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Benefits Of Human Management Essay

829 words - 4 pages

Despite perception that small minority business firms will become vulnerable by formal Human Resources Management (HRM) approaches and/or policies, even in small service firms there is opportunity to make wise or poor use of human capital, regardless the size of the operation. Research shows that certain HR activities are influential in the sales growth of small ethnic minority service firms such as recruiting, training, empowering, and developing the right reward systems (Altinay, Altinay, & Gannon, 2008). Furthermore, Mathis and Jackson indicate that effective human resource management can positively influence the business specifically in the areas of controllable costs dealing with personnel (2011, pg. 61). Other researchers have found that human resource management activities are valuable and a competitive advantage because they are difficult for other firms to replicate along with being a requisite part of accomplishing a firm’s strategic goals (Buller & McEvoy, 2012). Since the business advantages of implementing human resource management are so clear, why would so many small firms fail to establish formal human resource roles and departments, and implement proven approaches to achieve greater growth? The reality is that there are many facets to effective human resource management; facets that are often unknown or perceived as too complex to the leaders of small service firms, and due to their misperceptions or fear of change; such strategies may be ignored. Such ignorance can be costly to the firm and potentially bring about ruin. A lack of effective people management can have a variety of consequences such as dissatisfied customers, higher employee turnover, waste, and missed business opportunities. When such resources are managed well, a business has a greater opportunity to thrive, due to the byproduct that more effective recruiting, training of personnel, rewarding employees, and empowering them has on all areas of the service a business provides.
Many readers have been on the receiving end of poor customer service at some point or another. The reality is that poor customer service plagues a variety of small firms because they have failed to address the core problems that often are capable of being overcome. Many larger service corporations regularly scrutinize their own service levels and quality to ensure a minimum standard, however such formalized approaches are frequently disregarded as too rigid in the small business environment.
Many approaches exist to developing a plan for accomplishing a firm’s strategic goals, however research suggests that aligning employee skills’ to accomplish certain parts of strategic goals and ensuring the rewards/incentives are structured to bring about the right activity or...

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