Managing Human Capital Entrepreneurship Advancement of the Organizat

Question: Describe about the Managing Human Capital Entrepreneurship for Advancement of the Organization. Answer: Part A. Introduction Introduction to Proposal Being the senior manager of Dhiraagu which is a telecommunication service provider in Maldives the advancement of the organization along with every individual working is one of the important responsibilities (Augusto, Couto Caiado, 2014). The role of leading the work force as well as the sharing the shoulder of top management officials is a task to be executed efficiently. The execution of work has to be oriented towards organizational goals. In any organization whether big or small the conception, advancement and execution of the enterprise magnitude have to be integral components. The delivery of work along with optimum performance has to be extracted from each individual working in Dhiraagu (Baptista, Karaz Mendona, 2014). One of the major roles as senior manager is to maintain balance between all the sections of the department along with keeping the objectives and advancement of work in mind. It is also required to provide suggestions and scope for improvement. It is to be assured that the employees realize the objectives and goals of the organization by accomplishing the tasks by using time efficiently (BarNir, 2012). The team has to work according to the business plan by following perception and ethics set up by the organization. Being accountable for enterprising and assisting any alteration required to accelerate the growth of the company is an indispensible role. Background to the issue The most important resource of an organization like Dhiraagu is its human resource. Employees devote most part of their day working hard to achieve the targets contributing to the productivity of the organization. The employees need to be constantly motivated to get connected to the organizational goals and perception so as to perform well (Cerrato et al., 2012). Employees undergo training and get exposed to various skills through experience from time to time which in result improves work quality and efficiency. Human capital denotes to the standard of value of the set of skills of an employee from economic context. Human capital management refers to the technique and system of handling and managing human resource in an organization. It is a part of talent management that denotes to the practice through which individuals are recognized and recruited and provided with knowledge and skills, development of leadership, succession, management of performance, providing training, development of career and other organizational methods such as collaboration of employee and planning of workforce (Corbett et al., 2013). This concept conceives that workforce is varying and has to be subjected for improvement which in turn contributes to the overall growth of the organization and its employees. Scope and Proposal of the Issue For any organization it is vital to have productive individuals at all levels of the management for achieving success. The human capital is handled by the department of human resource. The human resource management inspects and directs management of organizations workforce, optimization, acquisition, recruitment, strategy of workforce, planning, analysis, training as well as development of career of employees. As a whole human capital management refers to the enhancement of the skills of an employee so that the employee delivers the best possible outcomes (Criaco et al., 2014). The report is regarding the proposal to the management of Dhiraagu to enhance human capital management of the company so as to enhance the work atmosphere and create a better performing human capital. The proposal suggests ways to enhance employee motivation and effectiveness which will in turn propel productivity of Dhiraagu. Analysis of Organizational Climate Causes of low morale of employees- The performance of employees in Dhiraagu has been unsatisfactory which lead to repercussions such as work that is unproductive along with delay in work completion. This further magnifies errors that may result in great losses to the organization (Caselli Gennaioli, 2013). The issues may crop up right from ground to management level. The issues that may affect the motivation of the employees may expand from the deficiency of employers affirmation towards the work of the employees to the lack of methods to obtain goal oriented results. Causes of low morale of employees In order to avoid unproductive work and make employees perform better it is required to identify these issues and reach to the basis of the causes such as:- a) Uncertain expectations or requisites:-Employees in Dhiraagu feel disoriented and are unable to perform the goals of the organization when the requirements are not clearly set by the employer (Gedajlovic et al., 2013). The employees also get demotivated when appraisals and feedback is not provided to them. When the employer does not give proper illustrations of appropriate performance or does not rectify the mistakes through exercising steady analysis of job it relays a message that the supervisor does not give priority to the subordinates work. This hampers motivation of the employees and the workforce production falls off. b) Shortage of adequate materials:-When the management does not provide provisions of adequate equipment and materials to assist in obtaining productivity, the employees become demotivated (Grichnik et al, 2014). The appeal to the management by the employees regarding organizational infrastructures further adds to the resentment and destroys the motivation of the employee. The lack of these facilities in the work environment will create hindrance in the execution of the works due to which work performance as well as productivity suffers. c) Investment of personal business:-When an employer does not seek for his or her employees ideas, views or opinions, it results in creation of a work environment where the employee only works in order to gather his salary at the end of the month and not realize his importance in the organization. It makes the employee feel as if his contribution to the organization is not recognized and in return he/she feels disconnected with the organizational goals and vision and gets demotivated (Leitch, McMullan Harrison, 2013). The employee ceases to present his ideas, opinions and be creative which would have proved to be beneficial to the organization d) Shortage of pay or rewards:-An employee works in an organization with a basic need of finance which is supposed to be the prime motivation factor. If the organization does not pay optimum salary to the employee with respect to his/her standard of work he/she gets demotivated and loses interest in the job (Martin, McNally Kay, 2013). Even if the organization does not reward its employees for the best performances on monthly ,quarterly or annually, does not reward its employees with bonus for sales or for festivals ,its creates a sense of disconnection from the organization which results in demotivation of the employee. e) Leaders not setting up right example: - Some supervisors are egocentric, ruthless and belittle their subordinates which instill low morale in employees. Though these sort of supervisors are highly paid and dont really bother about their own motivation, they should generate motivation among other employees (Milln, Congregado Romn, 2014). The employees should feel that their leader is along with them. f)No or insignificant accountability:-Every organization should make effort in making its employees understand that every mistake they commit is a learning experience and at the same time the organization needs to make equal efforts in cooperating with the situation. If the supervisors are not cooperative and understanding, the employees feel discouraged and demotivated (Peng, Sun Markczy, 2015). g)Less or no career growth opportunities:-If in the organization the employees do not find rewards or appraisals for high performances or successive career growth opportunities they will not feel motivated to give better performance or even continue their career in the same company. h)Internal competition:-The backstabbing occurring due to too much of internal competition leads to sabotaging of the eagerness of the employees to put in best efforts .This also demotivates the employees from continuing their work in such work environment (Rauch Rijsdijk, 2013). I) Trust issues:-If the management or superiors in an organization do not build the relationship of trust with their subordinates or employees then everything the former do to enhance recognition of the latter will appear as manipulation. Employees will feel as if the subordinates are taking advantage of them by being too sweet and further the employees will dissociate from them as their morale will suffer. j) Not building teams that are effective:-The factors such as scare of conflict, accountability avoidance, absence of trust, shortage of commitment and not being attentive to the outcome gives rise to the failure of the management in creating an effective team. This leads to limiting the productivity and organizational objectives for both employees and the management. k) Keeping it unreal:-If the leaders fake the appreciation or their behavior towards their employees somehow it gets reflected and employees sense it. This adds to the resentment of the employees making them demotivated (Stone, 2013). Turnover Issues The strength of an organization comes from the lot of talented and skilled and experienced human resources and such employees should be given high priority. Though employee turnover being a natural component in any organization it decreases the efficiency of the organization and creates the loss of talented human resource as well as prices of the replacement of training and recruitment (Santarelli Tran, 2013). This costs a lot to the organization as the company had either given effort to bring in the skills or develop and train the employee with the set of skills required to do the job which is lost when the employee leaves the organization (Volery et al., 2013). This further gets intensified when the employee joins the competitor of previous company which implies what the former company lost is gained by the latter one. Causes of employee turnover a) Management is poor: - The employees get demotivated when they sense their efforts and work is not being appreciated or valued by their managers .This results in employees seek for appraisals and work environment where their work would be valued and hence, resign from the current organization. b) Improper hiring: - Employees however talented they may be in their curriculum will tend to leave the organization if their ethics and persona does not match with the company. c) Organization being unable to meet expectations of the employee:- Most of the time the pay scale, work conditions, benefits etc. do not fulfill the expectations of the employee because of which the employee ends his tenure in the company. Ways to reduce employee turnover a) Encouraging pay scale: - Pay scale and benefits that are highly competitive in the market if being offered to the employees, they are motivated and work harder in their profile and are dedicated to the organization. Competitive benefits such a healthcare, flexible conditions of work and holidays provides satisfaction to the employees and they do not feel the need to leave the organization. b) Relevance of work: - The quality of work matters to the employees and the management should make an effort to make the employees understand that their work is meaningful and adds value to the organizations (Warner, 2013). c) Pride: - The employees should feel that they are associated with a respected organization and take pride in working there. d) Leaders should respect their subordinates: - Supervisors should respect and value the efforts and the works of their subordinates along with respecting them which would make employees feel that they are important to the company. e) Employees being vested with decision making power: - The employees when empowered to make decisions instill a motivation in them that they too participate in the development of the organization. f) Building communication: - There has to be communication between the employees and their leaders so as to lessen the gap and information is shared so as to increase participation and bond. g) Team building exercises: - Efforts should be made by the management to build team so as to increase engagement of the employees in the organization. Importance of an Effective Team A team in a work place is a group of employees who come together to share ideas and information, divide the work load, take decisions, perform within the respective area of responsibility in an organization. Although the employees are hired for their individual skills they are put to test and made to perform in groups. It is found nowadays that professionals prefer to work in groups where work can be done effectively rather than striving individually. Managers, supervisors and subordinates all work together to generate a much better performance and productivity of better quality. There are more benefits when the work is done in groups as many people are working together for the same goal. For an instance if problem arises during work many people are there to assist in solving the issue. Many employees in a group make the workload to be reduced and divide which results in faster delivery of work with enhanced quality (Santarelli Tran, 2013). Teamwork denotes that the total is better than the individual parts as the responsibility is shared. This opens up the scope of the company to undertake more work eventually generate more revenue with same human resources. While working in a group multiple ideas generate during the discussion and meeting encouraging creativity. The employees get experience and learn a lot while working in a team. During the time of crisis team members lend support to one another which is crucial in a work environment. Employee Motivation and Engagement Introduction to Motivation Motivation is a process of administering inspiration in an employee to do a particular work. It helps in making the employee be willing to work. Motives are the needs which can be strongly perceived by the employee among the various needs, most of them which change with time. Motivation drives a person towards achieving his organizational goals. It can also be defined as the organizational technique by which a manager encourages his subordinates to work in a particular fashion to generate desired results (Volery et al., 2013). Motivating Employee In this process the manager also has to satisfy the needs, requirements, desires etc. of the employees such that they get motivated. Sharing of organization vision and clear expectations Each and every employee should be made aware of his or her job responsibility and in which way that contributes to the overall growth of the organization. The companys vision should be shared with the employees so that they are goal oriented. It is the responsibility of the employer to regularize appraisals and give timely feedbacks to the employees for their work assigned (Warner, 2013). The employer should analyze the work of the employees and rectify the mistakes if any. The workers should be able to perform well and achieve their expectations. Providing organizational equipment Proper organizational infrastructure should be provided to the employees keeping the technical as well as non-technical requirements into consideration. The management needs to improve the work environment by providing efficient resources along with providing basic facilities regarding refreshments (Warner, 2013). These efforts in enhancing the infrastructure will motivate the employees with a message that the management recognizes the outlook of their job and supports them in achieving the requirements. Encouraging team building and breaking communication barriers The management needs to make efforts towards organizing events and meetings in which the employees can convey their ideas, views and opinions which will enhance the creative pool of the organization. This not only will enhance the interest and involvement of the employees but also improve the productivity of the organization as a whole. When the employees notice that their ideas and opinions are being valued and put into execution for the development of the organization. This motivates the employees and they put in greater effort and generate better results. Rewards and incentives Dhiraagu need to revise its pay scale in order to instill motivation in its employees. There is also a need to reward the employees with special recognitions on monthly, quarterly or annual basis which will not only motivate the employees to work harder but will also create a competitive environment in the organization. Employee Engagement Employee engagement is an approach in the organization which is the result of the appropriate conditions in the work environment to give the best productivity according to the goals and ethics of the organization along with being motivated towards achieving success for the organization and advantages for themselves (Martin, McNally Kay, 2013). Employee engagement can be improved by the following means:- Sharing about companys impact instead of financial results:-The employees feel connected and motivated by the impact their organization has on the world around them. This is mostly noticed by the younger employees who form much part of the workforce. So speaking to them about how the company they are working with is leading in the market than speaking about its financial performance is going to keep them engaged. Rewarding employees who manage the task efficiently along with those with inspirational leadership:-Employees who work under inspiring leaders prove to be much more motivated and productive. Therefore, it can be said that employee engagement is very strongly affected by the superiors to inspire its employee. Employee advocacy:-The management should make efforts to improve the engagement through ways such as getting feedbacks from clients, customers and employees such that every individual associated with the organization should feel motivated and engaged and the employees should advocate or suggest the organization to acquaintances. Employee Retention and Productivity Introduction to employee retention It refers to various proceedings and approaches which enable the employee to work in an organization for a longer tenure. Every company invests time, energy, knowledge and money so as to make the new employees to perform equivalently with the existing employees (Leitch, McMullan Harrison, 2013). It does not matter how big or small the organization is once the new trained employee leaves it is a loss for the organization. This not only results in financial losses but also lowers the morale, performance and knowledge. To prevent such losses it is crucial to trace out ways to retain employees. Importance of productivity to organizational effectiveness Organizational effectiveness can be defined as the competency with which an organization is capable of meeting its goals and objectives. This denotes to overall effectiveness in areas such as talent management, leadership, strategy, sustainability, corporate culture, innovation, care for the environment, engagement, communication, etc. This also denotes to an organization where productivity is achieved with minimal wastage. Productivity on the other hand refers to the organizations ability to make proper usage of its resource for production of products or provide service to its customers or clients (Rauch Rijsdijk, 2013). Efficient usage of resources leads to lower production costs that result in improved sales and profits. This can encourage the investors and share value increases. This may also facilitate in sharing certain portion of the profit. Raising employee productivity Employees are supposed to give their best during working hours but often fail to do so. Thus, organizations have started allocating ways and methods to improve employee productivity. I) Relaxation on internet restrictions:-The fear of misuse of computers owned by the company has to be removed and the restrictions are to be uplifted so as to allow employees to surf freely and make efficient usage of internet .This will further enhance ideas and productivity. ii) Measuring of overall productivity: - The activities of the employees should be monitored regularly so as to have a clear idea about how the employees are executing the work given. Regular analysis of their productivity should be discussed and encouragement should be provided to them for better productivity. iii) Making work enjoyable: - The organizations need to include activities that are entertaining so as to create a delightful environment such that employees everyday eagerly comes to work. Proposed Recommendations Improving organizational climate a) Cleaning the workspace The workspace should be made clean by removing the untidy clutter so as to create an organized workspace in the organization. This enhances the organizational climate and manages work easily. b) Creating purpose The employees need to feel connected to their colleagues. In spite of belonging to different departments there has to be a unity in achieving the organizational goals and purpose. The employees should be able to notice how their contribution is being valued and proving fruitful to the organization (Leitch, McMullan Harrison, 2013). c) Rewarding fair rewards The organization has to make efforts in recognizing achievements of its employees, though it is not necessary for the rewards to be high figuration. The rewards for performing outstanding definitely boost morale of the employees improving the organizational climate. d) Developing communication and trust The management should put I effort to communicate with its employees and set clearly convey the organizational purpose, goals, mission, achievements, efforts and financial status so that the employees will have a trust on the organization due to clarity. Engaging Employees and Retaining Them Recruiting skilled workforce, attracting and hiring them and most importantly retaining them in the organization is one of the major challenges faced by organizations. Certain effective ways to engage and retain them are- Providing a healthy and positive work environment It is one of the major responsibilities of the manager to create a healthy and positive environment which appeals to the employees and they eager work engaging themselves and being dedicated to the organization. Recognizing performance and reinforcing apt behavior The basic nature of human being is to desire for appreciation and that retains him from withdrawing back. This concept has to be put into execution in the organization and regular recognition along with rewards has to be bestowed on the employees so that the motivational need is met. Developing potential The organization needs to create future for its skilled employees so that they do not leave the company which is an ultimate loss for the organization. Development of career and challenges should be provided to the employees so that they can look for scope for improvement. Increasing Productivity The ways to increase productivity at workplace are- Creating familiar environment: - The management needs to build an environment which feels familiar to the employee so that in spite of any crisis at workplace they would feel that the supervisors and managers have got their backs. This sense of belonging enhances productivity. Being aware of employees background: - Knowing the employees, whether working part time or full time, location from where they are coming to the workplace, the backgrounds they belong to helps create awareness and better understanding between both the employer and employees boosting productivity. Retaining by training: - Every individual at workplace gets lost and is unable to comprehend whether he is meeting the expectations or not. So as to clear these confusions it is required to regularly train employees (Grichnik et al, 2014). This way they would feel being taught and improving their skills and will feel the urge to keep working in the organization. Giving value to every employee: - The management needs to give value to every employee in every department equal importance so that they do not feel discrimination in their workplace. They should feel that they are also in the eyes of their leaders and get motivated to perform well. Conclusion In this report the issue regarding the effectiveness, retention and motivation in Dhiraagu has been addressed. Alteration in the human capital management of the organization regarding productivity has also been discussed. Measures that can be taken to boost motivation, efficiency, retention and productivity have been described. References Augusto Felcio, J., Couto, E., Caiado, J. (2014). Human capital, social capital and organizational performance.Management Decision,52(2), 350-364. Baptista, R., Karaz, M. and Mendona, J., (2014). The impact of human capital on the early success of necessity versus opportunity-based entrepreneurs.Small Business Economics,42(4), pp.831-847. BarNir, A. (2012). Starting technologically innovative ventures: reasons, human capital, and gender.Management Decision,50(3), 399-419. Cerrato, D. and Piva, M., (2012). The internationalization of small and medium-sized enterprises: the effect of family management, human capital and foreign ownership.Journal of Management Governance,16(4), pp.617-644. Corbett, A., Covin, J. G., O'Connor, G. C., Tucci, C. L. (2013). Corporate Entrepreneurship: State?of?the?Art Research and a Future Research Agenda.Journal of Product Innovation Management,30(5), 812-820. Criaco, G., Minola, T., Migliorini, P., Serarols-Tarrs, C. (2014). To have and have not: founders human capital and university start-up survival.The Journal of Technology Transfer, Caselli, F., Gennaioli, N. (2013). Dynastic management.Economic Inquiry,51(1), 971-996. Gedajlovic, E., Honig, B., Moore, C. B., Payne, G. T., Wright, M. (2013). Social capital and entrepreneurship: A schema and research agenda.Entrepreneurship Theory and Practice,37(3), 455-478. Grichnik, D., Brinckmann, J., Singh, L., Manigart, S. (2014). Beyond environmental scarcity: Human and social capital as driving forces of bootstrapping activities.Journal of Business Venturing,29(2), 310-326. Leitch, C.M., McMullan, C. and Harrison, R.T., (2013). The development of entrepreneurial leadership: The role of human, social and institutional capital.British Journal of Management,24(3), pp.347-366. Martin, B. C., McNally, J. J., Kay, M. J. (2013). Examining the formation of human capital in entrepreneurship: A meta-analysis of entrepreneurship education outcomes.Journal of Business Venturing,28(2), 211-224. Milln, J. M., Congregado, E., Romn, C. (2014). Entrepreneurship persistence with and without personnel: The role of human capital and previous unemployment.International Entrepreneurship and Management Journal,10(1), 187-206. Peng, M. W., Sun, S. L., Markczy, L. (2015). Human capital and CEO compensation during institutional transitions.Journal of Management Studies,52(1), 117-147. Rauch, A. and Rijsdijk, S.A., (2013). The effects of general and specific human capital on long?term growth and failure of newly founded businesses.Entrepreneurship Theory and Practice,37(4), pp.923-941. Stone, R. J. (2013).Managing human resources. John Wiley and Sons Santarelli, E. and Tran, H.T., (2013). The interplay of human and social capital in shaping entrepreneurial performance: the case of Vietnam.Small Business Economics,40(2), pp.435-458. Volery, T., Mller, S., Oser, F., Naepflin, C., Rey, N. (2013). The impact of entrepreneurship education on human capital at upper?secondary level.Journal of Small Business Management,51(3), 429-446. Warner, M., (2013).Human Resource Management with Chinese Characteristics: Facing the Challanges of Globalization. Routledge.