As a business person (or organization), your number one asset are your people … your employees or staff.
Quality of your people/employees determines your success (or failure) in the market place. How good you are at training and motivating your employees determines your productivity.
This is the reason why human resource management is a topic every entrepreneur, CEO and business students have to pay attention to.
What is human resource management?
Human resource management is the process of acquiring and developing employees so that they become more valuable to the business or organization
Human resource management (HRM) is a department in an organization that deals with recruitment, management, and directing people within the organization.
Issues such as hiring, compensation, performance tracking, organization development, safety, benefits, communication, administration and training of the staff and employees are the functions of the HRM department.
It will be good to note here that the name given to, functions and approach of HRM can be different from one organization to the other.
The term, human resource development (HRD), Personnel Department, Talent development etc. can be interchangeably used to mean the same thing.
Some other people wonder whether small scale business and non-profit organization can have HRM department.
Well, the question is, do they have people working with them (even if only 2 people)? If yes, then, they have Human Resource Management “department”
The whole concept of the HRM is to bring out the best in people in order to achieve organization`s objectives.
As a business owner (whether small or big corporation), your goal is to win the competition in the market place.
Though you`re having many resources to do this (money, materials, etc.), ultimately, human beings are the “blood” that drives all other resources.
You`ll want your human resource to input their best into your business.
To achieve this, you will want to hire the right person for the right job, you`ll want to provide a suitable working environment and tools, you will want to give compensation and incentives appropriately, you`ll want to measure performance, you`ll want to communicate effectively with your most important business asset… human etc…. all these are the work of the HRM.
How to get the best out of Human Resource Department?
This department is without doubt, the most important in any given organization, considering its functions. To get the best out of this department, the head (or leader) of this department must be a good leader, a good communicator and a qualified and experienced person in the line of the company`s business.
The above is very important because of the duties involve in this HRM, basically four: staffing, training, motivation and maintenance.
Staffing is about employing qualified hands for the jobs an organization has to get done. As simple as this sounds (especially when you think about the huge numbers of the job seekers), it`s as well difficult for a few reason.
First, most job seekers are not qualified for the job. Second, if you`re carried away by the certificate they`re carrying, you`ll choose the wrong person. Third, if the HRM leader is someone who can easily be influenced in any dubious way, then, he may choose people of less merit.
Some organizations have discovered how to best handle this, by adopting various styles and tactics to select the best of the applicants. Some of those methods is to disqualify most applicants with some academic tests and then get other few people involve in the real life situations in order to test their abilities to cope with stress, pressure or any other challenges a particular business or organization may require.
I have a method I use which can be applied to your small business recruitment or Human Resource Management.
I would talk with the job applicants on phone, then fix a particular place for an interview.
Before he or she comes, I’ll be at the interview venue, but I will pretend as if I’m just one of the interviewee. We`ll start talking. I will be driving him/her to the topics about my business.
I will be asking him/her questions that will reveal his/her true temperament, mindset and even intention for deciding to work with me.
This method works like magic.
It works because human beings are easy to get, when they are not on guard. People always prepare their minds for formal interviews. They have the ideas of what and what you`ll ask them.
Even when they don`t have the idea, they still manage to answer with the best of “packaging” they can borrow.
They know your organization and try to pretend they can cope with the whole job specifications (even when their temperament or mindset cannot allow them).
Some of them are thieves and dubious, yet they will pretend they`re angels.
I`ve used the above method to hear an applicant saying something like, “all I need is money”. You know what that means?
When later I introduced myself as the interviewer, most of them would be shaking.
You can borrow my method or invent your own. Just know, it`s better, less expensive and less stressful to employ the right person than to lay off the wrong person and start all over again to be looking for another applicants.
Training the employees. Human Resource leader (or small business owner) must be someone who understands the business of the organization very well. When training staff, he/she must know how to use off-job and on job training method.
Off-job could be a theoretical training of the employees which may happen anywhere. On-job training is the training of the employees’ right in the work place or with the working instruments.
Most employees are not intuitive. They need to be guided, just like a machine (don`t blame them, that`s how school trained them to be), so they need to be well instructed.
Motivating employees. Your organization`s jobs are likely competitive. Employees get bored, tired and unmotivated with the job. They need a master motivator, a leader and a friend who can inspire them to meet the set goals.
Don`t make the mistake most business people make by thinking that money alone can get their staff working hard. Human beings need more things to get them inspired than money.
They want to be appreciated.
They want to be loved.
They don`t want to feel used.
They will love to feel like a partner to your organization. Why do you think some smart entrepreneurs/companies like Sam Walton and google give certain shares of their company to their employees?
They need them to feel as if they`re working on their own businesses.
Small business owners and human resource managers have to be great motivators.
Maintaining all of the above. Communication is a continuous task in the organization. Correcting the wrong and rewarding the good behaviours is a continuous task too.
HRM for Small Businesses
Do small business owners ever care about anything call Human resource management?
Whether they care or they don`t, they are having human resource… even if they have just a single worker.
The issue with small business is, you`re everything at the every time. You`re the marketing manager, the accountant, the manager… the everything. Yet, all of the above functions are what you have to do.
You`ll have to interview applicants and choose the perfect one (even if just a single person). You`ll have to train him/her. You`ll have to motivate him etc.