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Contemporary Issues In Human Capital Assignment Sample

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Introduction - Contemporary Issues In Human Capital

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In the current business environment, firms are using technology in a great way through which they are able to complete all of their work within stipulated period of time and in an effective way. Moreover, in every organization, it is required to motivate the employees to work in right direction so that their performance can be enhanced. Earlier, competition was also not high as companies enjoyed monopoly in market. In the medium sized firms, the turnover in context to staff members is very high and because of this, several reasons arise because of which people left their job. Hence, firms use several models and theories which help them in resolving the issues and problems which they are facing with employees (Popescu, Comănescu and Sabie, 2016).

There are various factors which have accountability of increased employee turnover that are needed to be solved within stipulated time period. Top executives who formulate policy and procedures which are followed by human resources in an effective way need to have an interaction with lower level on regular basis that makes entity to earn a good amount of image in eyes of workers. The report is based on Index Living Mall Co. Ltd. which is a Thailand based furniture retailer firm that was found in the year 2002. Although, 31 branches are there throughout the country.

This assignment will talk about the issues faced by employees in organization and why there is increment in employee turnover, it is required to make an analysis of company in correct format too. Non-communication and employee dissatisfaction in company bring an increased labour turnover. It is that which needs to be overcome in right format and has to call up in a proper model for attaining a good working too.


Background of organization

It has been seen that in market, there is high competition and to fight with the cut-throat competition, organization has to use its human resources to perform in a better way and in right direction so that company can enhance its productivity and maximum sales can be increased as well. Here, the employees and managers are also able to make use of them in the best possible manner. Managers have the responsibility to get work done from employees within time period described by them only (Wellington, 2015). The Index Living Mall Co. Ltd. is a company which is serving millions of people with their services and making them satisfied but there are various kinds of flaws which are being faced by company because of which they are not able to achieve competitive advantages in the market. One of the main reasons that affect firm in huge way is increase in labour turnover. It was known that earlier, company was having great profitability and productivity in the market and thus, it was required for them to bring several solutions to such problem so that they can perform in a corrective manner and attaining their goals and objectives effectually. Basically, issues are related with human resources as they are not satisfied with some of the aspects in enterprise.

Generally, training and development is the best option to motivate employees to perform in a better way but in case of Index Living Mall, it is necessary to make use of various theory and models so that analysis of issues and conflicts can be done in a proper manner. It is required to determine the problem of increase in turnover of employees and getting in some of the best solutions to retain human resources (Berzkalne and Zelgalve, 2014). Moreover, if employee is satisfied with firm then an effective environment will be maintained in company through which each and every employee will be encouraged to enhance the level of performance in a proper way. Some of the aspects which take place with employee's satisfaction are:

  • Communication is required to be present between each employee and departments because through this, work will be completed in the set period of time. Although, communication is considered as the backbone of firm which helps entity to become stable in market.
  • It creates coordination among employees which reduce the chances of having disputes and conflicts in organization and help firm in attaining its goals and objectives in a better manner.
  • Human resources will be able to perform in any situation and will adapt the changes too without any problems which will eventually make them a multi-tasker.

There are many more aspects which help in building a positive image of company in the market because of which customers are also attracted towards the entity as well. Index Living Mall Co. Ltd is also suffering from various kinds of issues in organization which are required to be analysed in a great way so that firm can perform effectively.

Analysis of problems in organisation

Every firm in this world has some issues in their working environment and if the company wants to achieve their goals and objectives, look up to these issues in a proper manner and derive suitable solutions about it as well (Stone and Stone, 2013). Therefore, a proper analysis will help company to know the real reason behind arising these kinds of issues and problems in company. In Index Living Mall, a high turnover of managers and human resources is noticed and it is needed to determine the accurate cause of it.

After having research within organization, a survey was conducted for employees so that actual reason can be understood. There are various reasons that come in contact with top executives of entity in relation with human resources. Some of those reasons are:

  • Employee Resourcing
  • Employee Engagement
  • Performance management and rewards
  • Talent management
  • Discrimination
  • Different culture of employees

Let us understand these points in better way:

  • Employee's Resourcing: In the marketplace, there are so many people who are having great talent in them and companies are looking for these who can implement their talent and knowledge in organization (Vaiman and Collings, 2013). But sometimes, management of company make wrong choices and select those people who are not able to cope up with other employees in company and also not able to learn different things as well. These are some of the reasons because of which employees give resignation. Basically, it is required to choose that person who is a great performer and lead to work in diverse environment and with different people as well. Choosing the wrong person who cannot manage to work in right direction always increases the number of turnover very.
  • Employee Engagement: It helps a company to complete their tasks and activities within the time period specified. It is required by company to divide the work in a better manner and assign activities and tasks according to the qualification of employees as this leads to attain proper goals and objectives. Basically, in an organization, it is crucial to engage employees in different activities as this could increase their performance level in an effective way. If employees are engaged not according to their working skills and personality in organisation, they would not be able to perform in a proper manner and accordingly, loss of work will be there and such thing needs to be analysed (Johnson, Schnatterly and Hill, 2013). For instance, if an employee is having specification to work in finance department and company is keeping him in production department then it is not a correct step because here now the employee will not be able to use their skills and knowledge in an appropriate manner and thus achieving the goals and objectives of the company as well. Although, this aspect is also considered in the same scenario as with it, manager and human resource turnover is high. Normally, it is required to analyse same for bringing in proper solutions for it.
  • Performance management and rewards: Many large firms are having a better management and reward system which bring employee satisfaction in company and thus, they have a less turnover of human resources because of which they earn higher profits and able to attain their set targets and objectives. In medium sized enterprises, the reward system is not so effective because of which employees become dissatisfied and they do not perform effectually. Hence, not having proper rewards in organization does not encourage human resources to work hard and increase the enhancement of productivity and profit in employees (Bratton and Gold, 2017). Firm has also analysed this as one of the most important factor for increasing labour turnover in right direction. Rewards can be in various forms and some of those are bonus, holidays, incentives and promotion, etc. These are those which need to be performed in entity so that employees can retain its enthusiasm for working in a great way. Even though, it is required by firm to bring in effective management and rewards system so that can it reduce the labour turnover and such concept do help employee to work in right direction and leads to attain the goals and objectives too.
  • Talent management: It is one of the crucial modes of having an increased labour turnover and it is required that company can reduce and minimise employee turnover. If people in organisation are not getting work according to their talent and specification then this will lead to have loss of proper working in various ways. For instance: an individual in organization is having talent to perform some of the tasks in a better way and even though there performance is not getting an importance in organization leads to leave the organisation. Although, it is required to promote those individuals who is working hard and performing in great way also. Talent management is having the responsibility to take care of particular employees that make them to perform in a better way. Management of Index Living Mall should include this aspect as main and keep the right person at the right job so that they can perform in right format too.
  • Discrimination: Many human resources are having different perspectives for which they are working in organization (Taylor, 2017). Discrimination is that which needs to be reduced in organisation as this is involved as the major reason of having an increase in employee and manager turnover. Partiality in between employees create chances of conflict and disputes in employees which hinder the working in organization and leads to bring in some effective solutions for such also that it can be minimised or eliminated in perfect way. Discrimination can be there in the form of many ways as in kind of salary, partiality in between men and women, having partiality because of working, etc. It needs to be minimised and effective theory of working should be utilised and has to provide a better solution to all such in better way too. Moreover, discrimination should not be there and it leads to have betterment of working and it somewhere also makes it lead to earn a good amount and leads to create a healthy working environment too.
  • Different culture of employees: Different types of employees are there in an organization who belong to various cultures and have different working criteria and it can even become a disturbing factor while doing activities of company. Employees have to work in right direction so that a better working can be seen in organisation. When a group of people are being made in firm to complete a particular task within the time period, even at that time it creates a hurdle for them to work because every individual person is having different thoughts and mind-set to complete the activities and it should be matched with one another (Harper, Harper and Snowden, 2017). It is quite hard to bring in employees to work together for attainment of common goals and objectives too. Although, several kinds of people from different backgrounds create an issue in working and increase the number of human resource turnover.

These problems need to be analysed in a proper manner in organization so that management and top executives can bring in solution for reducing labour turnover in right a format. Normally, employees and managers are the people who work in a better way so that organization can attain the goals and objectives effectually. Even though, firm at the time of determining different issues they underwent through various thing and required to solve those as well and somewhere if they succeed in great way and they will lead to attain the goals and objectives in better manner. There were various kinds of situations which a company face while finding their issues in a proper manner and after this, an effective solution is also required to be provided to them because through this only will be able to attain their goals and objectives in a proper manner.

Solution to issues

In Index Living Mall Co. Ltd., various issues are being analysed in context of employee turnover and thus to reduce it; company is bringing several models and theories which can have an effective impact on resolving these issues and they can attain their goals and objectives in an efficient manner. Also, higher profits can also be earned in a better way (Kobayashi and Mackenzie, 2014). Basically, to solve the issues related to any department, it is crucial to analyse them so that firm can come to know the exact reason of occurring such issues in organization. Various people have different reasons of leaving an entity that have to be known by enterprises so that from the same, organisation can overcome in a better way. Along with this, some effective solutions are also there for reducing such a turnover in firm and firm can perform in right context. Some of those are:

  • Pay More: - In an organization, it has been considered as Cash is king in marketplace. Even, if the company is paying more than the work they do or higher amount then competitor, they would be less likely to resign the job. Basically, it is that which do motivate employees to work hard and make firm to attain its goals and objectives effectually. It is generally required that they should have commitment towards the job in an effective way (Manzo and Devine-Wright, 2013). Moreover, people who are having low pay according to their job responsibility to leave the job in right format too. Therefore, it is required to pay more and according to the job duty of people and it is performing in effective way within organization. As this could help even firm to earn huge profits too.
  • Divide the work load: There are various things which are needed to be managed in an organization and thus, it is required by firm to divide the tasks and activities according to department and people as well. Basically balancing the load of work of people thus make individual to perform in great way. This is such which make firm to have a completion of task and activity in better manner. Dividing work also leads to reduce the load of work in an organization as this kind of scenario is such which give an sense of satisfaction in employees as they are having not that much level of work which change their mind-set to remain in with organization too.
  • Competitive benefits: There are different employees who need some other things with salary in form of benefits in an effective way. It is such, it can be in form of affordable benefits like as having an health insurance, stock options, medical benefits and transportation allowances, as this could make the employee to have an side of more appealing then the one at competitor's as well as it also reduce the employee turnover in perfect way as well. Even though it is required by management of firm to review the benefits they are providing to employees at least once or twice in a financial year (Autor and Handel, 2013). This is such which retain the interest of employee in great manner which do help entity to go in heights.
  • Friendly employee relationships: Many organizations like Index Living Mall Company are not having a friendly environment which is resulting into not having a proper working in enterprises as well. Moreover, it is required that top executives, management and human resources perform like family and try to create an health environment, as it is basic need in firm so that people do not feel bored while doing their office activities. Having a foster environment as work lead to have a great working. Employees should have a comfort talking, joking and having an outside work plans with each other is not having an interfere with the work in better way. Even though, firm's top management should understand these things in perfect way as well.
  • Hire the right people: In an organization, it is required to have a proper panel of recruitment and selection process as this helps in choosing the right people for the right job in a great way (Lin, 2017). Therefore, it is needed to hire those workers who are having b skills which match with the culture of organization in right contrast. In general, at the time of recruitment, questions related to behaviour should be asked and can see that how candidate is handling the situation and answering to such situation. All these scenario does help firm to attain a good amount of enhancement in profit and productivity too.
  • Have praise: In organization, it is required to have an encouragement and recognition of employees in a better way. Basically, employees need to perform in a right way which shows the appreciation in great way although. Basically, when they do finish their work and activity within the time period then it is required to praise them congratulate them for performing in huge way. Having a praise for truly worth working should be there, as everyday should be praised a single work which was needed to completed on time. It is such which has led to create an encouraging and positive environment of work.

Hence, all these things are which can encourage people and employee not to leave the organization as this is such which will assist Index Living Mall to perform their work in better manner and to earn the more and more profits which they were earning earlier too. A one more solution is also there which can motivate, encourage and manipulate people to work in effective way also and it is as:

Training and development: It is that which is organized by organization when it come out of there control and even there are various training institution and firms who provide an better training and development program for employees so that they can assist their employees to work in better way (Altman, 2015). Before carrying out training and development programs firm uses various solution according to their level and in last training and development program is that which help company to have a proper working in great way. It is such which do provide an proper training to human resource through which they can learn new skills, knowledge and abilities that has made them to increase their performance in great way.

Learning has to be done in effective way, which could assist them to attain its goals and objectives in great manner. Basically, training and development can be provided in several ways that could help human resource to work in effective manner that contributes in attaining final goals and objectives. There are two ways through which training can be provided to them and it is be as:

  • On the job training.
  • Off the job training.

These two methods of training can be used by company and mainly “On the job training” is used as because it is provided at the time of working (Brisman, South and White, 2016). In other words, training is provided at the time when the employees are performing their task and activity as they can use the learned aspects at a time which can help them to work even in more effective manner as well. Therefore, training and development is such that contributes in developing an employee to align their personal goals with the organizational goals and objectives in right format.


This is required to be provided to those companies who is facing failure due to various reasons. Although, Index Living Mall Company is facing many problems like employees resourcing, employee engagement, performance management and rewards, talent management, discrimination, and different culture of employees (Gamerschlag, 2013). These problems are the ones which needs to be taken under care and proper solutions were provided against issues recognized by the company. Recommendations are given in the form of suggestions to the firm for better working.

Some of the recommendations are as follows:

  • It is necessary for the management to have regular communication and interaction sessions by the top management with lower level as this could help them to earn higher profits.
  • It is required by an enterprise to formulate a proper reward system and performance management as it enhances the working schedule of employees in a great manner which could help them to attain the goals and objectives in a big way.
  • It is needed to have a healthy environment in an organization as this helps to bring effective relations between employees, which might reduce disputes or conflicts. Although coordination is build in between the department and employees so that activities can be performed in a proper manner and the goals and objectives in great way.
  • An orientation program should be organized so that new employees can meet up with every department's employees and staff of company. At the time of making a group people and employees will be able to work in effective way as no culture difference will create a hindrances in task and activity as well.
  • Nonetheless, training and development helps employees to learn new skills, and knowledge in great way which assist them to attain their own targets and will be able to accomplish goals and objectives of enterprises.
  • There should not be any kind of discrimination in between pay of human resources as thus could create an chance of conflict in huge way, which do create an hinder in between the work of employees in effective way. Even, it is required to use the talent of human resource in better way for completing tasks on time.

These are some recommendations which could help them to have a proper working. Basically, suggestions should be used in right format by any organization so that they can perform in better way and earns profits.


From the above report, it can be concluded that human resources are those who play a crucial role in organization and help firm to attain its goals and objectives effectually. Moreover, various organizations are there who face many issues and problems in company which are needed to be solved in a proper manner. Effective solution to organization will help them to complete their tasks on time and will be able to satisfy the customers. This report is based on Index Living Mall Company, which is going through major employees turnover ratio which should be minimise for better results in organisation. Basically, it is like which lead to have an attainment of different aspect which somewhere convert them to attain the goals and objectives in great way. Although, company have to focus on these problems so that all will not come in future again.


Books and Journals

  • Altman, M., 2015.Handbook of contemporary behavioral economics: foundations and developments. Routledge.
  • Autor, D.H. and Handel, M.J., 2013. Putting tasks to the test: Human capital, job tasks, and wages.Journal of Labor Economics. 31(S1). pp.S59-S96.
  • Berzkalne, I. and Zelgalve, E., 2014. Intellectual capital and company value.Procedia-Social and Behavioral Sciences. 110. pp.887-896.
  • Bhaskar, R., 2014.The possibility of naturalism: A philosophical critique of the contemporary human sciences. Routledge.
  • Bratton, J. and Gold, J., 2017.Human resource management: theory and practice. Palgrave.
  • Brisman, A., South, N. and White, R. eds., 2016.Environmental crime and social conflict: contemporary and emerging issues. Routledge.
  • Fulmer, I.S. and Ployhart, R.E., 2014. “Our most important asset” A multidisciplinary/multilevel review of human capital valuation for research and practice.Journal of Management. 40(1). pp.161-192.
  • Gamerschlag, R., 2013. Value relevance of human capital information.Journal of Intellectual Capital. 14(2). pp.325-345.
  • Hakim, C., 2016.Key issues in women's work: Female diversity and the polarisation of women's employment. Routledge-Cavendish.
  • Harper, C., Harper, C.L. and Snowden, M., 2017.Environment and society: Human perspectives on environmental issues. Routledge.
  • Johnson, S.G., Schnatterly, K. and Hill, A.D., 2013. Board composition beyond independence: Social capital, human capital, and demographics.Journal of management. 39(1). pp.232-262.
  • Kobayashi, A. and Mackenzie, S. eds., 2014.Remaking Human Geography (RLE Social & Cultural Geography). Routledge.
  • Lin, N., 2017. Building a network theory of social capital. InSocial capital(pp. 3-28). Routledge.
  • Manzo, L.C. and Devine-Wright, P. eds., 2013.Place attachment: Advances in theory, methods and applications. Routledge.
  • Popescu, G.H., Comănescu, M. and Sabie, O.M., 2016. The role of human capital in the knowledge-networked economy.Psychosociological Issues in Human Resource Management. 4(1). pp.168-174.
  • Stone, R.J. and Stone, R.J., 2013.Managing human resources. John Wiley and Sons.
  • Taylor, S., 2017.Contemporary issues in human resource management. Kogan Page Publishers.
  • Vaiman, V. and Collings, D.G., 2013. Talent management: advancing the field.The International Journal of Human Resource Management. 24(9). pp.1737-1743.
  • Wellington, J., 2015.Educational research: Contemporary issues and practical approaches. Bloomsbury Publishing.
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