Employees aren’t 'A COST' but 'AN ASSET'
In this fast-moving and globalizing world,
The Human contribution
has become a significant and effective component in an organization. Employers
and employees are one of the main factors of an organization to drive towards
targets.
Employers are to
influence the team with effective leadership strategies while employees unite
for a common goal.
Personal management
In the middle 19’s,
Personal management has become a basic management strategy where employees were
considered as a 'Cost'. The necessity of the workforce to achieve organizational
objectives was the basic aspect of the organization.
Taylorism, Scientific
management on time and motion, Fordism were basic theories where employees were
specialized for segments and treated equivalent to machinery and tools.
“Personnel Management is that aspect
of management having as its goal the effective utilization of the labour
resources of an organization.”
Human Resource Management
In the late 19’s human
resources added value where management started focusing on treating Employees
as an 'Asset'. They started the best possible practice to handle the workforce favourably and 'Competency'
The recruitment, maintenance,
training and development, utilization and coordination of people at work is
being treated in advance. Simply, HRM is to get the maximum potential and bring
out a stable workforce with eligibility and efficiency. (Aline Sampras, 2019)
Figure 1: Personal management vs Human resource
management Source:
Why employees aren’t a 'Cost' but an 'Asset'?
Compared to machines, Employees are a live team with logical
thinking and emotional impacts. They can enhance or reduce organizational
productivity.
How?
Employees can,
- Use their potential in favourable or in adverse.
- Improve their knowledge eventually to contribute in advance.
- Discuss and decide
- Identify organizational operational issues, self abilities and infirmities
Treating employees as a 'Cost' affects 'Minimal usage of employee efficiency'. Also, reduce employee attachment which
may result in their adverse reaction towards the job. This impacts their
attitudes and job satisfaction.
Treating employees as an 'Asset' encourages them to be potential, innovative, get improve and be willing at
work. They use their competency in a proper way which helps to maximize the organizational
value.
Conclusion
Manpower should be used with care and respect. Organizations and management must understand how to use the potential inside employees in a maximum effective manner. Treating employees as an "Asset' emphasises their willingness and high contribution.
Figure 2: Motivative quote Source:
References
Sampras, A. (2019) HRM exam. [Online]
Available from https://www.hrmexam.com/2019/05/17/difference-between-personnel-management-and-human-resource-management/
[Accessed 18 nov 2021].
Shetty, K. (2021) INTEGRUM TECHNOLOGIES. [Online]
Available from https://integrumsolutions.in/what-differentiates-human-resource-management-from-personnel-management/
[Accessed 18 NOV 2021].
Hastings, P.G. cited in Townes, L.C. (2021) BFA. [Online]
Available from https://businessfinancearticles.org/personnel-management
[Accessed 17 nov 2021].
Covey, S. (2016) AZ QUOTES. [Online]
Available from https://www.azquotes.com/quote/531515
[Accessed 18 nov 2021].
employees into assets requires investment in their engagement, as is the case with any other resource that generates profit. That investment can be maximized if it's tied to business outcomes by way of performance and purpose.
ReplyDeleteHighly appreciate your valuable comment
DeleteRICHARD BRANSON said "If you train people well enough so they can leave.Treat them well enough so they don't want to".Sadly many companies in Sri Lanka treat their employees badly.Employees are the backbone of any organization and disengage employees cost billions in lost productivity each year as a result of poor performances and absenteeism.So investment for staff training,wellbeing is no longer consider as a cost .There is an economic link between employees satisfaction and organizations financial performance.If you treat your employees as your valuable asset you will definitely secceed in today's volatile market .Nicely explained.Good luck .
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DeleteGood effort in taking a vast subject in to a blog. Most of the organisations doesn't value it's employees as assets. That is why employee turnover rate is very high in such organisations. As you highlighted human element is the most important factor in organisational performance.
ReplyDeleteHighly appreciate your valuable comment
DeleteGreat leaders have a special view on the world. They consider employees to be a valuable asset. Assets in accounting are corporate resources with a potential economic value. Employees are viewed as a valuable resource by these leaders. People understand that if they work hard and do nice things, they will be able to make a profit and help their company grow Thanks share your Idea
ReplyDeleteYes fully agreed with you and if we treat human resources as assets for our organization that benefit we will get them through happy employees.
ReplyDeleteEmployees are the main asset of every organization. unfortunately some of organizations are don't treat employees as an asset. You have selected the most important topic in common business world. Valuable thoughts. Thanks for the sharing.
ReplyDeleteHighly appreciate your valuable comment
DeleteGreat leaders have a unique perspective on the world. Employees are seen as a valuable resource. Assets are firm resources that have future economic value in accounting terms. Rather than perceiving people as a source of problems, these executives see them as a useful resource. They understand that people have the power to increase sales, please consumers, enhance processes, invent new products, and do a slew of other things that boost the top and bottom lines (Rennie, 2017)
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DeletePeople are the best investment you can make. Employees are the foundation of any business. Successful businesses recognize and cherish their employees. They understand that employees are critical to the success of any business.
ReplyDeleteHighly appreciate your valuable comment
DeleteTreating the employees of an organization as 'cost' can be considered as the least use of employee efficiency.
ReplyDeleteTherefore, in order to transform employees into the core of the organization, all employees must be supervised by the corporate leadership.
This will enable the employees to get maximum efficiency.
Highly appreciate your valuable comment
DeleteEmployee's are a company's asset, they are the competitive advantages, leaders must act to attract them also need to retain the best and make them feel that they are an integral part of the your team.
ReplyDeleteHighly appreciate your valuable comment
DeleteGreat leaders recognize employees as an asset rather than a liability. Employees are not viewed as a problem by these leaders, but rather as a precious resource. They understand that people have the ability to increase sales, please consumers, enhance processes, develop new products, and do plenty of other things that boost the top and bottom lines.
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