The Importance of People in Business
What is a business without people? Can it really be classed as a business? What use are premises, inventories, business plans, strategies, technologies, etc, without people to execute them? Essentially, people are the heart of a business. They bring the expertise, the manpower, the ideas, the professional front for the business, all of the ingredients to turn all of the above entities into a well-oiled money making venture.
People for Management and Leadership
No business will go far without effective management and leadership. In order for a business to survive, run smoothly and be successful, the people involved in the business need to be managed well and provided with efficient leadership where required.
Everything involved with the day-to-day running of the business must be monitored and co-ordinated. As well as the operational side of the business, e.g. production, management must ensure that effective talent management is executed so that people who are particularly valuable to the business are encouraged and retained. This is so that the business may benefit in the long-term from these employees.
The Influence of Human Resources
When we refer to the people involved with the business, obviously employees are a key group here. In general however, we may refer to the various groups of people who have an interest in the business as stakeholders. Looking back to employees, this is obviously a key responsibility of the HR department.
Managing the types of people who enter the business via the recruitment and selection process is very important, as this dictates the ideas and skills which enter the business. Effective internal resourcing is also important, as this is aimed at making sure the right people are in the right place at the right time.
The Consequences of Forgetting the People Involved in the Business
If the people involved with the business are neglected for one reason or another, negative consequences will occur. For example, if management fail to include their staff in vital decision-making for the business, they will in turn feel unvalued and demotivated. Then their performance will suffer as a result of this. We also see here how one group of people involved with the business will affect another.
Demotivated staff displaying poor performance could mean that customers are put off, especially where customer service-orientated businesses are concerned. The business itself ends up losing out as a result of forgetting the various groups of people involved.
A Final Thought
As well as bearing in mind the importance of considering the people involved with the smooth running of the business, it must also be remembered that people can essentially be a source of competitive advantage for the business. This is concerned with the resource-based view of the business (RBV). This is one of the main reasons for why people are of significant importance to any type of company, although obviously more to some than others.
Are there any examples out there of how people have created an impact on your business? Let us know!