Human Resource Is the Most Important Asset of an Organization

“Human Resource is the most important asset of an organization” Human Resource plays a critical part in every organisation. It acts as a middle person to provide information to employees. It is the only department that is accountable for employment and recruiting, training and development, compensation, benefits, employee services, employee and community relations, personnel records, health and safety and strategic planning.

Over the years, Human Resource department has evolved from focusing on current operations to future operations because of technology that ease people’s job. This allows HR department to have more time to focus on planning of future operations and provide competitive advantage. For example, Starbuck was facing crisis in 2008 to the state that Schultz, the CEO has to reduce his salary to not more than $4 per month. Human Resource department refocuses on its policies and continues to provide welfare to their employees.

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Medical fees of employees and their partners were well taken care of. This also includes vision care, dental care, vacation, stock options and tuition reimbursement. Training was provided to deliver high quality espresso and at an affordable price. This was implemented to manage with the economic condition. Human Resource department plays a big part in terms of crisis and survival in an organization. Without employee working hand in hand with Human Resource department, Starbuck would not survive the crisis.

For an organization to grow, employment and recruiting employee is essential. Employment of suitable employee for the job position is the first step towards growing of the organization. Reasonable qualified employee with adequate knowledge will be value added to the organisation. It is a complex process as Human Resource has to manage the internal and external number of people to recruit and which potential employee is more suitable to the job position. Next, training and development is planned for employees by Human Resource Department.

It is important to for employee’s to constantly to upgrade their skills and knowledge Self-management skills, presentation methods and group-or-team-building training are provided to enhance the skills of employees so that they can perform independently and work with efficiency. With new skills, Employees productivity is enhanced and the organization will be able to step forward towards the competitive economic. Human Resource is to make sure that employee’s activities and values are corresponding with the organization goal.

Performance management is executed y Human Resource to analyse employee’s strength and weaknesses, than associate them to the suitable development program and reward whoever performance target that is met. Wage and salary administration is handled by Human Resource department. Without wages and salary being paid on time, employee’s psychological attitude towards the organization will be greatly affected. Job evaluation is being analysis by Human Resource. Each employee is evaluated through their job complexity; working conditions, required education, responsibility and experience as the organization pays them for their skill, knowledge and competency.

Incentives pay is one alternative method to reward employee’s performance. It motivates employee to perform at work because the system runs in a way that they get paid for what they achieve as supported by E. L. Thorndike’s reinforcement theory. Another method is distribution profit sharing to employee’s depending on the organization profit. It also let employee’s to have the opportunity to put themselves in their employer position to think how they can for example, to increase the organization effectiveness.

Job rotation was seen as a great exposure for employees within an organization or department. It allows employees to better understand of what the organization and every different role is doing. At the same time, new skills are picked up and the rate for salary growth, promotion is higher. It contributes an overall understanding will the organization towards its goals. Medical Insurance is purchased to cover for employees under the worker’s compensation law for any work-related incident or even death.

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