A proper Human Resource Management sets the standards of a company. It is not of a doubt that the Human Resource Management has tremendously grew from just being associated with hiring, to now considered as one of the important process that companies spend large amount on for them to have good results on proper employee selection. It has become a company’s system and core of employee knowledge. Of course, following these systems would surely contribute in building a stronger force of employee handling and thus creating a more competitive edge towards the company’s competitors.
Human Resource Management are the practices that companies follow through a systematic way on how to employ different, strong and unique individuals and allocate jobs and tasks for more systematic and accurate outcomes. Companies nowadays put more effort in training their employees so that their employees can be knowledgeable enough to know all the necessary things that needs to be utilized for better production. Focusing on improving the Human Resource gives the company a much more benefit than short-term strategies. But, how can human resource be considered as a Theory of a Business?
According to Peter Drucker, every organization, whether a business or not has a theory of the business. Indeed, a valid theory that is clear, consistent, and focused is extraordinarily powerful. The story of every Theory of the Business is often a familiar one: “a company that was superstar only yesterday finds itself stagnating and frustrated, in trouble and, often, in a seemingly unmanageable crisis.” The root cause of these crises is not that things are being done poorly. Indeed, in most cases, the right things are being done – but fruitlessly. The company’s theory of business has been associated with its strategy that sets its difference from others. It is the company’s strategy to outperform its competitors.
But having a strategy is not enough. Because of the presence of ‘competition’, staying ahead of rivals gets harder every day and competitors can quickly imitate everything that they will see others might do, which makes a strategy either generic or left-out. As what Porter said, “A company can outperform rivals only if it can establish a difference that it can preserve.” Therefore, a company must maintain a strategy that is of long-term and yet is hard for the competitors to imitate.
Human Resource has paved its way to corporate success nowadays surpassing the ‘old’ things that it was known for. Focusing on human resource is a long-term strategy because not only do you develop people: you develop a strategy that others cannot. In a world that seems to make everything at ease and look like generic, as entrepreneurs, it is a must to constantly think of change. The difference that entrepreneurs should make on the statement ‘we hire people’ should be ‘we hire RIGHT people’, and the only way through that change is understanding the importance and the advantages that Human Resource Management could contribute towards a strategy that is of uniqueness and incomparable.