Thursday, September 12, 2019

Critically examine the claim that people are an organisation's most Essay

Critically examine the claim that people are an organisation's most valued asset. How this claim would be translated into prac - Essay Example Different approaches have been developed in the literature regarding the role of people within modern organizations. In accordance with a common view, people are the most valued asset of each organization. The specific issue is examined in this paper. Reference is made to the potential translation of the above statement in practice, especially regarding the development of organizational strategies. The research on the particular subject has revealed that people are, indeed, the most valued assets in modern organizations; however, their contribution in the development of the organizational practices is not always appreciated, an issue highlighted in the study of Lawler et al. (2008). The common statement that employees are key assets of an organization does not always reflect the actual thoughts of organizational leaders – a problem mostly related to the different perceptions of organizational leaders on the role of employees within organizations. The literature published in th e specific field is presented – followed by a critical analysis of the finding, at the level that such activity would help to understand the role of employees as part of the organization. 2. ... In the literature, additional perceptions on the role of people within organizations have been developed. In accordance with Sveiby (1997) the role of people within organizations could be explained as follows: the balance sheet of each organization has a series of invisible assets: ‘employee competence, internal structure and external structure’ (Sveiby 1997, p.10). It is made clear that employee competence refers to the ability of employees to develop the various organizational tasks, i.e. to respond to the organizational needs, no matter even if these needs are related to tangible or intangible assets (Sveiby 1997, p.10). The above explanation of the role of people within modern organizations is based on the perception that people are indispensable part of organizations, since no organization would exist and operate without the employees who manage its various activities. A similar approach of employees as assets is presented in the study of Storey (2009, p.140); in th e specific study emphasis is given on the role of employees as intangible assets of organizations. On the other hand, Holbeche (1998) notes that employees are a valuable asset of each organization; however, the specific asset is different from the other organizational assets at the level that it is extremely ‘volatile and easily damaged’ (Holbeche 1998, p.10); it is explained that the organization that has not secured the position of its employees is likely to face severe organizational failures. It is also mentioned that the organizational leaders are likely to develop different views on the value of employees in their organization. Moreover, if employees within the particular organization are highly motivated, then their value in the

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