Is the Most Important Asset of an Organization

Question humankind Resource (employees) is the most important plus of an organization. Introduction Traditionally, human election focused mainly on administrative functions and process personnel management. However, due to technology advancement, administrative tasks have reduced. The role of human resource has shifted and seems to be pickings up more responsibility in ph mavinr strategic prep aredness and development. This theory has been supported in the induce of Noe et al (2010, p. 719) Durai (2010, p. 109) stated, Employees are the precious asset of an organization.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. Involvement with companys strategic planning go forth allow human resource department to have a broader view of employees skill requirement and deployment. Ineffective planning pull up stakes cause a hindrance to employee satisfactory and organization success. In this paper, we go away study how the theory of wages management, job rotation, recognition and training will go employees.Correspondence to these theories, organization will produce in productivity and profit once the employees are appeased with the working environment. Employee engagement with the organization Employees talent and efforts have perceptible effects on an organizations productivity and stability. And such efforts are often been neglected and fail to satisfy employees needs. When employees efforts are not recognized, there will be a lack of commitment to the organization. Thus, employees will not be do and will be less creative. Effectiveness of Compensation ManagementIn hallow to hurry the achievement of an organizations goals and key values, compensation management plays an important role in human resource management function. Employees should be managed properly and do by providing the best compensation system based on the job done and its result. A goo d compensation system will attract and hold skilled and productive employees. (Pattanayak B, p. 284) According to Armstrong (2002, p. 8), the compensation system consists of a total net of direct financial rewards (fixed wage and variable pay) and employee benefits (annual leave and sick leave).And, non-financial rewards such is job recognition, opportunities for career advancement and personal growth are also part of the compensation system. Diagram 2 shows the list of financial and non-financial rewards that an organization force out apply under the compensation system. pic Noe et al. (2010, p. 547) mentioned that employees emotion and function towards the organization is mainly influence by the compensation payout. Difference in individual personal diagnostic will draw people to different compensation systems.A great solution to compensate employees in the organization is to adapt combination program rather that one program over some other. List of compensation programs are merit pay, incentive pay, profit sharing, ownership, gain sharing, and skill-based pay. Merit pay is one of the best rewarding compensation programs. Employees are measured and payout annually based on the individuals performance appraisal rated by employees supervisor. Many companies in Singapore are adapting this compensation program for their eternal staffs. Employees will be more motivated when their performances are recognized and their basic pay is increased.Another example of compensation program is incentive pay. Incentive pay is unremarkably seen in organization with sales team that brings in revenue and profit that will gain market share for the company. Employees with higher performance will gain in such compensation program as they measured based on the amount of products or services sold and the payout is not part on the employees basic pay. Payment will be earned on a weekly or monthly basis depending on the organizations policy. Once an individual is motivated by su ch monetary rewards, he will sell more products and services for the rganization. However, if the compensation program is not wholesome planned, it will have a negative effect to the organization to support its business objectives. As mentioned in the article by Daly D (2009), skilled-based pay is the remuneration to payout employees with a better skilled knowledge that related to the job. Employees who have attained new skill and knowledge will be compensated more examine to their co-colleagues. Taking an example of a technician in a manufacturing organization, he will be rewarded once he has completed the machine repair and maintenance program.In order for him to continue to be compensated with better basic pay, he has to continue to upgrade his skillsets. Once the employees market value has increased, he will be motivated to contribute more to the organization and improve productivity. Effectiveness of Job Rotation & Recognition Apart from monetary rewards, job rotation has a f unction to motivate employees to enhance their skill knowledge and contribute more to the organization. Job rotation is systematic procedure whereby individual employee is shifted from current position or department to another in a given period of time.Employees will be multi skilled and able to support the organization when skillsets are required. When a job is less exanimate or monotonous, employees will perform better and improve productivity. Hence, employees will gain a promotion and increase their income. (Noe et al, p. 430) Effectiveness of Recognition Recognize and reward are exactly what the employees in the organization looking forward for a better growth in their career. The right motivation will influence the employees behavior and in return employees will achieve the organizations goals and objective and strive for higher productivity.Once the employees are satisfied and feel rewarded, it is unlikely for them to leave the organization. Employees will sacred their skil l and time for the organization. Therefore, the management should always be enthusiastically recognizing the talented and hardworking individuals to create a healthier working environment for the employees to come to work happily every day. Effectiveness of Training and Development Engaging employees with training and development are the two fundamental components in an organization.Both training and development do co-exist, as training will provide the skillsets and knowledge for the employees needs in the job. Whereas, development is a process to prepare employees in gaining new skills and knowledge for extravert demand in the current job or a job that do not exist. When employees obtained new skills and knowledge, it will improve the quality of the work. Organization will take the opportunities to attract and retain talented employees to gain profits and productivity. This theory is support by Noe et al. (2010, p. 87) ConclusionEmployees are still an integral part of a company, organism important assets. They must be constantly motivated and rewarded financial or non-financial on effort done on the job. Thus, human resource management has to offset the needs and achieve the goals and objective of both employees and the organization. Once the employees gained the recognition from the organization, they will produce better results and profits. Reference Armstrong M, 2002 Employees Rewards, London CIPD Publishing. Durai P, 2010 Human Resource Management, New Delhi Dorling Kindersley (India) Pvt Ltd.Noe, Hollenbeck, Gerhart, Wright, 2010 Human Resource Management Gaining A Competitive Advantage, 7th Edition New York, McGraw-Hill. Pattanayak B, 2006 Human Resource Management, 3rd Edition New Delhi, Prentice Hall of India reclusive Limited. Daly D, 2009. Employee Relations, Motivation, Performance Management, DeGarmo Group. 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