Investing Improves Efficiency

In large corporations which annual budgets sometimes compare to small countries, managers exert a tremendous impact on persons’ development when making decisions related to internal investments. Unfortunately, one of the most common failures managing workforces relies on a wrong interpretation of efficiency reflected by over-strict control of expenses. Although it is wise to spend money consciously, we must not forget the difference between expenditure and investment. In fact, financial statements discriminate entries of formation, salaries or even advertisement which represent outgoings with future return of benefits.

Compare the savings made from an airline’s meals for passengers after removing one olive versus not using adequate illumination in workplace to reduce electricity bill. First measure made American Airlines to be cited as an icon of management’s talent and the latter is considered tightfisted by the employees affected, who would not be able to carry out their duties at ease. Same target but different criteria, right?

When it is said that employees are the most important asset of a company, there are many indications to support this expression. Human resources are more prolific than machinery, buildings or even capital itself. Employees bring a developing potential that creates added value through their talents contributions. They are the only living resource capable of processing the other inert resources, making their presence indispensable in all components of an organization. Therefore people constitute the only resource that float in every aspect, area and level.

In order to increase and preserve the value of this investment, managers should maximize the power of personnel budget by utilizing it wisely and efficiently. Providing adequate facilities, salaries and equipment to optimize operations without distractions; selecting the right tools, systems and training to effectively reduce wastes and to stimulate creativity. Creating a motivational culture through recognition and promotion of efforts, developing incentives programs to encourage excellence and productivity. And the most important, investing time to discover which occurrences are affecting dynamics and how to solve them for the benefit of the people and the institution as well.

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2 thoughts on “Investing Improves Efficiency

  1. I agree with you. It is a shame a lot of companies concentrates the profit and money to reinvest in the luxury and accommodation of the pyramid highest parts forgetting the ones that compound the base. Those people are the most important because they are the body and developing class of the companies.

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