Submitted by: Submitted by Patison
Views: 1014
Words: 1681
Pages: 7
Category: Business and Industry
Date Submitted: 05/30/2011 03:42 AM
Abstract
This essay examines the strategic role of Human Resources Management in organization, describes its main practices and strategies. Explains what does “adding value” term mean. Ultimately examines HR practices and their impact on adding value to organization.
THEORY
Human Resources is a relatively modern term used to describe all individuals who comprise the workforce of an organization. This term is also used as a name of function within organization charged with the overall responsibility for managing individuals being part of company’s workforce. Therefore for the purposes of this essay I will be using term Human Resources Management as more appropriate for the subject of this essay. Most of today’s existing organizations have a cell responsible for dealing with human resources. In more developed organizations it is usually Human Resources Department and in smaller, less complicated systems is a Human Resources Officer.
Value add is a concept of adding extra features to an item of interest, which can be both products and services as well as employees or even whole organizations. In economics value add is the value of output minus the value of all intermediate inputs, representing therefore the contribution of, and payments to, primary factors of production. In terms of organizations adding value would mean creating a source of sustained competitive advantage. This sustained competitive advantage can be expressed by increased organizational performance and in more measurable way by increasing companies profit. According to many researchers a very important source of sustained competitive advantage are people and effective management of human capital.
Despite widely known belief among practitioners and experts that individual employees performance has implications on performance of the whole company, it has been under dispute whether collectively company’s employees can also constitute a source of competitive advantage. There have been...