Human Resource is the Most Important Asset of an Organization Essay

I agree with the statement that clement pick is the closely important summation of an organization. Human mental imageryfulness is the set of individuals who bring in up the workforce of an organization, occupancy sector or an economy. (Human pick definition). Human resource is the least mobile of the four factors of production, which ar resources required for generation of justs and services. The other factors of production argon natural resources, capital (including all man-made resources) and enterprise. (Factors of production definition).The almost important aspects of sympathetic resource are the knowledge, skills, creativity and motivation possessed by people. These aspects of valet resource improve with age and produce, which no other resource git do. Thus, mankind resource is often regarded as the scarcest and most important asset that take a shits the largest and longest lasting competitive advantage for an organization.The idea that human resource is th e 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 perplexity guru, educator and author The most important, and indeed the truly unique, piece of management in the 20th century was the fifty-fold subjoin in the productiveness 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 nominate factor of productivity and competitive advantage for organizations in todays economy. Since knowledge derriere only be created, utilized and transferred by human beings, it is clear that human resource is the most important asset of a modern organization. Other resources such as capital and raw materials are also necessary and have different functions in an organization. However, human resource is still the most important becauseonly people bathroom object the usage of these resources as a whole to create maximum rate for the organization.Starbucks, the highly prospering Seattle-based c attainee store, is a keen example of a company that believes that its human resource is its most important asset. Starbucks employees, called partners, are the mark to their customers experience and the success of the company (Noe, Hollenbeck, Gerhart and Wright, 2012, pp. 3-4). Starbucks wants its baristas to have good coffee knowledge, product expertise, and provide excellent customer service. Thus, Starbucks invests heavily in the training of its baristas. For example, Starbucks unsympathetic d knowledge most of its stores in 2008 for a full-day training event called complete the Art of Expresso to train its baristas make high-quality expresso for customer s. To reward and retain its partners (Facts About Starbucks and Our Partners (Employees)), Starbucks offers its partners a Total Pay package including a fair and competitive wage, a 401(K) savings plan, stock options, an employee stock purchase plan and other perks. Starbucks offers encyclopedic well(p)ness benefits to partners who work part time, unlike most companies which offer health benefits only to full-time staff. Finally, Starbucks offer its partners flexible work hours so that they can enjoy better work-life balance.In the modern knowledge-based economy, many companies seek to set ahead a competitive advantage in the market. Human resource is the most important element to build the competitive advantage of a company. The knowledge, skills, experience and creativity of each individual contribute to the development of vernal products and services, which finally impact the profitability and growth of the company.The Minnesota Mining and Manufacturing Company (3M), a manuf acturing conglomerate based in Minnesota, is a great example of a company which empowers its human resource to develop innovations that contribute to its profitability and suffer up competitive advantage. 3M is famous for offering the 15 portion Rule curriculum to its employees to encourage their creativity and innovation efforts (The 15 Percent Solution). For decades, 3M employees can spend up to 15 percent of work hours on their own projectswhich may not be at one time related to their jobs mission. The 15 Percent Rule program has spawned many of 3Ms successful products. For example, 3M scientist Art Fry developed the famous Post-It Note, which became one of the 3Ms popular products, during his 15 percent time.Since human resource contribute directly to a companys tail line, it is very important to keep retain good employees. It is well known that when a company loses good employees, it is a costly and time-consuming process to recruit and train fresh employees to replace t he ones who left. Thus, companies should value their human resource, which is their most important asset. It makes sense for companies to be great places to work at, because happy employees will directly contribute to their bottom line.Google has been ranked first in Fortune Magazines annual Best Companies to break away For in 2013 (100 Best Companies to Work For). Google is well known for its lavish perks for employees such as throw in gourmet food, free massages, on-site laundry, Wi-Fi commuting shuttles, etc. In fact, Google monitors its employees well-being to a great degree. Googles HR department, called People Operations (or POPS), collects and monitors data on how employees reply to benefits (Heres How Google Became Such a Great Place to Work). A few years ago, POPS noticed a problem that the dismission rate of women who had recently gave birth was leaving Google at twice the fair departure rate of the company. They rectified the problem by improving the gestation peri od leave plan to give new Google mothers five flexible months off with full pay and benefits. After this plan was implemented, the attrition rate for new mothers was reduced by 50 percent.In conclusion, human resource is the most important asset of an organization. We have discussed the importance of human resource. We also provided some(prenominal) examples of how great companies like Starbucks, 3M and Google recognize the value of human resource and create competitive advantages by effective management of various aspects of their human resource.(Total 998 words)ReferencesHuman resource definition. Retrieved June 1, 2013, fromhttp//en.wikipedia.org/wiki/Human_resourcesFactors of production definition. Retrieved June 1, 2013, from http//www.businessdictionary.com/definition/factors-of-production.htmlDrucker, 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 mental imag ery Management Gaining a Competitive Advantage, 8th Edition, McGraw-Hill.Facts About Starbucks and Our Partners (Employees). Retrieved June 1, 2013, fromhttp//news.starbucks.com/article_display.cfm?article_id=225The 15 Percent Solution. Retrieved June 1, 2013, fromhttp//www.wired.com/techbiz/media/news/1998/01/9858100 Best Companies to Work For. Retrieved June 1, 2013, fromhttp//money.cnn.com/magazines/fortune/best-companies/2013/snapshots/1.htmlHeres How Google Became Such A Great Place to Work. Retrieved June 1, 2013, fromhttp//www.huffingtonpost.com/2013/01/22/working-at-google_n_2526889.html