Effective people management is crucial for organizational success because it directly influences employee satisfaction, productivity, and retention. While raw talent is important, the impact of good people management can significantly enhance organizational outcomes. Key components include strong leadership, clear communication, employee development, fair treatment, and effective performance management. Examples from companies like Google, Apple, Zappos, Southwest Airlines, and Pixar highlight how prioritizing people management leads to high engagement, cohesive cultures, and sustained performance excellence.