Contemporary Businesses Organization Possesses

Question: Describe about the Contemporary Businesses for Organization Possesses. Answer: Introduction Organizations with their resources and capabilities establish their core advantage in the market hence gain considerable competitive advantage(Armstrong, 2014). The scope of this essay argues for and against this topic to establish the core concept of human resource for organizations. An organization possesses several tangible and intangible resources. Tangible resources include plant, machineries, other fixed assets, patents and so on. Whereas intangible assets include human resource, brand name, reputation, membership customer base and so on. Increasing flow and availability of human resources internationally have made workforce available to western organizations making them more culturally diverse than before. Globalization has led to western world no longer having a white Anglo-Saxon homogeneous community. Transforming such workplaces to become a pot of various cultures, languages, beliefs and traditions hence making each individual unique. Thus, organizations face increasing challenges from diversified workforce, global market place and multicultural customer base. In order to address this issue of diversity organization attaches great deal of importance on its human resource to be able to transform and manage organizational existing assets to meet such chall enges(Truss, 2012). While many organizations argue that human resource is the most important and valuable asset for the organization, for contemporary organization it is just a rhetoric. Analysis Organizations need to create value for the people that work for them in absence of management framework that provides guidelines for human resource it would completely fail to meet its objectives. Diversity in modern society and amongst contemporary organizations is evident on shop floor, local supermarkets but is not the case in senior executives, board rooms or large organizations(Boxall, 2011). Composition of companys executive team needs to reflect complexity and diversity prevailing in the environment. As diversity can help best resolve complexity posed by recent challenges from the environment. It can lead to positive impact on team dynamics also on strategic decision making for the company. Diverse teams help address problems requiring innovative solutions. Though the scope of the essay argues in favor of the statement that contemporary organizations claim of human resource being their valuable asset is rhetoric. Organizations need to understand the management framework provided opportunities to human resources for their functioning. Human resources are indispensible in creating various functionality for letting organizations operate smoothly. Thus, it is in the best interests of organizations to increase value of their employees by investing time and money in employee programs(Foot, 2008). Programs such as training, development and mentoring of employees can help develop a sense of employee job satisfaction providing them a career growth opportunity. This will lead to committed workforce with lower employee turnover, absenteeism and high quality staff creating higher productivity. Having said so research across many organizations especially in developing countries reflects loss of credibility in favor of the argument. Firstly, senior level bosses in organizations often deceive employees and applicants for jobs by clouding a few fine words with the essence of the matter being not present(Alvesson, 2009). Popular magazines of human resources regarding companies and bosses that make such profound claims can help clarify examples further. Secondly, the argument also contains liability from human resources who lag behind in their productivity. It is better to say that truism dressed up in wisdom. With the right kind of people in the organization forming its greatest assets, there arises liability from wrong types of persons that can lead to overall failure for the organization(Boselie, 2010). Wrong people in jobs, can greatly hamper work roles, impact productive workers productivity and lead to high dissatisfaction levels. Employees that organizations consider liab ility needs to be exited from companies. Thirdly, people being the greatest assets put a lot of emphasis on the word asset itself. Accounting defines asset as entities or resources whose control lies with the organizations, which will provide future economic benefits to the organizations(Martin, 2010). Whereas a liability is defined as an obligation to the company and results in outflow of resources for the company. Valuing of human asset is the most trickiest part of determining whether they are assets or liabilities. In homogeneous teams it can be easily determined but in case of diversity, employees can provide source of sustained competitive advantage and can lead to addition of value. Humans have emotions and their association or comparison with tangible goods does not hold sufficient value(Need, 2006). An asset indicates being owned by the company, deployed for production purposes and then discarded according to whims and fancies of the organization. This argument itself is false and does not holds good enough. On one hand organization deploys measures and ways to increase motivational levels amongst employees on the other hand treats them as assets of the organization. People are not assets for any organization and are not owned by organizations. People can easily walk away from their jobs or remain unengaged. Hence people cannot form competitive advantages for businesses. Values of people cannot be expressed in financial terms but it can be said that their productivity can be measured and they are crucial for all organizational functionalities(Becker, 2006). Thus, inferring from the above arguments it can be derived that human resources is an important assetof organizations. On the contrary to the above argument for employees not being the most vital assets for organization. Organizational assets such as brand value or reputation as in case for Nike, Gucci, fixed assets as property developers or plants in manufacturing facilities, right for natural resources especially in mining, oil companies, financial capabilities of companies, algorithms as Googles, systems and processes of Toyota Motors, secret recipes as in case of Coca Cola, KFC, Mc Donalds, customer base or membership as in MySpace and patents for pharmaceutical companies, Blackboard and so on form important assets for organizations(Daley, 2006). For these organizations and considering their present assets, without which they will be rendered totally useless. In case of losing all employees at one would impose serious consequences for the companies but without their large physical assets which are their greatest they will not have any value even in presence of their human assets. They will lose h aving all incomes at once without such physical assets. Hence for these contemporary organizations human resources being valuable assets are purely rhetoric. The argument can be justified as in intangible books for these organizations, their other assets have considerably higher value than compared to human resources(Kim, 2012). Thus, the costs of these assets are significantly higher than human assets of these companies. Organizations employs several measures to assess human resource accounting for its Human Capital. But in order to establish the argument it is necessary to establish the efficiency of such assets without presence of human assets. Assets often have a resale value or values that can be transferred. As in case for patents, secret recipes also to some extent systems and processes(Beardwell, 2007). People are important to organizations but not as much as other assets possessed by organizations. But in case of organization that does not possesses large physical assets and their dependence is on human capital as software businesses, human resources have an important role to play. For such organizations other assets maintain their value with the help of employees putting them to work. From above the above argument it can be derived that human resources does not form the most valuable assets for organizations. Conclusion Contemporary organizations rather than treating employees as assets or liabilities for their company need to consider them as investments. This approach will rather enhance development for the organization as it will be their vested interest to see such investments grow. Hence rather than treating employees as expenses that requires controlling, they would rather nurture them. Like all investments companies can have a diversified investment by having different qualities of employees. Thus, having a diversified workforce is rather better compared to a homogenous workforce. Diversity allows a multitude of experiences which adds to innovation by generation of a series of competent and multifarious solutions. Managing such diverse workforce and heterogeneous work members will make tremendous attitudinal difference to other members of the team. Attending to diversity in senior workforce will further allow companies to expand their potential in understanding versatile problems and forming solution that are compatible to address the current business environment. Thus, employees are valuable for the company and acts as an asset. 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