Introduction
At the present clip, the companies become more concern in developing their people to vie with rivals in planetary concern and in order to derive the competitory advantage, the companies to a great extent spend cost to choose best people to work in their company and put more attempt in bettering the bing one, El-Nadi ( 2006 ). As a effect, the human resource squad plays the major function to assist the company achieve their ends while maintain the health of the employees. However, there is still inquiry that the house should handle their employees as the plus of the concern in the same manner as any other plus. Therefore, this study is traveling to discourse on such statement and analyse the value of employees comparing with the assets every bit good as given the instance survey of international houses which will be utile for reader to understand the significance of discussed statement.
Some people believe that good image of company, resources and merchandise line meets high client demand lead to competitory advantage that make the company able to vie with corporate worldwide, Harting ( 2008 ), and as such ground are true. No 1 can deny all of these facts, that is, the ground why most celebrated company go successful when comparisons to other rivals. However, the most important resource that makes company accomplish in planetary concern is employee, Kaplan-Williams ( 2009 ). As mentioned, the employees control the machine, without that, the machine can non run decently. No affair what concern own the most advanced engineering, they still need human to command and run all of them.
Human Resource Department is the bulk accountant whom manages and proctors employee to work in maps. Since the employees gain more experience during their work clip that become more and more and can non be devalued, it is HR duty to maintain those employees to remain loyal to company while seeking for fledgling to replace for workers who have left the house for some ground every bit good as maintain good attitude among them.
Part I:
– Definition of Employee and Asset
– Analyze the Statement
Definition of Employee and Asset
Employee is a individual or a group of people who recruited from the company to supply services to client and complete every twenty-four hours ‘s undertaking that company assigned to them to accomplish company ‘s mark, for case, seeking for new clients and market, negotiate with providers, and salvage the operation cost, Hicks ( 2005 ).
Asset is anything of economic value owned by single or corporation, peculiarly, it can be converted to hard currency, Harrison ( 1995 ). There are two type of plus for the company, touchable and intangible plus. Tangible plus is everything that is physical substance that human can touch. For Tangible plus, it can split into current plus and fixed plus. Current plus is hard currency or other plus that can be converted into hard currency easy. For illustration, account receivable and stock list. For fixed plus, it is the plus that the company purchased for generated the long-run net income. For case, land, belongings, edifice, equipment, and machine, Downes ( 2003 ).
For intangible plus, it is the non-physical plus that untouchable and really difficult to measure. For illustration, rational belongingss, patent, cognition, and hallmark. ( See Appendix 1 )
Analyze Statement
From the statement “ Employees are plus of the concern and, as such, should be treated in the same manner as any other plus ”, it shows that employees are equal to the assets in which have been defined in above paragraph and hence, should be treated in the same manner as any other assets in company, such as, machine in a mill.
Based on the definition of employee and plus, it wholly has different significance and definition, hence, the house can non handle their valuable resource every bit same as other assets which contrast to the mentioned statement.
There is the difference between human resource and company ‘s plus ( in this study will utilize machine as an illustration of plus ). Human resource will appreciate in value over the clip, Writer ( 2010 ), in contrast with machine ; it will deprecate in value over the period since it has been used, Kennon ( 2009 ). Besides, human resource has the high value for investing for the ground that employees can remain with the company for long clip if they happy with the company. In add-on, it is rather hard for the company to happen the replacing of bing employees whom have been working with the company for a long clip and cognize all the procedure of the occupation. Furthermore, it is non easy to recruits and trains the new one to replace the 1 who merely quit from a occupation. Unlike the machine, the company can purchase new one to replace the old one instantly which can easy puting up the plans and utilize it right off. For clear account, it can show how human resources are appreciating in value into four chief grounds.
The first ground is invention. Most worlds can increase their advanced thought over the period of clip, Winslow ( 2008 ). As it exactly show that homo or individual who is working in company has the capableness to bring forth their thought and make things that benefit to their houses, such as, innovate the engineering that help the house accomplishing their ends faster than other rivals. Furthermore, employees can introduce or better merchandises and services to a better one to run into clients need and cope with the alteration in market tendency that can vie with other rivals and lead to the winning, such as, Apple iPad.
The iPad becomes the new tendency of net book in this epoch, which affects other net book trade names doing the bead in market growing ( see appendix 2, 3 ). This is because clients who have planned to purchase net book preferred to purchase iPad alternatively, Nusca ( 2010 ). From this account, it shows that the research and development section is one of the most important sections in the company that used human to brainstorm the thought to do the company go success in concern universe. For illustration 3M Company, its employees innovate the new merchandise to the company that presents their image to public as most advanced house, Dalal ( 2009 ).
Second, employee has rational emotive to cover with other people inside and outside organisation. Most companies need to cover with client and they have to negociate with their clients to work out the job. In order to cover with clients, companies need their employees to reply all the inquiries and work out the full job that make clients experience unsated to the company and some employees may even cognize about the merchandise better than the top executive themselves in the company which is easy for them to straight cover with those clients, Parker ( 2010 ). Besides sometimes company demand to cover with their ain provider, El-Nadi ( 2006 ), for case, company may have the large order from client, so that, they need more natural stuffs or stock lists to bring forth the merchandises to make client demand. Hence, the house needs to negociate with their provider to provide the extra demand at a limited clip and it is employees ‘ duty to cover with those emphasiss.
The 3rd ground is that employees can happen the best solution to work out serious state of affairs in the company. When company is in difficult state of affairs, the more employees are the more options to track with the job. Each employee has their ain sentiment in showing their thought when covering with jobs that is benefit to the house to roll up all thoughts and do concluding judgement to choose the best program for the company. Furthermore, the company can blend up the thoughts for farther betterment to derive the competitory advantage in the market. From these grounds, it will be good for organisation to brainstorm the thought for more solutions in which it helps top executive to see and make up one’s mind which solution will be the best for the house, King ( 2010 ). For illustration in concern universe,
Toyota company callback midsize pickup, Hilux Vigo, more than 100,000 autos in Australia since they found the job in bonnet striker and displacement overseas telegram bracket that can do accident and lead to serious injured that pull down the Toyota ‘s image and lower the assurance toward clients ‘ attitude, Gover ( 2010 ).
The last ground is creativeness. Every world is born with the ability of creativeness, Kilby ( 2001 ). The staffs in a company make the advertizement to advance their house to the populace to derive the image every bit good as selling their merchandises and services that easy reach through their mark client. Customers consume the media from every beginning that they see or hear, for illustration, Television, wireless and Internet. For Internet, it is one of the most powerful tools to direct the message and information to all clients around the universe, Platt ( 2007 ). Furthermore, the advertizement can besides make to harm rivals, for case, the comparing of engineering among three auto makers.
Nissan Company is traveling to establish their merchandise to the market, called LEAF, which used full electricity to run the engine. Nevertheless, Tesla Company claims to public that Nissan LEAF battery is non good plenty when comparison to Tesla batteries, Garthwaitw ( 2010 ). They claim that LEAF battery is worse even when comparing with paradigm of Tesla batteries. After Tesla advertised to public that their batteries are better than Nissan, Ford Company besides attack both Nissan and Tesla by claimed that their new theoretical account, Focus EV, uses liquid thermic battery which is better than Nissan and Tesla, Lombardi ( 2010 ). From these it shows that Tesla use their advertizement to assail their rival in which Ford join these fight by advertised to client that their merchandises are far better than those two companies.
As explained in four grounds, the machine dosage non has such characteristic like human. Hence, the house should put an importance on employees instead than machine or other assets.
Part II:
– International Cases
– Comparison Cases
International Cases
In recent old ages, human resources have been being widely asserted as the most valuable resource of the houses. Organizations are unable to turn and develop without the human resource component, Barlow ( 2004 ). A beginning of labour is required in any concern sectors, Morrell ( 2001 ). Employees hence should be treated good with self-respect and regard. However, based on the researches among assorted companies, top executives of these companies could be categorized into 2 parts: employees were seen as a valuable resource to be developed in smaller part, however, larger part still saw their employees as a cost to be cut off, Cascio ( 2003 ). The houses in larger part surely placed itself in an insecure place as deficiency of human resource direction and neglect to acknowledge their ain employees. The one of formula for failure in concern is the neglecting to acknowledge and appreciate ain staffs for their accomplishment, cognition, and trueness, Humber ( 2008 ). The Circuit City Company is a good lesson-learn of failure to acknowledge its employees.
Back in 2007, the Circuit City, an electronic retail merchant, was confronted with the ruin in gross revenues due to the growing in competition by both online and offline merchants. Circuit City abandoned the human resource patterns by announced the program to put off 3,400 of its most experient, gifted and effectual gross revenues people in order to cut the cost and unburden their high wage payments, Humber ( 2008 ). It was true that cutting the paid resulting in diminishing in overall disbursals of the house and would accordingly do the house strive in the conflict of subsister in concern, Cascio ( 2003 ).
However, there surely was a drawback of ignorance in acknowledging and appreciating the talented and experienced employees. The consequence of ballad off the immense figure of effectual employees was the worsening in quality of client services that is unimpeachably the most of import thing in the retail sector. Customers walked into the shop and found un-experienced and apathetic staffs caused even more dip in the Circuit City ‘s gross revenues. The film editing of experient people of Current City was a slow gesture of suicide. “ Current metropolis cut its ain pharynx by non recognizing their ain competitory advantage is ”, Carr ( 2008, P. B1 ). Suddenly, the company was bankrupted.
In contrast of the Current City instance, the SAS Institute, concern analytics package and services supplier has placed importance on human resource direction by handling its employees good as a valuable resource to be developed and retained. The SAS Institute was continuously ranked in “ The 100 Best Companies to Work For ”, Fortune Magazine, Cascio ( 2003 ). Many of human resource direction plans have been executed in order to run into its employees demands and maintain employees motivated and engaged, for cases, single acknowledgment wagess at one-year gross revenues meeting are rewarded to outstanding gross revenues people, internal occupation transportation which allows its employees to merely travel around from one occupation to another within the organisation, the on-site wellness attention that quickly services employees and even the creative activity of summer cantonment for employee ‘s kids, Hein ( 1999 ).
The company has operated on a fundamental of handling people with self-respect and regard every bit good as doing work merriment, Cascio ( 2003 ). The consequence of accent and concentrate on quality of life of SAS ‘s people has been phenomenal. The turnover rate of its employees has been lower than other companies in package industry by 16 per centum in norm, Leonard ( 1999 ). One hundred million US dollars salvaging every twelvemonth is the translated version of 16 per centum lower turnover rate than rivals and that money has been spent in developing the concern every bit good as continually funding more benefits for its employees including preparation and developing at all degrees, Cascio ( 2003 ).
Beside of the benefit of money salvaging on low rate of turnover, retained employees besides retain their clients. The companies that have high rate of employee keeping likewise have high rate of client keeping, Koblenz ( 2003 ). More than 98 per centum is the rate of licence reclamation of SAS ‘s package plans, Cascio ( 2003 ). These benefits of the SAS Institute have been returned by good human resource direction patterns which accent and focal point on good intervention on its employees and acknowledgment on their expertness, experience and cognition.
Compare Cases
Two sample instances exemplify the different consequence of different intervention on their employees. On one manus, failure to acknowledge value of employees seemingly leads to the failure in concern. On the other manus, handling employees good and acknowledging their abilities, accomplishments and expertness surely returns in a success and profitableness to the house.
Decision and Recommendation
Decision and Recommendation
Back to the statement of “ Employees are plus of the concern and, as such, should be treated in the same manner as any other plus ”, from the findings, it can turn out that employees are more valuable than other assets. Hence, the house should carefully handle their employees in a better manner in order to maintain their virtue public presentation that lead to successful of company. However, if the house can non handle their employees as good plenty as other houses, the employees of the house itself will so look for another company to work for and that cause in high investing on enlisting and preparation, and if look in a worse instance, the employee who is non happy with the house will seek to destruct or distribute the rumour to public.
To reason, the house and the HR section should non merely handle an employee as an plus, on the contrary, should handle them better than plus.
Work Cited
Books
Downes, J. and Goodman, JE. ( 2003 ) Dictionary of Finance & A ; Investment Footings 7th Edition Barron ‘s Educational Series, New York.
Harrison, WT. and Horngren, CT. ( 1995 ) Financial Accounting 2nd Edition Prentice Hall, New Jersey.
Diaries and e-Journals
Cascio, WF. ( 2003 ) “ Responsible restructuring: Sing employees as assets, non costs ”, Ivey Business Journal Online, pp. 1-6. & lt ; hypertext transfer protocol: //www.iveybusinessjournal.com/view_article.asp? intArticle_ID=450 & gt ; ( 9 September 2010 ).
Hein, K. ( 1999 ) “ Success Secrets ”, Incentive, vol.173, no. 8, pp. 48-49.
Humber, T. ( 2008 ) “ Short-sighted move short circuits ”, Canadian HR Reporter, vol. 21, no. 4, pp. 22.
Koblenz, M. ( 2003 ) “ Ten best patterns of companies that attention ”, Employment Relations Today, vol. 30, no. 3, pp. 1-7.
Leonard, B. ( 1999 ) “ The best & A ; the brightest radiance in HR ”, HRMagazine, vol.44, no. 9, pp. 70-76.
Morrell, K. and Loan-Clake, J. and Wilkinson, A. ( 2001 ) “ Unweaving departure: the usage of theoretical accounts in the direction of employee turnover ”, International Journal of Management Reviews, vol. 3, no. 3, pp. 219-244.
Newspaper
Carr, D. ( 2008 ) “ Jettisoning Top Endowment to Cut Costss ”, The New York Times, 17 November, pp. B1.
Unpublished paper
Barlow, GL. and Raby, SO. ( 2004 ) “ Employees: Assetss or Liabilitiess? “, paper to be presented at the Second World Conference on POM and the 15th, Cancun, Mexico, April 30 – May 3.
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