Workers, Are they assets or expenses

                            

Workers, Are They Assets or Expenses

Many a times, a reduction in the revenue collection often lead to the restructuring of the operational structures, and one general viewpoint during the restructuring process is that the employees are expenses that need elimination. However, a different school of thought always, views the human resources as assets that need development along with effective management. The two viewpoints are vital not only due to their role of in influencing the decisions of the executives when it come to the downsizing of the company staff but also due to their role in influencing how the human resources view themselves as well as how they carry out their duties. The attitude that arises from such viewpoints influences the productivity of the company. The management of companies has the capability to influence the attitude along with the morale of the employees by subjecting them to the conditions of his choice. Better conditions enhance the productivity of the employees while poor conditions compromise their productivity.

The view of employees as either assets or expenses also depends on the size of the company, and this is because in big companies, the number of employees might outnumber the available roles, and this may lead to under utilization of the available workforce. On the contrary, smaller companies tend to have relatively small number of employees compared to available duties; thus the employees in the later scenario end up being fundamental to the operation of the company, and this makes the management of the company treat them as assets. Due to the approaches by different types of companies on their employees, each company often struggle to bring in an element of balance between the expenditure and the revenue. As a result, the smaller companies struggle to come up with ways that will enable then to get the best from their employees while bigger companies struggle to downsize the workforce so as to remain with just the necessary workforce size.

For the smaller companies to maximize the available labor force, they need to implement effective strategies that will boost the morale of the employees, and one of such initiatives includes the development of the employees. Offering the employees and opportunity to develop their careers, for instance coming up with the fair as well as transparent promotional structures and career development structures make the employees commit to the company and work diligently. Additionally, introducing study opportunities for the outstanding employees encourages the other members of staff to take their roles seriously. Through such initiatives, enables the smaller companies to get the best from their employees.

Additionally, implementation of strategies that enable the employees to feel valued in the workplace also leads to improved productivity. Programs like awards and recognition of the individual employee for their efforts make them feel valued. Besides, involving the members of the staff in major decision making concerning the companies’ progress along with the operations of the company makes the employees to feel very much of the company, and this makes them work hard with the intentions of protecting the values as well as the culture of the company.

The smaller companies can also make the best use of the available workforce by coming up with initiatives that create an interactive working environment. This involves the elimination of numerous hierarchical levels that hinder the flow of information between the employers and the employees. Besides, the elimination of such hierarchical levels reduces the magnitude of control that the managers have over the employees, and this enables all members of the staff to express their ideas along with feeling effectively by using the appropriate channels. The creation of interactive workstations not only increases the bond and teamwork amongst the members of the staff but also minimizes the chances of conflict between the workers. Besides, is also plays down the chances of the employee rebellion and this harmony in the workplace lead a strong, efficient along with reliable workforce, which enables the companies to meet their set objectives.

As opposed to the smaller companies, the bigger companies face the challenge of boosting the morale of their workforce. While downsizing might appear to be the most viable mechanism because of the guaranteed reduction in the expenditure in the form of wages, it comes with numerous drawbacks that may prove to be costly in the long run. One of the shortcomings of downsizing the workforce is the reduction of employee morale. The fear of losing jobs as well as that of work overload after the downsizing occurs may discourage the entire workforce, and this lowers the morale of the entire unit. As a result, the company seems to suffer from low revenue collection due to either a reduction in the quantity of production or due to the production of low-quality products that cannot compete effectively in the marketplace.

Another disadvantage of downsizing is the potential loss of finances. The employees who lose their jobs in the process of downsizing should get the severance pay. Thus, in settling such pays as required by the labor laws, the company suffer immense financial loss. Additionally, downsizing of the workforce leads to a decreased productivity along with creativity, and this is because the remaining employees often opt to reserve their skills along with the creativity in case they too lose their jobs. Besides, the fear arising from the potential job insecurity bars the employees from making bold decisions that are essential in the promotion of the company’s productivity. The decrease in the productivity, as well as the creativity, leads to the drop in production, and this leads to a reduction in the revenue. The bigger companies, however, have the option of retaining their workforce and coming up with mechanisms that can transform their employees from being expenses to being assets.

The bigger companies can come up with innovative ideas of utilizing the bigger workforce such as the creation of other sectors and assigning the employees roles in such sectors. The management of the company can also transfer the employees to other existing but understaffed departments. Through such rearrangements, the company can make the employees occupied, and this improved the productivity of the employees; thus transforming them into assets. Additionally, the bigger companies can launch new products and utilize their bigger workforce in enhancing the production along with the sales of the new products. Worth noting is that the manner in which companies treat influences the mindset along with the productivity of their workforce. Treatment of the labor force as assets leads to better performance and consequent increase in the revenue collection, but trading them as expenses influences their productivity negatively, and this affects the company in the long run.