The behavioral Impact of treating HR as an Investment

In certain eastern cultures parents tend to spend more on the education of their son’s than their daughters. The reason for this being that the parents believe that their sons will look after them in the old age and the daughters will be married off. What does this have to do with the title of this article. Before I explain this let me give you some context, you are teaching accounting students a course on organizational behaviour and you want to teach them how their views of (or the traditional accounting view of cost and investment) affect human behaviour. So where do you start, because these students were from a eastern culture, I gave an example that they could relate to from their own experience or from the experience around them. The decision by parents to invest more in their sons than their daughters is a common practice which students can attest to. And this issue is not just limited to the difference between sons and daughters. Parents might also spend more on male child’s education who they believe has a better chance of succeeding than his brother’s who have a lesser chance of success.

Although this might seem as a very shallow approach to parenting but the truth of it is that these parents are making a very rational decision. They have limited resources to invest in their children. Unlike their counterparts in the west, for the parents in the eastern settings, the children are their only retirement plan. They put all their life savings into their children in the hopes that these children will grow up and not only support them but will also support their siblings. That is why with the passage of the parents the eldest sibling takes the place of the parents in the household and takes responsibility of the household.

Comments are closed.