Employee: An Assets or Liability
In the past
human resource managers considered the headcount of the employees in the
payroll and thought them as a liability because of wages and other benefits
draining a large portion from the balance sheet.
Does the thinking has changed over time?
Is employees are still considered as an expense?
Organizational
competitiveness determined by the resources its own at a given time. Resources
can be tangible or intangible assets. Examples of resources are brand names, in
house technology, skilled laborers, trade contracts, capital, etc. Further,
anything that generates cash flow can be considered as an asset while liability
can be defined as something that has a negative effect, (Richardson &
Osborne, 2007).
Now employees are
considered as a strategic resource by firms, (Mehra, Maheshwari & Meena,
2014). In one hand employees are directly responsible for generating revenue
and on the other hand skills of the employee drives the innovation which is the
cornerstone of the competitiveness.
Further, in competitive
markets, customer satisfaction is vital for success and customer value position
also plays a key role in generating revenue. Customers look for brand, quality,
cost and better services when choosing a product or service. Satisfied
customers drive the business and generate much-needed revenue. Usually,
employees, the internal customers, of a business directly interact with the
customers. Quality and the success of this interaction determines the future
course of actions by the customers. It is the happy, and motivated employee
with the necessary skills do better in this interaction.
HRM implications
To harness
the best results, employees need to understand the goals of the business as
well as the expectations of the customers. The special focus shall be given to
below-mentioned areas,
- Development of
shared vision and Aligning of employees with organization strategic goals
- Training and
development of employees skills
- Provision of
necessary motivation
- Employee retention,
although it is possible to replace a person physically, the skill sets,
knowledge and experience of each worker different.
- Arrangements of flexible work environment
References
- Employees come first for Sir Richard Branson, 2018 (video file), available from < https://www.youtube.com/watch?v=9o3LQtvBqYc>, [20 May 2019]
- Mehra R., Maheshwari M., Meena K.K., 2014. Valuation of Human Assets and Its Proposed Position in the Balance Sheet. International Journal of Engineering Development and Research, 2(3), p. 3239.
- Richardson F. & Osborne D., 2007. Support staff — Asset or liability?. The Canadian Veterinary Journal, 48(1), p. 21.
1 Comments:
With reference to the five points that you shared under the HRM implications, if it is your own idea then okay, but if you get it from another source, better to cite those references.
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