Human Resources as Asset
This article is about the 5th P in Marketing: People. We believe that a successful company depends, first of all, on its leader. However, this leader cannot be self-appointed, s/he becomes a leader because there are individuals who decide that part of their path is to follow the direction of the leader.
HR represent part of the capital of the company, an investment that brings many benefits. The abilities, experience and knowledge of each employee contribute to the growth and development of the company. Talented people can bring a added value to the enterprise..
Briefly, the value of human resources consist of:
- knowledge (theoretical knowledge),
- skills (eg. ability to use a computer program);
- attitudes (eg. commitment, pro activity);
- belief in the company and its leadership.
The way human resources are managed is very important. Competent and effective management can bring plenty of advantages to the company.
“Human Resources Management involves the establishment and execution policies, programs and procedures that influence the performance, capabilities and loyalty of the employees of an organization. Individuals are attracted, retained, motivated and developed to perform the work of the organization through these policies and procedures” (Clardy 1996)
In other words, human resource management is a strategic and coherent approach to the management of the company’s most valuable asset, its employees. In those terms, the staff is a major force in the organization, because it contributes individually and collectively to the implementation of company’s strategy and objectives.
Such management includes: employment, professional & personal development, motivation and creation of appropriate relations between management and workers. HR management also supports the efforts ofthe company towards the use of abilities, skills and talents of employees and to retain the best employees, by enabling them continuous improvement of their qualifications and provision of salary adjusted to their achievements. The purpose of HR management is to enable company to achieve success through/thanks to people employed in it.
“A highly effective HR system is one that emphasizes staff performance in every aspect of the system, is internally consistent, and perhaps most importantly is aligned with the strategy of the organization.”
A company with a highly qualified and constantly learning staff is more likely to achieve higher returns than the competition, where workers are less able to develop. Accordingly, the employees are the most valuable resource, which increases the competitiveness of the company. Therefore it is important to continuously improve their skills. The investment in “human resources”, although it
is generally expensive, at the same tim,e is highly profitable.
Forms and methods of improving staff should be tailored to the needs of a particular group or each individual employee, scale of operations and organizational solutions established in the company. The most common improvement method is training. The improvement process can be considered as a part of company’s incentive system, as employees often treat training as a reward or opportunity for professional development. Continuous development of qualifications is also a task for the employees who, through their own progress support their company and increase its competitiveness on the market.
“HR is a strategic asset because it can play a critical role in both strategy implementation and management systems. Namely, the ability to execute strategy well is a source of competitive advantage, and “people” are the linchpin of effective strategy execution.” (Becker, Huselid & Ulrich 2001)