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People Management

Failure and successes of organizations depends “more than ever on recruiting, engaging, managing and retaining the best talent - people” who have the necessary leadership and technical skills (Reid and Crisp, 2007). There are numerous theories and strategies of effective people management but the important aspect of these theories is the implementation at the human level in organizations, which occurs through the people who work in them. The current business environment is sophisticated and needs strong driving forces to succeed in the globalized world. However, research confirms that technology may not provide the much needed “driving force” which can bring about success in organizations, due to the “sheer speed” of rapid changes in technology which enable companies to “quickly replicate and introduce the same technology” (Stoh and Caligiuri, 1998). It has therefore been understood that people “cannot be quickly replicated or replaced” and are therefore “a source of competitive strategic advantage” to organizations (Stoh and Caligiuri, 1998). Organizational policies are designed and implemented by people of an organization which contributes to its success and profitability. Managers need to manage people effectively by displaying supportive leadership and creating work environments which are healthy and promote creativity among the workforce.

Managing people and human resources requires skills and the knowledge of several theories including:


Motivation is an important element in organizational learning due to its ability to enable employees to function effectively. There are several theories of motivation which can be useful to managers in motivating employees of organizations. The major theories of motivation have been classified broadly into three distinct categories including “needs theory, cognitive theory and reinforcement theory” (Islam and Ismail, 2008). Motivational theorists have identified basic hierarchical needs (Maslow, 1970) among individuals which should be fulfilled in order to achieve motivation; “existence” which refers to physiological aspects of work including secure working conditions, good remuneration, benefits, food and shelter etc; “relatedness” which refers to relationships, familial, professional and friendly; and “growth” which refers to “self esteem and self actualization” (Alderfer, 1972).

Additional motivational factors which have been researched by conducting studies of four distinct types of employees including “ground workers, library clerks, patient relation representatives and medical record assistants” and found recognition for services and payments to be the most crucial motivating factors among them while  (Mani, 2002). Some more factors which have been found to impact the motivation levels of employees include job security, appraisal systems which are based on the performance of employees, and training programs for effective solving of problems and work related issues (Milliken, 1996).


Finding people who can function as suitable leaders to lead organizations is a challenge for many multinational organizations which have to “compete for skilled worker” who can function as a “center’s leader with appropriate management skills” (Kar, Subramanian and Saran, 2009). The leader must possess the necessary qualities of building the center through a thorough understanding of the local culture of the country. Literature confirms that “principled leadership” must displace contractual relationships which are based on lack of trust between managers and workers (Sanders, 1997). Management leaders have the daunting task of getting the best of their human resources through their management skills which serve as the vital factor in motivating their employees and increasing the overall productivity of workers (Kar, Subramanian and Saran, 2009). It is therefore extremely essential for mangers to realize the strengths as well as the weaknesses of the employees in the organization and must also know how to motivate them by using the necessary tools including “incentives, job rotation and training” (Kar et al, 2009).