The role and importance of Human Resource Management (HRM) has grown exponentially since its conception. In previous years, HRM would be associated with administrative and welfare-related objective and tasks, however, now there is a greater emphasis on culture, talent management and engagement. In conjunction, HRM even plays a role in planning strategy.
The HRM processes contain nine areas:
- Talent management
- Regulatory compliance
- Compensation and benefits
- Performance management
- Learning and development
- Engagement and retention
- Succession planning
Entrepreneurship and good HRM
When embarking on a journey to start and grow a successful business, knowing how to manage people is imperative. A lack of knowledge may be exploited by an employee from the initial stages. Results of poor people management may result in employees taking advantage. An example of this may be employees shortening their hours, purposefully not putting in ample effort when the manager is not present and/or not being present for work at all.
Dan Pink, a New York Times best selling author, stated on a CIPD podcast that ‘not everybody wants to lead but everybody wants to contribute.’ An employee should always be placed in a role where his talents and attributes will allow him to thrive. This statement may seem obvious but is easily overlooked. The performance of the employee is in the best interest of the company, and for the employee to perform at their best, they would need to be happy in their role. In light of this, a new role has become increasingly popular in organisations, a Chief Experience Officer. Employees want to know the role they play in the overall success of the company is important.
Investing in employees is essential to bringing out the best in them. This can be done in other ways than providing training opportunities. Being open with employees and getting to know them as people outside of work will enable them to share other areas of their being that may contribute to the company. In many cultures, employees do have other areas of expertise outside of the formal employment roles. Common examples are from the creative works sector such as photography, tailoring or design. When the need arises it may not always be necessary to outsource these tasks to other companies when the opportunity could be given to a current employee. By investing in an employee’s passions, the employee may feel much more loyal to the company and that may even boost his output.
Entrepreneurs will need to know strategies to motivate the workforce with engagement, compensation and future prospects being vital to bringing out the best. A common technique, especially for smaller businesses, is for entrepreneurs to encourage leadership and unorthodox solutions from employees, as opposed to waiting for the manager to make a suggestion. This gives the employees an opportunity to manage themselves and not slow down company progress.
Overall, the company does not reach the objective without a dedicated workforce pushing to meet those targets. Without proper and effective management, employees will never sacrifice their effort or time needed to achieve company goals and targets.
Written by Papa Wilson, Openspace contributor.