Pick a news story that is an example or an empassises on Human Resources as Low-
ID: 326748 • Letter: P
Question
Pick a news story that is an example or an empassises on Human Resources as Low-cost businesses may attempt to minimize staffing expenses, training & development, and even salaries.
Problem is it is often necessary to pay “market wages” for quality people, so HR strategies may differ little if any between low-cost and differentiated businesses.When employees are viewed as expenses, organizations tend to minimize their costs. When they are viewed as investments, organizations tend to maximize their value.Human capital is the sum of the capabilities of individuals in an organization, and is a source of competitive advantage. According to the knowledge management perspective, people and their skills and abilities represent the only resource that cannot readily be reproduced by a firm’s competitors.
News story must be from a credible source within the last 4 years with appropriate citation.
Responses which are purely opinion and anecdotal are not considered to be substantive in nature.
Two external sources to support information required In addition to the news story from a credible source.
Original news story from an external source plus two additional external sources required.
500 words
Explanation / Answer
Blackrock, which is the world’s largest asset management company and guides individuals, institutions and financial professionals to better plan their financial future has lately recognized that the biggest asset a company can have is human capital. As per an article on 30th March 2108, it has recognized that human capital is one of the core priorities. It would invest in human capital by developing a more diverse workforce, training the existing employee and helping them in their retirement goals. It is also important to understand that each company has its own set of understanding about human capital management. So, according to BlackRock HCM is “employee development, diversity and a commitment to equal employment opportunity, health and safety, labour relations, and supply chain labour standards” (Edkins, 2018).The article states that HCM just does not involve responding to societal challenges. HCM understands the importance of investing in human capital and sees it as an investment for the long-term growth of the company and ensures business continuity and success.
Research has shown that the best companies in the worlds who value employees in the long term has risk-adjusted returns which were 3.5 5 higher than normal companies. It has also been established that there is a positive correlation between human resources initiatives and important business indicators such as return on asset, return on earnings, return on investment and return on capital employed. It has also been found that companies which invest in their employee have one-year operating margin in the range of about 27% whereas those who do not have it in the range of 10%.Blackrock, therefore, sees human capital management at the center of their day to day duties and this it does through:-
The company also acknowledges that inclusion and diversity are the key elements responsible for the firm’s success.It says, “By leveraging our diverse experiences, backgrounds and insights, we inspire innovation, challenge the status quo and create better outcomes for our clients and employees.” (Edkins, Harvard Law School Forum on Corporate Governance and Finacial Regulation, 2018).Senior business leaders ensure that all members of their teams comprehend why diversity is vital for progress and empower them with means and information to cultivate inclusion. They have made inclusion in leadership and administration a core of their company. Since 2015, in excess of 2,500 supervisors and pioneers internationally partook in Driving Better Decisions, an activity that enables pioneers and administrators to see how oblivious predisposition functions and, in particular, gives solid devices and direction on the most proficient method to make a move to relieve inclination in key individuals and business choices. As a component of this program, they have updated key HR procedures to limit the potential biases and cultivate diversity. BlackRock's endeavours to utilize diversity as a driver of accomplishment has been profiled in a 2015 Harvard Business School Case. BlackRock sponsors numerous employee programs and networks which have been designed to develop, mentor, educate and inspire diverse employees. (Blackrock, 2018)
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