Managers may ask the question what is the most important asset in their company? The greatest asset of a company is not its financial capital, the number of building or it’s properties, nor it is the equipment or products that the company own. The greatest asset that a company own is it employees. Then again, what exactly is human capital? The term human capital is recognition that people in organisations and businesses are important and essential assets who contribute to development and growth, in a similar way as physical assets such as machines and money. The collective attitudes, skills and abilities of people contribute to organisational performance and productivity. Any expenditure in training, development, health and support is an investment, not just an expense. The importance of human capital is rising tremendously since the last few decades. Human capital is now regarded as the most important factor in an organization Continue reading
Modern HRM
Wastage of Human Resources
The term wastage of human resources is the loss of employees other than by redundancy. Redundancy points out the position of the employee as no longer needed for any available job and therefore liable to dismissal. In an organization, the wastage of human resources is mainly caused by the factors Labor turnover, Idle Time and Absenteeism. 1. Labor Turnover The change in workforce is known as labor turnover. It is the rate of change in the composition of the labor force in the organization. Whenever an employee leaves the organization, the management, has to sustain loss and wastage arising from the replacement of the leaving incumbent, by inexperienced new labor force. This replacement cost also includes cost of recruitment, selection and training of new employees. Loss of output due to the gap in obtaining new workers, loss due to inefficiency of new workers, cost of accidents due to lack of Continue reading
Importance of Work-Life Balance in Organizations
In today’s world, people have become more focused on their professional life, as they want more finances to manage their things. Most of them want to sustain their professional life as they believe that it grants them freedom for achieving the goals. Most of the people want to achieve the work-life balance as it grants them good amount of peace and satisfaction. The work-life balance helped to bring the goof level of satisfaction among the people leading to the achievement of the goals. Due to the globalization and digitization, there is increasing pressure on the individuals to be available for the duty 24 hours when required. Such pressure creates misbalance in their professional and personal life making them less productive and energetic to do the chores in the best possible manner. Around 85 percentage of the people working in corporate complain of their inability manage their work and personal life Continue reading
Literature Review – Employee Training and Development
Introduction Human resources are considered by many to be the most important asset of an organization, yet very few employers are able to harness the full potential from their employees (Radcliffe, 2005). Human resource is a productive resource consisting of the talents and skills of human beings that contribute to the production of goods and services (Kelly, 2001). Lado and Wilson (1994) define human resource system as a set of distinct but interrelated activities, functions, and processes that are directed at attracting, developing, and maintaining a firm’s human resources. According to Gomez-Mejia, Luis R., David B. Balkin and Robert L. Cardy, (2008), it is the process of ensuring that the organization has the right kind of people in the right places at the right time. The objective of Human Resources is to maximize the return on investment from the organization’s human capital and minimize financial risk. It is the responsibility Continue reading
Human Resource Metrics
Human Resources once considered a field focused on soft skills, has undergone an unprecedented change. HR now deals with complex data that can be analyzed to provide valuable information and insight and is swiftly becoming an essential means to add strategic value. The HR world is buzzing with the transformative potential of HR analytics. This field has developed at the intersection of computer science, engineering, decision making, and statistics and assists in organizing, analyzing, and making sense of uncertain situations. It has become evident that integrated and strategic HR practices considerably improve bottom-line performances. Therefore, appropriate Human Resource Metrics must be developed and applied in order to specifically illustrate the value of HR practices and activities, particularly relative to accounting profits and market valuation of the organization. This task has proven to be far more complex than anticipated, given the difficulties of measuring human assets/capital. Because HR largely deals with Continue reading
Deal and Kennedy’s Organizational Culture Model
As a lead up to the discussion on corporate culture in people’s management, it is important to consider Deal and Kennedy’s contribution. Deal and Kennedy suggests that ‘People are a company’s greatest resource, and the way to manage them is not directly by computer reports, but by the subtle cues of a culture’ Deal and Kennedy (2000) examined organisational culture from a different perspective, concluding that there are six interrelated elements which define organisational culture. These are: The history of the organisation, because shared past experiences shape current beliefs and values and the traditions which organisation is built on. For example, firms often draw on their heritage and use this as part of their branding strategy, as well as asserting a belief in traditional values. The values and beliefs of the organisation are critical as these focus on the shared beliefs of employees and the organisation as a whole, including the written and underwritten Continue reading