What does the phrase "employees are the organization's most valuable resource" mean?
Referring to figure 1.1 HRM System Design - What do the key areas listed mean to you? (See attached figure)
What are the pros and cons of having your organizations "pay level" below, at and above market?
What are the various sources an organization can recruit from and what are the pros and cons of them?
1. What does the phrase "employees are the organization's most valuable resource" mean?
This an excellent question!
A company's most valuable resource is its' employees. Research clearly shows that any organization will go only as far as the people who are driving it. In fact, you should consider that a company is really just a group of people who interact for a common purpose. They drive the mission of the company. They are the ones who make up the organization. You probably took this in your course material, that the it has moved from the customer being the most important driving force of the company. Simply, the advantage is starting to side with employees. Companies can no longer afford to take them for granted. Companies that do will perish. As a case in point, the US is going to witness the exiting of 50 million baby boomers over the next decade and this means a potential shortfall of workers (some predict millions). Certain industries are already experiencing a lack of qualified talent. Does this fit with your knowledge? You must have also read that recently, job options that are available to employees are increasing at a fast pace. It seems clear that companies that maintain the status quo are already falling behind. Therefore, organizations need to recruit and retain a high quality employee, which increases the bottom line. This is especially true in a time when people are no longer loyal to a company. It is important that managers and owners begin to realize that the employees are the most valuable asset ...
This solution explains the phrase "employees are the organization's most valuable resource" and the key areas listed in the attached figure. The pros and cons of having an organizations "pay level" below, at and above market are also discussed, as well as the various sources an organization can use to recruit from and the pros and cons of them.