In
the present 21st Century, human resource means to recognize the people
as an important asset that contributes to the growth and development of business,
in the same way as other physical assets contribute. Hence, human resource performance
is always judged in terms of skills, expertise and abilities that result in higher
efficiency, productivity, and lower cost. With this background the present article
deals with major issues and challenges that are having a bearing effect on the
performance of human resource or human capital in the organizations.
Globalization
has created such an environment wherein it has become imperative for every organization
to value and assess the human resources at every point and every stage. What has
become inevitable is to harness and develop the human resource or capital, which
could contribute positively and constructively to the organization so that the
organization could sustain its competitive advantage, which is sine-quo-non for
survival of the organization.
Since
the intimation of the concept of globalization world over, there has been a radical
shift in terms of connotation of the word people. From the early term `personnel
administration' got shape as `human resources' and in the present 21st Century the connotation being used is `human capital.' Keeping pace with these
changes, the paradigm has also moved from treating employees as a `resource' that
is to be consumed and the costs of which should be minimized to treating employees
as `assets' that is to be valued and investments in human capital is therefore
to be managed.
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