Human Resource Is the Most Important Asset of an Organization

With the ever increasing pace of change in the world, today’s market leader can be out of business tomorrow if the organisation fails to adapt to the changes around it. One of the key assets of each organisation is its human capital, i.e. the knowledge, skills and abilities of its staff. If the organisation is to adapt,

Human resources plays a great part in the functioning of the company and could impact the success

All organizations have the common objective of being successful and nowadays due to competition that is not an easy achievement. The most important capital that companies have is the human capital and, to be successful, is essential for the organizations to focus on people.

Secondly, human resource is an important aspect of business; most of organizations nowadays view people as their most valuable resources. In fact, the part that intrigued me was the challenges derived from the changes in function and structure of HR department. HR is becoming a need for every aspects of day-to-day management, and job-seekers would find their jobs require more of generalists with more skills and competencies to perform multi-tasking (Larsen & Brewster 2003). Those are challenges as well as potential, on which you could learn and develop yourself.

Human resources and the services they provide can be seen as the crucial link between staff and the achieving the business goals and objectives.

Human Resources often begins as very tactical policies, records, compliance, discipline, compensation, benefits, job descriptions, hiring, performance management (). Taken to the next level, HR becomes strategic, connecting employees to the business mission, values, and vision, in order to drive business results (). Employee goals and metrics align to the business strategy and rewards tie into results. Additionally, careful consideration is given to developing talent pipelines, employee succession plans, and career planning in order to respond flexibly to the inevitable work flow and staffing changes that all businesses experience ().

This gain value and addresses a key decisive achievement factor in the industry (Grant,2010). As position is important to offer convenience and a deep assortment, An extra unique intangible resource would be their brand representation and customer loyalty, this is vital since it can attract or attract consumers and it could be necessary to build the brand image .

How well a business manages its assets and resources predicates its overall success. Companies that spend financial resources foolishly are apt to find themselves in bankruptcy. Companies that work capital equipment resources beyond the machine’s capabilities or for other than intended purposes are apt to experience downtime and/or lose the equipment to failure. The same premise holds true for a company’s human assets. However, unlike other company assets, which depreciate over time, human assets appreciate over time when managed properly. The article, Importance of Human Resource Investment for Organizations and Economy: A critical Analysis, explains the importance of managing human assets as follows:

Human capital plays a considerable role in the economic environments. It is not cash, assets, but it is people, which are the critical differentiators of a business enterprise (Fiz-enz, 2000). It is an organisation’s possess individual tacit knowledge (Nelson and Winter, 1982). There are four factors involved by human capital: genetic inheritance, education, experience and attitudes about life and business (Hudson, 1993). All of these factors are intangible and can be invaluable. Human Capital is a source of innovation and strategic renewal, such as improving personal skills, re-engineering new process or just daydreaming at the office (Hudson, 1993). According to Figure 1 (Bontis, 1998), Human Capital is about the intellect of human. It is an internal control and development

There are several important reasons of human resource planning that business organisation carry out regardless their size and it is important for the continuity of any business organisation to plan. However, in many business owners may not include human resource planning at the beginning of their business but later realise the importance of human capital and no business can survive without having competitive human capital.

This assignment is a portfolio, based on three current topics in Human Resource Management. The common theme of all the media articles I reviewed is the recognition of people as an asset by the organisations to achieve their strategic goals and objectives. It is observed that organisations are directing their efforts to recruit, retain and develop this asset.

Companies consist of both intangible and tangible assets and each has an impact on the success of the company. The tangible assets are things that you can physically see examples include buildings, inventories, and equipment. Intangible assets are the asset that you can’t see or tough like money, intellectual property, patents, company reputation and human capital (Lev,2004). Human Capital consist of employees and their skills and abilities. Human Capital is often considered a very valuable asset within a company which must be protected. Company’s must have a strong strategic recruitment and compensation plan in order to maintain its human capital and stay competitive.

Human Resources constitute as one of the most imperative components of any organization, be it small scale business or a large conglomerate. Some of the key functions of the Human

Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)

To succeed we will make effective use of our fundamental RESOURCES: brands, systems, capital, and, most important, people. Because these resources are already available, one might assume we need only to draw on them for achieving our goal. Nothing could be more wrong.