The Asset Of Human Capital In An Organisation Commerce Essay

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Human Capital is considered as one of the most important assets of an organization, and managing this asset is called human capital management. One of the excellent platforms for boosting the human capital inherent in your organization is, resourcing and recruiting people with the right skills and the greatest potential. Human Capital is an intangible asset, like brand value, working practices or customer relationships but still these assets add intrinsic value to an organization. The difference is seen when it comes to profit and loss ,human capital is both measurable and tangible. 

Recruitment is a very important process of human resource management. Many organizations and corporations rely on this tool of recruitment as it helps them to get closer to achieving their overall corporation goal. This is why upper management is forced to give serious attention to recruitment, It is also said that unless you have the talent to execute that tie of business, any business strategy will falter. Recruitment is a process that involves a series of steps- the initial screening, selection, orientation, placement ,and performance management. Internal recruitment takes place when current employees are considered for promotions in an origination. "Most supervisors are about as reluctant to release current employee as they are to take a cut in pay."(Lord,J.S.1989). External recruitment takes place when recruitment is done from the outside labor market. Organizations turn to external recruitment when the existing employee do not fulfill the needed skills for the available position.News paper ads, carees fairs,corporate home page, government employment agencies,former employes ,etc are the different methods of advertising recruitment.

Example1; In the 1920s and 1930s "in the large organizations, such as ICI…and Mark & Spencer, the first specialist personnel departments were formed"(Tyson and York, 2000: 55). Following new developments in works of thinkers like Taylor (1856-1915), Fayol (1841-1925) and Mayo (1880-1949) personnel managers became more aware of administrative processes and management itself (Torrington et al, 2002).

Employee Selection and Testing

Selection is a basically a series f process that involves evaluation of qualifications, experience, skill and knowledge of an applicant, and this evaluation is done in relation to the requirement of the job to find out his suitability for the job, the course of action in selection procedure mainly deals with collecting significant information from applicant and selecting right person for the right job. This is done by assessing the candidate based on how well the candidate would perform if he were to be placed in the vacant position.selection process varies from one company to the other.for example in some companies selection is done by just one person,for the other they have a board of directors or a committee.It all depends on how the company has structured its hiring process.some send their recruiting team to different universities,where they either hier on the spot or arrange appointments for interviews.Different companies have different structure for their selection process.


Primarily a person's behavior is being tested using some essentials tools which are most likely to be reliable and valid. There are lots of things which shows proof based HR- the knowingly use of the most preferable provided proofs in various decisions regarding the conventions in the field of management for human resources to put stress on are basically checking the reliability and validity both.


Reliability is one of the main fundamentals for tests which associate with its stability. A test is reliable enough when it provides the same scores as an output either by taking one test or taking two tests alternatively on certain specific times. For e.g.: 1 when a user is giving a test on the basis of some certain criteria's and he scores like 120 but when he takes the same test on another day it shows totally different scores which makes that test unreliable and not trustworthy. Consistency and reliability can be determined by different ways.

One more reliability measure for a test is its internal consistency. For e.g. 2 on a test of vocational interest a psychologist includes 15 items, keeping in consideration that these items will differentiate the person's interest on that certain topic who is taking the test. After the tests were conducted, the results were statistically evaluated to the degree of responses and it was found that the outputs were different from one another. By the above process the internal consistency of the tests can be identified. Various physiologists have given it a name of "internal comparison estimate".


Reliability imperatively describes only the fact that the test is evaluating some key factors very consistently. It does not prove that we are actually identifying what we are supposed to identify. For e.g.: 3 in the case of a manufacturing companies product that is a yardstick which is 33 inches long and it is utilized for checking the length of a 33 inch board, it will give us a reliable and consistent result but unsuitably when we tend to use that yardstick for measuring 1 yard which is 30 inches long, although it shows us a reliable result but still it is misrepresenting the outputs by 3 inches. For the valid output in this case we require a valid yardstick because validity refers to the fact that the test is basically giving us a valid output or not which is required.

As discussed earlier that a person's behavior is considered to be as a sample for the test, whereas few of the tests are actually interpreting the behavior to be sampled as compared with the others.


Test validity actually refers to the point that "does the test demonstrate what it's actually meant to be measuring?" Comprising it in a different way we can tell that validity is a term which defines the accuracy of the assumptions that we can probably assume which will depend on the test. For e.g. 4 we can say that if in a test of mechanical engineering a person is scoring more marks as compared to his another colleague ,does it shows that the person with higher marks is more likely to be efficient enough in that field than the other person.


There are so many elementary frequency approaches for limits psychological abilities such as elementary and formal reasoning, literal awareness, and memory and arithmetic capabilities.



Recruitment via the internet is an economical way to advertise openings. This leads to a quicker response at a less time. For e.g. 5 American crop protection associations, Hr director, Marsha Whitley has stopped publishing $ 400 adds in the Washington for professionals, and rather started publishing adds on which costed her only $200. "instead of a tiny add that says,'ACPA needs an accountant,' I get a whole page to describe the job, give information about the association, and include a link to our website."

Differentiation and overload are the two main problems of internet recruitments.

Not many older people use the internet, therefore online application may lead to the discrimination of the older generation.

Employers eventually finish up being overloaded with resumes. For eg: 6 the cheesecake factory recapitulated all the criteria's for the job listings so that they wont get overloaded with useless resumes but in actual they will get resumes from the persons who are skilled in that particular job and are interested.

Most job seekers these days go online to look for jobs. Internet based recruitments is the recruiting source of choice for most of the employers for e.g.:7 one third of the applicants are obtained by the web in the cheese cake factory. Own websiters or job boards are also used by most employers.


There are many other online alternatives for applying jobs. For example 8-Applicants simply supply their name, location and the kind of work they do to register with sites like monster networking and linked Employee referrals and developing personal relationships for network are facilitated by these sites.

(Example 8): Accountant's deloite and touch asked employees to describe their experience with deloite using a short video clip. Fourteen out of four hundred were selected and posted on YouTube.

(Example 9): employers stream videos in their job posting using a video production by

(Example 10): networking sites like face book and MySpace are used by some employers for recruiting purpose.

(Example 11): McDonalds used networking site, where they posted employ testimonials, like second life to attract applicants.

(Example 12): "I find more qualified candidates by searching for resume than posting adds"- as told by an HR manager who used a keyword search for hot jobs database and found 52 resumes.

For eaxmple 13-the dot-joba domain: the employers who register at www.gotojobs are just a click away from the job seekers as this is facilitated by the dot-jobs domain.

(Example 13): Applicants can reach directly to Disney's Disney land recruiting website by just a click on www.disneylandjobs.


An interview is more than a conversation .An interview refers to a method of asking certain specific queries from a person verbally for gathering certain personal and professional information of the person.


Many kinds of interviews are used by an employer. For e.g.: 14 appraisal interview is done only after a discussion on the performance appraisal of the employee is done by the supervisor and other employee ratings. Exit interview is conducted when an employee leaves the company. This aims at bringing information which will prove to be a perception for what is wrong and right about the company.

Selection interviews can be systematized in the following ways:

How constructive they are.

Their "index"- the various kinds of queries it contains.

How the company executes the interviews.


Unstructured interviews are considered in such interviews where there is no fixed format selected by the manager of the company. There may be times when some of the queries are defined before hand but mostly they are not specified and very rarely they contain any required guide to verify if the answers are right or wrong. These types of interviews are mainly similar to a normal conversation between two people or a group of people. So we can say that many of selection interviews belong to this division of interviews.


In the structured interviews, it is totally different from unstructured interviews because in these interviews a manager of the company identifies every question according to the time and on the basis of usefulness. But while considering practical aspects a manager of the company sometimes chose all the standard set of questions and the answers related so as they should not leave necessary things and questions. For e.g. 15 applicants for the coast guard officer in the department of homeland security are screened using structured guides. It involves a method of rating the applicant formally and allows geographically distributed applicants to apply over the internet.


It should be under careful consideration that the application forms are made ensuring that they comply with all the equality employment laws. Questions to consider carefully are as follows:

Education : questions based on the attendance records and the graduation dates of the applicant is considered to be an important violation of rules and laws because it may be a way of identifying the age of the applicant.

Arrest record: There are laws which say that an applicant applying for some certain job should not have any arrest or any type of country court judgments as it violates title Vll.

Notification in case of emergency: it is basically considered as lawful to acquire personal information, name, age and other contact information of the person to be contacted in case of any emergency. But asking about the relationships of the applicant with that person will point to the applicant's marital status and lineage.

Membership in organization: in the application forms precautions should be taken not to include any of the names of persons or companies which will acknowledge the race, physical disabilities, religion, heritage or marital status.

Physical disabilities: it is basically against the law to ask for any physical disability or illness of an applicant until unless it is required for that job and it is clearly written in the application form because of the fact it is required in the job to know about an applicants physical abilities.

Marital status: An application form can contain information about the applicants whether he or she is married, engaged ,living with parents or anything else but it should not ask for it spouse or children's personal information because it is against the law of employment.

Housing: Enquiring about the information for an application whether he or she have some property named on them, any property on rent or any leases because it leaves a bad effect on the applicants mind and it is also considered as discriminatory. It can also put a bad effect on the groups with minorities and it will become very hard for the employers to justify their point of necessity for the business.


16 ) A Transsexual trucker was thrown out of his job soon after reaching work dressed as a woman, and has won a sex discrimination claim.

Mike Gaynor who was an ex- soldier was very pleasing and highly appreciated in his trucking job in Liverpool.

But the trouble started at the time when he came to work for conveying biscuits to a repository near Cardiff named as Vikkie-Marie after covering himself in full make up and jewellery.

17) Before being unreasonably kicked off from her job a woman director has won £64,320 as compensation who was being sexually attacked by a city fund manager.

Nadine Nassar was being harassed by a chief executive guy named as Oppenheim aged 53 with late night phone calls, text messages and being called for dates.

18) A judgment was heard when a senior immigration officer was fired from her job because of taking a longer period off from work due to her fertility treatment. An inspection was set in motion for her attendance records despite of the fact that she claimed for her absences to be fully acknowledged.

Mrs sahota , coming from north London is upholding the claim for sex and race discrimination opposing the border agency for being thrown out from work. The hearing continues.


19) Ms Azmi a teaching assistant was awarded an amount of £ 1000 when she was religiously discriminated at her workplace, while she was told to take off her Niqab which is a religious face veil worn by few Muslim women ,because of the reason that students in her English language class found it difficult to understand her.


20) An Asian council worker rosene railton aged 43 has been awarded £ 112,000 for racial discrimination. She claimed that she was publicly tortured and targeted by her boss who knowingly exaggerated her workload to let her down. She was pressurized to eat by her own and was also denied leave applications because she did not "fit in". Her colleagues tagged her as being "rude and nasty" and she was underestimated because of her race.

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