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Proper management of human resources ensures maximum employee performance, which translates to optimal results in business. HR is tasked with ensuring that all staff is working towards the goals of the organization (Noe,731). Moreover, businesses have multiple employees working in different departments. HR ensures that all these employees work harmoniously and that their efforts are coordinated towards the greater goal of the firm.
Good human resource management has contributed to the success of many new entities. This is because HR helps these firms to control their budgets by reducing costs associated with the workforce. One way that the HR achieves this is by negotiating costs such as wages and benefits with the employees. Further, HR can help maximize employee satisfaction to ensure that they are motivated to perform their jobs optimally. The human resource department ensures that employees are satisfied through the provision of good working conditions (Mathis & John 19). Working conditions entail factors such as office settings, safety and health standards, technology, etc. Additionally, employee benefits granted by a firm through HR are crucial for the motivation of employees. Human resource management can also contribute to the success of the business through training and development programs. These programs enrich the employees with skills and knowledge that are deployed to benefit the firm. Lastly, HR can contribute to the success of the new business through conflict resolution mechanisms. Businesses, being social organizations, are prone to conflicts arising in the course of work. HR ensures that these conflicts do not escalate to the level of bringing the business down.
Nonetheless, poor human resource management has contributed to the failure of several new businesses. Poor recruitment of personnel has been a common cause of business failure stemming from the HR. Poor recruitment means that the business employs staff who are not perfect for helping the organization achieve its goals. In most cases, it is because the staff is not qualified for the tasks they are employed for (Rao & Teegen 34). Additionally, a business might fail if HR fails to limit the costs associated with human resources. Most businesses do not generate significant revenues in their start-up phase. When their HR fails to limit costs such as salaries, wages, and associated benefits, these costs overwhelm the business leading to its failure.
For over 40 years, Starbucks has succeeded in accomplishing its goals due to its exemplary human resource management practices. Notably, the companies mission statement is to provide a good working environment where all employees are treated with respect and dignity. Starbucks is known to improve its employees’ affairs through facilities such as training and development. Starbucks was among the first companies to set up lactation rooms and baby centers in the workplace. The company has always been keen on ensuring that it provides the best working conditions for its employees. Additionally, the company pays its employees well to acknowledge their invaluable contribution to the firm.
Poor human resource management, among other reasons, led to the failure of Enron, which had over 29,000 employees. First, the company had dishonest management that posted misleading statements until the company went bankrupt. This failure can be attributed to HR since it is its work to fill the company with mangers with good records. Further, the HR did not take any disciplinary measures to the management upon realizing the foul activities. Lastly, the company had more employees than it could handle at a time when it was going through financial difficulties. The HR department should have downsized its workforce to reduce associated costs.
Work cited
Mathis, Robert L., and John H. Jackson. “Human resource management.” Mineapolis/St. Paul (1994).
Noe, Raymond A., et al. “Fundamentals of human resource management.” (2007): 731.
Rao, Pramila, and Hildy Teegen. “Human resource management.” (2009).