Human resource management

　　It is nearly a century since the car manufacturer HenryFord said, 'You can destroy my factories and offices, but giveme my people and I will build the business right back upagain.'(0) .....G..... But a few business theorists are beginning toargue that managing people well can add more to the bottomline than anything else.

　　Mike Manzotti, a leading American author in this area, has strong views about the growingimportance of human resources in today's business world. (8) .............. A company with high staffcommitment, for example, has an asset that its rivals find hard to copy.

　　Research in Britain would appear to support this notion. A recent business school survey intothe performance of eight multinationals found that people management could be the most decisivefactor in a company's performance. Another study indicated the same thing in medium-sizedmanufacturing firms. (9) .............. After all, how can an organisation evaluate the commitment ofits staff?

　　For this reason, the researcher George Hessenberg argues that a scientific approach is needed.He feels that when HR professionals suggest changing an organisation's compensation structure orbeing more selective in recruiting, they are asking for things that require resources. (10)............

　　Some new approaches are emerging that attempt to do just that, including the schemedevised by consultants Couze Jordan. The scheme, which covers communication, recruitment,and use of resources, predicts that significant improvements in these areas achieve an increase inshareholder value of up to 30 per cent.

　　Another programme, launched by James Lester, an independent human resources expert,approaches the problem from a perspective that is designed to appeal to a wide range ofmanagers. (11)..............Both, he argues, involve appropriate decisions being made about theallocation of resources within a particular budget.

　　Lester's expertise enables hiim to carry out an organisational audit for his clients to identifywhich areas of HR are in most need of improvement. This is because there is no point in businessesspending large amounts without knowing if the investment is worthwhile. (12) ............. Lester'sadvice, however, is for companies to think twice before hiring people, since it is vital they assesswhether they are getting value for money.

　　A But the findings are inconclusive because of the difficulty of collecting reliable evidence.

　　B He argues that the role of a skilled, motivated and flexible workforce has become moresignificant as traditional sources of competitive advantage diminish.

　　C For example, a common mistake is to spend a fortune on recruitment to cover up fordeficiencies in training.

　　D However, most leading experts in the field believe that there is sufficient evidence to supportthis model of workplace dynamics.

　　E He compares the positive use of human resources to effective fund management, as this issomething that senior executives can relate to.

　　F He believes, however, that the only way they will gain approval for these potentiallyexpensive initiatives is to have some data that demonstrates positive financial benefits.

　　G In the light of this statement, it is odd that people management has taken so many years tomove up the agenda.