The Human Resources of an organization represent one of its largest investments. The term human resources at the macro level indicate the sum of all the components (like skill, creative ability) possessed by all the people. Human resources at the organizational level include all the component resources of all employees from rank and file to top level management. So, it includes the resource, of all people who contribute their services to the attainment of organizational goals. Human resources play a crucial role in the development process of the present economy. It is often felt that though the exploitation of natural resources, availability of physical and financial resources and international aid play prominent roles in the growth of modern economies, none of these factors is more significant than efficient and committed manpower. A country with abundance of physical resources will not benefit itself unless human resources make use of them. Only Continue reading
Modern HRM
Improving Quality of Work Life
Quality of work life improvement refers to any activity for greater organizational effectiveness through the enhancement of human dignity and growth process through which the work force of the organization learn how to work together for betterment to determine for themselves what actions, changes and improvements are desirable and workable. What work force feels about the work place? The ‘Economic Times’ in December 1999 collected the views from top level HR executives from Indian companies on the emerging workplace. The views expressed were as follows: There would be more celebrations. Music, poetry, and art at work to provide creative moments in between the lightening speed of work. People with high EQ levels would be valued far more than yesterday as coaches and facilitators orchestrate the output of knowledge workers. People tomorrow would want and deserve a workplace free from anxiety and stress, where each can contribute fully from their jobs Continue reading
Investment in Human Resources
There is much debate as to whether the human resources of an organization can be considered as an asset and treated accordingly in the accounting system. There are two schools of thought. One says that human resource is an asset and the other does not agree with this. Now let us see what is an asset? Asset is anything which is owned by the entity to derive service in future and should have legally enforceable claim. As such there is no guarantee of deriving benefits from the existing human resources in future and has no sales value like other assets. Therefore, legally, human resource is not an asset claims one school of thought. Besides, company law also does not consider it as an asset. But the other school is of the opinion that the “human resource is an asset“. This school of thought puts forth two contentions in favor of Continue reading
Human Resource Accounting
To ensure growth and development of any organization, the efficiency of people must be augmented in the right perspective. Without human resources, the other resources cannot be operationally effective. The success or otherwise of an organization depends on how best the scarce physical resources are utilized by the human resource. What is important here is that the physical resources are being activated by the human resources as the physical resources cannot act on their own. Therefore, the efficient and effective utilization of inanimate resources depends largely on the quality, caliber, skills, perception and character of the people, that is, the human resources working in it. The term Human resource at macro level indicates the sum of all the components such as skills, creative abilities, innovative thinking, intuition, imagination, knowledge and experience possessed by all the people. “Human Resource Accounting” is the offshoot of various research studies conducted in the areas Continue reading
EFQM Excellence Model
The European Foundation for Quality Management (EFQM) Excellence Model was introduced in 1991 as the framework for organizational self-assessment and as the basis for judging entrants to the European Quality Award, which was awarded for the first time in 1992. A number of factors have encouraged many western countries to introduce quality awards. Among these were: the importance of quality for competitiveness, and contribution of benchmarking and self-assessment techniques to improving performance. The award models are used extensively throughout the world by leading companies and can thus be used for international benchmarking comparisons. A framework designed to assist organisations achieve business excellence through continuous improvement in the management and deployment of processes to engender wider use of best practice activities. It enables the calculation of scores against a number of criteria that can be used for either internal or external “benchmark” comparisons. It is hoped that the results of these Continue reading
Implications for International HRM
Diversity of various types in a global company suggests that HRM practices have to be tailor-made to suit the local conditions. Such practices can be seen in the context of different HRM functions. Recruitment and Selection A global company has the following alternative approaches to recruitment and selection of employees: Ethnocentric-all key positions, in headquarters as well as subsidiaries, are staffed by parent-country nationals. Polycentric-key positions in subsidiaries staffed by host-country nationals and those in headquarters staffed by parent-country nationals. Regiocentric-key positions staffed by host-country nationals within particular geographical regions (such as continent-wise). Geocentric-key positions in headquarters as well as subsidiaries staffed by people based on merit, irrespective of their nationality. Different MNCs adopt different approaches for recruitment. For example, a survey of recruitment practices adopted by MNCs reveals that 50 per cent MNCs believe in geocentric approach while 35 per cent MNCs believe in ethnocentric approach and key functionaries Continue reading