Managing Human Capital

A Study on Human Capital Management

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INTRODUCTION TO HUMAN RESOURCE CAPITAL

Human resource capital can be considered as the approach where employees are perceived as the important assets which possess both current as well as the future value. Here future value of the workers can be enhanced by the organization by investing upon them. For the any enterprise, the aspect relating to the human resources plays very important role (Human resource management, 2015). This is because it is with the help of workers only practical implementation of the identified goals and objective can be carried out by the enterprise. In addition to this, with the help of an effective human resources the profits and sales of corporation can be raised which is usually hinders when enterprise does not possess the sufficient amount of employees. However, it has been critically evaluated by the Dimba, 2010 that “ Human resource management and managing the human capital is one and the same thing as both functions towards managing the exiting as well as new employees of the organization” (Dimba, 2010). Further with this, it can be also be said that human resource management is the type of function with the help of which retention of the existing as well the new employees can be carried out by the corporation.

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In order to carry out the retention of employees the human resource department of organization follows different type of HR related practices such as enhancing the motivation of employees, giving them increments, building an effective environment of working along with organizing the training as well as the development programs in an effective manner (HR practices, 2015). These are all being regarding as the major function of human resources department. It is with the help of these identified functions only framed strategic objective can be achieved by corporation within the given specified time limit in an effective way. Additionally, by using all these identified practices only effectiveness of the human resources working within the corporation can be enhanced. Moreover it is through this way only human resource capital adds value to the enterprise. Further with this, it can also be said that the activity like human resource management is being regarded as the process in which people are hired and developed. It is through such type of activity only the human resource management can be made valuable to the corporation (Importance of human resource management, 2015). By raising the value of the human resources, improvement in the sales and profitability related condition can be carried out by the company.

In the given report, the statement as given by Storey is being critically evaluated. In his statement he has that for the organization it is inappropriate with respect to devote their time on varied human resource type of practices until and unless they adds value to the corporation. However, it has also revealed in the statement that human resource management plays very important role in meeting the operational requirement of the organization such as firing, hiring and labor deployment etc. These all identified operational activity has to fulfill by corporation as they have to rely with all employment laws related rules as well regulations. The scenario of the whole report is being based on the given statement only (Fox, 2008). In this context, the essay has the main objective with regard to identify that whether human resource management helps in adding value to the enterprise or not. The essay will showcases the key function of human resource management of the organization. In addition to this, the report will also depict about the factor that helps in improving the performance of the organization. Finally at the end of the essay an effective link between HRM practices and performance of the enterprise will be evaluated. These all identified things are being presented in the form of critical way. For the given essay Sainsbury is being selected. It is the third largest chain in United Kingdom. It has around 161000 employees that effectively work and contribute towards the objective of the enterprise.

LITERATURE REVIEW

In order to criticize the statement as being given by the Storey various literature are reviewed. On the basis of the given literature only views and opinions as given by authors within respect to the managing the human capital within the enterprise can be assessed. As per the view point of Kiessling and Harvey, 2005 “Managing human capital comprises of set of practices with the help of which people prevailing within the enterprise can be managed and the set of practice includes following such as workforce acquisition, management and optimization etc” (Kiessling and Harvey, 2005). In addition to this, another Afiouni, 2013 has stated that “Managing human capital entail that workers are being considered as the important asset and they can be managed by carrying out an effective investment upon them” (Afiouni, 2013). The definition as given by all these identified author clearly criticize the statement as being given by Storey. This is because these definitions indicates that for any organization like Sainsbury human resource capital plays very important role. This is because it is with the help of human resource only the objective of attaining the goal can be met by organization. In addition to this, according to the view point of another Aghazadeh, 2003 “Human resource management has the main objective that are to maintain the operational activity of the enterprise” (Aghazadeh, 2003). In this regard, there are various types of operational activity identified that organization follows with an aim to perform its daily operations. It comprises of following such as maintaining the records of employees and giving salary to the workers etc. However, the given statement is being critically evaluated by the Çalişkan, 2010 “Human resources management function is not restricted with respect to maintain the operational activity of the enterprise because it carries out various other functions also such as recruitment, selection, training and development etc”.

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There are various literature are also reviewed that revealed about the importance of human resource management for the organization. As per the view point of Gloet, 2006 “Human capital management help organization in terms of recruiting the right candidate or employees” (Gloet, 2006). The statement as given by the author is right because it is with the hep of given department only employees related demands of the corporation can be met. However, it has been argued by the another Nasurdin and Tan, 2010 that “The effectiveness of the human resource department can be occurred when it recruits right employees at the right place” (Nasurdin and Tan, 2010). It is on the basis of given features only an effective management of the human capital can be carried out by the corporation. Further with this, as per the view point of Pawson, 2011 “Human resource management help in managing the obtained issues of the enterprise” (Pawson, 2011). The work of the corporation like Sainsbury hinders when there are some disputes occurred between employees. In order to resole the given issue human resource department plays very important role. Here it play the role of mediator and by using the given role it improves its understanding regarding the issue that has hindered the work of employees working within the organization. By taking the appropriate action against the same HR department can help in terms of managing the human capital of corporation in an effective way.

Further with this, as per the view point of Rothwell and Kazanas, 2003 “With an aim to manage the human capital of enterprise HR department direct its efforts in terms of maintaining an effective work atmosphere” (Rothwell and Kazanas, 2003). The motivation of the workers can be enhanced if an effective environment of working will be provided to them. This is because it has been seen that if workers are given an appropriate environment of working at that time they will perform in a better manner. However, it has been critically evaluated by another Saunders and et. al., 2007 “Human resource department not only resolve the issues of the organization but it also contribute towards enhancing the performance of the employees working within the organization” (Saunders and et. al., 2007). The statement as given by the author is right because in order to enhance the performance of the employees, HR department uses the tool like performance appraisal. In the given tool the standard is set. After the specific period of time the actual performance of employees will be compared with that of standard one. If on the basis of comparison it has been identified by the organization that actual performance of employees does not meet the standard then in this condition various measure will be taken by the enterprise such as training and development of employees. It is through this way only effectiveness of human capital can be enhanced (Jackson, 2011). Overall, by assessing the view points of the given authors it can be said that for the enterprise human resource department plays very important role. This is because it is with the help of given department only the value of the human capital working within the enterprise can be enhanced. This also help in terms of raising the sales and profitability related condition of firm in an effective way.

As per the view point of Cartwright, 2005 “The different functions of the human resources can be made valuable” (Cartwright, 2005). In this context, there are various functions of the human resource management identified. It comprises of following such as recruitment, selection, training and development etc. These are being regarded as the major functions which is being played by the human resource management of the organization. According to the view point of Mello, 2006 “The recruitment related function of the HR can be made valuable” (Mello, 2006). It has been rightly said by the author. This is because it has been seen that there are no activity of the business whose value cannot be enhanced by the manager of the enterprise. In order to prove the given statement Pattanayak, 2005 has suggested the following ways with the help of which the effectiveness of the recruitment and selection process of the organization can be enhanced (Pattanayak, 2005). Before complying with the activity like recruitment and selection organization should have to direct its efforts in terms of understanding the needs and demands of the specific position for which it is organizing the recruitment plans. In order to perform the same enterprise can develop an effective job description as well as the specification. With the help of given document, manager of the enterprise will be able to direct its efforts in terms of carrying out the recruitment of the efficient employees in an appropriate manner. In addition to this, preparing an effective module of test is being considered as the another most appropriate activity which is being suggested by many author for the purpose to enhance the effectiveness of the recruitment and selection process of the organization. With the help of tests technical as well as practical knowledge of the workers can be assessed. On the basis of the given aspect only recruitment of the qualified employees will be carried out that will proved its value by taking an effective decision for the enterprise.

Further with this, Schiemann, 2014 has stated that “training and development of the employees is being regarded as another function whose value can be raised by using the tool like TNA (Training need analysis)” (Schiemann, 2014). The statement as being given by the author is also right. In this context another Abel and Gabe, 2011 has stated that “Training need analysis helps in terms of identifying the specific skill development related need of the employees” (Abel and Gabe, 2011). The technique like training need analysis comprises of varied type of steps such as identifying the organization need relating to the training, to align the training need with the objective of the organization, conducting the gap analysis, preparing the training module and finally delivering the training to the respective employees (Steps of the training need analysis, 2015). The technique identified is being proved as effective for the enterprise. This is because by using the given tool the specific skill related development need of workers can be identified. By assessing the same varied measures with regard to same can be taken by the human resource manager of the organization. The measures being taken by the HR manager for the human capital of the enterprise comprise of following such as preparing the module for training and in accord ace with the given module carrying out the selection of the trainer that has efficiency with respect to deliver the best training to the workers. By complying with all such type of activities only the skill and ability of employees with respect to perform well can be enhanced. On the basis of given aspect only workers will be able to direct their efforts in terms of performing their best within the corporation. If they perform well at that time employees will add value to the organization in terms of increased profits and sales. Thus from the literature review section it can be said that the value of the human capital can be enhanced by preparing proactive plans with regard to the different functions of human resource management (Aral, Brynjolfsson and Wu, 2012).

CRITICAL ANALYSIS

In this section detailed critical analysis of the Storey statement is being given. In order to explain the given statement the debate will be carried out on the following topics such as HR predicates, factor leading to the organizational performance and the link between HR practices and the organizational performance. In the given statement Storey has revealed about the importance of human resource department within the organization. In the given statement he has explained that for any enterprise HR department will be proved as effective if its add value to the organization (Yu and Min, 2012). In addition to this, he has also revealed that the purpose of involving the HR department within the organization is to fulfill the operational requirement of the corporation such as hiring, firing and labor deployment etc. In addition to this, he has also revealed that in order to comply with all the employment related laws organization needs to have to involve human resource department in the section. However, the statement as being given by the Storey is being critically evaluated here author has entailed that human resource department does not adds value to the corporation. But it has been seen that HR department adds value to the corporation by using different type of HR related practices such as recruitment, selection, performance appraisal, maintaining an effective work environment along with training and development etc. It is on the basis of the given HR practices only the value of the human capital working within the Sainsbury can be enhanced.

In order to enhance the value of the given HR practices manager of the enterprise has to devote their significant time. For instance with the help of recruitment and selection type of activity organization use to carry out the recruitment of an effective individual. With the help of given HR practices the selection of competent and expertise employees can be carried out by the Sainsbury. By selecting the such type of employees the probable which is being occurring within the organization can be solved out (Pierce and Aguinis, 2013). For example, Sainsbury has identified that its cost of delivering the services to the cost has increased from the past years. It is due to the presence of the given aspect only it will have to sale its product at the increased prices. The control over the given identified situation can be carried out by recruiting the such type of employees within the organization that has the expertise with respect to deal within increased cost related issue. In order to perform the same the team of HR department plays very crucial role. Here they form tactic with respect to recruit the talented employees that assist Sainsbury in terms of resolving the identified problem in an effective manner. By taking measure with regard to identified issue the value can be added to the corporation. In the given issue employees will add value to the corporation in the following form such as controlling the cost of Sainsbury in an effectual way.

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Besides this, there are some other HR practices also identified that proves the statement as being given by Storey wrong. This is because, these all HR practices assist in terms of adding value to the corporation. Performance appraisal is being regarded as the another important HR practices that help in terms of raising the value of human capital working within the corporation such as Sainsbury. In the given technique performance of the individual is being appraised by the HR manager of the organization. In order to perform the same the standard is being set by the corporation (Hutchinson, 2014). For example, Sainsbury has given target to the sales employees that they will have to sale the specific quantity of the organization goods and services. After some period of time the given target is being reviewed. If on reviewing the performance of employees it has been identified by the HR manager of Sainsbury that some of its sales workers failed in terms of meeting the given standard. Then in order to raise the value of such type of human capital, corporation organizes various types of training and development related program. For instance, with an aim to enhance the skill of sales employees Sainsbury can organize different type of training programs that assists in raising the sales related skill of workers. Moreover, such type of programs helps employees in terms of giving their best performance to the corporation. As the result of it enterprise will be benefited in terms of increased profits and sales. It is through such type of aspect only value of the human capital working within the corporation can be raised.

Furthermore, human resources department adds value to the organization by giving an open or an appropriate atmosphere of working. The given aspect criticizes the statement as being given by Storey. In order to maintain the continuity of the business operation human resource department takes varied measures. It arranges various facilities like proper ventilation in workplace and drinking water facility etc. It is by complying with such type of activity HR department enhances the effectiveness of the employees that are working within the organization. Moreover, it is with the help of given HR practices only the storey statement is being proved as wrong which entails that HR department has the main objective that are to fulfill all the operational activity of the organization such as hiring, firing and labor deployment etc. This is because besides these identified activities human resource department of the organization has another functions also such as recruitment, training, enchaining motivation and retaining the employees etc (Anheier, 2014). With the help of given identified aspects, the human capital working within the Sainsbury can be made valuable. In addition to this, human capital can be made valuable if sufficient investment among them is being carried out. This is because in present scenario the human resources working within corporation is also counted among the important assets. In this regard, it can be said that the value of assets can be raised if necessary investment among them is being carried out. Thus it can be said that for the organization it is fruitful with respect to devote their sufficient time in the development of human capital. This is because it is through this way only worker can be made capable with regard to contribute their value for the development of the organization.

In order to contradict the statement as being given by the Storey there are number of factors identified that leads to raises the performance of the enterprise. It comprises of following such as defining clear roles and responsibility, timely coaching and feedback, appropriate reward , document work flow and process along with access to the adequate tool and equipment etc (Factors to the performance, 2015). In order to achieve all these identified aspect human resource department of Sainsbury plays very important role. This is because with the help of given department only the roles and responsibility of the individual working within the corporation can be defined clearly. In order to perform the same HR department prepares the job description as well as specification in accordance with the specific job. These description provides detailed information regarding the respective jobs being performed by the individual at the given position. In this context, it has been seen that the employees will perform well if they have the full knowledge as well as the information regarding the roles and responsibility which they are going to perform within the given specified time limit. However, it has been critically evaluated that the effectiveness of the job description and specification occurs if it provides the right information regarding the roles and responsibility of the specific position. In order to frame both these identified document HR manager has to consult with the top officials of the given department. For example, if HR manager is interested in preparing the job description of the marketing executive (Nasurdin and Tan, 2010). Then in order to perform the same it will have to take the assistance from the marketing director of firm. The given identified thing contradict the statement as given by the storey. In his statement he has revealed that human resource manager has the main work that are to fire, recruit and deploy labor. These all things are proving wrong because beside these all identified works human resource manager also play the role of consultant. Here it will consult with top level officials of corporation with an aim to frame an effective job description as well as specification. By complying with such type of activity only HR manager direct its efforts in terms of raising the performance of the organization in an effective way.

In addition to this, the performance of the enterprise can also be enhanced if appropriate reward will be given by the organization to its respective employees. In order to perform the same HR department plays very crucial role. This is because it is with the help of given department only ways of giving the rewards to the employees can be identified by it. Among all performance appraisal is being regarded as one of the most efficient tool which is being used by the human resource department of the organization. By using the given tool reward will be distributed among employees (Abel and Gabe, 2011). In the given tool a comparison is being carried out by the organization between actual as well as standard performance. If on the basis of compassion it has been identified by the organization that actual performance of workers exceed the set standard then the reward will be distributed by enterprise to them. With the help of reward HR department enhances the motivation of the employees. In this regard, it has been seen that motivated employees always proved as the fruitful assets to the corporation because employees will perform well if they are motivated enough. It is through such type of activity only, workers adds value to the corporation in the form of increased profits and sales. However, it has been critically evaluated that it is not necessary that motivated employees will always deliver their best performance to the corporation. This is because, in order to deliver the best performance employees needed an effective skill.

There is a relationship identified between HR practices and organizational performance. In the Storey statement he has stated that organization has to involve HR department in their section because they will have to comply with the employment related rules and regulation. Here Storey has shown very restricted role of HR department in organization. But actually the role of HR is far greater than this. Human resource department of the enterprise plays very effective role in terms of raising the sales and profitability related condition of corporation. In order to perform the same HR department takes assistance from the different HR related practices such as training and development and ways of enhancing the motivation of employees etc (Pierce and Aguinis, 2013). By organizing the training programs skills of the workers can be enhance. By complying with the such type of activities ability of the individual can be raise with regard to perform well. If workers of Sainsbury will perform well at that time organization will be benefited in terms of increased profits and sales. In addition to this, recruitment and selection is being regarded as another HR practices that helps in terms of raising the performance of the firm in an effective manner. This is because by using the given aspect of HR, recruitment of talented workers can be carried out by Sainsbury. By performing the such type of activity sales of enterprise can be raised which is usually hinders when organization does not possess the team of talented employees (Rothwell and Kazanas, 2003). Thus it can be said that there is the direct relationship is being found out between the different HR practices as well as the performance of the enterprise. Given thing clearly evaluate the statement as being given by Storey. This is because the relationship between HR practices and organization performance clearly showcases that the role of department is not just restricted towards making and working towards the employment laws of corporation but it also plays very crucial role in terms of enchaining the sales and profitability related condition of the enterprise.

RECOMMENDATIONS AND CONCLUSION

On the basis of the given literature review section and critical analysis varied recommendations is being suggested to the Sainsbury. By implementing the given recommendations the effectiveness of the HR department of corporation can be enhanced. This will also leads to them in terms of increased profits and sales. Furthermore, it is through this way only the HR department of corporation can be made valuable. Firstly it is recommended to the Sainsbury that it should have to treat its employees as the valuable asset and timely investment upon them needs to be carried out by it. If this is being performed by Sainsbury then HR department of corporation can be made valuable. It is through this way only the statement as being given by Storey can be proved as wrong. For the purpose to enhance the value of human capital it is suggested to the Sainsbury that training and development type of programs needs to be organized for them on monthly basis. By complying with the such type of activity improvement in the skill of the employees can be carried out. As the result of it they will perform well and its direct impact can be seen on the sales and profitability related condition of firm in an effective manner. In addition to this, it is also recommended to the organization that before planning about the recruitment of new employees HR manager of organization should have to carry out the detailed analysis of the vacant position. By performing the given activity job description as well as specification can be framed by the enterprise. On the basis of this an effective recruitment of the employees that will be proved as the valuable asset in future can be carried out.

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Articulating the facts as given in the essay it can be concluded that from the critical analysis it has been identified that the statement as being given by Storey is proved as wrong. This is because for any corporation human resource activity plays very crucial role. It is due to the fact that with the help of different type of human resource activity only, value can be added to the organization. In this context, there are different type of HR related activities identified and it comprises of following such as recruitment, selection, training and development etc. With the help of these all identified functions only the improvement in the performance of the organization can be carried out. For example, with the help of training and development skills of workers can be enhanced that will enable them with regard to deliver their best performance to the corporation in an effective way. In the similar way, by using the recruitment type of activity the selection of talented employees can be carried out by Sainsbury. This will enable them in terms of resolving their obtained problem in an effective manner. Further with this, human resource department also plays very effective role in terms of improving the performance of the organization. Thus it can be said that the role of human resource department is not just restricted to recruiting and firing of employees. This is because besides these activities it plays very crucial role in terms managing the human capital of the enterprise. Furthermore, it also helps corporation in terms of enhancing the value of the human capital. Thus it is through this way only human resource activity adds value to the corporation.

REFERENCES

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