Page 11 - PAKISTAN ACCOUNTANT Oct-Dec 2014

Signature Qualification CA that Empowers to Lead PAKISTAN and development of their employees and expect to Mansoor Ahmad Siddiqui , ACA increase company’s ROI due to such investment in their Karachi workforce. The primary reason training is considered optional by so many business owners is because it’s Boosting your bottomline is all about investing in your viewed more as an expense than an investment. This human capital. Performance and potential are two very is completely understandable when you realize that in many companies, training and development aren’t differen t things, and for the successful growth of an focused on producing a targeted result for the business. organisa tion, it must be able to correctly distinguish As a result, business owners frequently send their people high per formers and high potential employees, and to training courses that seem right and sound good manage t hem accordingly. Obviously, you need high without knowing what to expect in return. But without performers, but being great at one role, however, does measurable results, it’s almost impossible to view training not necessarily mean an employee will make a terrific as anything more than an expense. manager or supervisor down the road. Meanwhile, high potential employees might be working in positions in Shafiq Ahmed, ACA which only some degree of their talent is being used. In Muscat, Sultanate of Oman order to build a thriving workplace, organisations need to identify their high potential employees and develop a In current era of technological advancement and challenging, fulfilling path that keeps them engaged and continuous emergence of infinitely abundant maximises their abilities. High potential employees are opportunities for entrepreneurs, identification, selection an organisation’s next generation of leaders and given and retention of right people for the right job is increasingly the costs and high failure rate associated with hiring new becoming pivotal to achieving organisational objectives. leaders, if they are not nurtured, then corporate potential Self-motivated and result-oriented human resources with is not maximised and thus an opportunity to boost the an unrelenting attitude towards aligning their objectives bottomline is definitely missed. with that of the organisation are the most valuable gems of the current era. A carefully devised remuneration and Sana Ahmad, ACA work-load management plan, giving due care to the Lahore work-life balance along with organising and encouraging employees’ participation in the social events regularly will do wonders to the organisation. However, an overly The simple rule is that if you want to grow in an naïve attitude towards employee management may result organisation, you must nurture the high potential in employees losing focus and objectivity. Organisations employees, create a professional team of them. Trust also need to set up continuing professional development them and progress as a team. programs and encourage their employees to participate in the research and development activities. M. Asad Mirza, ACA Karachi Adil Farooq Qureshi, ACA Kot Addu Human capital (i.e people) is undoubtedly the most precious asset of any organisation and is often the source Companies are not run by systems or equipment, but by of its competitive advantage. It’s the people at all levels people, their employees, who are using those systems (i.e. production, sales, top tier/management, etc.) who and equipment. They are the face of the organisation and run the company. They are creating value according to if properly developed and nurtured, they in turn take the their assigned roles. organisation to higher levels (in monetary terms, higher bottomline). The skill and expertise of employees are Talent will always be there in all departments and at what an organisation have in essence. Great businesses all levels but its unleashment depends mainly on the know that while most other assets are replaceable and mindset of the people at the top. Those who think become obsolete, developing and nurturing people, that their employees are their distinctive competence and exploiting their knowledge and experience is will implement policies and procedures for talent paramount. The systems created to recruit, reward and develop people form the major part of any company’s exploration and its management because they know internal worth — more than other property, plant and that this will eventually increase efficiencies in all equipment. In the words of Jack Welch, a company has aspects of company’s performance whether financial so much money and managerial time. Winning leaders (revenue, costs optimisation, EBIT, etc.) or non-financial invest where the payback is the highest. They cut their (employee motivation, more imaginative thoughts, losses everywhere else. The same is true for people and etc.) The organisations in which the high potential/ businesses. Hence organisations should differentiate talented people are worthless will soon find their overall their people by 20-70-10 rule. Differentiation rewards performance dilapidated due to the fact that there will those members of the team who deserve it, i.e., the be no flow of ingenious and resourceful ideas which top 20%. The mid 70% are enormously valuable to the is of utmost significance in today’s dynamic business company; they are managed differently, kept engaged environment and where every company is trying to and motivated. It is about managers looking at the outperform its competitor with new concepts, ideas and middle 70, identifying people who have the potential strategies. Talented and high potential employees are and intent to move up and cultivating them. It clarifies the prized asset of any organisation and if they are not the business, brings transparency in processes and make being handled well, the deterioration in performance them run in a better way. will come sooner or later. 10 The Pakistan Accountant | Oct-Dec 2014