Management Consultation------ Human Resource Management

Part One: The Importance of Human Resource Management

It is a knowledge economy era in the 21st century and the strength competition between companies is not only depending on substance resources of the company, such as workshop scale, equipment and capital, but the knowledge and technologies the company holds. And human is the carrier of the knowledge and technologies. So human resource management must play a crucial role in this era. As the Western economist once said that Western industrialisation partly depended on technologies and largely depended on management, especially the human resource management, which was the great drive of companies’ development.

The companies, which consulted with Steele, generally realized that the establishment of effective human resource management system would help to keep, attract and encourage talents, as the character of human resource was the necessary condition of forming non-reproductive core preponderance. When it surpasses rivals in quality and construction of human resource, the company has the strength to become successful in market.

Just as Thomas J. Watson, the founder of IBM, said, “Even if you expropriate my factory and burn down my buildings, as long as you leave the employees of my company, I will re-establish my kingdom.”

Human resource management is a main part of management consultation services Steele provides to clients.

Part Two: The Common Problems in Human Resource Management and the Root Causes of the Problems

As more and more companies began to attach importance to human resource management, the companies, which consulted with Steele, put forward feedback problems existing in the actual operation of human resource management, mainly including the frequent flow of talents, employees’ lack of working enthusiasm, enterprises‘ incapability to attract talents, and employees invading the enterprises‘ interests. In over a dozen of years experience in providing the risk control services of human resource management for enterprises, Steele conducted deep research on the problems existing in human resource management. After analyzing the root causes of problems, we think that they consist of internal cause and external cause.

Ⅰ. Internal Cause

A. The company lacks perfect human resource management system

Human resource management refers to promote the development of company by scientific methods to optimize the human resource. In short, every talent finds his/her proper position. However, what often happens is that many enterprises adopt mechanical human resource management measures in actual operation, and stress on regulations and passive and static measures. They have not been fully aware of the strategical human resource management, which stresses on reform and has dynamic and active connotation. Therefore, they could not establish perfect human resource management system, and the problems would inevitably emerge.

B. Employees viciously invade the company’s interests

Considering the self-interest, some employees of companies who are tempted by various interests of society take advantage of their posts to disclose business information, even business secret of the company to others, which results in great loss.

C. Employees passively invade the company’s interests

As they are not well educated and do not have complete understanding of companies’ business, quite a few employees of companies do not have consciousness of protecting company’s interests and preventing them from damage. So they passively invade the company’s interests.

Ⅱ. External Cause

A. Social environmental influence

When a person works for a company, usually he cares most about the salary. Blindly pursuing high salary and neglecting the developing space and self-value, many employees change work frequently and the employees of companies shift quickly.

B. Vicious competition between companies in the same industry

The competition between companies in the same industry is essentially the competition of talents such as to attract talents from competitors by high pay or other favorable treatment. Such vicious competition among companies becomes the common root of problems in human resource management.

Part Three: How to prevent the risk in human resource management

Risks exist in a company’s operation all the time. The purpose of risk control service in human resource management Steele provides is to minimize risks. It would be better for companies to prevent risk beforehand rather than remediation after problems emerge. And human resource management is an early warning management mode.

It is a very important sector of internal human resource management for establishing risk control system of employees. According to the statistics, one third of the total cases Steele handled in recent years are the economic loss cases, which resulted from human resource risk and the number is in an increasing trend. We have learnt that as in China , most enterprises do not set up perfect human resource management system at present, the records of employees are not complete and there is no supervision system of employees’ morality. Furthermore, due to the short of systematic training in companies, employees lack necessary professional criterion and quality. All the factors mentioned above will lead to potential risk of companies, but usually seldom company is aware of preventing risk caused by human resource management.

In allusion to the situation, Steele has established human resource risk management system, which includes prevention system in advance, control system in process and dealing system afterwards, and assists enterprises to prevent various risks brought by improper human resource management within companies.

In order to enable those companies that had consulted with Steele on management to be fully conscious of the risks in human resource management, Steele has held Afternoon Tea Salon on Human Resource Risk Control. The human resource managers of large foreign and state-owned corporations were invited to attend the salon. The senior expert of risk control department of Steele addressed a speech on risk control in human resource management and communicated with the attendees about the problems in human resource management they met in actual work and discussed solutions together. According to the feedback from clients after such similar activities, the effect is remarkable and more and more companies enhance the consciousness of risk prevention in human resource management.