...it be sold. Analysts struggle with such fact and hence lose interest in accounting for Human Capital when evaluating a firm. Another factor of equal importance lies in how analysts do not see the value of Human Capital. This is due to a couple of reasons, one being that they themselves work in an industry that has yet to see functional HR departments that support Human Capital correctly. Another is despite the highly qualified Wall Street analysts, their experience is lacking in areas that deal with Human Capital, such as HR. What separates good companies from great companies is the work force. Although intangible, it does not depreciate in value. Human Capital in fact will appreciate in value as firms start investing in its work force, specifically in training and development programs for its employees. Analysts of Wall Street must start paying attention to Human Capital of firms when valuating a firm. They need to realize that, like any other capital asset, an investment in Human Capital will yield a return. This is also the reason why analysts should not treat Human Capital as expenditure, rather they should treat it as an investment and hence they should be able to quickly realize that Human Capital really is a company’s biggest...
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...opportunities as well as many challenges for foreign firms trying to integrate themselves into the Chinese banking sector. • Despite having extremely conservative guidelines, the Chinese government managed to attract significant foreign interest and investment. • However, while most of the developing nations adopted trends set by the global banking giants, China made its own norms and forced those banking giants to comply with it. • Instead of the traditional mergers and acquisitions practiced in most foreign direct investments, China offered strategic partnerships to a maximum permissible limit of 20%, while total foreign ownership in any bank was capped at 25%. • The global banks developed customized lending policies, banks cards, and asset management products to cater to the huge retail banking market. • The partnership between the foreign partner and the Chinese bank not only needed to be a strategic fit and complementary in nature, but it also had to be in line with Chinese culture and value system and had to gradually modify the system to make it more beneficial for both parties. • Biggest challenge for the strategic alliances came from the alignment of the critical human resource management (HRM) functions such as HR planning, staffing, appraisal, training and development, employee retention, etc., with Chinese culture. Key Issues Differences in Business Cultures • The differences in culture, labor markets, and employments systems between China and other...
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...“The difficulty in adopting an investment approach to human capital management is the level of risk involved.” Critically examine this view from the perspective of a Human Resource Management professional. (I got 14out of 15) As the business environment continues to evolve organisations are increasingly adopting an investment perspective towards managing human capital. The adoption of an investment approach to HR management requires human resource to be viewed as assets. It also entails the value of these assets and their associated risks and returns to be accurately measured. However, it is easier said than done for management to view their people as assets, and even more so, implement the investment approach to HR. An organisation’s ability to supporting an investment perspective depends on, among other things, how investment-oriented the company is. Several factors influence this and one of these is the attitude towards risk. This is very critical due to the high risk level associated with HR investments. One of the most distinct characteristics of HR investment as compared to other investments is that it is not owned by the company and this presents a major problem to strategic HR. People can choose to leave the organisation, or more precisely the managers, taking critical skills with them, and thus, the company would not be able to realise the returns from its investment. This manifests a high level of risk; hence, as most commonly risk-averse in nature, managers would...
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...Human Resources in the Restaurant and Hospitality Industry 8/13/2015 In the restaurant and hospitality industry, the manner in which human resources (HR) management is handled is largely dependent on the size of the company. This can present problems for smaller organizations that may not place a large emphasis on HR management until it’s too late. Many companies are corporate-owned and HR management processes are established at higher levels than just the specific locations where a majority of employees work. In smaller organizations, however, these policies are typically not established beyond the most basic, simplistic measures. These problems can largely be mitigated by placing a forward-thinking approach to HR management, and making adjustments to compensate for the business’ current organizational structure, or lack thereof. There are a number of difficulties in the nature of HR decision-making that make implementation difficult. Human assets have features that differ from most other resources in the company, such as its final product and financial capital. Human performance is not easy to predict; it is very challenging to make a definitive case that a particular investment clearly leads to improvements in employees' performance, which then has a direct effect on the financial results of a company. At the same time, costs associated with people are much clearer. While the link from employee pay to employee attitudes to employee behaviors to customer perceptions...
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...Fourth Edition 1 Investment Concept & project investment Investment : basics The process of compounding and discounting Compound interest and future value (FV) of a single payment (« lump sums ») FVn = PV(1+I)n With N number of period (= years, quarters,months) I interest rate PV present value FV future value at end of year « n » Step-by-step approach or formula approach Use of spreadsheets (Excel) 1. Int. 2. Scope 3. Time 4. Cost 5. Quality 6. HR 7. Com. 8. Risk 9. Proc. Investment: basics Present value (PV) PV = FVn / (1+I)n Step-by-step approach and formula approach Finding the interest rate « i » ? Finding the number of years « n » ? 1. Int. 2. Scope 3. Time 4. Cost 5. Quality 6. HR 7. Com. 8. Risk 9. Proc. Investment: basics Annuities (ordinary) A series of payments over time At the end of each period Periods 0 5% 1 2 3 Payments -100€ -100€ -100€ 1. Int. 2. Scope 3. Time 4. Cost 5. Quality 6. HR 7. Com. 8. Risk 9. Proc. Annuities (due) At the beginning of each period Investment: basics Future value of an ordinary annuity With ⎡ (1 + I )n − 1⎤ FVAn = PMT ⎢ ⎥ I ⎣ ⎦ Interest rate I Series of payment (= constant payment) 1. Int. 2. Scope 3. Time 4. Cost 5. Quality 6. HR 7. Com. 8. Risk 9. Proc. Investment: basics Future value of an ordinary annuity Periods 0 r=5% 1 2 3 Cash Flow 100€ 100€ 100€ 100.00€ 105.00€ 110.25€ 1. Int. 2. Scope 3. Time 4. Cost 5. Quality 6. HR 7. Com. 8. Risk 9. Proc...
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...Assignment 1: Organizational Analysis JPMorgan Chase & Co. Brandi L. Freilach Dr. Marla Boulter HR 10/30/2013 References: Vince Lombardi Read more at 1.http://www.brainyquote.com/quotes/keywords/organization.html#8Mp1mhOWuk8TTQwJ.99 2. Nicolas Childers, Chase Bank, Project manager in Lake Mary, Florida 3.http://www.hreonline.com/HRE/view/story.jhtml?id=533351239 4.http://www.jpmorganchase.com/corporate/About-JPMC/client-solutions.htm 5.http://www.jpmorganchase.com/corporate/Corporate-Responsibility/corporate-responsibility.htm 6.http://www.reuters.com/finance/stocks/companyProfile?symbol=JPM.N “The achievements of an organization are the results of the combined effort of each individual,” Vince Lombardi. The role of HR departments in organizations is becoming clearer and I will be researching JPMorgan Chase & Co., for this assignment. I will describe JPMorgan Chase & Co., what they do, the customers they serve and their size. Also, within this assignment I will be researching JPMorgan Chase & Co.’s mission statement, while implementing the role that HR plays in fostering the organization’s mission statement. I will be assessing the common HR challenges facing JPMorgan Chase &Co. I will make recommendations for an HR strategy that I would implement in the organization to overcome the challenges assessed. Lastly, I will determine how effective my recommendation would be to making the organization more competitive. JPMorgan Chase & Co., is the name of...
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...1. Introduction The marketing simulation requires our team to assume the role of Chief Executive Officer of Minnesota Micromotors, Inc. (MM) and design the company’s marketing strategy. MM manufactures the Orthopower Micromotor™ used in orthopaedic medical devices. MM had just turned a modest profit after several years of losses. However, it faced challenges in recent potential market share loss and a decline in revenue in the most recent quarter. 2. Market Assessment The segment of the motor industry in which MM operated was highly competitive, with over 100 participants. With MM’s significant investment in the product line’s power-to-size and efficiency — the two features cited most often by original equipment manufacturers (OEMs) as sources of differentiation for MM’s medical motors – MM’s motors delivered the highest efficiency among all miniature direct current motors. Over 70% of MM’s revenues were generated from customers that placed large-volume orders. In particular, Segment A placed a premium on the motor’s power-to-size ratio and contributed to approximately 33% of MM’s revenues. However, MM’s market share of Segment A had fallen from 24% to 19% over the three quarters preceding the simulation. The relationship between MM and its customers was a close one, involving a constant dialogue between many participants. The quality of these relationships and the benefits gained by both sides were critically important to MM. However, customer interviews suggested...
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...Special Issue: Bridging Micro and Macro Domains Journal of Management Vol. 37 No. 2, March 2011 421-428 DOI: 10.1177/0149206310373400 © The Author(s) 2011 Reprints and permission: http://www. sagepub.com/journalsPermissions.nav Invited Editorial Bridging Micro and Macro Domains: Workforce Differentiation and Strategic Human Resource Management Mark A. Huselid Rutgers University Brian E. Becker State University of New York at Buffalo In this article, the authors focus on the challenges and opportunities associated with integrating the macro and macro domains of the strategic human resource (HR) management literature. Their specific focus is on the development of a differentiated HR architecture in support of strategy execution as a key organizing theme. A focus on strategic capabilities and strategic jobs as the focal point of workforce management system design represents a significant potential source of value creation for most firms. But, also, differentiation by strategic capability instead of hierarchical organizational level represents potential implementation challenges for managers, and theoretical and empirical challenges for academics. Keywords: high-performance work systems; workforce differentiation; strategic human resource management; strategic capabilities A significant divide between the micro and macro levels of theory and analysis is evident in many areas of the organizational sciences. While increasing levels of specialization are often associated...
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...the total cost would be $66,000. With a savings of $337,500 per year, the return on investment in the light meter system would be 5.1 (337,500 / $66,000). 2. Purchase one additional dryer to increase process capacity by almost 33%. The dryer can be purchased for $60,000. Process capacity would increase to 800 bbls/hr, because each dryer rates 200bbls/hr. As the wet berry flow rate increases to 800 bbls/hr, the bottleneck is still on the dryers because (1125-800=325bbls) are still left unprocessed and the separators can still process 800+375=1175bbls from 1200bbls/hr. However, the resulting flow rate increase of around 33% could cut overtime labor during the fall by as much as $72,000 (12,000 over time hours x $6/hr) each year. The return on investment would therefore be positive at 0.2 ($72,000-$60,000 / $60,000). However, if we are to buy 2 dryers, the dryer capacity increases to 1,000bbls/hr, but another bottleneck will occur at the separator stage it cannot process 375dryberries + 1000wet berries/hr. Thus, it is ideal to buy just one more dryer. 3. Dry holding bins should be converted to wet-dry combination bins only if management decides that the costs of waiting trucks (both financial and nuisance) is sufficient to justify the investment. Increasing the capacity of the holding bins would not increase the process capacity. Additionally, it is difficult to justify an investment to increase buffer capacity. Resources would be better spent increasing...
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...article examines the strategic role of HR and its main practices, describes the outcomes of the respective category of HR practices, explains the critical reasons for measuring HR’s efforts, and proposes a framework for assessing HR. Ultimately, organizations would be able to utilize the information to determine how particular HR practices correlate with better business results; determine potential areas for investments, expansions, and reductions; justify budget allocations; and be more accountable for each dollar spent within the organization. The framework proposed does not merely explain the cost for each of the major HR activity, but demonstrates the value of the activity and hence, the opportunity to determine if it is a worthwhile investment and strategy for creating a competitive advantage. What value does the human resources (HR) function contribute to the bottom line of the organization? Over the years, there has been tremendous emphasis placed on HR practitioners becoming strategic business partners and being a value-added source within organizations. Traditionally, HR professionals could talk generally and conceptually about employee morale, turnover, and employee commitment being outcomes of HR efforts. Furthermore, the HR function is often viewed as an expense-generator and an administrative function and not as a value-added partner. Ulrich (1997b) reiterated that to fulfill the business partner role of HR, concepts need to be replaced with evidence...
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...AC505 Final Exam Review Answers Chapter 2 COG Mfg & COGS – Traditional Costing – TCO A East of the Border Garage incurred the following costs during January: Raw materials $45,100 Direct labor 48,300 Manufacturing overhead 34,600 Selling expenses 29,800 Administrative expenses 36,700 Interest expense 8,500 During the month, 6,400 units of product were manufactured and 5,900 units of product were sold at $ 35 each. On January 1, East of the Border carried no inventories. a. Cost of goods manufactured: Current period manufacturing costs - Raw materials $ 45,100 Direct labor 48,300 Manufacturing overhead 34,600 Total $128,000 Cost per unit = $128,000 / 6,400 = $20 b. Cost of goods sold = $20 * 5,900 = $118,000 c. The difference between cost of goods manufactured and cost of goods sold is in the finished goods inventory account on the balance sheet. In this case, since more units were produced (6,400) than sold (5,900), the finished goods account will increase by $10,000 ($20 per unit * 500 units). Ch 5 High Low Method – TCO E | |Week 1 Chapter 5 Exercise 6 Data | | | | | | | | | | | | | | |1.) | ...
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...contributors to an organization’s success. This then throws the spotlight on how businesses invest in their human capital asset, in order for it to add value. For any commercial organization, this is an important component to understand. If a company understands how its human capital contributes to their business success, it can then be measured and managed more effectively. Human capital management is a reciprocal relationship between supply and demand: employees, contractors and consultants invest their own human capital into business enterprises and the business enterprises need to manage the supplier. Any organization interested in its performance will naturally ask how well they are managing this asset to ensure maximum return on their investment. In the same way, all employees, contractors, consultants and providers of human capital want to ensure they are getting the appropriate return for their own human capital investing through salary, bonuses, benefits, and so on. Human capital may well now be the most critical source of competitive advantage, but it is also...
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...Human resource management is responsible for how people are treated in organizations. It is responsible for bringing people into the organization, helping them perform their work, compensating them for their labors, and solving problems that arise. Recession presents a very difficult time for any existing organization in today’s corporate world and no company is exempted from this truth. The biggest challenge for companies and especially Human Resource in this economy downturn is to survive and to remain competitive, companies reorganized and reengineered to reduce waste. Recession poses unique challenges to the HR department. Human resources professionals often struggle to obtain the resources they need to effectively manage people in the workplace, and the difficulties that they face are augmented when economic conditions worsen. It is essential for every company to know how to implement the right metric set for this very trying period. I. Introduction In today's arena the most common word we come across is recession. Recession is a general slowdown in economic activity over a long period of time. A recession normally takes place when consumers lose confidence in the growth of the economy and spend less. This leads to a decreased demand for goods and services, which in turn leads to a decrease in production, lay-offs and rise in unemployment. Investors also show less interest which affects the capital and financial flows, import - export and overall Gross Domestic Product...
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...Abstract Purpose: The purpose of this report is to study the HR Policies and practices in Stock broking Firms in Investment financial Sector. Methodology: in this study, we intended to assess the HR policies and practices in stock broking companies. Primary data based on three stock broking firms and secondary data based on 10 research paper were analyzed to assess HR policies and practices by stock broking firms. For this study, many factors are consider for further analyzed like recruitment, selection, induction, learning & development, performance appraisal, career progression, rewards, employee recreation. The sample analysis analyzed is constituted of stock broking companies listed on the one of the stock exchange in India. Findings: In stock broking firms, they are used pre-define structure for recruitment and selection. They are also followed all the HR practices and policies which applicable in finance industry as well as other industry. Research limitation: This report is only focused on one sector (investment) and in investment sector only considered 3 stock broking firms for this study. Most of head of the HR manager were in Mumbai, so the collected of the data from subordinate HR managers or rather HR executives. Introduction: HRM contributes to organizational performance in different ways: through sound functional basics, through effective realignment when the external environment changes; and by building an organizational context to that the...
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...psychological literature supports that generalized investments have value for the firm through it’s effects on worker’s commitment to the firm. This paper examines the impact of firm’s specificity in human capital versus generalization commitment of externalized workers. Externalized workers, face persistence pressure to maintain assets that are highly desirable in the market. Firms cannot offer lifetime contracts but nonetheless offer workers greater assurances of remaining competitive in the job market through more attention to general skills development and training. These skills increase the probabilities of the employees remaining employable, thus reducing their anxieties about the diminished job security (internal workers) or the stability of the employment relation (external workers), decreasing the likelihood of future or prolong unemployment. The study show more positive response in external workers when generalized investment by employers are made. Firms often fear to invest in externalized labor but the potential positive effects it has on employee’s commitment level are valuable outcomes of firm’s investments in general skills development and other transferable resources. The resource-based literature holds that the key strategic assets for a firm are its human capital. Loyalty and commitment are important sources of firm’s effectiveness, and it is worthwhile to increase commitment. Commitment vis-à-vis generalized investment can generate “rare” firm resources. Strategic...
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