced the difference and is working over to fully get rid of any kind of discriminations that are seen in the internal and external functioning of the corporations.