There is only a simple formula towards calculating your return. Total earnings divided by the Total amount of money invested
Resources, amongst which, Assets are the investments which yield returns else they are liabilities. Liabilities are those on which we have to pay to maintain / keep them.
If we look at people therefore, are they assets or are they liabilities?
If anyone ‘working’ for us produces earnings, they become our assets, otherwise quite obviously they become liabilities. There is a very thin line therefore determining when an asset turns into a liability and otherwise what can be done to increase earnings from an asset
Unlike other resources employed by an organisation, People Resources are the one aspect / element which can turn out to be the greatest revenue and thereby income generator. People are contracted for a certain agreed sum and thereafter usually variable amounts based on output, but their actual results can be significantly higher than the expected because the factors determining Human Output are not limited to the existing ‘capacities’. Unlike machines, which have a certain capacities and further limited as they get used through ‘depreciating’ aspects, humans actually tend to expand their capacity by being used. This discerning difference is what can be utilised to significantly enhance People Productivity
The Natarajan ‘MAST’ Principle which is most relevant across all Human Productivity and more so for organisations can be discussed as below:
(Manpower x Activity x Skills) Technology
First we need manpower for this Principle to work. This manpower is to be provided a set of activities to be done, which when applied with the process of skills through training and experiential learning, and multiplied by the power of technology, the RESULTS are transformational
Manpower – People are key to this. Who we get on board therefore determines how we are going to work with them. So the first rule is getting the Right set of people over. A separate post on what to observe while hiring people will help you understand what to look out for
Many great Leaders have clearly indicated that it is not wise to get people to work for you based on their knowledge and skills as they are acquired in different conditions other than your own. Basic technical understanding backed by experiential learning is what needs to be determined. But the key to transformational results is the ability of people to be able to conduct activity given and to keep improving in them. As technology provides the scope to reduce redundancy (repetitive tasks), the ability to use and engage technology is another key requirement
How MAST is your workforce? Are you having a MAST workforce or one whose energy are drawn away for other activity not relevant to the organisation?
chro4sme.com can conduct a FREE assessment for you to enable you learn how the MAST your workforce is and what you can do to enhance their MASTINESS