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Why Should Australian Try to Develop More Effective Skill Utilisation

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Why Should Australian Try to Develop More Effective Skill Utilisation

Topic: Why should Australian try to develop more effective skill utilisation?


With the development of the economy in Australia, the enterprises are facing great challenges and competitions. In order to improve work efficiency, they might take many measures. Therefore, the skill utilisation of staff becomes popular for companies. This essay will be divided into three parts to examine whether the Australian should develop skill utilisation. Firstly, I will give a definition of skill utilisation. Then, by using the method of case study Chia Co, the essay will analyze the advantages and disadvantages of developing effective skill. In the end, the essay investigates issues that might affect the development of skill utilisation in Australia.

Definition of skill utilisation

The skill of staff refers to the working skill and ability that an employee might possess in an enterprise. This kind of skill and ability makes a staff competent at their work, and therefore, they might bring benefits to the company.

Skill utilisation refers to the practice conducted by the employers to make the greatest benefits by using and developing the employees’ abilities and talents. The companies may take policies and practices to attract the workers into the work and thus to effectively utilize the abilities and skills of the employees. In the process of skill utilisation, the theoretical knowledge of the employees can be transformed into practical and profitable outcomes for the company (Feldman and Bolino 2000). Therefore, the employees can take full advantage of their own talents and make benefits for both themselves and the company (Menezes and Kim 2006).

The enterprise can evaluate the skill of a staff from five perspectives. The first one is to find out the key skill and ability from the employees that the enterprise might need and possess through the method of survey and review. Since each organization has different demand, they will have to find out the suitable ability of the employee that might improve the overall performance of the enterprise. The second one is to establish a management system that might inspect the performance of the employees. The enterprise could inspect the current ability of the employee and the ability that the employees must possess in the future through check-list or specific software. The enterprise could also inform the employees of the collected information, which is helpful for their improvement and development. The third one is the combination of skill and ability with the system of recruitment and training. With the key skills disclosed, the employers can ask proper questions while interviewing, and suitable course for the employees can be provided. The fourth one is that skill and ability utilisation is not an instant resolution, it is a constant process. Finally, skill utilisation cannot bring benefits to the enterprise immediately. It is a process that requires both efforts and time (Bolino and Feldman 2000).

The benefit of developing effective skill utilisation

With the development of globalization and competition, the workforce management issue is becoming more and more important for Australian enterprises. According to the Ai group, the Australian productivity growth has declined from 2004 compare to before (). Therefore, Effective skill utilisation is becoming a key element to increasing the benefits to the company. Besides, it is also helpful for the employees to improve their own abilities. Effective skill utilisation can help a company gain and maintain a firm’s position in the current competing economic environment (Barton and Mashlan 2011).

Chia Co, a small company with nine employees was launched in 2005 in Australia now is becoming the largest producer of chia seeds in the world (Skills Australia 2012). To take Chia Co. as an example, the development process of Chia Co shows that effective utilisation of employees’ skill is helpful in the process towards success for the company (Skills Australia 2012, p.161). In the case, the company makes great efforts and takes suitable measures to utilize the skill of the employees. It recruits employees with high working ability and with technological knowledge which is needed and valued by the company. It tries to attract people who are innovative and possess the quality of creativity. The innovative qualities of these employees can bring great creative opinions for the company. To better utilize these creative opinions, the senior management of the company also ask for opinions from these newly coming employees (Skill Australia 2012).

The company also encourages the exchange and sharing of opinions between employees (Skill Australia 2012). For instance,

It’s a very open culture; one where ideas and viewpoints are shared openly (Employee).”

(Skill Australia 2012, p.124)

Above that we can see the company can have more innovative opinions in the process of development, which can in turn bring practical benefits to the company (Parker 2003). The company pays great attentions to the skill and abilities of the employees, and it even ask the employees’ opinions while recruiting new employees. In this condition, the company can have more suitable staff with higher quality and ability for the work in the company. It is beneficial for the long-term development of the company. Now, the Chia Co has won couples of national awards and it expanded into the international market and established an office in American (Skill Australia 2000, p.161).

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