5th P in Marketing: People
This article is about the 5th P in Marketing: People. We believe that a successful company depends, firstly, on its leader. However, this leader cannot be self-appointed, s/he becomes a leader because there are individuals who decide that part of their path is to follow the direction of the leader.
HR represent part of the capital of the company, an investment that brings many benefits. The abilities, experience and knowledge of each employee contributes to the growth and development of a company. Talented people can bring added value to the enterprise.
Briefly, the value of human resources consists of:
- knowledge (theoretical knowledge),
- skills (e.g. ability to use a computer program);
- experience;
- attitudes (e.g. commitment, pro activity);
- belief in the company and its leadership.
The way human resources are managed is very important. Competent and effective management can bring plenty of advantages to the company.
“Human Resources Management involves the establishment and execution policies, programs and procedures that influence the performance, capabilities and loyalty of the employees of an organization. Individuals are attracted, retained, motivated and developed to perform the work of the organization through these policies and procedures” (Clardy 1996)
In other words, human resource management is a strategic and coherent approach to the management of the company’s most valuable asset, its employees. In those terms, the staff is a major force in the organization, because they contribute individually and collectively to the implementation of a company’s strategy and objectives.
Such management includes: employment, professional & personal development, motivation and creation of appropriate relations between management and workers. HR management also supports the efforts of the company towards the use of abilities, skills and talents of employees and to retain the best employees, by enabling them continuous improvement of their qualifications and provision of salary adjusted to their achievements. The purpose of HR management is to enable a company to achieve success through/thanks to people employed in it.
“A highly effective HR system is one that emphasizes staff performance in every aspect of the system, is internally consistent, and perhaps most importantly is aligned with the strategy of the organization.”
A company with a highly qualified and constantly learning staff is more likely to achieve higher returns than their competition. Accordingly, the employees are the most valuable resource, which increases the competitiveness of the company. Therefore, it is important to continuously improve their skills. The investment in “human resources”, although generally expensive, at the same time is highly profitable.