In this article, we discuss the reasons for organizations to have a HRM strategy as well as the business drivers that make the strategy imperative for organizational success. The most important aspects of human resource are the knowledge, skills, creativity and motivation possessed by people. 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 … 148-149). Majo 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. Aligning HR and business goals, managing talent, improving employee engagement and working together with executive leadership are several key components to HR management. Reference this. Durai (2010, p.109) stated, “Employees are the precious asset of an organization”. A recent comparative study of six countries found that the interview was one of the most popular selection methods. Correspondence to these theories, organization will gain in productivity and profit once the... ...Introduction The first step in the development of a job description is to establish the purpose and general objectives of the post, and then to analyse the requirements of the job. Moreover, human errors are much more expensive in comparison to such assets as land and capital, and often result in serious irreversible consequences. Company should consider some factors, like company’s budget, level of vacancy, time and selection technique in order to choose the right way in recruitment process. Effective use of recruitment tools depends on the available budget. This called for... StudyMode - Premium and Free Essays, Term Papers & Book Notes. 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”. It is possible to make a credible selection decision when the required criteria are clearly marked out. He believes it, and he is right. People are non-material assets of a company and due to their importance have a strategic function. He also suggests that most interviewers / organisations may not be aware of what the research suggests. Human Resource Is the Most Important Asset of an Organization - essay example for free Newyorkessays - database with more than 65000 college essays for studying 】 184-190) improving the structure of interview does not increase validity. Human resource planning (HRP) is the continuous process of systematic planning ahead to achieve optimum use of an organization's most valuable asset—quality employees. A wise choice of employees plays a key role in the functioning of an organization. I declare that all material included in this essay/report/project/dissertation is the end result of my own work and that due acknowledgement have been given in the bibliography and reference to ALL sources be they printed, electronic or personal. Human Resource Management: Strategy and Policy (HRM2001S) Assignment 1Human Resource is the most important asset of an organisation | Every company should adapt recruitment and selection costs to its policy, capabilities and vacancy and on this basis consider if to recruit internally or externally. 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. Furthermore, to ensure the long-term survival of an organization, it is through proper motivation that encourages human resource, change, innovation and the capability to learn. 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. Source: Schmidt, F. L., & Hunter, J. E. (1998). The idea that... ...Introduction Essay; Human Resource Is the Most Important Asset of an Organization. The important elements that contribute to this added advantage stem from technology, marketing strategy, excellent customer service and many more. Our academic experts are ready and waiting to assist with any writing project you may have. 2006 ) . In view of this statement, human resource planning plays an important role to optimize the utilization of its asset in term of cost and productivity. Today’s knowledge economy distinguishes one organization from another with the single most important and powerful factor that is the Human Resources (HR) or Human Assets. In 1965, Singapore was officially separated from Malaysia. The other factors of production are natural resources, capital (including all man-made resources) and enterprise. As the field of Human Resource Management has strongly changed in recent years, organizations were obligated to become more dynamics and complex. acceptability, influence over others, steadiness, any special demand of the job, such as ability. They are not wrong. 1. 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. While many studies in recent years have raised concern about selection and validity, the most widely used methods remain the ‘classic trio’ application form, interview, and references (Taylor 2001). After pre-screening is time for candidate assessment. Introduction The organization put in affords to meet the expectation of the employees so that create a workplace atmosphere among the employees (Upson,2011). Because it … Recruitment and selection are the most important activities in an ongoing circle (shown in Fig.1.1) of an organisation as a whole. Another concerning question a company should frankly answer is what kind of selection technique they need to apply, i.e. (“Factors of production definition”). the one which may facilitate effective employment. Submission Date: 6 Jun 13 While the trio of application form, interview and references is still popular, there have been further developments in incorporating those with the use of assessment centers which has been reported to be in the increase (Branine, M., 2008). They are important for the functioning of any organization without which the activities of an organization will come to a standstill. Equally, validity has also three aspects: “face validity” – tests are more acceptable when candidates find “relevant” questions; “construct validity” and “predictive validity” – how well the suitability of candidates for the position is predicted (Price A., 2000, p. 149). 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. Without a doubt, the Internet has been a main driver in structuring the modern day economy. Student Number: 12262455 For that reason, recruitment and selection process should be permanent implicated and developed in company structures. Secondly, it should create a positive image of the organization in the eyes of people who come in contact with it. 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. Figure 2. Ironically, while human resources are the most important asset in an organization, they are also the cost involved during the training activity. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. 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. 546 Words 3 Pages. Human resource management (HRM) views people as organizational assets and internal customers and works to create job satisfaction and employee efficiency and effectiveness. However, human resource is still the most important element/asset in an organization that links back and is the core to those elements mentioned. (2004, p. 216)). Hence, to achieve this, a company has to pay a huge attention on the recruitment and selection process. In order to achieve the goals or the activities of an organization. Psychological. No plagiarism, guaranteed! The literature on the subject of organization differentiates between many selection techniques. 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. Tangible assets include financial and physical assets such as machineries and manufacturing plants while examples of intangible assets are branding, company reputation, technological know-how and human resource (Noe et al., 2012). Looking for a flexible role? Ineffective planning will cause a hindrance to employee satisfactory and organization success. Figure 3 is based on Schmidt and Hunter’s (1998) review and shows the validity. Table1.3 The predictive accuracy of selection methods, Source: Anderson and Shackleton cited in Beardwell et al. Recruitment and selection are one of the most fundamental elements of the strategy of human resources managing. P (2009) mentioned that organizational psychology holds that successful organizations do not owe their success solely to market realities and sustainable competitive advantages. The decision making process is stipulated by individual needs of a company. Table 1. 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). 39-40). In this fast moving day and age, organizations place emphasis on having that competitive advantage above all others in the market. First, human resources are the most important assets an organization has and their effective management is the key to success. Human Resource (HR) and Human Resource Management (HRM) Second, this success is likely to be achieved if the personal policies and procedure of the enterprise are also linked with … Data about accuracy of various types of selection techniques covers large differences within each technique. Both the activities are directed towards obtaining suitably qualified employees. The key point of selection is how to make fair and relevant assessment, which indicates strengths and weaknesses of applicant (Boxall P., Purcell J., 2003, p.141). “Human Resource (employees) is the most important asset of an organization. Particularly as they help establish a set of core competencies which distinguish one organization from its competitors. For the first, job description should be written very carefully. Despite managers’ claims that their organization’s human capital is their “most important asset,” few can confidently state the financial value of that resource or quantify in financial terms how changes in management practices, culture, or workforce composition affect the value of that resource. Oswin (2011) states that human resource is a term used to describe the individuals who make up the workforce of an organization. Human resources planning, structure and organization are all important to managing human capital -- or, human resources -- the most valuable asset in an organization. The human resources are the most important assets of an organization. Pilbeam & Cordbridge (2006) assert that good recruitment and selection is important element of the HR strategy, its forecasting requirements and a key to getting the appropriate people to attain a business goals. 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. This domain is not a single, simplified function, but a group of plans, systems, tools, processes and services. To minimize the risk of wasted money, job analysis should be well done. Human resource management is to maintain and manage in the labor sector of an organization. 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). Armstrong (2006) suggests it is the “comfort factor” and that recognition needs to be given to the fact that both interviewers and interviewees like them and have grown to expect them. The question remains therefore, that if these methods are among the least valid, why are they still so popular? 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. transportation and exercising cognition ( Write Works. 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”. It is good practice to specify what is essential or the minimum required to perform the job, as well as what is desirable. Early research showed that unstructured interview did not have high validity, so as to improve its validity interview should be more structured. Structured interviews should potentially increase the quality of decisions made (Newell, S., 2001, p. 33). Figure 1. ...Question: Write a short essay that discusses the following statement, using references and examples to support your answer. A job description makes it possible for the recruiter to outline what duties, responsibilities and the reason behind the vacancy i.e. “Human Resource (Employees) Is the Most Important Asset of an Organization. This essay will provide a definition to Human Resource (HR) and determine whether HR is the most important asset in the organization. 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). 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. 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. Peoples whoever working in a company consider employee including of higher management such as general manager and operation manager. The success or failure of an organization is largely dependent on the caliber of the people working therein. HRM concentrates on internal sources of competitive advantage. They know that during the slightest economic downturn the “most important resource of the company” will immediately pay the price for it. For every organization needed labor in order to maintain the productivity of every sector. Medium validity has bio data, and the low validity: references, interviews, personality tests, whereas graphology and astrology do not have any validity (Cornelius N., 1999, pp. Soh Wei Sheng Fabian His collaborators listen politely but are skeptical. Recruitment activities lay the groundwork for the selection process by providing the pool of applicants from whom the selectors may choose. The importance of human resource strategy becomes evident when an organization acknowledges the most important asset of the company, the employees. 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). The person specification profile is the people characteristics required to do the job effectively. 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. 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). 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. Are Celebrities Being Good Role Models or Are They Setting a Bad Example for the Teenagers. When employees' talents are valuable, rare, difficult to imitate and organize, an organization can achieve a sustained competitive advantage. (2004) the enlargement in using assessment centers and selection testing like a more accurate methods, can help to improve the effectiveness of the selection process. 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. Throughout the years, the importance of employee have increasingly emphasized in organizations. Throughout the years, the importance of employee have increasingly emphasized in organizations. Rouse (2011) defines human resources as the people who work for the organization; human resource management is really employee management with an emphasis on those employees as assets of the business. *You can also browse our support articles here >. 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. Recruitment and selection in an organization (Pilbeam & Corbridge 2006, p.143). Person specification framework (ACAS cited in Beardwell & Claydon, 2004). If used properly, data becomes the most important asset of any HR team. However, according to Heffcutt & Arthur (1994, pp. Beardwell (1994, p.192) also indicates that the process of recruitment has two important purposes. Human resource can be defined as labor as well as all the employees within the entire organization regardless of rank. When comes to human resource, it is also discuss about productivity in every sector of an organization. Nevertheless the use of interviews is still the most popular selection method in the world. This theory has been supported in the work of Noe et al (2010, p.719) When planning to recruit one should also include: discussions with clients to predict future hiring needs; maintenance of a contacts’ network (candidates, employees, competitors); development and maintenance of a strong employee referral program; investment in recruiter training and development; cooperation with management to ensure adequate budget (American Management Association International, Aug 2006, p.10). 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). We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. “Good selection methods must meet four basic requirements: practicality, sensitivity, reliability and validity” (Price, A., 2000, pp. The first part of the essay will discuss the importance of human resource and how is it is essential to the success of any organization. Two well-established systems of person specification frameworks discussed by Beardwell and Claydon (2004, p. 205) are (Roger, 1952) seven-point plan and (Munro Fraser, 1954) similar five point plan, illustrated in Table.1.1 and 1.2. This domain is not a single, simplified function, but a group of plans, systems, tools, processes and services. During this process, efforts are made to inform the applicants fully about the selection criteria of the required competencies that will lead to effective performance, as well as career opportunities the organization can provide the employee. Human resource is the most important asset of an organisation. Moreover, recruitment and selection is a necessary element of people resourcing strategy, due to communicated policies, procedures and practices can considerably play a part in effective organizational performance, “(…) to good employee relations and to a positive public image” (Pilbeam & Corbridge, 2002). The fact that an employer draws up a person specification demonstrates an attempt to introduce some objectivity into what can otherwise be very subjective process. That during the slightest economic downturn the “ most important factors leading to its success question the. Form a team in organization is largely dependent on the calibre of the nature and actual duties and.... The most important asset of an organisation the price for it to improve its validity interview should written! 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