National Institute of Technology

School of Applied Business and Management

Unit: 1BUM106 Managing People

Topic : Evaluate the importance of effective people

management
July 2023 Presentation By: Mr. Augustus
Learning Outcomes

• Importance of effective people management

Effective people management is of paramount importance in any organization and
has a significant impact on its success and overall performance. Here are some key
reasons why effective people management is crucial:
• Employee Engagement and Productivity: When employees feel valued, supported,
and empowered, they are more likely to be engaged in their work. Engaged
employees are more productive, innovative, and committed to achieving the
organization's goals. Effective people management fosters a positive work culture that
encourages motivation and commitment.
• Retention of Talent: A well-managed workplace creates a sense of loyalty and
satisfaction among employees, reducing turnover rates. High turnover can be costly,
both in terms of recruitment and training expenses, as well as the loss of institutional
knowledge and expertise. Effective people management practices help in retaining
valuable talent.
• Skill Development and Growth: Managers who invest time in understanding their
team members' strengths and weaknesses can provide relevant training and
development opportunities. A focus on continuous learning and personal growth not
only enhances employees' skills but also contributes to their career advancement
within the organization.
Continued...
• Conflict Resolution: Conflicts and disagreements are natural in any workplace. Effective people
management involves proactive conflict resolution strategies, promoting healthy communication,
and fostering a culture of understanding and cooperation. This helps prevent conflicts from
escalating and impacting overall team dynamics.
• Team Cohesion and Collaboration: Good people management ensures that team members work
together cohesively, leveraging each other's strengths and compensating for weaknesses. A well-
managed team can collaborate more effectively, leading to improved problem-solving, creativity,
and decision-making.
• Employee Well-being: A positive work environment, which includes supportive managers,
contributes to employee well-being and reduces stress levels. Prioritizing employee well-being
enhances job satisfaction and can lead to fewer instances of absenteeism and burnout.
• Organizational Culture: People management plays a crucial role in shaping an organization's
culture. A culture that promotes respect, inclusivity, and open communication fosters a sense of
belonging and leads to higher employee morale.
• Customer Satisfaction: Happy and engaged employees are more likely to deliver excellent
customer service. Satisfied customers contribute to the organization's success, as they are more
likely to become repeat customers and recommend the business to others.
Continued...
• Adaptability and Change Management: Effective people management helps
employees navigate through changes and uncertainties. A supportive
managerial approach during times of change can mitigate resistance and
facilitate a smoother transition.
• Achieving Organizational Goals: Ultimately, organizations exist to achieve
specific objectives. Effective people management aligns individual and team
goals with the organization's objectives, ensuring that everyone is working
towards a common purpose.
In conclusion, effective people management is not just a soft skill but a strategic
imperative for any organization. It directly impacts employee engagement,
productivity, retention, and overall organizational success. Investing in people
management practices creates a positive work environment, leading to higher
levels of employee satisfaction and performance.
Let's explore some of the key areas where employee
expectations are changing and their impact on people
performance:
Employee expectations have been evolving rapidly in recent years, influenced by various factors such as
advancements in technology, changes in work culture, and shifting societal norms. These changing expectations
have a significant effect on people performance and how employees approach their roles within organizations.
• Flexibility: Employees increasingly value flexibility in their work arrangements, such as
remote work options, flexible hours, and the ability to maintain a work-life balance.
Organizations that offer flexible work arrangements tend to see improved productivity, higher
job satisfaction, and increased loyalty from their employees.
• Responsiveness: With the advent of instant communication and social media, employees
expect timely feedback and responses from their managers and colleagues. Prompt feedback
helps employees stay on track, enhances their sense of direction, and boosts overall
performance.
• Enthusiasm for Change: As the business landscape continues to evolve, employees now
expect to be part of an organization that embraces change and innovation. Companies that
foster a culture of adaptability and encourage employees to be proactive in suggesting and
implementing improvements often experience higher engagement and a more resilient
workforce.
Continued...
• Entrepreneurialism: Many employees now seek opportunities to be entrepreneurial
within their roles. They desire the autonomy to take ownership of projects, suggest
new ideas, and innovate within their domains. Organizations that encourage
intrapreneurship tend to see higher creativity and problem-solving capabilities
among their employees.
• Diversity and Inclusion: Employees are placing increasing importance on working in
diverse and inclusive environments. They expect organizations to prioritize diversity
initiatives, promote equitable opportunities, and create a sense of belonging.
Inclusive workplaces lead to better collaboration, higher creativity, and improved
performance from employees.
• Concern for Employability: As job markets change rapidly, employees are more
conscious of the need to continuously develop their skills and remain relevant in
their careers. Organizations that invest in employee development and provide
learning opportunities tend to attract and retain top talent, leading to higher
employee performance.
The effects of the changing employee expectations
on people performance:
• Higher Employee Engagement: When employees' expectations are
met, they are more likely to be engaged and committed to their work,
resulting in increased productivity and improved performance.
• Improved Job Satisfaction: Meeting employee expectations leads to
higher job satisfaction, reducing the likelihood of turnover and
enhancing overall morale.
• Enhanced Creativity and Innovation: Embracing flexibility, encouraging
entrepreneurship, and promoting diversity can lead to a more
creative and innovative workforce, driving organizational success.
Continued...
• Increased Resilience and Adaptability: Employees who are enthusiastic
about change and possess a concern for employability are more
adaptable to evolving market conditions and industry trends.
• Positive Employer Branding: Organizations that align with changing
employee expectations and provide a supportive work environment
tend to have a positive employer brand, attracting top talent and
further boosting people performance.
In summary, understanding and adapting to changing employee
expectations are essential for organizations to maintain a competitive
advantage and foster high-performance cultures. Meeting these
expectations can lead to improved employee satisfaction, engagement,
and overall organizational success.
Macro environmental factors, such as globalization, service excellence,
and innovation, have a profound impact on people management
practices within organizations. Let's evaluate the effects of these factors
on people management:
Globalization: Effect on People Management:
• Diverse Workforce: Globalization has led to a more diverse workforce with employees
from different cultural backgrounds, languages, and work styles. People management
must focus on fostering an inclusive culture, promoting cross-cultural understanding,
and leveraging the diverse skills and perspectives of employees.
• Virtual Teams: Globalization has facilitated remote work and virtual teams. People
management now involves effectively managing remote employees, ensuring clear
communication, and providing the necessary tools and resources for virtual
collaboration.
• Talent Mobility: With globalization, employees may have more opportunities to work
internationally or transfer between different locations. People management needs to
address challenges related to expatriate assignments, support the integration of
global talent, and provide resources for successful international relocations.
Service Excellence
Effect on People Management:
• Customer-Centric Approach: Organizations striving for service excellence
emphasize the importance of customer satisfaction. People management
practices must focus on empowering employees to provide exceptional customer
service, investing in customer service training, and recognizing outstanding
performance in this area.
• Employee Empowerment: Service excellence often requires employees to make
quick decisions and take ownership of customer interactions. Effective people
management involves empowering employees, providing them with autonomy,
and trusting them to make customer-centric choices.
• Continuous Improvement: Achieving service excellence involves a commitment
to continuous improvement. People management needs to support a culture of
learning, where employees are encouraged to suggest process enhancements
and take part in improvement initiatives.
Innovation
Effect on People Management:
• Creativity and Risk-Taking: Innovation thrives in environments where creativity is encouraged, and
risk-taking is supported. People management should promote a culture that values creativity, offers
time for experimentation, and rewards calculated risks to foster innovation.
• Learning and Development: Innovative organizations invest in employee learning and development
to keep their skills up-to-date and encourage the adoption of new technologies and practices.
People management must prioritize learning opportunities and provide resources for professional
growth.
• Collaboration and Teamwork: Innovation often requires collaboration across different teams and
departments. Effective people management involves creating a collaborative work environment,
breaking down silos, and promoting cross-functional cooperation.
Overall, these macro environmental factors and changes present both challenges and opportunities
for people management. Successful organizations recognize the importance of aligning their people
management strategies with these factors to enhance employee performance, satisfaction, and
engagement.
Leaders and HR professionals must stay adaptable and forward-thinking to navigate the dynamic
landscape created by globalization, service excellence, and innovation. By embracing the
opportunities presented by these factors and addressing the associated challenges, organizations can
build a strong and agile workforce that contributes to their long-term success.
Global emerging trends have a profound impact on effective people
management practices within organizations. Let's delve into each trend
and understand their effects:
Migration of Work: The trend of work migration involves the movement
of jobs and tasks across borders, enabled by digital technologies and
remote work capabilities.
Effect on People Management:
• Remote Work Policies: People management must adapt to managing
a distributed workforce, which requires implementing effective
remote work policies, communication tools, and performance
tracking mechanisms.
• Cross-Cultural Competence: With teams comprising individuals from
different countries and cultures, people management needs to focus
on developing cross-cultural competence and promoting inclusivity.
Replacement of People by Technology:
Advancements in technology, such as automation, artificial intelligence, and
robotics, are transforming the nature of work and potentially leading to the
replacement of certain jobs.
Effect on People Management:
• Reskilling and Upskilling: People management practices must emphasize
reskilling and upskilling employees to prepare them for new roles and to
ensure they can work alongside technology effectively.
• Emotional Intelligence: As technology takes over routine tasks, people
management needs to emphasize emotional intelligence and human-
centric skills, such as empathy and creativity, which remain essential in a
technology-driven world.
Growing Significance of Women in the Labor
Market:
In many parts of the world, there is a growing recognition of women's role
in the workforce, leading to increased female participation and leadership.
Effect on People Management:
• Diversity and Inclusion: People management must prioritize diversity and
inclusion efforts to ensure gender equality in the workplace, create
opportunities for women to advance, and eliminate gender biases.
• Work-Life Balance: Women, especially working mothers, often face
unique challenges. People management should foster a supportive work
environment that promotes work-life balance and offers family-friendly
policies.
Ageing Population:
Many countries are experiencing demographic shifts, with an increasing
proportion of the population reaching retirement age, leading to an
ageing workforce.
Effect on People Management:
• Knowledge Transfer: People management needs to facilitate
knowledge transfer from retiring employees to younger generations
to retain institutional knowledge and expertise.
• Age-Inclusive Practices: Organizations should adopt age-inclusive
practices to ensure that employees of all age groups feel valued,
engaged, and supported.
Consideration of Ethicality Regarding Employment:
There is a growing emphasis on ethical practices in employment, including fair wages,
equitable treatment, and sustainability.
Effect on People Management:
• Ethical Leadership: Ethical people management involves setting the right tone from the
top and promoting ethical behavior and decision-making throughout the organization.
• Purpose-Driven Culture: People management practices should align with the
organization's purpose and values, fostering an ethical and socially responsible
corporate culture.
Overall, effective people management practices must be adaptable to address these
emerging trends and challenges. Organizations that embrace these changes and prioritize
the well-being, growth, and inclusivity of their workforce are more likely to thrive in a
rapidly evolving global landscape. As the workforce and work environments continue to
transform, people management will play a crucial role in ensuring that organizations
remain competitive, sustainable, and supportive of their employees' needs and
aspirations.
Understanding the changing attitudes of employees and the effect these changing
attitudes have on the ways in which organizations seek to secure optimal
performance from their workforce
The attitudes of employees are subject to change over time due to various factors, including shifts
in societal norms, changes in work environments, technological advancements, and evolving
employee expectations. Understanding these changing attitudes is crucial for organizations as it
directly impacts the ways they seek to secure optimal performance from their workforce. Let's
explore some of the key changing attitudes and their effects on people management and
workforce performance:
• Work-Life Balance and Flexibility: Changing Attitude: Employees now place a higher emphasis on
achieving a healthy work-life balance and seek flexible work arrangements to accommodate
personal responsibilities and preferences. Effect on People Management: Organizations need to
offer flexible work options, such as remote work and flexible hours, to attract and retain talent.
This approach enhances employee satisfaction, reduces burnout, and boosts overall productivity.
• Employee Engagement and Purpose: Changing Attitude: Employees are increasingly motivated
by work that aligns with their values and contributes to a larger purpose beyond just monetary
compensation. Effect on People Management: Organizations must foster a strong sense of
purpose and a positive work culture to enhance employee engagement. People management
practices need to emphasize employee recognition, career growth opportunities, and
meaningful work assignments.
Continued...
• Desire for Continuous Learning: Changing Attitude: Employees value opportunities for
continuous learning and career development to stay relevant in a rapidly evolving job
market. Effect on People Management: Organizations need to invest in employee
training and development programs, provide access to learning resources, and
encourage a learning mindset to keep their workforce skilled and adaptable.
• Inclusivity and Diversity: Changing Attitude: Employees seek workplaces that embrace
diversity and inclusivity, valuing employees' unique backgrounds and perspectives. Effect
on People Management: People management practices should prioritize diversity and
inclusion initiatives, promoting a diverse talent pool, implementing unbiased hiring
practices, and ensuring an inclusive work environment where everyone feels respected
and valued.
• Recognition and Feedback: Changing Attitude: Employees desire regular feedback,
recognition for their contributions, and opportunities for growth and advancement.
Effect on People Management: Organizations need to adopt continuous feedback
mechanisms, implement performance appraisal systems, and offer career progression
pathways to enhance employee motivation and commitment.
Continued...
• Employee Well-being: Changing Attitude: Employee well-being, both physical and mental,
is gaining more attention as employees recognize the importance of a healthy work
environment. Effect on People Management: People management practices should
prioritize employee health and well-being by promoting wellness programs, providing
work-related support, and addressing work-related stressors.
• Emphasis on Workplace Ethics and Social Responsibility: Changing Attitude: Employees are
increasingly conscious of ethical business practices and an organization's commitment to
social and environmental responsibility. Effect on People Management: Organizations
need to demonstrate ethical behavior, align their corporate values with social
responsibility, and engage employees in sustainable initiatives to attract and retain socially
conscious talent.
The changing attitudes of employees call for a more people-centric approach to people
management. Organizations that recognize and adapt to these shifting attitudes are more
likely to secure optimal performance from their workforce. Effective people management
practices that focus on employee well-being, purpose-driven culture, learning and
development, recognition, and inclusivity will lead to a more engaged and productive
workforce, resulting in sustained organizational success.