The advent of technology in the global marketplace facilitated the emergence of such tools as computers, operating software and robots. Despite this technological preeminence, long-term productivity still hinges on a smart collaboration between man and the machine. Human resources management hands corporate leadership the tools necessary for profitability and market share improvement.
Human Resources Management
Human resources management, or HRM, helps a company understand how its workforce adds value to its internal processes. The function plays a central role in the way the business hires and trains its manpower, as well as when and how it determines what personnel to let go. Other HRM functions include periodic performance evaluations and occupational-safety appraisals to ensure conformity with government rules.
By implementing sound workforce policies, human resources managers support the main initiatives corporate leadership puts into place to spur sales growth. Managers may step into the spotlight on such key operating battles as market share improvement, workforce training and research-and-development innovation. HRM specialists also assist department heads in hatching good ideas for future profitability, preventing the ideas from going nowhere and telling segment leaders whether the company has the right manpower in place.
Business managers constitute the cadre of senior executives who use their financial acumen and tactical expertise to steer organizations to profitability. In a modern economy in which businesses emphasize decentralization, corporate management welcomes the feedback and technical contributions of rank-and-file personnel. The goal is not to squelch new ideas, even if they appear ill-thought, biased or based on incomplete knowledge of the firm's operations. In large organizations, business managers may include middle management -- that is, such professionals as operations managers, department heads and manufacturing supervisors.
Business leaders provide the strategic vision necessary for long-term solvency, liquidity and profitability. They steer a company to its financial pinnacle and help it stay there as long as possible. Corporate management pays attention to such factors as profitability and internal efficiency to avoid situations of financial turbulence. These include bankruptcy, technical default and near-insolvency. Technical default means a borrower still makes regular payments based on the loan agreement, but does not meet other conditions in the agreement. For example, a company can be current in its debt repayments, but fails to uphold a debt-to-income ratio of 50 percent as agreed.
Business managers work in tandem with human resources personnel to determine the likely paths a company must take to reach its economic zenith. This collaboration enables the company to understand the policies necessary to increase productivity.