The labour force is as important as any other resources of the organization. Just as the management spends financial capital to purchase assets, likewise it also spends a considerable amount of money as the…
Download file to see previous pages...
Often times, the human resource management (HRM) department is considered inferior to other departments like finance and marketing, as it does not contribute to the revenue generation of the organization directly (Davis, 2011). This paper focuses on the financial aspect of the human resource management as it discusses its importance in the organization. It highlights the fact that HRM department is wrongly underrated, because it also contributes to the revenue of the firm. In this study, the case of John Lewis Partnership has been highlighted to point out the financial importance of the HRM in an organization.
The human resource management (HRM) is described simply as proper allocation of human capital in the right time and in right place. By the proper allocation of the work force in all the departments, an organization is able to increase the overall efficiency of the firm (Lundy, 2008). The increased efficiency eventually leads to higher revenue generation and avoids resource wastage by inefficient usage. Thus it is clear that the financial importance of the HRM lies in the efficient use of human resources in such a manner that the financial investment made in the HR department gives proper return. The return on investment of the HR department is determined by the financial output of all the other departments and the organizational output as a whole (Price, 2011).
According to Woods (2012) John Lewis partnership (JLP), unlike any other retail firm, is run by the employees who pose as the partners of the business operation. The management is run by a trust which operates on behalf of the employees. JLP has put the HR department in the in the centre of the management decision making. The HR department is prioritized so much that Andy Street, one of the personnel director made his way to the position of Managing Director (Cunliffe and Craik, 2014). The concept of partnership allows the employees or partners to enjoy benefits from the
...Download file to see next pagesRead More
It also comprises insurance and renting companies all over the world. Transportation finance had an expectation of improved business conditions (Norton, Diamond and Pagach 245). This expectation was, however, prone to getting the effects of external and internal aspects on their profit margin.
The company name was changed to Malaysia-Singapore Airlines in 1966 and in 1972; the MSA was split into Malaysian Airline System and Singapore Airlines, which were two separate organizations. Airport terminal services were also set up in during the same
Internet Gateways have also been utilized. These components need to work efficiently without interruptions for performance and attainment of company’s goals. The performance and well-being of these topologies and arrangements is only possible when the staff and
First, the debt to equity ratio is a financial ratio that is used to measure the quantities of a business’s borrowed resources, in relation to the resources owned by the business (McClure, 2011:n.p).
Though some complies with this transition, some still disagrees and curses this revolution citing that it does not comply with Islamic Sharia law tracing their faith and beliefs from Quran and Prophet Mohammed (DiVanna & Sreih, 2009). These sharia laws require all
In addition following no barriers of entry there is high product substitution and economies of scale (Steel Industry Profile, 2013).
The second force is raising rivalry in the established firms. Rivalry amongst the firms that are
The modern financial markets, especially the banking sector, have experienced diverse dynamism in the recent past (Barth, Lin and Wihlborg 72). Therefore, it is necessary to conduct effective preliminary research before deciding on where and when to invest.