Importance Of Human Resource In An Organisation
This essay will discuss on whether human resource is the most important asset in an organisation. Human resource mentioned in this essay means all the employees in an organisation and not the Human Resource (HR) department. The first part will elaborate on human resource in an organisation. The second part will talk about the different perceptives of the importance of human resource. For example, Gabčanová (2011) consider human resource as ultimate importance whereas Hsieh (2010) does not agree that human resource is asset. Even though the perceptions might be different but both are successful in their business.
2. Human Resource in an Organisation
Each individual employee in an organisation plays an important role …show more content…
The author will break into two parts where one group view human resource as the most important asset and the other think otherwise.
3.1 Most Important Asset
In the current business world, many organisations follow the perception that human resource is the most important asset. In this perception, they consider employees as the human capital of the economy. Therefore, the more well trained an employee is, the more productive he or she will be which in terms will benefits the organisation. Some efforts taken to the process of employee retention will be good wages, benefits and career path. These are the hygiene factors for employee.
Baker (2008: 48) says that ‘No doubt, the cost of retraining is a lot less than the costs associated with dismissal’. The process of recruitment often incurred a higher cost compare to retraining an employee. Whether an organisation out-sources the recruitment process to recruitment agency or organisations do it themselves, the cost will be higher than retraining an employee. Processes to put up a job advertisement, arranging interviews schedule or interviewing candidates take up time and energy. This does not include the time loss while waiting for the new employee to join and often some trainings are required to train the new employee to match with the company structure or policies. Time is money and therefore it is definitely not favourable …show more content…
But even with all these advance technology and machines, employees are still needed to operate on these machines.
As mentioned in MMR (2012), Costco, one of the largest retailers in United States and the world, view employee as the most important asset of their organisation. Costco’s employee agreement manual explains its policy on how they will treat their employees. A few items mentioned are the organisation pledged to provide their employee with competitive wages, great benefits and open-door policy to resolve issue. As stated in MMR (2012: 20),
We believe we have the very best employees in the warehouse club industry, and we are committed to providing them with rewarding challenges and ample opportunities for personal and career