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Importance of people management

Importance of people management

by LI BIN . -
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The people management system is used to manage team members of the board of directors who have a significant impact on the overall operation of the company. Therefore, managers need to adhere to these practices as a piece of the puzzle without straying from the main goals of the business. Effective people management includes support for recruitment, employer branding, performance management, compensation, health and safety, employee benefits, communications, employee engagement and training.

The rise, decline and revival of American Ford Motor Company is a typical case reflecting the importance of management. Henry Ford, the founder of Ford Company, had a shrewd and strong mind and rich technical experience. In 1889, Scientific American published an article on the structure and manufacture of The German Benz, and many Americans began to make cars. In 1896, ford was produced. The Ford Motor Company was founded in 1903 and began to produce models "A" through "R" and "S" to compete with dozens of car companies. There was no advantage. But the introduction of the Ford Model T in 1908 marked the beginning of Ford's monopoly. Model T is characterized by its compact structure, simple design, robustness, ease of driving and low price. In 1913, Ford adopted the flow production method of automobile assembly and implemented the standardization of automobile parts, forming a system of mass production. The output increased to 130,000 units in that year, 260,000 units in 1914, and 2.04 million units in 1923, forming a monopoly situation in American automobile production. Ford thus built one of the world's largest and most profitable manufacturing companies, amassing a cash hoard of $1 billion from profits. Ford believed, however, that all a business needed was an owner-entrepreneur and a few of their "assistants" who could run it with their reports. He believed that the organization of the company was just a "formality" and the enterprise did not need managers and management. As the environment changes, other competitors rise, cars have different grades of needs, technology. The management of production, supply and marketing, finance and personnel is increasingly complex, and personal management is difficult to adapt to such requirements. Only a few years later, by 1927, Ford had lost its leading position in the market, losing money every year for the next 20 years, and could not compete effectively until World War II. General Motors, its great rival at the time, took the opposite path from Ford's experience starting in the 1920s. "General" are some of the competition but ford's small company together, at the beginning of the established, these small companies as part of the "general" fragmented, gm organization is not sound, many of the company's work focused on a few people, not only makes the leaders are busy affairs, no time to consider the company's policies, and limit the enthusiasm of staff at all levels. But 1920 years later, the new to take over as President of general motors of the small Alfred Sloan in big reorganization, restructuring process set up an organization structure and the method to deal with problems, according to the market the needs of the customers different levels, determine product direction, strengthen professional collaboration, for mass production, established in accordance with the principle of decentralized management and coordination control management system, Organize a strong leading group, strengthen scientific research and development work, keep technological products advanced, strengthen production, supply and marketing management, do a good job in salary and welfare and personnel management, establish financial management and so on. In this way, the level of organization and management was greatly improved, so that the market share of "GENERAL Motors" jumped from 10% to 43% in 1926 to 1927, and accounted for more than 50% for many years thereafter, while "Ford" was on the verge of bankruptcy when Ford's grandson, Ford II, took over the company in 1944. Ford II, then 26 years old, learned from his rival, GENERAL Motors, and began to do what Sloan had done at GENERAL Motors. He created a management organization and leadership team, and within five years he had regained the power to grow and profit domestically, becoming a major competitor of GENERAL Motors.