Human Resource is the Most Important Asset of an Organization Essay

I agree with the statement that “Human Resource is the most of import plus of an organisation. ” Human resource is “the set of persons who make up the work force of an organisation. concern sector or an economic system. ” ( “Human resource definition” ) . Human resource is the least Mobile of the four factors of production. which are resources required for coevals of goods and services. The other factors of production are natural resources. capital ( including all semisynthetic resources ) and endeavor. ( “Factors of production definition” ) .

The most of import facets of human resource are the cognition. accomplishments. creativeness and motive possessed by people. These facets of human resource improve with age and experience. which no other resource can make. Thus. human resource is frequently regarded as the scarcest and most of import plus that creates the largest and longest enduring competitory advantage for an organisation.

The thought that human resource is the most of import plus of an organisation is peculiarly relevant to the concern landscape of the twenty-first century. In developed and even developing states. their economic systems are traveling off from being manufacturing-based into being knowledge-based. To cite Peter F. Drucker. the celebrated direction guru. pedagogue and writer: “The most of import. and so the truly alone. part of direction in the twentieth century was the fifty-fold addition in the productiveness of the manual worker in fabrication. The most of import part direction needs to do in the twenty-first century is likewise to increase the productiveness of cognition work and the cognition worker. ” ( Drucker. 1999. p135 ) .

Knowledge has become the cardinal factor of productiveness and competitory advantage for organisations in today’s economic system. Since cognition can merely be created. utilised and transferred by human existences. it is clear that human resource is the most of import plus of a modern organisation. Other resources such as capital and natural stuffs are besides necessary and have different maps in an organisation. However. human resource is still the most of import because lone people can be after the use of these resources as a whole to make maximal value for the organisation.

Starbucks. the extremely successful Seattle-based java shop. is a great illustration of a company that believes that its human resource is its most of import plus. Starbucks’ employees. called spouses. are the key to their customers’ experience and the success of the company ( Noe. Hollenbeck. Gerhart and Wright. 2012. pp. 3-4 ) . Starbucks wants its baristas to hold good java cognition. merchandise expertness. and supply first-class client service. Thus. Starbucks invests to a great extent in the preparation of its baristas. For illustration. Starbucks shut down most of its shops in 2008 for a full-day preparation event called “Perfect the Art of Expresso” to develop its baristas make high-quality expresso for clients. To honor and retain its spouses ( “Facts About Starbucks and Our Spouses ( Employees ) ” ) . Starbucks offers its spouses a Entire Pay bundle including a just and competitory pay. a 401 ( K ) savings program. stock options. an employee stock purchase program and other fringe benefits. Starbucks offers comprehensive wellness benefits to spouses who work portion clip. unlike most companies which offer wellness benefits merely to full-time staff. Finally. Starbucks offer its spouses flexible work hours so that they can bask better work-life balance.

In the modern knowledge-based economic system. many companies seek to derive a competitory advantage in the market. Human resource is the most of import component to construct the competitory advantage of a company. The cognition. accomplishments. experience and creativeness of each single contribute to the development of new merchandises and services. which finally impact the profitableness and growing of the company.

The Minnesota Mining and Manufacturing Company ( 3M ) . a fabricating pudding stone based in Minnesota. is a great illustration of a company which empowers its human resource to develop inventions that contribute to its profitableness and sustained competitory advantage. 3M is celebrated for offering the “15 Percent Rule” plan to its employees to promote their creativeness and invention attempts ( “The 15 Percent Solution” ) . For decennaries. 3M employees can pass up to 15 per centum of work hours on their ain undertakings which may non be straight related to their job’s mission. The “15 Percent Rule” plan has spawned many of 3M’s successful merchandises. For illustration. 3M scientist Art Fry developed the celebrated Post-It Note. which became one of the 3M’s best-selling merchandises. during his “15 per centum time” .

Since human resource contribute straight to a company’s underside line. it is really of import to maintain retain good employees. It is good known that when a company loses good employees. it is a dearly-won and time-consuming procedure to enroll and develop new employees to replace the 1s who left. Thus. companies should value their human resource. which is their most of import plus. It makes sense for companies to be great topographic points to work at. because happy employees will straight lend to their bottom line.

Google has been ranked first in Fortune Magazine’s one-year Best Companies to Work For in 2013 ( “100 Best Companies to Work For” ) . Google is good known for its munificent fringe benefits for employees such as free epicure nutrient. free massages. on-site wash. Wi-Fi commutation birds. etc. In fact. Google monitors its employees’ wellbeing to a great grade. Google’s HR section. called People Operations ( or POPS ) . collects and proctors informations on how employees respond to benefits ( “Here’s How Google Became Such a Great Topographic point to Work” ) . A few old ages ago. POPS noticed a job that the going rate of adult females who had late gave birth was go forthing Google at twice the mean going rate of the company. They rectified the job by bettering the pregnancy leave program to give new Google female parents five flexible months off with full wage and benefits. After this program was implemented. the abrasion rate for new female parents was reduced by 50 per centum.

In decision. human resource is the most of import plus of an organisation. We have discussed the importance of human resource. We besides provided several illustrations of how great companies like Starbucks. 3M and Google recognize the value of human resource and make competitory advantages by effectual direction of assorted facets of their human resource.

( Entire: 998 words )

Mentions
Human resource definition. Retrieved June 1. 2013. from
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Factors of production definition. Retrieved June 1. 2013. from hypertext transfer protocol: //www. businessdictionary. com/definition/factors-of-production. hypertext markup language

Drucker. P. F. ( 1999 ) . Management Challenges for the twenty-first Century. pp. 135. Butterworth-Heinemann.

Noe. R. A. . Hollenbeck. J. R. . Gerhart. B. and Wright. P. M. ( 2012 ) . Human Resource Management: Deriving a Competitive Advantage. 8th Edition. McGraw-Hill.

Facts About Starbucks and Our Spouses ( Employees ) . Retrieved June 1. 2013. from
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