Human Capital and its Impact

This assignment delves into the concept of human capital and its significance across various domains. It examines how human capital valuation influences organizational strategies, explores the role of social and demographic factors in shaping human capital, and analyzes the interplay between human capital and environmental sustainability. The provided readings offer diverse perspectives on human capital, encompassing economic, sociological, and ecological dimensions.

CONTEMPORARY ISSUES
IN HUMAN CAPITAL

EXECUTIVE SUMMARY
For an organisation, it is very much essential to have a healthy environment where all
departments and human resources work together to attain goals and objectives in an effective
way. Basically, in a company, there are various conflicts which are required to be solved by
management. There is a high competition in market and thus, to attain competitive advantages,
companies are required to manage the pressure and management should make sure that the
human resources of company are being working in a proper manner so that their behaviour can
be modified. Also, top executives of entity need to have regular communication and interaction
with their employees so that they can feel that are important for company. They should also feel
that because of them organization is attaining higher profits. Many companies do face high
turnover in context to employees which is needed to be minimised in an effective way.
Assignment will talk that why employees are leaving organization and with the help of this
theory and consideration a firm can retain them for longer period of time. Various models are
there which help in providing solution to company in resolving such in a better way that will be
discussed in the report.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Background of organization...................................................................................................1
Analysis of problems in organisation.....................................................................................2
Solution to issues....................................................................................................................6
Recommendations..................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
In the current business environment, firms are using technology in a great way through
which they are able to complete all of their work within stipulated period of time and in an
effective way. Moreover, in every organization, it is required to motivate the employees to work
in right direction so that their performance can be enhanced. Earlier, competition was also not
high as companies enjoyed monopoly in market. In the medium sized firms, the turnover in
context to staff members is very high and because of this, several reasons arise because of which
people left their job. Hence, firms use several models and theories which help them in resolving
the issues and problems which they are facing with employees (Popescu, Comănescu and Sabie,
2016).
There are various factors which have accountability of increased employee turnover that
are needed to be solved within stipulated time period. Top executives who formulate policy and
procedures which are followed by human resources in an effective way need to have an
interaction with lower level on regular basis that makes entity to earn a good amount of image in
eyes of workers. The report is based on Index Living Mall Co. Ltd. which is a Thailand based
furniture retailer firm that was found in the year 2002. Although, 31 branches are there
throughout the country.
This assignment will talk about the issues faced by employees in organization and why
there is increment in employee turnover, it is required to make an analysis of company in correct
format too. Non-communication and employee dissatisfaction in company bring an increased
labour turnover. It is that which needs to be overcome in right format and has to call up in a
proper model for attaining a good working too.
TASK
Background of organization
It has been seen that in market, there is high competition and to fight with the cut-throat
competition, organization has to use its human resources to perform in a better way and in right
direction so that company can enhance its productivity and maximum sales can be increased as
well. Here, the employees and managers are also able to make use of them in the best possible
manner. Managers have the responsibility to get work done from employees within time period
described by them only (Wellington, 2015). The Index Living Mall Co. Ltd. is a company which
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is serving millions of people with their services and making them satisfied but there are various
kinds of flaws which are being faced by company because of which they are not able to achieve
competitive advantages in the market. One of the main reasons that affect firm in huge way is
increase in labour turnover. It was known that earlier, company was having great profitability
and productivity in the market and thus, it was required for them to bring several solutions to
such problem so that they can perform in a corrective manner and attaining their goals and
objectives effectually. Basically, issues are related with human resources as they are not satisfied
with some of the aspects in enterprise.
Generally, training and development is the best option to motivate employees to perform
in a better way but in case of Index Living Mall, it is necessary to make use of various theory
and models so that analysis of issues and conflicts can be done in a proper manner. It is required
to determine the problem of increase in turnover of employees and getting in some of the best
solutions to retain human resources (Berzkalne and Zelgalve, 2014). Moreover, if employee is
satisfied with firm then an effective environment will be maintained in company through which
each and every employee will be encouraged to enhance the level of performance in a proper
way. Some of the aspects which take place with employee’s satisfaction are:
 Communication is required to be present between each employee and departments
because through this, work will be completed in the set period of time. Although,
communication is considered as the backbone of firm which helps entity to become stable
in market.
 It creates coordination among employees which reduce the chances of having disputes
and conflicts in organization and help firm in attaining its goals and objectives in a better
manner.
 Human resources will be able to perform in any situation and will adapt the changes too
without any problems which will eventually make them a multi-tasker.
There are many more aspects which help in building a positive image of company in the
market because of which customers are also attracted towards the entity as well. Index Living
Mall Co. Ltd is also suffering from various kinds of issues in organization which are required to
be analysed in a great way so that firm can perform effectively.
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Analysis of problems in organisation
Every firm in this world has some issues in their working environment and if the
company wants to achieve their goals and objectives, look up to these issues in a proper manner
and derive suitable solutions about it as well (Stone and Stone, 2013). Therefore, a proper
analysis will help company to know the real reason behind arising these kinds of issues and
problems in company. In Index Living Mall, a high turnover of managers and human resources is
noticed and it is needed to determine the accurate cause of it.
After having research within organization, a survey was conducted for employees so that
actual reason can be understood. There are various reasons that come in contact with top
executives of entity in relation with human resources. Some of those reasons are:
 Employee Resourcing
 Employee Engagement
 Performance management and rewards
 Talent management
 Discrimination
 Different culture of employees
Let us understand these points in better way:
Employee’s Resourcing: In the marketplace, there are so many people who are having
great talent in them and companies are looking for these who can implement their talent and
knowledge in organization (Vaiman and Collings, 2013). But sometimes, management of
company make wrong choices and select those people who are not able to cope up with other
employees in company and also not able to learn different things as well. These are some of the
reasons because of which employees give resignation. Basically, it is required to choose that
person who is a great performer and lead to work in diverse environment and with different
people as well. Choosing the wrong person who cannot manage to work in right direction always
increases the number of turnover very.
Employee Engagement: It helps a company to complete their tasks and activities within
the time period specified. It is required by company to divide the work in a better manner and
assign activities and tasks according to the qualification of employees as this leads to attain
proper goals and objectives. Basically, in an organization, it is crucial to engage employees in
different activities as this could increase their performance level in an effective way. If
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employees are engaged not according to their working skills and personality in organisation, they
would not be able to perform in a proper manner and accordingly, loss of work will be there and
such thing needs to be analysed (Johnson, Schnatterly and Hill, 2013). For instance, if an
employee is having specification to work in finance department and company is keeping him in
production department then it is not a correct step because here now the employee will not be
able to use their skills and knowledge in an appropriate manner and thus achieving the goals and
objectives of the company as well. Although, this aspect is also considered in the same scenario
as with it, manager and human resource turnover is high. Normally, it is required to analyse same
for bringing in proper solutions for it.
Performance management and rewards: Many large firms are having a better
management and reward system which bring employee satisfaction in company and thus, they
have a less turnover of human resources because of which they earn higher profits and able to
attain their set targets and objectives. In medium sized enterprises, the reward system is not so
effective because of which employees become dissatisfied and they do not perform effectually.
Hence, not having proper rewards in organization does not encourage human resources to work
hard and increase the enhancement of productivity and profit in employees (Bratton and Gold,
2017). Firm has also analysed this as one of the most important factor for increasing labour
turnover in right direction. Rewards can be in various forms and some of those are bonus,
holidays, incentives and promotion, etc. These are those which need to be performed in entity so
that employees can retain its enthusiasm for working in a great way. Even though, it is required
by firm to bring in effective management and rewards system so that can it reduce the labour
turnover and such concept do help employee to work in right direction and leads to attain the
goals and objectives too.
Talent management: It is one of the crucial modes of having an increased labour
turnover and it is required that company can reduce and minimise employee turnover. If people
in organisation are not getting work according to their talent and specification then this will lead
to have loss of proper working in various ways. For instance: an individual in organization is
having talent to perform some of the tasks in a better way and even though there performance is
not getting an importance in organization leads to leave the organisation. Although, it is required
to promote those individuals who is working hard and performing in great way also. Talent
management is having the responsibility to take care of particular employees that make them to
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perform in a better way. Management of Index Living Mall should include this aspect as main
and keep the right person at the right job so that they can perform in right format too.
Discrimination: Many human resources are having different perspectives for which they
are working in organization (Taylor, 2017). Discrimination is that which needs to be reduced in
organisation as this is involved as the major reason of having an increase in employee and
manager turnover. Partiality in between employees create chances of conflict and disputes in
employees which hinder the working in organization and leads to bring in some effective
solutions for such also that it can be minimised or eliminated in perfect way. Discrimination can
be there in the form of many ways as in kind of salary, partiality in between men and women,
having partiality because of working, etc. It needs to be minimised and effective theory of
working should be utilised and has to provide a better solution to all such in better way too.
Moreover, discrimination should not be there and it leads to have betterment of working and it
somewhere also makes it lead to earn a good amount and leads to create a healthy working
environment too.
Different culture of employees: Different types of employees are there in an
organization who belong to various cultures and have different working criteria and it can even
become a disturbing factor while doing activities of company. Employees have to work in right
direction so that a better working can be seen in organisation. When a group of people are being
made in firm to complete a particular task within the time period, even at that time it creates a
hurdle for them to work because every individual person is having different thoughts and mind-
set to complete the activities and it should be matched with one another (Harper, Harper and
Snowden, 2017). It is quite hard to bring in employees to work together for attainment of
common goals and objectives too. Although, several kinds of people from different backgrounds
create an issue in working and increase the number of human resource turnover.
These problems need to be analysed in a proper manner in organization so that
management and top executives can bring in solution for reducing labour turnover in right a
format. Normally, employees and managers are the people who work in a better way so that
organization can attain the goals and objectives effectually. Even though, firm at the time of
determining different issues they underwent through various thing and required to solve those as
well and somewhere if they succeed in great way and they will lead to attain the goals and
objectives in better manner. There were various kinds of situations which a company face while
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finding their issues in a proper manner and after this, an effective solution is also required to be
provided to them because through this only will be able to attain their goals and objectives in a
proper manner.
Solution to issues
In Index Living Mall Co. Ltd., various issues are being analysed in context of employee
turnover and thus to reduce it; company is bringing several models and theories which can have
an effective impact on resolving these issues and they can attain their goals and objectives in an
efficient manner. Also, higher profits can also be earned in a better way (Kobayashi and
Mackenzie, 2014). Basically, to solve the issues related to any department, it is crucial to analyse
them so that firm can come to know the exact reason of occurring such issues in organization.
Various people have different reasons of leaving an entity that have to be known by enterprises
so that from the same, organisation can overcome in a better way. Along with this, some
effective solutions are also there for reducing such a turnover in firm and firm can perform in
right context. Some of those are:
Pay More: - In an organization, it has been considered as Cash is king in marketplace.
Even, if the company is paying more than the work they do or higher amount then competitor,
they would be less likely to resign the job. Basically, it is that which do motivate employees to
work hard and make firm to attain its goals and objectives effectually. It is generally required
that they should have commitment towards the job in an effective way (Manzo and Devine-
Wright, 2013). Moreover, people who are having low pay according to their job responsibility to
leave the job in right format too. Therefore, it is required to pay more and according to the job
duty of people and it is performing in effective way within organization. As this could help even
firm to earn huge profits too.
Divide the work load: There are various things which are needed to be managed in an
organization and thus, it is required by firm to divide the tasks and activities according to
department and people as well. Basically balancing the load of work of people thus make
individual to perform in great way. This is such which make firm to have a completion of task
and activity in better manner. Dividing work also leads to reduce the load of work in an
organization as this kind of scenario is such which give an sense of satisfaction in employees as
they are having not that much level of work which change their mind-set to remain in with
organization too.
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Competitive benefits: There are different employees who need some other things with
salary in form of benefits in an effective way. It is such, it can be in form of affordable benefits
like as having an health insurance, stock options, medical benefits and transportation allowances,
as this could make the employee to have an side of more appealing then the one at competitor's
as well as it also reduce the employee turnover in perfect way as well. Even though it is required
by management of firm to review the benefits they are providing to employees at least once or
twice in a financial year (Autor and Handel, 2013). This is such which retain the interest of
employee in great manner which do help entity to go in heights.
Friendly employee relationships: Many organizations like Index Living Mall Company
are not having a friendly environment which is resulting into not having a proper working in
enterprises as well. Moreover, it is required that top executives, management and human
resources perform like family and try to create an health environment, as it is basic need in firm
so that people do not feel bored while doing their office activities. Having a foster environment
as work lead to have a great working. Employees should have a comfort talking, joking and
having an outside work plans with each other is not having an interfere with the work in better
way. Even though, firm’s top management should understand these things in perfect way as well.
Hire the right people: In an organization, it is required to have a proper panel of
recruitment and selection process as this helps in choosing the right people for the right job in a
great way (Lin, 2017). Therefore, it is needed to hire those workers who are having strong skills
which match with the culture of organization in right contrast. In general, at the time of
recruitment, questions related to behaviour should be asked and can see that how candidate is
handling the situation and answering to such situation. All these scenario does help firm to attain
a good amount of enhancement in profit and productivity too.
Have praise: In organization, it is required to have an encouragement and recognition of
employees in a better way. Basically, employees need to perform in a right way which shows the
appreciation in great way although. Basically, when they do finish their work and activity within
the time period then it is required to praise them congratulate them for performing in huge way.
Having a praise for truly worth working should be there, as everyday should be praised a single
work which was needed to completed on time. It is such which has led to create an encouraging
and positive environment of work.
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Hence, all these things are which can encourage people and employee not to leave the
organization as this is such which will assist Index Living Mall to perform their work in better
manner and to earn the more and more profits which they were earning earlier too. A one more
solution is also there which can motivate, encourage and manipulate people to work in effective
way also and it is as:
Training and development: It is that which is organized by organization when it come
out of there control and even there are various training institution and firms who provide an
better training and development program for employees so that they can assist their employees to
work in better way (Altman, 2015). Before carrying out training and development programs firm
uses various solution according to their level and in last training and development program is
that which help company to have a proper working in great way. It is such which do provide an
proper training to human resource through which they can learn new skills, knowledge and
abilities that has made them to increase their performance in great way.
Learning has to be done in effective way, which could assist them to attain its goals and
objectives in great manner. Basically, training and development can be provided in several ways
that could help human resource to work in effective manner that contributes in attaining final
goals and objectives. There are two ways through which training can be provided to them and it
is be as:
 On the job training.
 Off the job training.
These two methods of training can be used by company and mainly “On the job training”
is used as because it is provided at the time of working (Brisman, South and White, 2016). In
other words, training is provided at the time when the employees are performing their task and
activity as they can use the learned aspects at a time which can help them to work even in more
effective manner as well. Therefore, training and development is such that contributes in
developing an employee to align their personal goals with the organizational goals and objectives
in right format.
Recommendations
This is required to be provided to those companies who is facing failure due to various
reasons. Although, Index Living Mall Company is facing many problems like employees
resourcing, employee engagement, performance management and rewards, talent management,
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discrimination, and different culture of employees (Gamerschlag, 2013). These problems are the
ones which needs to be taken under care and proper solutions were provided against issues
recognized by the company. Recommendations are given in the form of suggestions to the firm
for better working.
Some of the recommendations are as follows:
 It is necessary for the management to have regular communication and interaction
sessions by the top management with lower level as this could help them to earn higher
profits.
 It is required by an enterprise to formulate a proper reward system and performance
management as it enhances the working schedule of employees in a great manner which
could help them to attain the goals and objectives in a big way.
 It is needed to have a healthy environment in an organization as this helps to bring
effective relations between employees, which might reduce disputes or conflicts.
Although coordination is build in between the department and employees so that
activities can be performed in a proper manner and the goals and objectives in great
way.
 An orientation program should be organized so that new employees can meet up with
every department’s employees and staff of company. At the time of making a group
people and employees will be able to work in effective way as no culture difference will
create a hindrances in task and activity as well.
 Nonetheless, training and development helps employees to learn new skills, and
knowledge in great way which assist them to attain their own targets and will be able to
accomplish goals and objectives of enterprises.
 There should not be any kind of discrimination in between pay of human resources as
thus could create an chance of conflict in huge way, which do create an hinder in between
the work of employees in effective way. Even, it is required to use the talent of human
resource in better way for completing tasks on time.
These are some recommendations which could help them to have a proper working.
Basically, suggestions should be used in right format by any organization so that they can
perform in better way and earns profits.
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CONCLUSION
From the above report, it can be concluded that human resources are those who play a
crucial role in organization and help firm to attain its goals and objectives effectually. Moreover,
various organizations are there who face many issues and problems in company which are
needed to be solved in a proper manner. Effective solution to organization will help them to
complete their tasks on time and will be able to satisfy the customers. This report is based on
Index Living Mall Company, which is going through major employees turnover ratio which
should be minimise for better results in organisation. Basically, it is like which lead to have an
attainment of different aspect which somewhere convert them to attain the goals and objectives
in great way. Although, company have to focus on these problems so that all will not come in
future again.
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REFERENCES
Books and Journals
Altman, M., 2015. Handbook of contemporary behavioral economics: foundations and
developments. Routledge.
Autor, D.H. and Handel, M.J., 2013. Putting tasks to the test: Human capital, job tasks, and
wages. Journal of Labor Economics. 31(S1). pp.S59-S96.
Berzkalne, I. and Zelgalve, E., 2014. Intellectual capital and company value. Procedia-Social
and Behavioral Sciences. 110. pp.887-896.
Bhaskar, R., 2014. The possibility of naturalism: A philosophical critique of the contemporary
human sciences. Routledge.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brisman, A., South, N. and White, R. eds., 2016. Environmental crime and social conflict:
contemporary and emerging issues. Routledge.
Fulmer, I.S. and Ployhart, R.E., 2014. “Our most important asset” A multidisciplinary/multilevel
review of human capital valuation for research and practice. Journal of Management.
40(1). pp.161-192.
Gamerschlag, R., 2013. Value relevance of human capital information. Journal of Intellectual
Capital. 14(2). pp.325-345.
Hakim, C., 2016. Key issues in women's work: Female diversity and the polarisation of women's
employment. Routledge-Cavendish.
Harper, C., Harper, C.L. and Snowden, M., 2017. Environment and society: Human perspectives
on environmental issues. Routledge.
Johnson, S.G., Schnatterly, K. and Hill, A.D., 2013. Board composition beyond independence:
Social capital, human capital, and demographics. Journal of management. 39(1). pp.232-
262.
Kobayashi, A. and Mackenzie, S. eds., 2014. Remaking Human Geography (RLE Social &
Cultural Geography). Routledge.
Lin, N., 2017. Building a network theory of social capital. In Social capital (pp. 3-28).
Routledge.
Manzo, L.C. and Devine-Wright, P. eds., 2013. Place attachment: Advances in theory, methods
and applications. Routledge.
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Popescu, G.H., Comănescu, M. and Sabie, O.M., 2016. The role of human capital in the
knowledge-networked economy. Psychosociological Issues in Human Resource
Management. 4(1). pp.168-174.
Stone, R.J. and Stone, R.J., 2013. Managing human resources. John Wiley and Sons.
Taylor, S., 2017. Contemporary issues in human resource management. Kogan Page Publishers.
Vaiman, V. and Collings, D.G., 2013. Talent management: advancing the field. The
International Journal of Human Resource Management. 24(9). pp.1737-1743.
Wellington, J., 2015. Educational research: Contemporary issues and practical approaches.
Bloomsbury Publishing.
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