There are two types of categories of assets , the one is physical and human assets and the other is performing or standard assets and the nonperforming assets , which is from the return / dividend / yielding angle. The physical and human assets are from the objectivity and subjectivity angle respectively. The nonperforming assets can be further divided in to substandard, doubtful and loss assets. The physical or human assets too can be either performing or nonperforming. But human factor is the single key & sole factor which is managing all assets. The quality of human factor is of utmost importance in any human endeavor. Quality / skilled human assets can take the organization to the climax level. Physical assets in itself are not capable of doing anything. The work on the same is done by human assets. Only performing and standard assets generate real income. Only human factor adds value to physical assets. Mobility and movement are the quality signs of assets. The more these are there the more of quality is ensured. The more returns and productivity leads to more of profitability. In banking industry before the prudential norms for asset classification and income recognition came in to the limelight , the health code system was prevalent from HC-1 to HC-8. The health codes started from standard to loss assets. In between were viable, non-viable, nursing, suit-filed, non-suit-filed and decreed accounts etc. Standard or performing assets can also be called as regular and substandard as irregular. In the prudential norms the interest income is related to recovery from business sources only. As the banker interest lies in the running unit. When the unit runs, the income is generated and from that only the interest shall be recovered.
How to save the human resources from turning in to NPA. It is through skill formation , training and development (SFTD). If human assets go NPA, then physical assets are definitely likely to go NPA. The human factor can be assigned targets quarterly / half-yearly or annually by getting the Key Result / Responsibility Areas (KRA) , signed by employees . The performance linked promotion policy to be chalked out. Such systems are already prevalent but needs to be executed seriously. The annual exercise Ongoing Performance Appraisal System ( OPAS), shall be submitted by the employees to the management through HOD of employees and the same shall be appraised on the basis of performance of the employees in KRAs. A fool-proof system of pluses and minuses to be evolved, wherein the star-performers will be suitably awarded and rewarded , motivated and recognized through the transfer and promotion policies and the non-performers and under-performers to be suitably punished and demoted . We can take a positive route to bring the best results and returns by motivating the employees by making them to think about bettering their own lives. Nothing is impossible in this world provided one has a CAN MINDSET. There is no problem in the world which does not has a solution across the table. In due course all the things have the potentiality to come on the track / rails and to fall in line / order.
Top management to best manage their human resources , so that they in turn can best manage physical resources and benefit self and others. THIS WAY ALL WILL DEVELOP.
Ashok Aggarwal, DELHI
DATED 21.09.2015
