Unformatted text preview: Discuss critically “Are people always an organization’s most valuable asset?” Why or why not? In the world, people are the mater or dominator. Any organization also needs people to grow, make money or at least to survive. That is reason why human resource management is getting more and more important in today’s business or organization. In the past, observers feared that machines might one day eliminate the need for people at work. In reality, just the opposite has been occurring. People are more important in today’s organizations than ever before. As Ed Gunman, author of The Talent Solution, points out, “in many fast-growing economies, it may be easier to access money and technology than good people.” Competitive advantage belongs to companies that know how to attract, select, deploy, and develop talent. We use a lot of words to describe how important people are to organizations. The terms human resources, human capital, intellectual assets, and talent management imply that it is people who drive the performance of their organizations (along with other resources such as money, materials, and information). Successful organizations are particularly adept at bringing together different kinds of people to achieve a common purpose. This is the essence of human resources management. In other world human resources management is the process of managing human talent to achieve an organization’s objectives. (Snell, Bohlander, 2010) People are the resource, especially talent people are competition. What kind of people or human resources do you have in the company that is to determine the company's future. Professional organization such as the Society for Human Resource Management and the Human Resource Planning Society conduct ongoing studies of the most pressing competitive issues facing firms. By looking for the input of chief executives and HR managers, these organizations keep a finger on the pulse of major trends. So, for the past decade or so, the competitive challenges in the human resources management we can list down by:
(1) Competing, recruiting, and staffing globally. (2) Embracing new technology (3) Managing change (4) Managing talent, or human capital (5) Responding to the market (6) Containing costs To grow and prosper today, companies are aware that to survive, they will likely to have to seek business opportunities in global markets. Competition and cooperation with foreign companies has become an important focal for business. For example, exporting accounts for a large portion of the US. economy. In 2007, a record 11.7percent of what American’s produced or a bit more than one in nine dollars worth of production went overseas. On the flip side, the US has imported more than it has exported every year since the early 1970s. in addition, the trade imbalance with the rest of the world is nearly double what it was in 2001. The biggest trading gap is with China, despite the fact that in 2007, a number of Chinese imports had to be recalled. Advancements in information technology have enabled organizations to take advantage of the information explosion. With computer networks, unlimited amounts of data can be stored, retrieved, and used in a wide variety of ways, from simple record keeping to controlling complex equipment. The effect is so dramatic that at a broader level, organizations are changing the way they do business. Use of the Internet to transact business has become so pervasive for both large and small companies that e-commerce is rapidly becoming the organizational challenge of the new millennium. Even following the “dot-com bust,” in which many promising new Internet companies failed rapidly, the Web is transforming the way traditional brick-andmortar companies do business. Organizations are connected via computer-mediated relationships, and they are giving rise to a new generation of “virtual” workers who work from home, in hotels, in their cars, or wherever their work takes them. The implications for HRM are at times mind boggling. Technology and globalization are only two of the forces driving change in organizations and HRM. Today, being able to manage change has become paramount to the firm’s success. As one pundit put it, “No change means chance.” Successful companies, says Harvard Business School professor Rosabeth Moss Kanter, develop a culture that just keeps moving all the time.14 Given the pace of today’s commerce, organizations can rarely stand still for long. In highly competitive environments, where competition is global and innovation is continuous, change has become a core competency of organizations. For all of the opportunities afforded by international business, when managers talk about “going global,” they have to balance a complicated set of issues related to different geographies, cultures, employment laws, and business practices. Human resources issues underlie each of these concerns and include such things as gauging the knowledge and skill base of foreign workforces and figuring out how best to hire and train them, sometimes with materials that must be translated into a number of different languages. Relocating managers and other workers to direct the efforts of a foreign workforce is a challenge as well. HR personnel are frequently responsible for implementing training programs and development opportunities to enhance managers’ understanding of foreign cultures and practices. In many cases, HR managers must adjust the compensation plans of employees working abroad to ensure that they receive fair and equitable pay in parts of the world where living costs differ. Perhaps the most difficult task is retaining these employees in the face of the culture shock they and their families are likely to experience. So while managing across borders provides new and broader opportunities for organizations, it also represents a quantum leap in the complexity of human resources management.
O rganizations can gain a powerful competitive advantage by tapping into their t alent and learning how to effectively organize and lead i t. But, according to P rofessor Edward Lawler in T ALENT : M aking People Your Competitive A dvantage, a lthough many organizations acknowledge the importance of people, most do li t t le or nothing to make them a source of competitive advantage. According to Professor Lawler, companies that are truly competing on the performance of their people need to adopt a Human Capital or HC-centric approach to organizing (Lawler, 2008) – simply doing better talent management is not sufficient. Rather, special attention needs to be given to implementing organizational structures, processes and systems that will help manage and support the performance of an organization’s human capital. TALENT provides a comprehensive framework for helping human resource professionals, senior executives, CEOs and corporate boards structure their organization in order to effectively attract, retain and manage their talent. Once a company has identified its most suitable HC-centric approach, Professor Lawler discusses how to effectively implement it. Drawing upon decades of research, TALENT touches on many actions that will make this transition easier, including:
• • • • Creating an employer brand to attract the right talent; Motivating a company’s talent; Establishing a shared leadership approach; Creating an information system that analyzes the effectiveness of talent; And, identifying the new roles that human resource departments, corporate boards and CEOs must play.
• TALENT shows that in today’s business world, it’s in most companies’ best interest to put people front and center as their main source of sustainable competitive advantage. On the other hand, a smaller number of outstanding people can do the work of a larger number of really good people. And at the same time, follow by: € f (1) employee has the authority to make the decision and contributed to the business. (Authority) I (2) employee has a good understanding of the business and how the organization operates. (Company knowledge) (3) employee receives sufficient training and development opportunities. (Individual knowledge) È Ù (4) there is open and ongoing communication between management and employees. (Information and communication)
F irstly, we must to understand what is authority? Basically authority i s seen as t he legitimate r ight of a person to exercise influence or the legitimate r ight to make decisions, to carry out actions, and to direct others. ( James, 1998) For example, m anagers expect to have the authority to assign work, hire employees, or order merchandise and supplies. As part of their structure, organizations have a formal authority system that depicts the authority relationships between people and their work. Different types of authority are found in this structure: line, staff, and f unctional authority. Line authority is represented by the chain of command; an i ndividual positioned above another in the hierarchy has the r ight to make decisions, issue directives, and expect compliance from lower-level employees. So, that it is mean only the people or we called quality people can make the good decisions or benefits decisions which are based on the authority that the organization had given. I n the opposite, the machine cannot make it or does not have the predictability for t he future or any emergency. We can see people are more aliveness; they have the w isdom to decide the operation. Knowledge as an enterprise asset whether in the form of accumulated employee training or junking of legacy employee has its. Imagine, if you as a CEO of an international company, you may have thousands upon thousands employee, and you company also is a technology corporation. You employee are all very hard working and knew the whole company very well. Suddenly, because of some reason that make the employee goes to other company which is the competitor with you. As long as the staff of previously working in the competitor‘s company, we will lose much and much more information detail of our own. That makes us form competitor advantage to competitor disadvantage. Why? Because when the staff or the employer working in our company, they used their individual or personal knowledge to help us to round the company. But nowadays, they became our competitor’s advantage to forcing ourselves. They knew about our company’s running style and date, so that is a death-wound for business. So in the example we consciousness that if using the people properly we can get the advantage of the knowledge they have. Otherwise, that must be a gap of the company. For this part, it is really important for the company to know about the situation which is called communication. No wonder, there is two style of communication. One is successfully communication, another one is failed. However, we came back to the people as a asset of the company. So, at least the communication is the people between people. That tells us, a successful origination we look at them like an integrative. As a employer, communicate with the employee is very important. In the organization, people as an asset not a liability, they can discover any things that are not good for the group or organization. Why? Because they are quality, they will tell the manager as soon as they can that to reduce any risk or potential disaster for the company. This is a good advantage for you as a people. In the other hand, as a quality people, if in the organization has any conflict, the people can have sit and talk with other one. It is not just let it broke out, because if the employee have any conflict to broke out, maybe protest, strike or parade. That can make the company’s fame very bad and also influence the productivity. In addition, we are the human we can commutated or converse with each other, that to make the both win happen. In the end, we totally believe in the 21 century, everything become so easy to get (high technology, money finance, research and development) when something everybody easy can have it and use it to doing business that are no longer a advantage anymore. So, we only have the way to consider people that as a company or organization the people or quality people are always hard to find or we can say in today’s “war” we only have some kind of rare talents to leading the company keep going to achieve the industry leader. In addition, we given the conclusion of the assignment that is people are the most valuable asset for any organization. Reference S, Snell & Bohkander, G. (2010) Human Resource Management, 15th edition. Gengage Learning.
Edward, E, Lawler III. (2008) Talent: Making People Your Competitive Advantage, Jossey-Bass. James R. (1998). Balance of Power. New York: American Management Association. ...
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This note was uploaded on 04/24/2011 for the course SCHOOL 0060 taught by Professor Affier during the Spring '11 term at Keele.
- Spring '11