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SHRM Module 1 Topic 2

The document discusses human resources as assets for an organization. It defines human resource assets as the economic value of a worker's experience, skills, education, training, intelligence, health, and other qualities employers value like loyalty and punctuality. Human resources are considered the most important organizational asset because a company's success or failure depends largely on the quality of its employees. While people cannot be owned like physical assets, their knowledge, expertise, skills, and experience are invaluable intangible assets for an organization. Recognizing and valuing employees as assets is important for retaining top talent and achieving organizational goals.

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Aaron Christopher Sunga
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47 views

SHRM Module 1 Topic 2

The document discusses human resources as assets for an organization. It defines human resource assets as the economic value of a worker's experience, skills, education, training, intelligence, health, and other qualities employers value like loyalty and punctuality. Human resources are considered the most important organizational asset because a company's success or failure depends largely on the quality of its employees. While people cannot be owned like physical assets, their knowledge, expertise, skills, and experience are invaluable intangible assets for an organization. Recognizing and valuing employees as assets is important for retaining top talent and achieving organizational goals.

Uploaded by

Aaron Christopher Sunga
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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TOPIC 2.

Human Resources as Assets

What is Human Resource Asset?

Human Resource Asset can be classified as the economic value of a worker's experience
and skills.

This includes assets like:

1. Education
2. Training
3. Intelligence
4. Skills
5. Health
6. Other things employers value such as loyalty and punctuality.

The concept of human capital recognizes that not all labor is equal.

Why Human Resource is the most Important Asset?

The human resources are the most important assets of an organization because the
success or failure of an organization is largely dependent on the caliber of the people
working therein. Without positive and creative contributions from people, organizations
cannot progress and prosper.

Can Human be an Asset?

People cannot be owned. People do not depreciate. If they are assets, people are
intangible assets. In the industrial age, the gross domestic product was largely driven by
tangible asset investments that appear on balance sheets - equipment, buildings and
land.

In other words when we say, Human as an asset, means physical and mental exertion of
human efforts being used in the performance of jobs that can be given a value in terms of
importance as well as in terms of monetary considerations.

It’s time that the organizations recognize that valuing their employees as assets should be
realized in a full-fledged manner. The employees (their knowledge, expertise, abilities,
skill-sets, and experience) are the invaluable and intangible assets in securing the future.

Think of what all the organization could achieve with everyone in the boat actively rowing
towards the same direction. The valued employees will gladly compete in this race,
overtake the competitors, cross the finish line first, and stand with the
organization’s name held high on the medal stand.
Here are some of the intangible assets for an organization:
Employees…

1. Provide goods or services


2. Are the first customer
3. Give their 100% to any organization,
4. Employees are the face of an organization
5. Nurturers of the organization.
6. Are skilled people with knowledge
7. Are the base to a strong and long-running organization.
8. Make a significant difference
9. Are the major contributors to profits and worth of the organization.
10. Are responsible for hiring more employees

Source: Internet

The major responsibility of an organization is to keep the employees happy and


satisfied. This does not come with the huge salaries or hefty paychecks alone. There
are a lot many other factors besides this, which help in retaining the invaluable and
intangible assets of the organizations.
Summary

As global business competition shifts from efficiency to innovation and from enlargement
of scale to creation of value, management needs to be oriented towards the strategic use
of human resources. Strategic human resources management practices enhance
employee productivity and the ability of agencies to achieve their mission.

Integrating the use of personnel practices into the strategic planning process enables an
organization to better achieve its goals and objectives. Combining human resource
practices, all with a focus on the achievement of organizational goals and objectives, can
have a substantial effect on the ultimate success of the organization.

To manage future operations effectively, various approaches of adding Value through


people were discussed in this module like Strategic Human Resource Management
Practices and People Performance, Re-engineering and Strategic Human Resource
Management , Leadership and Strategic Human Resource Management , Workplace
Learning and Strategic Human Resource Management.

Through the use of human skills, talents, knowledge, abilities and other human efforts that
are considered as human assets for the success of an organizations.

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