What does a company require?

A company requires 4 M:

1. Money
2. Material to make the product
3. Machine
4. Manpower that connects all the above points

Material, money (warehouse planning or cash flow availability planning), and machine (with the technical and engineering skills) is managed by the manpower.

A business Owner usually gives a lot of focus to finance, marketing, operations, and sales but does not feel the need of having HR that runs all the verticals.

For example:

• Coco-Cola is a multinational company
• The material they require is water, concentrated syrup, soda, gas, carbon dioxide, sugar, bottles, and packing material
• The machines required are soda making machine, bottling plant and material handling machines.
• Therefore, they don't have a very huge technology and even if you have Rs. 4 to 5 lakh, you can start a small bottling plant of your own.
• Now, what is so different about the company and why other companies are not able to beat them? The reason is their manpower.
• They use the right strategies as per the processes of procurement, manufacturing, maintenance, quality, research and development, sales, and dispatch.
• Therefore, focus on managing HR or manpower.

Golden Statement

The company is as good as its people.

• If your employees will work well, your company will grow.
• And for this, you will have to understand management.

Golden Statement

Management is not doing the work yourself but getting it done from others.

For example:

• If a truck owner purchases 10 trucks, he will need to hire drivers, accountants, and helpers.
• And if he purchases 100 trucks, he won't be able to manage them on his own.
• He will have to learn human resource management as manpower is not a machine and has emotions, feelings and have good and bad days.
• If he makes a mistake someday the owner tells him rudely that he is useless and stupid, he will feel bad about it and will remember it for years.
• He may also start finding a new job and will not work properly during his tenure with your company.
• Therefore, you fail to manage the resource properly.
Suppose you hire the star performers of your competitors. But, they fail to perform in your company irrespective of the fact that you are giving them higher salaries, motivation, bonus increment, organising picnics, and vacations and also sending birthday messages.

The reason is that a human is emotional, smart, and has its own memory and you are not dealing with a machine or material.

Therefore, you will have to take care that the focus of yours, employees, and the company remains on the same page. This science is known as human resource management when you are controlling a human, not on the basis of money but emotions.

You need to understand this strategy.

HR management in:

1. MNCs:

• If we talk about MNCs, they have 50 offices and people work there for 10 years.
• This is because of their strong HR management.
• They have proper planning, hiring process rewards, promotions and they enjoy working there.

2. Small organisation

• Let's take the example of a small organisation like a shoe shop.
• The owner is very hardworking and has hired all the employees on his own and even trained them personally.
• The shop is doing well and the owner opened up 3 more showrooms.
• He has also kept managers to manage the showrooms and accountants. These managers have trained the other employees.
• Now, they have started facing various issues like employees are taking a lot of leaves, they are stealing an are not treating the customers properly.
• The company is not gaining any profit and inventory is not selling properly.
• The problem here lies in the HR management as when your business grows, you need to invest in the manpower and also have to learn the art to manage them.

In the next chapter, you will learn various steps of manpower management that include the hiring process, employee management, and cost control.

To understand the basic concept of HR, make a list of 4 Ms in your company that is machine, money, material, and manpower Understand their processes and see where you are facing difficulty. With the help of this list, you will get a clarification that you are lacking in terms of manpower management.

 Reasons behind the performances of HR

1. Competency: It means your skillset and capability.

2. Commitment: If employees are working with dedication and if it is not happening that he is working properly in front of the manager and as he goes, he starts talking or having tea, then they are committed.

3. Culture: It is a river that takes the employees along in the direction it flows. For example, in some companies, good employees are hired but they are unable to perform and, in some companies, some people join that performs well in your company, unlike their previous organisation because of the culture. Culture helps the employees to work as a team.

Therefore, keep your employees happy and do not restrict them.

In coming Chapters, you will learn about many tools and action plans that cover all the aspects of HR like:
1. Manpower planning
2. Organizational structure
3. SOP
4. Recruitment
5. Reporting
6. Training
7. KPI
8. Balance Scorecard
9. Technology
10. Payroll
11. Appraisals
12. Employee policies
13. Employee valuation
14. Motivation
15. Retention
16. Promotion
17. Incentives
18. Rewards
19. Succession planning
20. 360-degree feedback
21. Safety and security and many more.