People management is highly important for organizational leaders and managers as it helps resolve employee conflicts, fosters corporate culture, and improves communication.
Additionally, for general employees, it enhances their sense of unity with the direction of the organization, improves work environment, and increases motivation to contribute to the organization.
The key elements can be summarized in the 5 Cs of effective people management: Create, Comprehend, Communicate, Collaborate, and Confront.
For example, at the multinational company SAP, based in Germany, they have a system called SAP Talk, where managers spend time discussing with their subordinates the support they need and the work environment. This leads to mutual understanding between the company and its employees and boosts morale.