Is human resources an asset or liability? Justify your answer.

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Human resources is certainly an asset, but it's one of those "non-value added" activities that your business performs. Essentially, it becomes a liability if done poorly, but it is necessary in order to function properly in business.

Human resources adds some benefits which help employees be as productive as possible, which indirectly helps your business. HR handles employee benefits and even at times offers counseling and coaching. These tasks help engage and encourage employees, therefore making them more productive. Additionally, when there are difficult conversations that need to be had—such as a layoff or adverse action of some sort—the human resources department will guide the process, thus making it easier on the managers. This reduces managers' stress and workload, keeps them satisfied, and helps them focus and engage more on their job.

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To decide whether or not human resources is a liability or an asset depends on your viewpoint. It is, in a sense, a non-value add process, because it does not help you manufacture or sell more product or serve more customers. However, human resources offers many benefits that companies are taking more and more advantage of. As the practices develop, an effective human resources group is actually a very valuable asset. When it is leveraged properly, as it is in companies like Google, SAS, and similar companies, it attracts the best talent, which in turn helps you produce the best product. In that way, it is best viewed as a potential asset and should be used in a way to make the company better.

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In one way, it is possible to consider human resources a liability, in the sense that it represents expenses. Just as a company must pay for electricity, office supplies, information technology, and all the other expenses of running a business, so a company also must pay wages and benefits to its employees and have a human resources department to administer such matters. On a balance sheet, therefore, human resources might appear as a liability. However, looking at human resources only as a type of liability would be a mistake.

Perhaps the greatest success stories of the twenty-first century have been companies such as Facebook, Amazon, Apple, Netflix, and Google (sometimes known as the FAANGs), which have relied on intellectual innovation as a major source of revenue. When one thinks of Steve Jobs, Elon Musk, Jeff Bezos, Mark Zuckerberg, Bill Gates, or other leading figures in technology, one realizes that the key building blocks of the most successful corporations have been the skills not only of these innovative CEOs but of their creative and technical staff, who continue to create technological innovations and new products. In fact, many of the most successful contemporary companies are "resource light," generating profits not by owning factories or mines or land, but by intellectual innovation. This means that human resources are the greatest asset of these companies.

Human resources divisions, in so far as they recruit, cultivate, retain, and ensure the effectiveness of the human resources that are innovative companies' greatest asset, actively contribute to corporate profitability, even if they show as an expense in traditional accounting. Rather than being regarded as a liability, one should consider human resources an element of a company's most productive investment.

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Human resources is an asset to any corporation for many reasons. One very important reason is that without it, the company is not protected. There are many dishonest people who would gladly take advantage of a company for monetary purposes.

They are also responsible for hiring and firing people. The people in HR do background checks to make sure that qualified individuals are hired. They also terminate employment.

They also deal with insurance, sexual harassment, and labor relations.

I think the main idea here is that HR protects companies. Without it, the companies open themselves up for numerous legal issues that could break them. In addition, they protect the employees themselves as well.

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