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Home>Uncategorized>Human Resource Management at Work

Human Resource Management at Work

Posted on May 22, 2009 by Lola Kakes

Human Resource management is the process a company uses to ensure the effective and efficient use of their “people” talents to accomplish organizational goals. If these resources are managed properly and effective, the organization would most likely increase profits, sell more items, produce in a more efficient manner, and be able to do all this while staying in legal compliance.


A product or service is only as good as the people that make it, design it, or sell it. This means that one of the most important assets of any organization is their human capital. If you have qualified, enthusiastic individuals, you will have a better chance of maintaining a leading edge over your competitor. If you have poor morale, low production, ineffective service, or untrained individuals – the chances are pretty high that your organization will be in the top 33% of all organizations that fail. People really do make the difference.

It is easy to see why HR is the most expensive part of doing business if you consider that studies show that the expense of having employees is about 40% of a company’s profit,. Large organizations have always seemed to have HR expertise – they have fully staffed HR or Personnel Departments with varying degrees of specialties, such as compensation, benefits, training, recruiting, etc. A fully staffed HR Department in a large organization might consist of at least three people at a cost of about $200,000 per year – just for salaries. Just imagine what you, the small company owner, could do with a staff of 5 people and an overhead budget of approximately $200,000 per year.

Well, in the first place you would not need 5 HR people. Most small companies can do quite well with a part-time HR person that is capable of giving good HR advice and counseling. Costs may vary, depending upon the expertise you are looking for, however, if you find an independent contractor with solid HR experience, an hourly rate for tasks completed would probably be very cost effective.

What can you, as a small company owner or manager do to have the leading edge and have your employees weigh in on the asset side of the ledger and not on the liability side? Talk to various human resource consultants and pick one that is right for your organization – one with experience, capabilities, and knowledge of human resource functions. Look at tools and resources that will help you develop your staff. One such tool is EffortlessHR, an Internet based “HR in a Box” program that is affordable and provides a wealth of information. Look it over and see what it can do for you or, check out other available tools and resources and find the right one for you.

Once you decide on the right combination you can get on with what you do best – run your company.

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  • How to Become a Human Resource Manager: Education and Career Roadmap 
  • Managing Change

Reader Interactions

Comments

  1. Janice Pence says

    June 26, 2009 at 6:09 pm

    What a great article! Human Resources is not about filling out paperwork when someone gets hired. It is about helping the employees of your company produce more. In my years of HR service, I’ve found just a few managers or owners who realized this – most just want us for Labor law compliance or new hire screening and beneifts management.

    One of the most beneficial tools I’ve used for communication issues, work place conflict and new hire testing is the Myers Briggs tool. We’ve had great success in using it for all of the goals mentioned above. Although I’ve had one career – HR – I’ve worked at several companies and have used it at all of the places Ive worked.

    Finding the motivated employee is the most critical part of my job. I take this very seriously. I need to find someone qualified, who finds into our company’s culture and values who will perform with passion. Hiring dead weight to fill a position is what Walmart does – that is not what I want out of my hiring decisions.

    I loved the article – you summed up the purpose of what we should all do!

  2. dave says

    June 29, 2009 at 5:31 am

    This article really added some more knowledge about HRM for me. Changed some of my thoughts too.
    .-= dave´s last blog ..Human Resource Management in Functional Organization =-.

  3. Michelle says

    June 23, 2010 at 1:19 pm

    Agree, “A product or service is only as good as the people that make it, design it, or sell it ”
    .-= [email protected] Based CRM ´s last blog ..New Theme =-.

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    • Lola Kakes says

      May 7, 2012 at 9:43 am

      Thank you!

  5. visitors says

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    • Lola Kakes says

      May 7, 2012 at 9:43 am

      Thanks!

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    • Lola Kakes says

      June 25, 2012 at 6:33 am

      Thank you. I am glad you liked the blog and please share it with others.

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