People drive growth in the organization. They are the most valuable assets. How well you deploy assets for business growth depends a lot on leadership. Assets -human and financial, when deployed efficiently, yield growth for a business entity. These are fundamental principles for the well-being of any organization – for profit and not profit; healthcare and others.
Efficient deployment of human resources is best achieved when the leader recognizes that people are individuals. Each individual has strengths and weaknesses. Like in medicine, we move towards personalized healthcare; ideally, personalization of people management is a desirable goal.
Based on my research and experience in various organizations, I have learned that at the top of my list of things in human resource management lies communication.
The leader should communicate his vision of the company and his expectations from the workforce. Elon Musk stresses the free flow of communication within his companies. His organizations are flat structures where people come together to achieve a clearly defined goal. His organizations are staffed with A-listers, highly skilled, highly educated people.
Hierarchical organizations make communication across levels difficult. Lack of communication and dialog is one of the primary causes of attrition. Misunderstandings, the inability of innovative people to communicate their ideas to leadership, and intellectual stagnation are some of the causes of dissatisfaction and ultimate exit.
Poorly defined roles and responsibilities are another cause of employee dissatisfaction. Management should invest time and think in the selection and deployment of people.
Financial compensation also plays an important role in human resource management. Each person should get his due share. Transparency in financial compensation will go a long way in building a good HR climate within the entity.
Intellectual satisfaction: Educated workforces want their career to be intellectually fulfilling. Leadership has to play its part in helping in the intellectual growth of its workforce.
Organization and people management are individual company-specific, and the above thoughts have to be customized to an individual company’s realities.