Human Resource is the Most Important Asset of an Organization
Human Resource is the Most Important Asset of an Organization
I agree with the statement that “Human Resource is the most important asset of an organization.” Human resource is “the set of individuals who make up the workforce of an organization, business sector or an economy.” (“Human resource definition”). Human resource is the least mobile of the four factors of production, which are resources required for generation of goods and services. The other factors of production are natural resources, capital (including all man-made resources) and enterprise. (“Factors of production definition”).
The most important aspects of human resource are the knowledge, skills, creativity and motivation possessed by people. These aspects of human resource improve with age and experience, which no other resource can do. Thus, human resource is often regarded as the scarcest and most important asset that creates the largest and longest lasting competitive advantage for an organization.
The idea that human resource is the most important asset of an organization is particularly relevant to the business landscape of the 21st century. In developed and even developing countries, their economies are moving away from being manufacturing-based into being knowledge-based. To quote Peter F. Drucker, the famous management guru, educator and author: “The most important, and indeed the truly unique, contribution of management in the 20th century was the fifty-fold increase in the productivity of the manual worker in manufacturing. The most important contribution management needs to make in the 21st century is similarly to increase the productivity of knowledge work and the knowledge worker.” (Drucker, 1999, p135). Knowledge has become the key factor of productivity and competitive advantage for organizations in today’s economy. Since knowledge can only be created, utilized and transferred by human beings, it is clear that human resource is the most important asset of a modern
I agree with the statement that “Human Resource is the most important asset of an organization.” Human resource is “the set of individuals who make up the workforce of an organization, business sector or an economy.” (“Human resource definition”). Human resource is the least mobile of the four factors of production, which are resources required for generation of goods and services. The other factors of production are natural resources, capital (including all man-made resources) and enterprise. (“Factors of production definition”).
The most important aspects of human resource are the knowledge, skills, creativity and motivation possessed by people. These aspects of human resource improve with age and experience, which no other resource can do. Thus, human resource is often regarded as the scarcest and most important asset that creates the largest and longest lasting competitive advantage for an organization.
The idea that human resource is the most important asset of an organization is particularly relevant to the business landscape of the 21st century. In developed and even developing countries, their economies are moving away from being manufacturing-based into being knowledge-based. To quote Peter F. Drucker, the famous management guru, educator and author: “The most important, and indeed the truly unique, contribution of management in the 20th century was the fifty-fold increase in the productivity of the manual worker in manufacturing. The most important contribution management needs to make in the 21st century is similarly to increase the productivity of knowledge work and the knowledge worker.” (Drucker, 1999, p135). Knowledge has become the key factor of productivity and competitive advantage for organizations in today’s economy. Since knowledge can only be created, utilized and transferred by human beings, it is clear that human resource is the most important asset of a modern
References: Human resource definition. Retrieved June 1, 2013, from http://en.wikipedia.org/wiki/Human_resources Factors of production definition. Retrieved June 1, 2013, from http://www.businessdictionary.com/definition/factors-of-production.html Drucker, P. F. (1999). Management Challenges for the 21st Century, pp. 135, Butterworth-Heinemann. Noe, R. A., Hollenbeck, J. R., Gerhart, B. and Wright, P. M. (2012). Human Resource Management: Gaining a Competitive Advantage, 8th Edition, McGraw-Hill. Facts About Starbucks and Our Partners (Employees). Retrieved June 1, 2013, from http://news.starbucks.com/article_display.cfm?article_id=225 The 15 Percent Solution. Retrieved June 1, 2013, from http://www.wired.com/techbiz/media/news/1998/01/9858 100 Best Companies to Work For. Retrieved June 1, 2013, from http://money.cnn.com/magazines/fortune/best-companies/2013/snapshots/1.html Here’s How Google Became Such A Great Place to Work. Retrieved June 1, 2013, from http://www.huffingtonpost.com/2013/01/22/working-at-google_n_2526889.html