Free «The Concept of Managing People» Essay Sample

The Concept of Managing People

The concept of managing people has today developed into an entirely separate entity called Human resource Management. It is now a foregone conclusion that people are the most important resource of the company which when capitalized on will bring maximum productivity for the company. According to Pfeffer, it is the people who give competitive edge to the company. But CEO’s of most companies neglect this fact at the expense of their own company’s profits. According to Richard Phelps, leader of HRM (PriceWaterCoopers), the CEO’s are to be blamed for cost cutting with the HRM department because in the long run, it is the HRM policies and practices that will shape the company and bring it great success.

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There are many models and theories which have been well researched by many stalwarts in this field to establish their viewpoints on the success of an organization. The Matching model, models of training and configurational approach, all adhere to the principle of giving the foremost impetus to managing people but these also do have some inherent flaws. For example the matching model has been outwitted by the labor process theory. There is the most universally accepted approach known as the distinctive approach which has a 5 point framework designed to help HRM manage people effectively.

These theories and models if put to practice is estimated to give a 29% increase in productivity over a 3-4 year time period.  This scale of events when calculated could mean billions for a company for example like Apple computers. Therefore it is the HRM’s initiative and innovation that can bring about positive changes in the culture of the company. Though at first these changes will seem like upheavals and not cost effective, in the long run everyone who is part of the company will appreciate its growth.

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