RETURN ON INVESTMENT ON HUMAN ASSETS OF AN ORGANIZATION

RETURN ON INVESTMENT ON HUMAN ASSETS OF AN ORGANIZATION

Time is tough and getting tougher every day.

A never seen scenario of helplessness against a micro, invisible virus is the hardcore reality today.  No doubt, medical science, and the frontline corona warriors all around the world are leaving no stone unturned to normalize the human life. But still miles to go before we sleep. In any case, we must face the situation, so instead of crying and sitting in the corner, let us analyze the situation at 360 ̊ and try to move on taking others along with us.

 

In this horrible pandemic scenario, what a leader of any organization should do? Should he/she find short term opportunities or long-term opportunities or both? In my view a leader should always be a visionary. He / She must be solution oriented but should have an analytical eye to find out the burning problem and then try to provide the best possible solution.  May it be any organization, the solution today should be such that it should help in survival of humanity. Any business opportunity today, that is helpful in bridging the gap between the normalcy and the present painful picture, should be explored with a noble intent to serve the society. It should be at the affordable cost so that it can be a win-win situation for both the end users as well as the manufacture/ professionals/ service providers.

 

 

The first law of energy says, “Energy can neither be created nor be destroyed, it can just be transformed from one form into another form. It is also called as law of conservation of energy. It is always an important decision how we channelize our energy. So is the case with the investment. It is always an important decision for an individual as well as for any organization. Return on investment can also be said as a measure of how best we have channelized our resources. If we channelize our resources in proper direction with proper planning, we can have better return on investment.

 

It is up to us, what we expect from us. Every action is the reflection of the vision behind it. If the vision is only short term, long term survival may be in question. If we focus only on long term goals, without proper bifurcation of the same in the short-term goals; our long-term goal may remain a goal only.

 

Sooner or later, balance sheet of an individual or an organization is the reflection of the vision backed by consistent planned efforts to achieve the vision. My focus today is on one of the most important assets of an organization, i.e., Human Resources of an organization. 

 

If an organization is a service provider, this multiplication factor may be reflected in the quality of the service, ownership of the customers and body language of the employees. It will be reflected on the face and smiles of the employees. Smile here will not be plastic smile but natural smile which come out of the sense of “My Organization. ”Likewise, if an organization is a manufacturing unit, it may be reflected in the superior product design and durability, reduced cost, efficiency, and customers’ delight for the products. If it is a research department, it may be reflected in innovative ideas.

 

In fact, with proper care, concern and nurturing of the human assets, innovation may be contributed by the front liners in any organization. When there is a sense of belongingness and ownership, everyone tries to give his /her best. That is the reason, though it is not a quantifiable asset on the balance sheet, it is one of the most important parameters of the success of any organization in profit and loss or income and expenditure statement.

 

 

Yes, for an organization, investment on Human Resource is one of the best yielding investment. It is something which only wise and visionary leader can understand. It can be well understood by Newton’s third law of motion, “Every action has equal and opposite reaction”. Of course, there is a magical deviation from the law. I mean to say,  “Whatever feelings we percolate to our employees, multiplies and come back to the organization” Multiplication factor here is the magical deviation from the Newton’s law. Of course, the condition is that it should be reflected in the communication and action of the leader. Assurance of “I am with you” is one of the best motivators.

 

Attitude of gratitude towards the organization is the most important quality an employee should have.  If an organization is successful in picking up the employees with this quality, half of the job is done then and there. Then after there is a need of continuous mechanism for percolating and reminding importance of value system of the organization and how the organization takes care of the employees.

 

It could not be a one-way deal. The law of energy as well as the law of motion is equally applicable to the employees too. Employees must have sense of belongingness and ownership to the organization. It is an investment for him / her and return on investment is linked there too. Whatever investment an employee does in terms of the commitment to the organization goal percolated to him or her; returns to him or her individually as well as collectively. So, it is a basic duty of each employee to develop that eye to see and understand the collective return on investment in addition to the individual return one gets.

 

So, not only economic growth, but hand in hand an organization as well as employees can have robust 360 ̊ development to reach greater heights.

 

Deepak Parmar

Director, SBILD Vadodara.

(Author of the Book “Heart Beat is Chargeable Now”)

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