BUS603: Managing People

In today's dynamic times of intensifying globalisation, when many countries are hit by the financial crisis, a company should monitor new trends in their business environment. Managers make daily permanent decisions to develop an effective strategy that will help them to succeed in a highly competitive environment. It is more and more true that in order to succeed, companies should provide and keep quality human resources. It is generally understood that times when tangible assets were the most important assets of a business are long gone. Therefore, many businesses now focus on the knowledge and skills of their employees and the company as a whole, and these often become a source of their competitive advantage. Companies now invest in human resources and significant financial resources and seek appropriate opportunities for streamlining the development of their employees' potential. Human capital plays a crucial role in increasing the productivity and output of an organisation. It is involved in the creation of the market value of the company and also represents the most valuable source of the company. This analysis of the selected company proved the effectiveness of investment in human resources through the use of measurable and immeasurable indicators of efficiency of investment in human resources. The results confirmed that the wage system in the analysed company is set up so that the amount of wages is based on the turnover of the enterprise. The business has thus few possibilities to change this fact; however, it can focus on improving the system of corporate benefits, which can ensure retention and loyalty of employees in the company. For that reason, we recommend the company to obtain from their employees feedback determining whether the business benefits are set up to act as an incentive and arouse employees' interest. In order to prevent unwelcomed turnover, a company should try to analyse and identify the reasons for employees' dissatisfaction and for former employees leaving. If a company is aware of reasons for dissatisfaction, it can evaluate and then implement necessary changes in its system of rewarding and motivation of employees, which may prevent further loss of human capital. Labour productivity growth, both in sales and value added, is a key for the performance of the company because it leads to savings in expenditure of labour and labour costs. Based on the research conducted, we recommend to the analysed company to focus on examining the relationship between labour productivity and rewarding schemes and to pay special attention to the needs and specifics of human capital, because it is human capital in the company that is able to create value. Human capital value added (HCVA) had an upward tendency, which means that human resources create added value effectively. It is important for the company to pay special attention to this indicator because its rank indicates the overall efficiency of utilisation of human resources (value added by labour), and therefore we can conclude on the basis of these results that the company uses its human resources effectively. The company is further advised to regularly monitor the development achievements of HCROI, because this indicator is a key method of measuring human capital in the company. The enterprise expects that investments in its employees shall be returned, although long-term nature of the return on investment in human capital must be taken into account. What we consider to be a satisfactory outcome of this research is that when evaluating motivation in both the compared groups, respondents responded to the same 10 most important motivation factors, which more or less affect the satisfaction, motivation, and performance of the human resources of the company. Based on the gained knowledge, we recommend the company to focus on (within their strategy of investing in human resources) the examined motivation factors that enable higher and more effective contribution from investments in human capital companies. Finally, in order to efficiently use human resources in the analysed company, increase of employees' awareness about the system of corporate benefits and the possibilities for their further education and development would help to achieve the best results. All these items can significantly increase employees' satisfaction, their motivation, and especially their work performance, which consequently positively translate into greater efficiency, prosperity, and competitiveness of the company itself.