As an entrepreneur, it’s our job to make our customers happy with our own inventions that could bring great benefit for them. But aside from that lies different departments on a firm with various functions such as operations management, marketing, finance and Human Resource Management or HRM for short. Though these branches have diverse uses, each has its own strengths and weaknesses that will help a small firm grow and be successful. One of them is Human Resource management which we will be discussing in the next few paragraphs that includes the big question every business people wants to know which is how it is considered to be an important asset in the business world.
So what is Human Resource Management? According to the article of The ‘science’ and ‘practice’ of HRM in small firms written by Susan Mayson and Rowena Barrett: “It allows us to view a firm’s employees as a source of value and, combined with the systems used to manage them, as a source of competitive advantage.” Another quote from the article states: “It is concerned with understanding how a firm’s human resources can contribute to firm performance and sustainability through the achievement of sustained competitive advantage (Barney & Wright et al., 2001, 2005).” It also implies that: “employees are a source of strategic value and their development, deployment and organization all contribute to firm performance and sustainability.” From the definitions and quotes mentioned earlier, HRM is about making the employees feel important or rather than be a significant member of your company instead of merely treating them as just workers that you often discriminate or ridicule because of their position.
In order to apply Human Resource Management, one must remember to hire your future employees based on their strengths and weaknesses in improving your business. You must make sure that the person you hire is the right man for that kind of particular job who will make you, the boss and your company proud. Aside from that, it is not only your employees who need to adjust to their new workplace, but you, yourself must do the same for the sake of your new workers. Just like what the article says about having new strategies which is: “the ability of small firm owner-manager to develop strategic awareness capabilities contributes to firm survival and success.” By having new strategies for the benefit of your company and your employees it will lessen the tension between two bosses and will have greater probability to go to the road towards success. This is a-must for both positions to be able to avoid the downfall of it which is: “Indeed Scase (1995) argues that those small firm-owner-managers who are unable to change their style act as a barrier to firm growth” (see Penrose, 1959).
I think the most important thing that we must remember as future entrepreneurs is that we must not forget our manners in learning to respect our employees for us to bring satisfaction to our customers with their help and to gain loyalty towards our workers. Better yet, treat them like a friend or a member of your family for them to loyalty towards you and your company in order to avoid problems concerning work.
By applying HRM in business, we can learn how to manage our people in our company through respecting our fellow employees for they are the vital part in the company wherein they are also responsible in serving the customers in meeting up their expectations and in helping us entrepreneurs in making our new ideas into a reality that people could use in their everyday life. Without them, we may not be able to do all our tasks needed ahead of time since it is part of their job to help us entrepreneurs in our work in order for our business to grow and expand into a larger firm.