14 Jun 2022

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Impact of Human Assets on Company’s Performance

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Academic level: College

Paper type: Essay (Any Type)

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The goal of any organization is to gain better returns and grow in its operations. To achieve this, it must develop the best investment strategies. A business that is an investment-oriented focuses on factors that will guarantee its growth while realizing its goals (Lee & Bruvold, 2003) . This type of business places human resources central to its goal and missions. It sets its goals by strategically placing the value of human assets in their achievement. The business also develops a philosophy that is aimed at developing and retaining human resources thereby offering its workers the best terms possible. 

Human capital greatly contributes to the competitive advantage of a company. The business knows the critical role workers play in achieving the set goals. It heavily invests in hiring programs that will see it acquire the best human resource of its overall operations (Singh, 2007) . The company also develops strategies that will allow it to retain its workforce while the competitors struggle to keep theirs. By having a lasting human capital, the business can be able to set both short and long term achievable goals. This is possible since employees will work as a team while everyone will be focused on his/her objectives to achieve the common target. 

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However, some managers fail to realize the benefit of human capital on the company's competitive advantage. The first reason they argue about the human resource is the cost incurred in acquiring the best workers. They see the process as an expensive affair preferring to go for a leaner team to cut the cost (Hauff, Alewell, & Hansen, 2014) . The second reason for not preferring human assets oriented strategies is lack of long term goals. The management chooses a lean and inexpensive human resource team to achieve short term goals. In conclusion, there are numerous benefits to businesses that focus on human assets in both short and long term goals despite opposition from some managers. 

References 

Hauff, S., Alewell, D., & Hansen, N. K. (2014). HRM systems between control and commitment: Occurrence, characteristics and effects on HRM outcomes and firm performance. Human Resource Management Journal . https://doi.org/10.1111/1748-8583.12054 

Lee, C. H., & Bruvold, N. T. (2003). Creating value for employees: Investment in employee development. International Journal of Human Resource Management . https://doi.org/10.1080/0958519032000106173 

Singh, L. (2007). Human Resource Management, Gaining a Competitive Advantage. Review of Professional Management- A Journal of New Delhi Institute of Management . https://doi.org/10.20968/rpm/2007/v5/i1/100992 

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StudyBounty. (2023, September 16). Impact of Human Assets on Company’s Performance.
https://studybounty.com/impact-of-human-assets-on-companys-performance-essay

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