Human Resource in Business Management
A business is an organization that provides goods and services to consumers. For most businesses, their main purpose is to maximize profits for the owners. To do that, there are various business models developed to help them, and the process is deemed as a business strategy. There are many components that contribute to the development of a business model. One key component is human resource management. Human resource management links people-related activities to the development of business models. Despite the various inputs required for a firm to operate, there has been an increasing emphasis on human capital in recent years. This results in human resource management becoming important in how businesses strategize. So what is the role human resource management play in business models, and how it affects them? In today’s ever-changing world, the success of a business model depends on how responsive it is. In other words, human resource management has to be responsive to the economy and individuals in the business. The first step will be getting the right people for the right job. This does not just involve hiring the right employees, but also identifying the right post for them e.g. choosing the right person to be the leader. The leadership grid can be employed to do that. Figure 1 below shows the leadership grid. It is based on 2 attributes, concern for people
[pic]
Figure 1(“Leadership Grid”, n.d)
and concern for work. Different organizations have different needs, and thus the leadership style required will also be different. For example, a production department’s main purpose is to meet production targets, so a leader with high concern for production but low concern for people is required. If the wrong person is assigned to the job, it will cause problems to the organization, resulting in a decrease in productivity in the organization. Affecting the business model, as tasks and projects are unlikely to go as plan.
[pic]
Figure 1(“Leadership Grid”, n.d)
and concern for work. Different organizations have different needs, and thus the leadership style required will also be different. For example, a production department’s main purpose is to meet production targets, so a leader with high concern for production but low concern for people is required. If the wrong person is assigned to the job, it will cause problems to the organization, resulting in a decrease in productivity in the organization. Affecting the business model, as tasks and projects are unlikely to go as plan.