Final answer:
In human resource management, the word 'resource' implies that employees are considered assets, similar to human capital. They represent investments made by an organization in terms of skills, knowledge, and capabilities that can yield returns in the form of productivity and innovation.
Step-by-step explanation:
The term resource in human resource management suggests that employees are viewed as a form of capital or assets in the nature of the employment relationship. This perspective aligns closely with the concept of human capital, which is the collection of skills, knowledge, experience, and abilities that workers possess. Investments made in human capital through education, training, and health can increase the potential productivity of an individual, thus they are seen as assets to the organization.
Just like any other resource in the resource market, labor is viewed as something that can be bought and sold. Employers seek workers with the right human capital to effectively contribute to the production process, leading to greater innovation and productivity. Consequently, human resource management focuses on strategies to attract, develop, and retain skilled workers which is essential for the economic growth and competitiveness of the business.
Employees, therefore, are not merely seen as liabilities or mere labor input; instead, they represent an investment. This is because over time, the employer expects to gain a return on their investment in terms of increased efficiency, innovation, and productivity. In summary, human resources are considered valuable assets that, when managed effectively, can drive an organization’s success.