Arguably, human resource is one of the intangible assets in an organization. In fact, the organization relies on human resource in attaining competitive advantage. In the 21st century, competition has increased tremendously among organization, and the main asset that will enable an organization to attain competitive advantage is human resource. It is easy to comprehend why organizations mention employees as an asset. Despite its importance, organizations tend to minimize cost and manage its activities in order to maximize profits. Studies show that human resource is the crucial intangible asset that drives the organization to attain organizational objectives and goals. In general perspective, human resource is important because it maintains and manages all other factors.
Human resource in every organization is one of the strategic assets because it plays a critical role in managing systems and strategy implementation. The ability to execute organizational strategy is a source of competitive advantage, and the asset is the base of efficient and effective strategy execution (Bauernberge 2007). Human resource takes in tremendous scope in management. Certainly, human resource helps in organization expansion; this implies that for an organization to go global or expand its business it must begin by strengthening human resource through the employment of qualifies employees.
Conversely, human resource is an asset to an organization due to its capability to increase and adjust the production level. It implies that as the demand of products and service in the organization increases the human resource department should respond by increasing manpower (Mayo 2012). In order to maximize human resource capability, it is vital to check the current manpower if it is in-line with the demand, standards, and quality needed. The success of many organizations in the world is attributed to the culture of human resource. Regardless of the size of the organization, human resource interconnects all other factors of production by strengthening communication (Brumfitt 2001).
The distinction between unsuccessful and successful organization is the quality of human resource. Perhaps, human resource incorporates the control and planning into corporate level. Employees are part of planning and implementing other assets. For example, most organizational activities are labor intensive; hence, it cannot operate without human resource. In this case, if an organization uses a machine, the machine cannot operate without an operator (Magdoiu & Rada 2010). This is a clear evidence that human resource is important to every organizational activity. Human resource is the main face of every organization; this implies that the external stakeholders analyze organizational success based on human resource. A human resource that functions well is recognizable due to its output.
Human resource is an important asset ion an organization since it makes certain the development of employee dynamism, competences, as well as effectiveness in a planned manner. Human resource is the business idea and organizational knowledge. The organization cannot implement or make policies that are aimed at achieving organizational goals. Human resource in the modern world makes the organization to survive a competitive and dynamic environment only if the potential of every employee is explored (Brumfitt 2001). The difficulties arise in organization because most organizations have not understood the critical nature of human capital. The organization will have the most efficient human resource through a proper recruitment of employees.
Every organization in the world faces many challenges that if they are not solved it will affect the organization adversely. Human resource is an important intangible asset that helps in solving both internal and external problems, as well as implementing polices that prevents the occurrence of such problems in the future. The human resource does not only help in problem solving, but also in improving quantitative goals, organizational culture, and other cognitive aspects (Daft 2011).
Employee development is significant in organizational success. The management, organization, and employee must comprehend that without employees no work can be done. Other factors of production depend on the efforts of human resource. This implies that human resource adds value and importance to all other resources in an organization. Human resource is an asset to an organization because it gathers information that is detailed on responsibilities and duties that can help organizations realize strategic goals (Bauernberge 2007). The essentiality of human resource in an organization has been realized due to ever changing and uncertain business environment.
Undeniably, organizations must have ways of motivating the human resource. The motivation of this “asset” leads to the improvement of the organization. As a matter of fact, motivation comes in various ways, these include increment of salary, appreciation, and other external and internal factors. Human resource training also increases the efficiency and effectiveness of employees (Renckly 2004). Human resource is an asset to organizations because it formulates policies of operation and management that will act as a guide to entire organizational activities. In addition, human resource discovers the weakness of the organization in the marketplace. In this case, human resource eliminates this weakness and develop a strong base on its strengths (Rothwell 2010).
In conclusion, it is evident that human resource is an asset to an organization. The reasons that qualifies human resource to be an asset is the fact that it is a strategic asset, implements policies, solves problems, manages other resources, collects information, and well as increasing production. All these functions are crucial in attaining a competitive advantage in the world. In the 21st c3ntury, competition has increased and in order to adjust to these change organizations must assert a lot of importance to human resource. Generally, for an organization to dominate the marketplace, it should motivate and strengthen its human resource.
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