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Business Plan/HR Project #2 - Essay Example

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When organizations embrace sustainability as a core value they create competitive advantage and a wealth of good will. Sustainability is the basis on which an academic institution survives even during the most challenging and turbulent times. Nurturing the people who lead the society in future is vital for the success of a college…
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Business Plan/HR Project #2
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Download file to see previous pages It helps the college achieve sustainability.
The creation of new Human Resources Assistant Position involves financial department of the college to provide necessary funds for the position to pay the salary and other benefits. It also requires to be planned how the funds should be granted to this position. Usually, the remuneration of the new Human Resources Assistant will be met from the regular income of the college. As it is not a huge investment, it does not call for any external help for financing the job. However, it is essential to consider whether the newly created position will help the college to gain financially. The basic reason why this new position is created is to gain competitive advantage for the college in the education market. That can be achieved only effective management and decision making skills of the senior authorities who take decisions. As the college is an autonomous and independent body there will be few regulations to monitor the decisions. There is every scope for the decision maker to act according to his wishes without being questioned by any one. Here it is noteworthy the words of Chung, who made the following comment reviewing the book by Roe.
The dispersed structure of enterprise ownership enables managers to be in a power position without counterbalance and monitoring. Roe implies that inappropriate managerial decision making is a reason for the weak competitive edge of American corporations today. (Chung. C)
It is difficult to estimate how this newly created HR Assistant position will benefit the college financially. The project of creating a new HR Assistant position will have advantage in the long run. As the objective of the project is to take sustainability as the core value and creating competitive advantage to the college, estimating the financial benefits from this project is a challenging task. It is because there are several factors that influence the expected value of the project. Talking on the evaluation of project duration, T. Arnold, and D. North say:
Although a given project may have a better expected value, the vulnerability of the project valuation to parameter/discount rate changes may make it less appealing when compared to another project of lesser expected value with more robust parameter/discount rate estimates. More simply, project duration (convexity) and project parameter duration (convexity) provide metrics to assess project forecasting error without additional complex scenario analysis that can be difficult to interpret. (Arnold and North)
While evaluating the benefits of the project and calculating the project cost, it is essential to note how the domestic institutions are influenced by the international financial organizations. Undoubtedly, the decisions of many of the domestic institutions are influenced by the trends and policies of the global financial markets. In an interesting study on how the domestic institutions are under the influence of global financial markets, Deeg and Perez go on to say that
One of the prevalent notions held today by political economists is that change in domestic institutions over the past two decades has been driven largely by the pressure of international market integration. The rise of global financial markets and the increase in cross-border capital flows, which have accelerated dramatically in the past two decades, are seen as being particularly important in this regard. ( ...Download file to see next pagesRead More
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