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From improving company morale and developing methods to ensure high performance standards to resolving conflicts among employees and ensuring a company stays within its budget, there are at least five reasons HR is so important for business success. Skip to content. Budget Control The HR department develops methods for trimming the costs associated with workforce management, thus curbing excessive spending and helping to save the company money in the long run.
Employee Satisfaction For better or worse, the HR department has the responsibility of determining whether employees are satisfied, not only with their supervisors but also the job and related duties as well. No business wants an employee who is lazy or incompetent or dishonest. But a small business with a work force of half a dozen people will be hurt far more by such an employee than will a company with a work force that numbers in the hundreds or thousands.
Nonetheless, "most small business employers have no formal training in how to make hiring decisions," noted Jill A. All they know is that they need help in the form of a 'good' sales manager, a 'good' secretary, a 'good' welder, and so on. And they know they need someone they can work with, who is willing to put in the time to learn the business and do the job. It sounds simple, but it isn't.
Before hiring a new employee, the small business owner should weigh several considerations. The first step the small business owner should take when pondering an expansion of employee payroll is to honestly assess the status of the organization itself. Are current employees being utilized appropriately? Are current production methods effective?
Can the needs of the business be met through an arrangement with an outside contractor or some other means? Are you, as the owner, spending your time appropriately? As Rossiter noted, "any personnel change should be considered an opportunity for rethinking your organizational structure.
Small businesses also need to match the talents of prospective employees with the company's needs. Efforts to manage this can be accomplished in a much more effective fashion if the small business owner devotes energy to defining the job and actively taking part in the recruitment process. But the human resource management task does not end with the creation of a detailed job description and the selection of a suitable employee.
Indeed, the hiring process marks the beginning of HRM for the small business owner. Small business consultants strongly urge even the most modest of business enterprises to implement and document policies regarding human resource issues.
To hold problems to a minimum, specific personnel policies should be established as early as possible. These become useful guides in all areas: recruitment and selection, compensation plan and employee benefits, training, promotions and terminations, and the like.
In any case, a carefully considered employee handbook or personnel manual can be an invaluable tool in ensuring that the small business owner and his or her employees are on the same page. Moreover, a written record can lend a small business some protection in the event that its management or operating procedures are questioned in the legal arena.
Some small business owners also need to consider training and other development needs in managing their enterprise's employees. The need for such educational supplements can range dramatically. A bakery owner, for instance, may not need to devote much of his resources to employee training, but a firm that provides electrical wiring services to commercial clients may need to implement a system of continuing education for its workers in order to remain viable.
Finally, the small business owner needs to establish and maintain a productive working atmosphere for his or her work force. Employees are far more likely to be productive assets to your company if they feel that they are treated fairly. The small business owner who clearly communicates personal expectations and company goals, provides adequate compensation, offers meaningful opportunities for career advancement, anticipates work force training and developmental needs, and provides meaningful feedback to his or her employees is far more likely to be successful than the owner who is neglectful in any of these areas.
Armstrong, Michael. Kogan Page Limited, Green, Paul C. Jossey-Bass, Gubman, Edward L. November-December Phillip, Harris. Managing the Knowledge Culture.
Human Resource Development Press, March Mathis, Robert L. Proper leadership within the HR department will involve negotiating insurance plans, making sure payments go out on time, and improving and developing employee benefits packages. HR management is not what it used to be. Technology, workplace policies, and a changing market are some of the biggest factors influencing the growth and evolution of human resources. Some examples of these new and improved practices include:.
Technological advancements and streamlinedstaffing practices will play a crucial role in the HR field as time goes on. HR is a key aspect of any organization—from improving employee well-being to risk management. Without proper management, this complex field of work would lack structure and struggle to evolve over time. Having a strong HR department backed by solid leadership is one of the best ways for a company to ensure employee satisfaction, productivity, and future growth.
A satisfied staff is the foundation of a thriving company, and HR management is the cement that holds it together. HR management is crucial to any company, and the skills needed to reach this position are equally valuable. The first steps to any successful career in human resource management Are finding the right school and earning the right degree.
What degree is needed to be a human resource manager? Start your journey to a career in human resource management today by learning more about the HRM program at North Central College. He has 10 years of collegiate communications experience and has worked with hundreds of college students. Brenner, L.
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