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Management: Human Resources Essay

Human Resources are perhaps the most important factors in attainment of organizational objectives. For years, this aspect of management has been overlooked or in a sense has not been given the importance that it deserves. During the course of this particular paper, the author shall try to focus over the points which make human resources the most crucial point for organizational prosperity and what a manager shall do in order to increase the efficiency of the workers.

Undervaluation of intellect capital:

The businesses rely on a number of resources in order to attain various goals and objectives. But this has been a proven fact that no other resource is so crucial in organizational progress like that of the human resources. The human resources bring along with them knowledge and information which are perhaps pretty crucial in achieving overall objectives. It is so crucial for the organization to make sure that the relevant data and information flows in the current direction and is present in almost all parts of the business organization. Even though the organizations have not been giving too much of importance to the intellectual capital as of today, still future belongs to this factor only. The managers need to develop proper models for developing, retaining and managing the intellectual resources of the business organization.

As the General Manager, the author would like to propose a model for managing the intellectual capital of the business organization. The author proposes a simple model for management of intellectual capital of the business organization. The model consists of the following major elements:

· Strategic Direction and Vision: This element could be derived from the human resources of the business organization. The strategies are formulated by human resources and the vision of the organization is also decided by the human resources.

· Focus on the customers: The prime source of organizational prosperity.

· Products and processes: which the organization is dealing in.

· Culture of the organization

These elements together constitute the intellectual capital for any kind of business. It becomes so crucial for any business form to ensure that all the four elements are managed in best possible way in order to make sure that overall intellectual capital is retained within the organization. Intellectual capital, in both the structural and human forms, comes together with customer knowledge. It is a winning combination.

Capabilities Audit:

Contribution in assessing the performance of the organization:

In today’s business environment, the identity of any organization is not restricted to the output which they are producing, neither on the quarterly results or any related issues. The organizations are known for their capabilities. The manager should have the knowledge about the potential of the workforce and overall capabilities of the organization.

Ulrich and Smallwood have suggested a pretty powerful and efficient way to assess the intangible resources of the business organization. A capabilities audit “provides a high level picture of an organization’s strengths and areas for improvement.”  (Smallwood, Ulrich, 2007)

The scope of capabilities audit is huge and it could really help in increasing the efficiency of the organization as it includes a number of points which cover almost all the concerned areas of the business organization. A custom capabilities audit includes the following points:

· What are the competencies and capabilities of the workforce: Are they able to deliver the products and services in accordance to customer’s expectations.

· Can the organization change in accordance to the ever dynamic business environment.

· What is the work culture of the organization? Are both customers and employees part of the organizational culture?

· What is more importance for the organization: High performance or following the strategies?

· What are the ways by which both efficiency and leverage could be attained?

· What is the level of the organization as compared with the changing global environment?

· The quality of leaders and the leadership styles in the organization.

· What is the amount of trust which we share with the customers?

· Do our employees share an intellectual, behavioural, and procedural agenda for our strategy?

· The amount of innovation in various aspects of the business.

· How important is cost reduction and cost management for the organization.

Evaluation of HR functions in the organization:

Talking about the author’s organization, HR happens to be one of the most important functions of the organization. Traditionally the organization concerned HR as a cost centre and something which could not be considered as a profit generating centre for the organization. But with development in management ideas, it was found that HRM is most crucial aspect in attainment of organization’s strategic objectives. HR function actively contributes in attaining organizational objectives. Every organization should have the capacity to retain the talent and knowledge which are crucial in context of the organizational success.

Each person has got a different perception, attitude and outlook in life. These three factors are those, which he carries with him all the time, even while working in an organization. A manager has to make sure that he takes a different approach while dealing with different people. And this is where the real challenge lies—an HR manager has to make use of maximum skills, even in pettiest situations. Of course, the task of HR manager becomes even more difficult when the size and complexities of business increases. HR manager’s task also becomes so difficult due to diversity present in the workforce. HRM includes a series of activities that includes the staffing and recruitment of the people required for an organization, along with deciding the source and method to hire the people. (Bratton, Gold, 2001).


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