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Importance of People Management and it's key components with example

Importance of People Management and it's key components with example

by TEOW CHIA ERN . -
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1. What is people management and why is it important:
 People management involves training, inspiring, and steering employees to enhance workplace efficiency and encourage career advancement. It is important in an company as it helps in resolving conflicts, facilitating new employee integration and success, setting realistic tasks and deadlines, and fostering a cohesive company culture through feedback and strong connections with employees.

2. Example:
Let's have a look on the past and present management style of Cadbury as an organizational example. 

Past: The company Cadbury  was founded in 1880s, by having a "factory in garden" which provide a safe and healthy environment for their employees. They provide facilities such as swimming pools and tennis, and a Saturday half-day off work were also introduced. Workers’ facilities like these were unheard of in Victorian times, but George Cadbury, the founder of the company said that "I do not think any men could have been happier." It can be seen that the company has shown particular prowess in personnel management since its inception. 

Present: For now, Cadbury's management style is democratic. Everyone work as a team, and their managers are active listeners, giving patience to their employees, and think about the suggestions and ideas of their employees before making decisions. Through this management style, these managers might have apply some of the essential skills of people management while communication such as patience, trust, conflict-resolution and clear communication.

3. Key components of achieving success:
From the company's history, we can conclude that they have been applying 5 key components of people management to achieve success: they understand what their employee needs with providing different facilities to create a positive working environment, managing the company with a democratic and open minded way that helps in effective communication, collaboration, and conflict resolution.