Human resource refers to employees recognized as one of the contributing factors for economic growth, social, political and technological development of many nations. Human resource is also an important element in enhancing a nation’s competitiveness.
However, when we discuss human resource, what is important is the components process in an organization, which comprise activities necessary for staffing that organization and sustaining a high performance rate of its employees.
Human resource has been defined as that comprising and activities which affect the development of the individual, the productivity and profit of an organization. In terms of human resource development, one may conclude that there is a worldwide shortage of employees needed to derive the so called ‘knowledge economy.’
Can human resource be an important strategic tool? Can it help establish an organization and allow it to sustain competitive advantage? One normally performance work practices which can lead the individual and raise the spectra of an organization.
The common thread in these practices seems to be a commitment to improving knowledge, skills and abilities of an organization’s employees, increasing their motivation, reducing loafing on the job and enhancing the retention of quality employees while encouraging slackers to leave.
Future human resource needs are determined by an organization’s goals and strategies. Demand for employees is directly related to demand for an organization’s products or services. On the basis of its estimated total revenue, managers can attempt to establish the number and mix of employees needed to achieve that revenue.
In some cases, however, that situation may be reversed. When particular skills are necessary but are in short supply, the availability of appropriate human resources determines revenue.
After managers have assessed both current capabilities and future needs, they are able to estimate human resource shortages; both as far as number and in type and to highlight areas in which a particular organization will be understaffed or overstaffed.
With this information, managers are ready to proceed to the next step in terms of the human resource process.
There are some recommendations which may be considered in order to enhance human resource development challenges for an organization’s success, namely to develop world class universities, to establish salient R&D and sciences and technological capabilities at organizational and national levels, to develop ICT capabilities, to recruit and develop effective and efficient education and training systems to provide lifelong learning opportunities for all employees.
Human resource development is the key to create a competitive edge in the new economy. To advance Malaysia to the forefront of development, investment in human capital is critical since the called ‘knowledge economy’ demands informed, creative and innovative employees.