Essay. The perception of value in an organization, brand or product, merits customer adoption while supplementing organizational goals that could, in the long term, determine financial sustainability and success of a company. In Singapore, where there are no natural resources, human capital is one of the main resources that the country depends on to attract foreign investors. Each organization thus must consider a number of important steps in the planning phase. Firstly it should forecast human resource needs, than specifies job requirements as well as identifies and uses appropriate recruitment channels (Beaumont, P., 1994, p. 57). Recruitment and selection, as a part of effective Human Resource Management is the key to achieving a competitive advantage for an organization. Human resource can be defined as labor as well as all the employees within the entire organization regardless of rank. Actually, there is a lot more. Moreover validity studies carried out by Taylor (1998) and referred to by Armstrong (2006) found conventional interview methods to be questionable and suggested that alternative selection methods such as biographical data, assessment centres and work tests are more accurate methods of selection. Psychological. The idea that... ...Introduction Introduction Recruitment and selection are works of the same system and they are so closely connected, although as Foot & Hook (cited in Rayner & Smith, 2005 p.121) suggest that ”each requires a separate range of skills and expertise, and each function may in practice be fulfilled by different staff members, or indeed the recruitment function, but not normally the selection decision, may be outsourced to an agency, so it makes sense to treat each function separately”, but Pilbeam & Corbridge (2006) note that they are not mutually exclusive functions. The decision making process is stipulated by individual needs of a company. Increasingly, developed countries are moving away from past economic structures such as manufacturing, into a knowledge-based system that encapsulates modern day advances in technology and science (Aubert, 2004). Figure 2. In examining selection methods, Armstrong (2006) further suggests that too much innovation in selection methods may turn prospective candidates off. the one which may facilitate effective employment. The CEO addresses his collaborators: “You are the most important resource at this company”. In order to start the process of recruitment a company should have free vacancies. John Storey (2001, p.6) says that “It is human capability and commitment, which in the find analysis distinguish successful organization from the rest.” This sentence is essential to understand the fundamental tensions and ambiguities associated with Human Resource Management. It is easy to understand why organizations talk about people as an asset, but tend to manage them largely as a cost to be minimized. This connection is the most visible in the recruitment and selection of specific numbers of employees with particular abilities, which match to company’s requirements. To avoid such danger, Gabb (1997, p. 64) argued that “companies often prefer an interview panel of two or sequential interviews with different people”. It means that all applicants are asked the same questions and the same dimensions are used to assess applicants. This process is called job analysis, and is particularly important in circumstances where you are preparing a job description for a new or significantly changed post. This resource resides in the skill, knowledge and motivation of people and under the right condition it improves in age and experience which no other resources can do. Seeking new employees is an essential element for each employer, not only in organisations where particular emphasis is placed on the company’s human resources policy. Debates about the importance of Human Resources Management occur daily in workplaces. For the first, job description should be written very carefully. & Gold, J., 2003, p. 223). expansion, member of staff retires, and the position within the structure of the organization (Beardwell, I., 1994, p. 195). This is also known as mentioned before ”face validity”. The success or failure of an organization is largely dependent on the calibre of the people working therein. Bratton (2003, p.227) notes that appropriate selection technique should recognize the way in which people differ and must be extended to a prediction of performance in the workplace. estimated by meta analyses, of many selection methods. You can view samples of our professional work here. select. Meanwhile, organization must require professional to manage the labor, we call that human resource management. It is good practice to specify what is essential or the minimum required to perform the job, as well as what is desirable. Pages: 4 (1021 words) Internal and External Factors To Consider When Planning the Human Resource … Ironically, while human resources are the most important asset in an organization, they are also the cost involved during the training activity. When employees' talents are valuable, rare, difficult to imitate and organize, an organization can achieve a sustained competitive advantage. … Human Resource Is the Most Important Asset of an Organization. The importance of the recruitment function is clear when one realizes that by hiring the most competent applicants the firm’s performance can be significantly enhanced. Thus, human resource is often regarded as the scarcest and most important asset that creates the largest and longest lasting competitive advantage for an organization. Each employer wants to hire the most appropriate candidate for the job who not only has the right qualifications but whose personality will blend in well with the company’s structure. Durai (2010, p.109) stated, “Employees are the precious asset of an organization”. 1st Jan 1970 Reliability is a link to the extent to which a selection technique achieves consistency in measuring. Effective recruitment and selection procedures are vital in attracting and retaining high quality staff so every company should take them deeply into consideration. ...Question: Write a short essay that discusses the following statement, using references and examples to support your answer. The organization put in affords to meet the expectation of the employees so that create a workplace atmosphere among the employees (Upson,2011). In summary, all organization are made up of men and women to take up positions to do specific task and directly manage by human resource management. It is important to be as precise as possible about the skills, knowledge, qualifications and attributes that are required for the job and about the experience and personal characteristics that are needed. As Figure 1.2 shows, the recruitment and selection process and techniques are influenced by the external factors like legal framework, economic situation, social and demographic changes, competitor activity, labour market characteristics and has some sub-systems to it which are interdependent to each other, changes in one will effects the others and also the quality of output. This due to the fact that recruiting is expensive and the more selection techniques used the higher the cost to the company, but in doing this the company has a better chance of finding the best candidate. Student Number: 12262455 It is also necessary to think about the context of the job and the wider organisational requirements to specify any elements of person-organisation fit that are important. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. In summary of results, the higher will be coefficient (that is, the closer it is to 1.0) the more dependable the technique (Bratton J., 2003, p.235). The success or failure of an organization is largely dependent on the caliber of the people working therein. Human Resource Is The Most Important Asset Of An Organization Harvard Case Study Solution and Analysis of Harvard Business Case Studies Solutions – Assignment HelpIn most courses studied at Harvard Business schools, students are provided with a case study. It also helps to identify the skills, abilities and experiences that someone would need to possess to be able to perform satisfactorily in the role (UCD Staff Manual, August 2005, p. II). Assets can be defined as "tangible and intangible resources of a firm which can be drawn upon by a the firm when required to achieve its objective(s)" (Ray and Ramakrishnan, 2006). Recruitment and selection are one of the most fundamental elements of the strategy of human resources managing. Done By: Although, the two activities are closely connected, each requires a separate range of skills and expertise, and may in practice be fulfilled by different staff members. But Human Resource department is basically the backbone of an organization as it is the HR officers who manage the most important asset of an organization that is its employees. In fact, managers should decide if a free capacity either proves to be a job opportunity for a potential employee or whether there is an alternative option to resolve the situation. An extensive range of assessment methods is currently available to the recruiter like : biodata, assessment centre, work sample, references are very useful and reliable. When comes to human resource, it is also discuss about productivity in every sector of an organization. Figure 3 shows the validity, estimated by meta analyses, of many selection methods. It seems that the face-to-face contact with the applicant and the possibility of assessing the candidate’s social and communication skills are the main advantages of the interview, and hence the main reason for using it. Scholars of strategic human capital and strategic human resource management face a similar … The choice of the right people to form a team in organization is one of the most important factors leading to its success. “Human Resource (employees) is the most important asset of an organization. Recruitment and selection are the most important activities in an ongoing circle (shown in Fig.1.1) of an organisation as a whole. The other factors of production are natural resources, capital (including all man-made resources) and enterprise. In the course of this stage, it is the employer who must encourage the best candidates to apply for a position in the company. Whether or not a particular job vacancy will be filled by someone from within, or outside, the organization depends on the organization’s human resource policies, the requirements of the job to be filled, the talent to be found and, often, the organizational politics surrounding the decision (Nankervis et al., 2002). These aspects of human resource improve with age and experience, which no other resource can do. Bontis et al (1999) suggests that undeniably human resource in the organization is the combination of knowledge, intelligence, skills and expertise which provide each organization with its distinctive character. It is a fact that to thrive in the chaotic and turbulent business environment, firms need to constantly innovate and be “ahead of the curve” in terms of business practices and strategies. All work is written to order. Human Asset Management (HAM) is the part of the company that manages human assets (or human capital).It is the management of employees as assets, combining many conceptual elements of an employee's life cycle through an organization focusing on that people are a company's most important assets. But as Marchington & Wilkinson (cited in Beardwell, I., Holden, L. & Claydon, T., 2004) quote “none of the techniques, irrespective of how well they are designed and administered, is capable of producing perfect selection decisions that predict with certainty who is or who is not bound to be a good performer in a particular role”. Employees leaving an organisation might be replaced physically; however, their skill-sets and knowledge cannot be exactly replaced by the person replacing them, as each individual possesses a different skill-set and … Disclaimer: This work has been submitted by a university student. The perception of value in an organization, brand or product, merits customer adoption while supplementing organizational goals that could, in the long term, determine financial sustainability and success of a company. If the criteria are not made clear it will be difficult to make an appropriate decision and will also be difficult to validate the selection process (Torrington, D., 2005, p.142). No matter what organization there are out there in the business world, neither technology nor machines can out beat the importance of having qualified men and women to do the task. As is stated by Outlow (1998), the organization suffers the cost if they employed the wrong candidate for the job. “Good selection methods must meet four basic requirements: practicality, sensitivity, reliability and validity” (Price, A., 2000, pp. A recent comparative study of six countries found that the interview was one of the most popular selection methods. It needs to be considered in that point reliability and validity, but the detailed aspects of these two key criteria, which are already mentioned, are going to be explained in the following part of this dissertation. Table1.3 The predictive accuracy of selection methods, Source: Anderson and Shackleton cited in Beardwell et al. This domain is not a single, simplified function, but a group of plans, systems, tools, processes and services. Hence, to achieve this, a company has to pay a huge attention on the recruitment and selection process. Without a doubt, the Internet has been a main driver in structuring the modern day economy. This heightened recognition due in part to business strategists and human resources academic citations directly contributed to the spotlight’s direction moving in HR’s favor. (“Factors of production definition”). Essay; Human Resource Is the Most Important Asset of an Organization. education, vocational training, work experience, quickness of comprehension and aptitude for learning, determination in following them up, success rate, emotional stability, ability to stand up to stress. The process of writing a job description can be very time consuming, especially if company don’t provide any system for job analysis. As Boudreau and Ramstad (2007, p. 4) present: “Whether it is called “people,” “labor,” “intellectual capital,” “human capital,” “human resources,” “talent,” or some other term, the resource that lies within … Rather than relying on personal judgements about the knowledge, skills and qualities the successful candidate should possess, the employer with a person specification is following much more methodical and reasoned process. The number of multinational companies from the USA has increased, more and more large companies are using a variety of tests ranging from ability to aptitude, personality and intelligence, especially those companies who receive a large number of applications and those needing more skilled employees. According to the study of Levy-Leboyer mentioned in the Cornelius book (1999, p. 39), the validity of many selection methods is debatable and that is why they should be used with care. For that reason, recruitment and selection process should be permanent implicated and developed in company structures. Human Capital is a form of intangible asset. This domain is not a single, simplified function, but a group of plans, systems, tools, processes and services. Second, this success is likely to be achieved if the personal policies and procedure of the enterprise are also linked with … The second part will identify the impacts on the performance of an organisation. Conducting business activities and competition between companies in developing international markets show, that Human Resource Management is the source of permanent competitiveness in contemporary business. 39-40). I agree with the statement that “Human Resource is the most important asset of an organization.” Human resource is “the set of individuals who make up the workforce of an organization, business sector or an economy.” (“Human resource definition”). A human-resources department (HR department) of an organization performs human resource management, … Human Resource is the most important asset of an organization William R. Tracey, in The Human Resources Glossary defines Human Resources as “The people that staff and operate an organization” as contrasted with the Furthermore recruitment is a process of attracting individuals on a timely basis, in sufficient numbers and with appropriate qualifications, developing their interest in an organization and encouraging them to apply for jobs within it (Mondy & Noe, 1993; Crawford, 2004). Human Resource Is The Most Important Asset of An Organization Assets, defined as a ‘valuable thing’ by Oxford Dictionaries, are key success determinants of any organization. It means, that it should be made recognition of the needs for new human resource. People are non-material assets of a company and due to their importance have a strategic function. While Goold and Campbell conclude that human resource strategies depend on management profile, whether is it strategic planning, financial control or strategic control (ibid.). Registered Data Controller No: Z1821391. According to Pilbeam & Corbridge (2006) recruitment and selection process is based on action between ”applicant and job”, which is dependent on stating a need by an organization, using the most appropriate recruitment and selection techniques and on ”reviewing, evaluating and modifying the recruitment and selection system in the light of experience”. 1. They emphasize that assessment techniques should predict and also affect on the future performance of employee. The orientation of the company on the human resources turned to be one of the key tasks of strategic management and human resources play important role in all strategic decisions. People in the organizations nurture the organizations with their skills, competences, knowledge and experience and have the ability to take the organization out from the stage of crisis. Human Resources (HR) teams are often data rich but insight poor. These employees see HR staff as gatekeepers, people who hold little interest in employee concerns. “Human Resource (employees) is the most important asset of an organization. Successful companies are those that consider their human capital as their most important asset. Recruiting is an extremely complicated process consisting of many phases. Conversely, the quotation by Townley (1999, p.97) defines the notion of selection in that “(…) by definition, it involves a process of discrimination, and the opportunity for managers to emphasize employee “acceptability” or the “good bloke syndrome”, rather than suitability residing in task-based criteria.” It is a much diversified process: it may be short and simply boil down to reviewing and closely reading job application documents, and hiring a person. A job description makes it possible for the recruiter to outline what duties, responsibilities and the reason behind the vacancy i.e. In this fast moving day and age, organizations place emphasis on having that competitive advantage above all others in the market. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on then please: Our academic writing and marking services can help you! For the employer it is a stage during which decisions are made on who is the most appropriate of all the job applicants. Hence is many approaches to recruitment and selection tend, however they distinguish that a system has inputs, which are the candidates, a processing unit, which consists of various methods and techniques and outputs, which are also effective employees or candidates, who go back to the labour market and are or eliminate by the recruiters or choose to exit from the process. 2006 ) . This means that human capital—the single most important asset a company needs to take the next step in growth and innovation—is often under used, or under developed. If used properly, data becomes the most important asset of any HR team. Reference this. “Human Resource (Employees) Is the Most Important Asset of an Organization. Some employees regard Human Resource (HR) as the policing, traumatizing, systematizing arm of executive management. Source: Schmidt, F. L., & Hunter, J. E. (1998). Are Celebrities Being Good Role Models or Are They Setting a Bad Example for the Teenagers. According to Pilbeam & Corbridge (2006) theory the systems approach gives an analytical skeleton and allow diffusion through the selection and recruitment sub – systems, which are: attraction, reduction, selection and transition. However, doubts about accuracy push employers to approve the interview formats or “supplement the interview with the other selection methods such as tests or work simulation” (Beardwell et al., 2004). Our academic experts are ready and waiting to assist with any writing project you may have. Submission Date: 6 Jun 13 Job analysis helps to clarify the duties, responsibilities and other job demands. Branine (2008) founds interviews to be the main part of the selection process and that there had been awareness of the danger of subjectivity in the conduct of interviews. Particularly as they help establish a set of core competencies which distinguish one organization from its competitors. Soh Wei Sheng Fabian Newell and Shackleton (2000, p.113) define recruitment as the “process of attracting people who might make a contribution to the particular organization”. acceptability, influence over others, steadiness, any special demand of the job, such as ability. “Human Resource (employees) is the most important asset of an organization. The human resources are the most important assets of an organization. The question remains therefore, that if these methods are among the least valid, why are they still so popular? Human Resource (HR) and Human Resource Management (HRM) His collaborators listen politely but are skeptical. A wise choice of employees plays a key role in the functioning of an organization. It is an extreme of import that the organisation recruit. Because it … Data about accuracy of various types of selection techniques covers large differences within each technique. Moreover, human errors are much more expensive in comparison to such assets as land and capital, and often result in serious irreversible consequences.