The Impact of Economics in Human Resources Management
Busuyi
Afe
Economics
for Global Decision Makers
The
Impact of Economics in Human Resources Management
June
25, 2012
Sample
Outline
I.
Introduction
II.
Competition for talent
A. Attracting
creative minds
B. Keeping
creative minds
III.
Utilizing talent
A. Stimulate
creativity
B. Acknowledge
differences
IV.
Ability to find talent
A. Success
B. Failure
V.
Ability to attract talent
A. Success
B. Failure
VI.
Ability to retain talent
A. Success
B. Failure
VII.
Ability to develop talent
A. Success
B. Failure
VIII. Conclusion
Introduction
The strength of every organization
is determined by having the ability to discover, retain, train and hire the
most talented employee. A company needs to allocate certain resources to find
and train best talent for their workforce. Good employees will surely be determined
and motivated to find a way to improve their company and that leads to strong
productivity that will yield a lot of revenue to the company. There is need of
going through some kind of hiring process performed by human resources
personnel to get the best employee for the job; that starts with advertising
the job on newspaper, TV and internet. The few qualified are invited to the
interview and the candidates that pass the interview get the job. Hiring
manager with special skill is needed to the hire right candidate to the right
job that will save the company time and money.
Competition
for Talent
Many companies spend a lot of
money advertising on internet, TV and Newspaper and even sometimes they seek
the services of external recruiter to help the company to hire best candidate
for the job. The companies always advertise and give themselves a good image
that will attract external candidate.
·
Attracting Creative minds
The best way to attract creative minds
is to offer good workers compensation that includes competitive salary, wages
and bonus, medical and dental and employment development program. Organization
must advertise job on popular internet website such as monster.com, Dice.com
and also national newspapers. The priority of any organization is to attract
best talent.”The resource labor consists of the physical and mental talents of
individuals used in producing goods and services” (McConnel,2012.p43).The
highly qualified employee with college degrees will surely help the company to
grow.
·
Keeping Creative mind
The opportunity to grow in a creative organization
will determine whether employees will stay or go elsewhere for better
opportunity. Companies can only keep their creative minds if they offer good
salary and benefit. The rule of law should be respected at a workplace; if the
management treat their employees with respect that will motivate employees to
stay long on the job.
Utilizing
talent
It is about getting the right
candidate to do the right job and that leads to better human performance at the
job. An organization must have the ability to measure employee skill to work
effectively in certain department” Workforce planning” is a process designed to
ensure that an organization prepares for its present and future needs by having
the right people in the places at the right times(Jackson,2012.p354). It is a
way to build long standing skill.
·
Stimulate Creativity
By
giving employee the opportunity to work independently help employees to
discover other skills and potentials to survive.
·
Acknowledge Differences
There
are lot of difference between talents, some employees have outgoing personality
that they can carry group along and easily be a team player. While other talent
are quiet and intelligent or sometimes called them “Thin tank ”.They always
have foresight of any situation and they always find way to solve complex problem.
The
ability to find talent
Talents are everywhere but the
ability to discover talent is crucial to an organization.”Personality screens
are effective in narrowing the applicant pool. Job-related questions help to
refine that pool further”(O’Donovan,2012.p27).The human resource management
must always find a way to streamline job applicants.
·
Success
The
success of finding talent is actually getting the right candidates to the right
job. The increase in job performance determines the success of the employee.
·
Failure
The
inability of the human resources personnel to hire the right employee to do the
right job will be a failure on the part of the human resource department.
The
ability to attract talent.
A company must be willing to
invest more on advertising and marketing of their company and products that
will create general awareness to prospective employee who wants to know the
annual financial statement of the company he is willing to work. Every job candidate
wants to work for company that is financially stable and prosperous.
·
Success
Organization can only be successful in
attracting talent once if they can disclose their financial statement and that
will attract many prospective employees to apply to organization.
·
Failure
The
company annual financial performance is weak that will discourage prospective
employee to work for the particular organization.
Ability
to retain Talent
Employees want to have a good
relationship with the management and also have sense of belonging. Job security
is another great factor to retain talent because every employee wants to stay
long on their job and also to get incomes to sustain their family.
·
Success
The
ability to maintain job security within the organization will be the success of
the organization.
·
Failure
Once
an employee lacks confidence in job security of an organization that will
result into weakness of the company to retain their employee.
Ability
to develop talent
There are various ways an
organization can increase their job performance and productivity by training
their employees with right skills and education “Companies that invest in
training make a visible investment in employees will respond in-kind”(McElroy,2001.p332).Right
training to offer employees will definitely help the employees will definitely
help the employee to perform better at the job.
·
Success
Organization
must provide all necessary resources to support employee training to get the
right skills to employee to perform better at their job.
·
Failure
Company
always want the best from employee but some company refuse to encourage
employee by not developing employee with right skills.
Conclusion
The study of economics has greatly
helped to plan budget, uncertainty and opportunity cost in the development of
human resource personnel that will benefit organization to function
effectively”The tools of economics in many ways are both simple and powerful.
They are simple in that they are based on the proposition that people and firms
make optimising choices subject to constraints of income, time, uncertainty and
legislative and institutional requirements”(Gunderson,2001.p432). Furthermore,
the methodology of economics has greatly helped organization in areas of time
management and resources management to optimize their daily business
activities.
References
Gunderson.,M.(2001).
Economics of personnel and human resource management.Human Resource Management
Review. Retrieved on June 24,2012 from www.ebscohost.com.lib.kaplan.edu/ehost
McConnell,
C., Brue, S., & Flynn, S. (2012). Economics. (19th
ed.). New York, NY: McGraw-Hill Companies, Inc.
McElroy.,J.C.(2012).Managing
workplace commitment by putting people first. Human Resource Management Review.
Retrieved on June 24,2012 from www.ebscohost.com.lib.kaplan.edu/ehost
O’Donovan.,E.(2012).
Finding the Perfect Fit.District Administration.Retrieved on June 24,2012 from www.ebscohost.com.lib.kaplan.edu/ehost
Jackson.,W.S.(2010).
Preparing for Tomorrow: A Case Study of
Workforce Planning in North Carolina Municipal Governments.Public Personnel
Management.Vol39,No.4. Retrieved from on June 24,2012 from www.ebscohost.com.lib.kaplan.edu/ehost
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