Creating Human Assets- Cheating Losses, Staying Upbeat

We all know that staying upbeat in business is uncommon. Not many can achieve this. Checking and cross-checking others is not the key. The acceptance of the organization by the rest of the world largely depends on its attaining core values such as impeccable quality, complete and timely delivery, a great relationship, best service performance, stakeholder happiness, and many more. A rise in profit and growth of a business is also possible with large-scale, whole-hearted acceptance of the organization. Safeguarding the business against external or internal adversaries also makes sense. These outcomes are only possible if the organization is capable of converting its “Human resources to Quality Human Assets”. We also need to understand that the creation of value for society and stakeholders are largely dependent on the quality of the Human Assets, the organization possesses. Stakeholders warrant Benefit Optimization, Risk Optimization and Resource Optimization. Certainly, these can be visible if Human Assets are utilized at their optimum levels. The organizations which work towards attaining this lead in return and achieve super success. For the sake of better understanding, the process of converting an organization’s Human Resources to quality Human Assets is divided into several steps mentioned as under:

(a) The pre-qualify stage includes (i) the organization getting to know its desired Human Resources first (ii) the Second one is the organization defining its process of conversion from “Human Resources” to “Human Assets” (iii) the Third one, the organization has to decide on quality Human Asset Benchmarks for all tiers of Management and

(b) The successful completion of these steps ends the process of pre-qualifying and there comes the process of Reconciliation and thereafter identifying the Human Resources Gaps.

(c) The actual conversion of Human Resources to Human Assets includes filling the Gaps in line with organizational goals which ends the process of qualifying.

A. PRE-QUALITY STAGE:

I. Get to Know desired Human Resources: For knowing or assessing the desired Human Resources, the organization needs to evaluate the following:

(a) Vision, Mission, Core values: Clarity is essential. Visible Bifurcation of business, products are necessary. Let us list some of the core values or virtues any organization should have for the creation of great societal value and for achieving grand success:

(b) Business Goals: Annual business goals have to be laid on the table. It varies as per resource availability.

(c) Core Competency skillset: Different skill set is required for the best performance and hence it needs to be rightfully discussed and decided.

(d) Core Values skillset: Core values are virtues for life that any Human Asset should possess, acquired through upbringing and self-creation. This is very important as choosing inappropriate Behaviour has a lasting effect on business core values and performances. Sometimes judgment mistakes and assessment lapses are possible.

(e) Numbers: Each skill set has a cost and hence choosing correct numbers will have above par advantage.

(f) Budget: Once skills are set, then proceeding with budget finalization is rational.

II. The Process of conversion: For any artificial person, its success and lead completely depend upon the effective use of its, “physical & mental strength” which are its Production and Human Assets capacity respectively. Like for any human being, higher learning improves the earning & spending capacity, the process of income generation and wealth creation, similarly, optimum use of capacities in any organization improves its earning & spending capacity, the process of profit generation and wealth creation and hence the need arises of conversion of Human Resource to Human Assets. We need to understand here that it is also unlikely that any Human Resources will match all desired qualities and further the organization should target the enduring benefit as compared to the short-lived and hence such conversion. Here “Mental Strength” means the level of quality of the organization’s Human Assets- Better the quality, Greater the business results and Vice Versa.

We need to understand that Human Resources and Human Assets are different terms as the former deals with only core skills possession by the organization and the latter deals with not only core skills possession but also core values possession matching with the organization’s core values requirements. 

The process of such conversion begins with asking the question “Where does the Human Resources Stand? and “Where it should be” meaning the transition journey of Human resources to Human Assets vis a vis the outcome that the organization wish to achieve in the short run as well as in the long run.

 Thus the process of conversion of “Human Resources to Human Assets” is nothing but “skill & value creation” or in other words “quality creation” which is necessary for the achievement of organizational goals consistently. Quality creation primarily means the desired core skills and core values, such Human Assets should possess or match with the organization’s core values and part with the rest of the world. Let us list some of them for better understanding:

III. Deciding Human Asset Benchmarks for all tiers of Management: Creating Human Asset benchmarks for all tiers of Management is necessary for the achievement of organizational goals consistently. This also requires the organization to assess and surpass the following Human Assets Audit Tests consistently and regularly. In other words, the results of the following Audit Tests help the organization to identify Gaps and achieve a better Human Resources to Human Assets conversion ratio and consequently in achieving better business outcomes. The new recruitments also have to pass the Tests. The downbeat organization generally lapses on all or any of these audit tests and underperforms on various counts consequently:

It is surprising to note that though Human Assets are greater in numbers compared to other `stakeholders and costly as well,  its discrete Audit and formal disclosures are yet to be prescribed although Human Assets are valuable.

If the organization discloses the results of the above tests through regular disclosure mediums, stakeholders can make a well-informed and prudent decision regarding association and investment.

B. RECONCILIATION AND GAPS IDENTIFICATION STAGE:

A Human Resource lacking certain core values certainly cannot create the best value for society or stakeholders. It is wise to reconcile Human Assets Audit Tests outcomes with the organization’s core values to arrive at a plan of action. Let us reconcile some of the core values, the Human Assets should have to understand this scenario better:

Basis the above reconciliation, it will be easy for the organization to identify the Gaps which are important for the creation of quality Human Assets.

C. QUALIFY STAGE:

Filling the Gaps: The above reconciliation will through light on the important Gaps which the organization should fill for generating the desired business outcomes and creating quality Human Assets.

It is also unlikely that any Human Asset will possess all core values. Training and Development, Performance Appraisals, and HR consultants can help to a certain extent.

So what is the final roadmap for creating Human Assets, Cheating Losses and Staying Upbeat? The simple answer is the organization’s quicker self-initiated transition duly filling the Gaps will help the organization to become a winner and a leader. The organization is likely to defeat all challenges and win all the way.