Contribution of human resource in any organization as a factor of production.

Contribution of human resource in any organization as a factor of production.

In essence, in any organisation, there are some important factors of production, these are capitals, infrastructure besides one of the essential factors is the human resource. This human resource include skilled, semi-skilled and non-skilled human  resource.  In that, from lower rung of the employee hierarchy to the top management have stake in the progress of an organisation. If employees, assigned a particular job feel let down due to any reason whatsoever then that can adversely impact the working of the whole organisation. For example, a person assigned to keep the records  or the work at hand does not handle his/her job properly and misplaces the record(s) then what? The whole of the ground work done of the organisation gets adversely affected.

There are the organisations which keep the upper rung of management in good humour – by giving them good pay packets besides giving them higher perks, looks after their welfare aspects, give them incentives for de-stressing,  give them periodical raise from time to time along with assurance of job security, then, that ‘top rung’ management heads would be happy and remain motivated but this would be at the cost of middle and lower rungs of the employees without whom there will not be much progress of the organisation as a whole.
It should always be kept in mind that human resource is not merely the ‘top notches’ it starts from the lower rung to the upper rung, of course, including the middle rung which is a backbone of any organisation. All these have to be kept spirited by looking after their well-being by meeting their legitimate demands so that these employees could exert for the job at hand rather than fritter away their latent potentials on their problems rather than focusing on the mission to be accomplished by each of the employees.

Everybody business or organisation is run with capital. Care ought to be exercised that enough corpus of fund is kept partly to meet any unforeseen contingencies or expenditure which may creep up any time. Anyhow separate fund has to be kept for entertainment of the employees for keeping them stress-free.
The following aspects have to be taken care of by an organisation if they want their employees to be stress-free, spirited, motivated etc. so that everyone of them put in their best for the overall growth of the organisation:-


When the employees are given periodical salary raise, they get more motivated by involving themselves more for the organisation for which they are working. There would be sense of belonging. When this is created (Sense of belonging), then, sure enough, nobody can stall the Northward lift of the organisation concerned.


The organisation should keep in mind that the HUMAN RESOURCES are one of the important pillars of any org. to succeed besides capital and other important constituents that factor in the growth of an organisation.. If their wellness is taken care, half of the problem of the org. will be taken care of. They would be with the organisation in thick and thin and contribute their mite for the progress. Otherwise, an org. wherein employees do not come in the scheme of things such an org. goes SOUTHWARD in its performance. Therefore, a sense of belonging in the employees goes a long way in creating goodwill in the minds of the employees.


It should be the endeavour of the organisation to give freedom of thought and action thereof. It has been observed that if we are given freedom, we can have creativity in our work ethics. When creativity is generated for the employees, then, sure enough, we have the opportunities for upward movement of the organisation as a whole.


It has been observed that, at times, some employees, due to some emergent requirement are not able to deliver to their optimum. The org. head should not take recourse to initiating disciplinary action rather the employee concerned should be heard properly and then, proper redressal of his/her grievances should be undertaken without any bias whatsoever. This will inculcate a feeling of goodwill and goodness for the employees and a motivating factor for the employees. Overall, this will enhance the respect of the employees for the organisation. This way, they will go all out in giving more than 100% for the organisation.

The following should be taken care for more production in any organization:-

  • As human resource is an important factor of production, therefore, care ought to be taken that they should be given proper on the job training so as to enhance their skill for more output.
  • Adequate corpus of fund should be kept handy to meet the emergent need of the employees.
  • Their welfare  should be taken care of so that the workers do not get stressed.
  • If we want our employees to work in a focused manner with a purpose to enhance production of the organisation, it is essential that their families should also be incentivized such as medical cover, monetary assistance for children education, assistance for the old and infirm.
  • Attention should be paid that nobody in the org. should be discriminated on the basis of caste, creed, colour etc.
  • Insurance cover should be provided for the workers.
  • Provident fund contribution from the salaries with some contribution from the org., with grant-in-aid from Government (if possible) with adequate interest should form part so that their future is secure.

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One thought on “Contribution of human resource in any organization as a factor of production.”

  1. When human resource is cared well in any organisation, then sure, enough, there would be Northward movement of this organisation.

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