Which of the following is true of the functions of human resources? A

A. They can be easily replaced as they are highly common.- FALSE.

Even though human resources are available in large number in the labour market, but often is very difficult to replace an existing employee. Hiring a new employee brings in additional costs in the form of recruitment and selction costs, orientation costs and training costs. Moreover, a new employee takes time to adjust to the new organization, during this adjustment phase the employee productivity is not that great and the costs of output produced during this period are also high. Thus, we can conclude that even though human resources are commonly available in market, but it is not easy to replace them.

B. They do not possess economic value. - FALSE

Human resources are generally not accounted for in the balance sheet value of the firm. But, this does not mean that they do not possess economic value. It is very difficult to ascertain the value of human resources, as unlike other resources the human resource is not homogeneous. The skills, values of the resources can be varied, thus acting as a complexity in ascertaining the true economic value of the firm. Despite such complexities, it is the human resource that imparts competitive advantage to the firm. Also, we can say that the human resources do command value, that is why they demand good wage payment systems. Thus, human resources do command an economic value.

C. They help in achieving sustainable competitive advantage. TRUE

This statement is correct. It is the human resource that imparts competitive advantage to the firm. Products and technologies may become redundant over a period of time, but it is the exceptional thinking and creative ability of the human resource that helps the firm to face any adverse conditions. Employees are the most valuable asset of the company. Proper utilization of human skills can help the firm to achieve wonders. Only those firms that help the employees to grow can sustain in the long run as it motivates the employees to give their 100% in the projects and achieve sustainable results.

D. They are independent of an organizations business strategy. FALSE

This statement is not correct. Recently, the concept of SHRM (strategic human resource management) has gained momentum. It refers to the alignment of the human resources and the strategies of the firm. The idea of SHRM is to promote high performance workplaces and human capital management. Strategic orientation of human resource management is important for all organisations irrespective of its size and domain. It simply requires the alignment of every HR function with business strategy. Thus, we can conclude that human resources are not independent of the business strategy.