Wednesday, June 24, 2009

The Head of Human Resources at every company should be at least as important as the CFO.

CHENGDU, CHINA - FEBRUARY 17:   Migrant worker...Image by Getty Images via Daylife
This is absolutely true. Human Resources Manager is the most critical link in any company, just as the Chief Finance Officer. In any business, financial perspectives is the key critical area in any success of the company. For any business person, profit and loss is the final impact to any business. However, the sad part is that, not many company look at HR as also another key critical areas into the success of the company.

One has to remember that people make or break the company. System alone may set the procedures for the smooth methodology of managing tasks, but people are the one that will eventually push the button of any machines to run. Being emotional creatures, people sometimes think with their brain but more commonly think with their heart. Hence, motivational factor, leading factors, Interpersonal skills, Communication and many more comes into play.

The HR plays an important role in balancing between the systems (which covers the rules, regulations and procedures and many more) and the people factor. As what Dr. Covey in his 7 habits book tend to put forward the formula for productivity P=PC (production = production capability) shows the important of the people factor.

HR are mediators and bridges to bring into play the people's factor and at the same time putting forward the needs and requirements of the company as the core direction of everyone within the organization. HR, apart looking into the administrative portion of the company, which includes the benefit and compensation systems and other related matters, also have to look into the development of the people through training, OJT and other related tools to move people to the foreground of performing for excellence.

So the old adage of 'People are company's greatest asset' is totally true, but not practiced as I have seen it in many organizations today. Just words..lip smacked environment.

as what Jack Welsh wrote in his introduction in his book 'Winning' is a gem worth practicing.
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