Cost and Savings

Cost and Savings

Introduction

Human resource is the most important asset of an organization therefore it is important to effectively manage the workforce to ensure success. Managing the human resource efficiently will result in various advantages, as motivated employees tend to work with greater efficiency resulting in increased productivity. This would help in reducing the cost of the firm by efficiently utilizing the resources with minimum waste. With increase competition in the market to have an edge over the rivals companies need to make certain that they produce goods with lower cost of production that will enable them to generate greater profits and survive successfully in the industry. It is important to hire human resource that possesses the required skill to ensure that that new ideas are developed and the goals that have been set can be accomplished successfully (Mercer, Barker & Bird, 2010).

It is not easy task to plan strategies that will prove to be effective in saving the costs and increasing profits. In the current environment it has become challenging for the managers to reduce the human resource cost. It is crucial to tackle the problems that employees come across while working in an organization, since addressing these issues is essential for the future success of the business as employees' performance can create significant impact over the organization's effectiveness. Employees should be provided with good working environment and opportunities to enhance their skills. The performance of the workforce should also be measured to evaluate their productivity, it is important for the management to provide job security and safe working conditions for the safety of its workforce they should be considered as an important resource for the organization. To reinforce the good behavior and performance of an employee they should be rewarded and encouraged by giving them various incentives to keep working effectively and that will motivate them to increase their productivity (Tyson, 2006). They should be trained to improve their skills and to make certain that they are efficient enough to compete with others, for those who perform well and are able to achieve the benchmarks that have been set should be promoted to higher levels that will satisfy the workers and motivate them to work harder.

Discussion

Due to intense competition companies today struggle to overcome the problem of increased cost they strive to balance the persistent pressure of cost cutting. It is important for human resource management to recruit employees that are competent and proficient in their skills, the role and contribution of these employees towards achieving the companies objectives should be analyzed and it should be examined that they are not making any cuts that would have a negative effect on the organization in the coming years and would result in a fall in its growth pattern in the market to capture higher share and generate greater results (Armstrong, 2012).

The increase in cost of many organizations could be as a result of ineffective management of its employees that would result in an increased absenteeism and ...