Human Resource as Most Important

Topics: Asset, Human resource management, Human resources Pages: 6 (1015 words) Published: July 7, 2013
Human Resource is the most important asset of an organization

The importance of human resource (HR) can be explained through the analogy of a

motorcycle. A motorcycle can’t run on its own without the function of its many parts. It

needs to be serviced regularly, the parts oiled and sometimes, talking to it, helps in running

of your motorbike. Trust me (I myself, own a Vespa). Ignorance of its squeaky brake pads,

almost thread less rear tyres could hamper the motorbike’s performance on the road or worst;

the death of its rider! These same principles apply for a company. An organization cannot

function without its employees as they are essentially its driving force. Patty (2010: 15)

described employees as the ones that make decisions, negotiate and execute plans.

An organization exists to deliver value for people, either as a single person or whole

fully as a team (Mayo, 2001). As stated by Lawler (2003: 17), some organization’s market worth is in its intangible assets, such as its reputation, brand and human capital, are extremely vulnerable

to sudden death spirals. These intangible assets wouldn’t exist if not for good performing

employees. A company offering bike towing services wouldn’t be reputable anymore if its

employees start to not achieve its target of 30 minutes arriving at scene upon despatched.

Alternatively, a cosmetic shop selling facial products when their sales assistant themselves

do not have good facial complexions. As Mayo (2001: 26) states, “everything depends on

people; their capability, motivation, creativity, passion and leadership. People manage the

tangible assets, and they also maintain and grow the intangible ones.”

Humans possesses unique feelings and emotions and when they are correctly

identified and managed with the correct strategy, an organization is able to seamlessly

attain its target without much problems. As Kant (1781) mentions, “Treat people as

ends unto themselves rather than as means to an end.” Armstrong (2009: 14) then

elaborates, ‘productivity is directly related to job satisfaction and the output will be high

if they like their co-workers and are given pleasant supervision.’ Employees share their

personal human capital with their company as they believe they will be getting something

in return. As a result, an employee in an organization becomes both the stakeholder and

shareholder (Mayo, 2001). Employees are merely lending their personal human capital to

their company and may switch so if they are not being treated right.

Meanwhile, other assets of an organization do not have an emotional element attached to

them. This refers to state-of-the-art technology that manufactures excellent, ‘clean’ products

for mass selling. Companies such as Apple, Sony and Philips are all well renowned for their

IT products. Big touch screen tablet computers. Bigger ‘LED’ Television screen and the list

go on. However, it is by the use of the human resource that we are able to come out with such

ideas and thinking on how our future daily products are to be like. Machines can never be

exact substitutes for humans. It is the action of our own mindless workers in those factories

that we can control the technology to be turned on or off for exact made-to-order production

figures. Those same workers will be the one to diagnose and repair the machines once they

break down.

The same applies to the rest of the assets. The organization’s financials, materials, and

methodology couldn’t be derived without the help of the human resource. It is only through

people that these factors could be idealised and generated. Stewart (2005: 3) defined

intellectual capital as: ‘Intellectual...
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