Posted by: garispang | August 13, 2009

Asian businesses should focus more on HR management

SIA GirlsSINGAPORE: Observers said on Thursday human resource management will be a critical area for Asian businesses to focus on as they grow their operations.

Results of this year’s Fortune’s Top 50 World’s Most Admired Companies showed that Asian firms continued to lag behind their western counterparts. The annual survey was conducted by consultancy firm Hay Group and Fortune magazine from October till mid-December last year.

A total of six Asian firms made the Top 50 list this year, with Toyota Motor coming in third for the third year in a row. Singapore’s national carrier Singapore Airlines ranked 33rd this year, down from its 21st position last year.

Apple topped the list as the most admired company for the second year in a row.

Commenting on the domination of western companies in the Top 50 list, Gaurav Lahiri, Hay Group’s Southeast Asia director for Building Effective Organisations, said Asian firms need to examine how issues like human management can add strategic value to their operations.

He observed that Asian businesses tend to not pay as much attention to management, company structure, roles and responsibilities. But there have been improvements over the years, with more firms looking at coaching projects, talent management and employee engagement.

Mr Lahiri said while Asian businesses tend to be more market focused, this may not be the best growth strategy for the long term.

The other Asian companies in the Top 50 list are Honda Motor, Sony, Toyota Industries and Samsung Electronics. While Sony retained its 39th position, Honda Motor and Toyota Industries posted steep falls in their rankings.

Honda Motor went down from 18th to the 32nd position this year and Toyota Industries fell 15 spots to 46th. South Korea’s Samsung Electronics rejoined the list in the 50th position.

More than 1,400 companies and financial analysts were surveyed and asked to rate companies on attributes like quality of management and financial soundness.

The survey showed that robust operating models and emphasis on managing employees were some key factors that created unique competitive advantages for these companies.



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