Lack of investment in human resources contribute a great deal to the disintegration of the organization.

By: Sobia Shah*
Sep 23 - 29, 2002


Human resource is an important value-added asset of the organization that can't be neglected. The main feature that distinguishes the human asset from other type of the assets is that, the productivity and the efficiency of those assets depend on how well these assets are utilized by the available human resource within the organization. People are the key to success in any business. They can make or break it. The strength of any organization is its people. If they are attended to properly by recognizing their talents, developing their capabilities and utilizing them appropriately. Organizations are likely to be dynamic and can grow fast.' Human resources are the appreciating assets because it could be appreciated through training and development. Ultimately the varieties of tasks in any organization have to be accomplished by the people.

No matter what type of organization it is, the success depends upon the people we hire. Management today more than ever before must seek ways to help human resource become more productive and result - oriented. Understanding the people is a powerful management tool to command them. We must understand people, what they want and how they are apt to act and react.

Satisfied human resource is the group of committed people engaged productively for mutual benefits. Increased job' satisfaction is important for its humanitarian value and for its financial benefit for the organization. Employees with higher job satisfaction:

O care about the quality of their work
O are more committed to the organization
O are more productive

There are two assumptions about job dissatisfaction. Job dissatisfaction may be unidimensional and an employee is satisfied or dissatisfied with his/her job and it could be a multidimensional, that is, employee may be more or less satisfied with their job, supervisor, pay, workplace etc. Whenever there is a greater dissatisfaction, greater is the motivation to quit. Following factors influence Job satisfaction.

Challenging opportunity: Employees are more satisfied when they have challenging opportunities at work. This includes chances to participate in interesting projects and jobs with increased responsibility. Unlike physical resources, human resources have the capability of spending to infinity. Human beings also have a desire to grow and develop professionally. Development of their capabilities keeps them to be psychologically vital. Nothing demotivates people faster than lack of challenge.

Proper selection: Selection of right man for the right job depends on education, skills, one's mental attitude, personality and interest. Unsuitable employees are not only non-productive but a source of embarrassment to their colleagues and supervisors. Their attitude reduces productivity. If one comfortable with a job then he can generate more in terms of work. Thus those organizations which understand the nature of the capabilities required for performing different challenging tasks within the organizational context are in a better position to avail the capabilities of their workforce.

Stress: When negative stress is continuously high, job satisfaction is low. Jobs are more stressful if they interfere with the employee's personal lives and are a continuing source of worry or concern. In this era of downsizing and restructuring, many employees' fear for their jobs and the degree of job insecurity increases. Organizational outcomes associated with stress include turnover, absenteeism and a decrease in job performance. Consider employees as an end not as a means to achieve organization success.

Leadership: Employees are more satisfied when their managers are good leaders. This includes motivate employees to do a good job and strive for excellence. Factors which compel or prompt the employees of an organization to deliver their best and to contribute towards its progress are company's culture and environment, which are created by and pursued through, dynamic leadership. Leader should be of high integrity, energy and enthusiasm, which have necessary managerial and professional skill to inspire a group of an organization to set high goals and their achievement willingly. Managers should motivate all the employees to seek the highest levels of performance and promotability within each individual's capacity.

Work standards: Major reason for dissatisfaction for employees is not knowing what's expected of them. People need clear goals and high standards. it is important for the dynamic organization to ensure that its people are capable of doing the variety of tasks associated with their positions. Some of these tasks may be prescribed, well understood and well defined, whereas others may not be all that clear and employees themselves may have to identify them. Employees are more satisfied when their entire workgroup takes pride in the quality of its work. To met certain work standards some times training is crucial and investing in training that meets the specific needs of employee will always increase productivity and motivation.

Fair Rewards: Employees are more satisfied when they feel they are rewarded fairly for the work they do. Consider employee's responsibilities, the efforts they have put forth, the work they have done well and the demands of their jobs. It is also very important to realize that people want much more from a job than just financial gain. In dealing with them we have every right to expect each employee to earn his wages, cover his share of overhead expenses, contribute to overall profit and help business grow and develop. Organizations are much interested to invest in machinery, equipment or new business strategy but when it comes to retain an employee, the volume of his investment in wages or salary, fringe benefits, bonuses and retirement benefits over the years, they would consider it as an expenditure rather than investment as they consider for other assets. Wages must be competitive to avoid the chance of over-paid or under-paid. These both situations are not a healthy sign for the growth of an organization.

Adequate Authority: Employees are more satisfied when they have adequate freedom and authority to do their jobs and when the organization allows employees to have input on decisions that will effect them and always invite employees to offer their opinion and become an active participant, when they establish work goals but let the employees determine how they will achieve those goals.

It is amazing to know what people will do if they feel valuable in their organizations. Organization's success could be determined by the management's ability to elicit extraordinary performance from people. Employees are appreciating assets as they increase in value over the time. There is a quotation that" a great work place is one" where you trust the people you work for, have pride in what you do and enjoy the people you work for". Now when even the survival of organizations has become a challenge in the face of international competition, their growth may only be accomplished, if the human resources available to the organization are trained, developed and motivated to meet the new challenges.

Our country is short of skillful persons and there is a glut of unskilled educated youth. This state has been created by the non-availability of vocational guidance institutions in the country. Lack of investment in human resources contribute a great deal to the disintegration of the organization. Entrepreneurs are willing to invest huge amount in machinery, equipment and building but they are reluctant to invest in human resource. " Why gamble with human resources when we wouldn't think of gambling with investment in other areas"? . Human resource is scarcely receiving any attention in our industrial and business society today. There are obviously many other reasons causing impediments, some of them must be extraneous, but contribution made by the human resources is a factor, which may overcome these other barriers in the progress of organization.

*The author is currently working as a lecturer in the Department of Management Science at Isra University.