Employees as Main Assets for Business Organizations - Book Report/Review Example

 Managing People – A Company Report Employees as Assets for Business Organizations and the Role of the Human Resources Managers 1. Introduction In order for a business organization to perform effectively and gain success in the industry, and hence make its place in the minds of its customers, it is essential that the organizational management effectively plans for the organizational goals and performs the necessary tasks enabling the organization to achieve the goals. It is for this accomplishment of different goals that, the employees of an organization play the most essential role as they are the ones who perform all the necessary activities that lead to accomplishment of the organizational objectives (Siljander 2008). In regard to this, Peter Drucker always believed that employees are the most important assets for an organization, and not liabilities (Drucker et al 2011). While in most cases there are no documented facts that employees are most essential assets for an organization, yet when companies realize this fact, the overall performance of the organization improves upon significantly, thereby maximizing their profits. Companies in the current times and that which are targeting to create their positions in the industry in the near future, consider employees as the most important assets as without them it is not possible for an organization to continuously achieve success and development. Hence investment in the employees is focused by these companies. Also, it is essential to keep the employees motivated, for which the employers and the human resources management team need to take measures to keep the work environment suitable for the employees to remain satisfied along with fulfillment of their needs and demands (Tompkins 2001). Human resources management is largely associated with employees and their management and development within an organization. It is the role of the human resources management to realize the needs and demands of the employees and accordingly consider the measures that would keep the employees motivated and encouraged such that they continue giving their best efforts for the accomplishment of organizational goals (Deckop 2006). When organizational employees are considered, it can be understood that they come from different cultures and backgrounds and hence are diverse requiring effective training and development measures to match their efforts with the goals of the organization (Romanenko 2012). 1.1. Aim of the Study The aim of the study is to discuss and evaluate the Drucker’s view in the context of the HR Managers’ contribution to managing both employee diversity and employee development. 1.2. Objectives of the Study To achieve the above aim of the study, the following objectives have been set: To conduct an extensive literature review on the concepts of human resources management and their role in managing employees – diversity and development, and trying to realize how employees are the most important assets for an organization. To conduct a secondary research on Coca Cola Company to determine the processes of human resources management over employee management and whether the employees are considered as important assets for the company. 2. Literature Review Researchers have significantly turned their interests on understanding the role of the employees and human resources management in business organizations and hence several researches and studies are available that provide different perspectives and understanding of this aspect. The focus has always been supporting the view of Drucker and hence trying to determine how important the role of employees is within a business organization. Human resources management teams that are in charge of managing the employees in an organization have one of the most essential roles to play as their measures are significantly associated with the employees and their performances (Lawyer 2005). The point that the researchers have tried to bring out is that the role of the human resources management in managing the activities of the employees and enabling employees to deliver the best of their activities, leads to organizational effectiveness which is significantly relevant considering the present day business world. It can be understood that in the present times, there is rising business competition and rivalry within the industry and it is concern of every business organization to improve upon its performances in a continuous basis in order to sustain its position in the minds of the customers and hence in the industry. As a result the role of the employees is realized more effectively by business organizations in the present times, which can be realized from the researches available on the concerned topic. Effectiveness of an organization has been related with the role played by human resources management. The human resources management team in an organization is primarily responsible for realizing the needs of the employees and those of the organization thereby matching the two by designing particular plans that can be encourage and motivate the employees towards effective performance. Training and development, for example is an essential part associated with employee development, which is considered by the human resources management team, and hence its role is essential within a business organization, as employees are needed for completion of all organizational tasks (Sims R.R. 2002). 2.1. Employee Development An organization’s human resources refer to the employees of the organization. The role of the human resources team is primarily to “plan, development and administer policies and programmers designed to make” the best use of the available human resources for a company (Tanwar n.d.). The main concern of the human resources management is to take care of the people working for an organization and hence one of the most essential roles played by the team within any business organization is employee development. It is the concern of the human resources management to achieve maximum development for each of the organizational employees (Tanwar n.d.). Thus it can be realized that the human resources management teams of business organizations realize the importance of employees and their effectiveness in performances and hence try to give their focus on developing them. More importantly, it can be realized that with ever changing business environments in the external business world, continuous innovation and development is necessary for businesses. It is for this reason that, continuous development of employees is being focused by human resources management teams within organizations. The training and development function of the human resources management team is often termed as human resources development as well (Sims 2002). The focus of human resources development is to coordinate all efforts of the organization and involving employees in a process where they are provided with training and development measures. Training and development are however not considered as the same. While training involves giving the job related ideas and lessons to the employees to make them capable of performing their tasks, development involves developing upon the existing skills and knowledge of the employees to improve upon their performances from before (Mello 2014). Thus while the initial lessons are provided by the human resources team to initiate the performances of the employees, development can be realized to be necessary to improve their performances for further effectiveness of the organization, particularly because of the growing competition in the business world. It has been observed and recorded by researchers that developmental processes for employees have enabled to gain enhanced efforts and performances from them and hence improve upon the productivity of the organization as a whole (Anyadike 2013). It has also been observed that employees prefer to attend the development sessions enabling their skills and knowledge to get developed, which not only improves upon their performances for the organization but also allows them to have greater opportunities for their career prospects (Bernolak 2009). 2.2. Talent Management Talent is associated with the capabilities that individuals have and can contribute towards effectiveness of an organization. Human resources management in an organization, particularly considering the increasing competition, is continuously focused on working in association with the senior management of the organizations to select and hire the best talents available for their companies. However it has also been obtained that skills and knowledge that they possess may not always be sufficient to deal with the growing challenges in the industry and hence human resources management teams are concerned and take the responsibilities for effective talent management processes such that the best talents among the employees can be exploited at their best (Lockwood 2006). Talent management is one of the biggest changes that has taken place and is developing currently within business organizations involving the employees and the role of the human resources management. It has become extremely important for human resources management to realize how talent can be effectively managed within their organizations. It is also at times significantly challenging considering the fact that there are human resources team members or managers who may not have the right talents. Hence proper business models are necessary to be formulated for the purpose of effective talent management within business organizations (Lawler and Boudreau 2009). Talent management throws significant challenges for the human resources management as could be observed and studied by researchers. The fact that is supporting such challenges is that there are significant weaknesses in the talent management practices followed by human resources management teams in different organizations. In most cases, the skills and knowledge available are not sufficient or comprehensible towards understanding the actual talents of the employees and focusing on them for organizational effectiveness (Khatri et al 2010). It is particularly necessary for business organizations to identify the talents of the employees that need to be exploited well such that they can contribute to organization’s performances in situations of crises as well (Khatri et al 2010). Hence it can be realized from the views and studies of the researchers that talent management is essential for business organizations and their effectiveness. However it still needs significant development as far as the role of the human resources management is concerned in planning and developing most effective talent management practices for their employees. 2.3. Employee Diversity Diversity in organizational workforce has six major dimensions that include race, gender, age, disability, sexual orientation, and national origin. Researchers have been focused on understanding the level of discrimination among employees in terms of these dimensions and as employees from all these backgrounds and different cultures eventually become part of business organizations. In most cases the issues arise with different individuals being treated differently owing to difference in any of these factors. Such differences in treatment can either be from the senior management, or from the general colleagues (Shore et al 2009). However, whichever is the case, the concern for the human resources management is that it needs to overcome any issues related to diversity among employees and ensure that employees are treated equally irrespective of their diverse backgrounds or attitudes (Shore et al 2009). Management of diversity within business organizations is a significantly challenging task that is required to be handled by the human resources management. It involves several measures that include executive development, worldwide cultural capability, community advancement, integration between work and life of the employees, progress in diversity management, improvement in general communications among all organizational members, talent management, and formation of employee resource groups (Paludi 2012). It is believed by most organizations that employee diversity actually benefits an organization towards its increasing effectiveness. This is mostly because of the fact that with diverse cultural backgrounds and diversity in all fronts, the employees tend to bring in diverse and varied opinions, skills and knowledge within the organizations, which can be developed upon for the advancement of the organizations. Human resources management teams realize the need for diversity and hence concerns to promote diversity among the employees by communicating them the need to build strong relationships between diversities. Hence the target remains on performing in an integrated and coordinated manner, which in turn integrates the diverse talents and attributes of the employees in organizational effectiveness (Jayne and Dipboye 2004). While it is essential for employees to realize the need for diversity within business organizations, it is the role of the employers and the human resources management teams to consider for equal opportunities for all employees such that they do not feel differences owing to their diversities. This can be considered as part of the diversity management of the human resources management and as employees are considered as the most essential assets for a company, the team has to consider equal opportunities in order to keep employees satisfied and encouraged towards their performances (Pynes 2013). 2.4. Globalization Globalization has been defined as “a process in which there is a growth in the functional integration of national economies” (Edwards 2007). Through such a definition it is believed in general that different countries are gradually building up stronger relationships as a consequence of globalization. Thus changes in economic and political systems, along with changes in social and technological aspects of the countries are being experienced (Edwards 2007). This clearly implies that globalization is significantly bringing in changes in the way different countries would perform their business processes as well. Earlier the concerns would be only for the country for which the company would serve; now, it also has to consider its efforts for the world as a whole, owing to the ties that the organizations are binding with other countries. This results in increasing and challenging responsibilities for the human resources management teams as they have to deal with global situations and accordingly prepare their employees for the global market. Globalization has been increasing in the business world on a continuous basis. Thus investments, business opportunities, and services all are impacted upon by the rising globalization. This is a significant transformation and has resulted in impacts on all departments of business organizations, including the human resources management, and the employees of an organization. This is primarily because the employees and the human resources management team have to constantly update themselves with the changing needs and demands of the globalized world. Often there are shortage of talents being available in developing countries as most talented employees would seek jobs and improve their career in the developed countries (Kayode 2012). Hence if the developing countries are concerned, it becomes more challenging for the human resources management teams to train and develop the less talent people that are available for conduct of organizational tasks. Also with developed countries being more advanced in terms of their technological features and performances, the developing countries are also in need for coping up with the high industry standards and hence they are struggling to meet the similar standards that are easily possible by the developed countries. These factors altogether affect the performances of the employees, and hence the role of the human resources management also becomes highly challenging and difficult (Kayode 2012). Thus it can be realized that every aspect related to employee management – selection and hiring of employees, their compensations, and their training and development measures – all has to depend on globalization and hence impacts human resources management severely. 3. Coca Cola Company: Employees and Human Resources Management 3.1. About the Company The Coca Cola Company is a beverage company performing across the globe in several countries and serving its customers with beverage products for years with success and high customer satisfaction. The mission of the company is (Our Company 2014): To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference. The vision of the company includes the following factors (Our Company 2014): People – The Company is focused on trying to deliver its employees with an effective working place such that they remain inspired to give their best efforts. Portfolio – The Company wants to present to the world a portfolio representing high quality products that can meet the needs and demands of the customers and hence satisfy them completely across the globe. Partners – The Company focuses on creating by coordinating its work and performances with suppliers and customers. Planet – The Company is focused on forming sustainable communities and presents itself as responsible for the planet that it serves. Profit – The Company tries to win profits and share them among the shareholders keeping them satisfied. Productivity – The Company tries to remain active and focused in its performance to keep the company moving fast and successfully. The basic values that the company depends upon for its effectiveness include leadership, collaboration, integrity, accountability, passion, diversity, and quality (Our Company 2014). Thus it can be realized the company is focused on effective performance, which is not possible to achieve if the employees of the company are not taken care of by the human resources management, and hence are not made to perform with their best efforts. This essentially reveals the fact, as stated by Drucker, that employees are the most important assets for an organization. Also, the role of the human resources management can be understood to be effective, which enables the company to perform effectively across the globe, involving the impacts of globalization, diversity, employee development and talent management. 3.2. Human Resources Management at Coca Cola Company Considering the records of 2010, the company has around 139,600 employees that are working in different locations across the globe. People are considered as important assets by the company and hence one of the main concerns of the company is to provide them with positive and effective work environment to enable them feel interested, motivated, and encouraged towards their performances (HR Strategies at Coca Cola Company 2013). As people are working across different countries, it can be clearly understood that that diverse employees are part of the organization and globalization has a direct influence on the strategies that human resources management build for managing and developing the employees in the company. The most essential role that the human resources management team of the company performs is the suitable selection and hiring of the right talents and candidates for the company. It is essentially considered by the team to ensure that such people are selected for the company who can be trained and developed further towards meeting the organizational goals, and who would be able to understand the need for globalization and diversity and accordingly develop them. Thus candidates who are ambitious in nature, and are highly skilled and knowledgeable are preferred by the team for selection in the company (HR Strategies at Coca Cola Company 2013). The human resources management makes it clear to the employees about their job designs and responsibilities and train them to think strategically as they perform for the company. The management forms teams among the employees thereby allowing diverse people to come together and work together in coordinated manner, communicating with each other and realizing the positive aspects of diversity. While teams are developed, also, the management tests the capability of the individuals to work in groups, otherwise which they are provided the necessary training sessions for development (HR Strategies at Coca Cola Company 2013). Training post the selection of the candidates mainly involves the human resources management team helping out the new employees in learning the processes and strategies of the company to enable them to match their personal aims with those of the company. Equal opportunities are provided to all the employees at Coca Cola and the rules and regulations of the company that are based upon all global measures of business, are made clear to the employees as they become part of the company. Most importantly, the human resources management ensures strong and effective communications with the employees, which enables better understanding of the needs and problems of the employees by the management, and the management’s demands by the employees. The level of job satisfaction and increased productivity is studied and the training and development programs are accordingly set to encourage the employees more. Leadership programs are also prepared to enable the employees think in the way of leaders such that they are more capable of making right decisions in their tasks for the benefit of the company (HR Strategies at Coca Cola Company 2013). One of the most essential ways that the human resources management team at the company ensures improved employee performance is by helping them with their career goals, and strengthening their skills and knowledge. Talent management practices at the company allow the employees to develop in the current roles that they are performing along with developing on the new opportunities that the management offers to them. The work environment is provided such where all employees are treated equally with provisions of equal opportunities, which is part of the diversity management strategy of the human resources management team (HR Strategies at Coca Cola Company 2013). There is no discrimination among the employees whether they are males or females, or transgenders or different in age, culture or any other aspect. Diverse people are actually recruited by the company to ensure that diverse talents can be introduced within the organization contributing to the development of the company. Also the employees are kept motivated and satisfied with provisions of bonuses, rewards and accolades depending upon their level of performances (HR Strategies at Coca Cola Company 2013). Hence it can be realized that the work force is considered as the most essential assets for the company and the human resources management takes all the necessary measures to ensure employee development, management of diversity, overcoming the issues and challenges associated with globalization, and talent management. 4. Conclusion The above study has been focused on understanding Drucker’s view in respect of the role of human resources management and the employees being the most important assets for a company. It could be well obtained from the study that employees are indeed the most important assets for a business organization. This is particularly because employees are the primary human resources that are responsible of completing different organizational tasks enabling accomplishment of organizational goals. Hence business organizations are also realizing the importance of employees in today’s business world, which is highly competitive and globalized, requiring the business organizations to remain developed and innovative on a continuous basis. As a result of globalization the challenges for the human resources management within business organizations have significantly increased, since the employees are now required to be hired, trained and developed depending on the global aspects and needs of the market. Employees are now more diverse in nature and it is necessary for effective diversity and talent management measures to be practiced by the human resources team to enable them perform effectively for the companies. The target is to match the aims of the employees with the aims of the organizations which would benefit both the parties equally and hence the role of human resources management is mainly focused on these aspects. The study also considered the case of Coca Cola Company and it could be obtained from the human resources management practices of the company that the employees of the company are considered as the most important assets and the management considers effective measures starting from the selection processes of the candidates, their training, diversity management, talent management, and development of the employees, focusing on their performances being matching with the rising globalization needs. It can thus be concluded that indeed the employees are the most important assets of an organization and the role of the human resources management is most essential for effective treatment and management of the employees as effectively observed and stated by Peter Drucker. 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