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Why employees are assets and not just costs?

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Contents 1. Introduction 2. Why employees are assets and not just costs? 3. Theorists- Hard and Soft Hrm 4. How to find/ manage your assets? a) Selection b) Development/ Training c) Appraisals/ Evaluations 5. Conclusion 6. Bibliography INTRODUCTION The objective of this coursework is to examine the ways in which HRM theorists argue that employees are assets and not just costs. Within my study I will be discussing a number of specific areas to help prove this argument. I will be examining how employees were once treated as a cost, and how they have now been developed into strong business organisational assets. An in depth analysis will be given into how businesses find their employees and the ways in which they are managed and developed to enhance the firm. Once I have explained the development of employees, it is important that I further discuss how Human Resources Managers are able to appraise employees overall performance and how this leads to either: the resolving of problems or the reward of good work. I'll be using a wide variety of sources to help to gather information for this study. Firstly, attending my lecturers and seminars will allow me to absorb the core information - but it will be my responsibility to expand on this. Therefore, I will be using a wide variety of journals, books and web sites. ...read more.


Beer et al, argue that: human resource policies should be influenced by all stakeholders, if not in the long run' it will fail as an institution'. They also content, that managers can affect a number of factors by means of the policy choices they make, including: -The overall competence of employees, if they have the skills and knowledge when required, the organisation benefits, and its employees experience an increase sense of self- worth and economic well being. - The commitment of employees, leads to more loyalty and better performance for the business. - The degree of congruence between employee's own goals and those of the organisation -The overall cost effectiveness of hrm practices, in terms of wages, benefits, turnover, absenteeism, strikes, etc. Beer et al argue that: " In the long run, striving to enhance all four Cs will lead to favourable consequences for individual well being, societal well being, and organisational effectiveness. Thus, Hrm policy formulation must incorporate this long-term perspective. David Guest's view of the employees Another theorist to emphasis the importance of the employees and the policies surrounding their work contribution was David Guest. Guest states that the potential input that good human resources policy can make would improve organisational performance. David Guest emphasis the differences between the stereotypes of personnel management and human resource management. According to him human resource practices exercise their positive impact by: ensuring and enhancing the competence of employees; by tapping their motivation and commitment; and by designing work to encourage the fullest contribution from employees. ...read more.


The Employee brings value to the business. Management should constantly be thinking that how employees are treated would be a reflection on how they treat customers. The successful businesses of the future will count employees as one of their greatest assets. CONCLUSION Throughout this coursework, it has been shown the way the relationship between employers/ employees has developed over the years. Even though, employers have renowned for their commitment to good, with well-resourced employment policies, some still seek to minimise staff costs and investments, in pursuit of competitiveness and profits; i.e. implementing redundancies and even export jobs to countries where labour costs are the cheapest (that can be seen today in British airways, in which most of their staff and customers, paperwork is done in India where the workmanship is a bargain). Such policies bring the interest of individuals and groups into conflict with those of their employers. From a human resource perspective, investment in staff contributes to profitability as these employees bring their best ideas to the workplace with a sense of excitement, ownership and pride, translating in continuous improvement in the organisation. Empowered employees (i.e. giving power and information) benefit both the organisation and themselves, once they clearly understand the company's situation, they are compelled to act more responsibly. My recommendation for the company's today is to trust and respect their employees, solicit theirs opinions when it comes to set corporate goals, because employees will be encouraged to act like owners. They can also make them owners through profit shares, stock options, etc. ...read more.

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