The reality that human asset is the most vital element in success of organizations cannot be overemphasized. As businesses embrace the dynamics of globalization, human asset has become the only factor that differentiates an organization from its competitors. Moreover, the level of human asset strength in an organization will be the key determinant between losing and gaining in tomorrow’s global markets.
Although organizations strive to improve different types of assets so as to accelerate their performance, some tend to ignore the vital role of human asset. As the quoted author elucidates, deliberate measures are needed to attract, motivate and manage this significant asset and consequently an organization’s performance will be guaranteed.
On the same note, I fully agree with the author because in as far as some individuals are likely to argue that employees can be replaced with ease, the latter exercise may not yield positive outcomes bearing in mind that it is highly unlikely that a successor will posses the same level of skill-sets, expertise or knowledge. It is against this theoretical approach that human resource experts often argue that valuable employees are irreplaceable.
The same notion is shared by Armstrong and Baron (2002). The two scholarly authors attempt to underscore that human assets account for close to 85% of the total company’s assets at any given time. Moreover, the speed at which organizations attain success and success is heavily dependent on employees’ skills and subsequent motivation to drive a company’s goals forward.
On the same note, Boxall and Purcell (2003) highlight that most organizations today have realized the significance of human asset and as such, most are adopting what is called Strategic Human Resource Management to run this important asset.
Initially, the important role of employees to organizational performance was mainly overlooked, but through numerous surveys their significance has been established (Armstrong & Baron, 2002).
Following this discovery, the idea of strategic human resources management was born and this view eschews from grouping human asset together with physical asset, instead employees are viewed as more valuable due to the irreplaceable nature mentioned above (Boxall & Purcell, 2003).
Moreover, the new idea seeks to identify and implement appropriate programs and procedures that are necessary to increase the value of human asset in organization owing to the fact that strong human capital base promotes competitive advantage (Boxall & Purcell, 2003).
The latter has been identified as one of the core principles of winning contemporary marketplace competition in a business world that has turned global. In any case, lack of competitive advantage that has been occasioned by poorly developed human asset has been responsible for declining returns in most organizations.
According to Armstrong and Baron (2002), the realm of Strategic Human Resources Management is not a one time activity but an extensive and continuous process that calls for development and implementation of effective policies and procedures to ensure that the human asset is empowered to deliver targeted results.
As exemplified above, the main aim of improving the value of human asset is to achieve a competitive edge amidst global competition, hence a successful workforce need not just be committed, but highly trained in alignment to company’s mission and vision (Armstrong & Baron, 2002).
While the latter may be considered to be overly significant in improving human asset, it is imperative to note that effective development of human asset may require other parallel factors for it to be successful. Moreover, unlike the past practices of human resources that focused on employees’ compliance with rules, laws and regulations, the new practice emphasizes on results or output of employees as p[er assigned tasks.
Needleless to say, positive results cannot be achieved without accurate policies and procedures being put in place. For instance, to ensure that an organization has a skilled workforce, procedures and policies to improve skills should be developed and implemented. For instance, one of the methodologies that can be put in place is talent development program whereby employees are trained in their respective fields.
In order to boost training levels, it would also be crucial to institute certain incetives such as free or subsidized training modules. Similarly Boxall and Purcell (2003) underscore that employee motivation is significant to the performance of an organization and therefore, deliberate measures such as best employee awards and attractive fringe benefits are necessary to attract and maintain a motivated workforce.
Undertaking the aforementioned measures will ensure that an effective and vibrant human asset is instituted in place for purpose of organizational performance.
To recap is all, human asset plays crucial role towards the performance and well being of an organization. As a matter of fact, human asset is largely considered to be an invaluable premise that any organization wishing to excel must embrace.
For this reason, management in organizations ought to develop deliberate policies and procedures that will enhance the development and optimum utilization of human asset. One such procedure that can be enacted is that which addresses Strategic Human Resources Management in order to add value to human asset.
References
Armstrong, M. & Baron, A. (2002). Strategic HRM: the key to improved business performance. Developing practice. London: Chartered Institute of Personnel and Development.
Boxall, P. & Purcell, J. (2003). Strategy and human resource management. Basingstoke: Palgrave Macmillan.