Human capital is probably the most research subject matter in the business sphere. This itself shows how important labor is to a business. They are the ones who actually set the machinery of the enterprise in to motion.
No matter to what extent a production or manufacturing firm may be automated, yet the need for labor force cannot be underestimated. It is essential for business men to be familiar with the organizational behavior theories and concepts to create a desired response and action.
Traditional approaches such as ‘Carrot and Stick policy’ no longer have any significance in modern times. Each individual tends to respond differently for a similar set of stimuli. This difference is due to variation in terms of perceptions, background, attributes and personality unique to every person.
With such dynamic elements constituting the human capital it is of utmost importance for business owners to exercise the relevant control over employees to make the enterprise economically viable for longer period of time.
1. Be professional and at the same time try to establish a good rapport with the employees. Money may make the world go round but with employees a few words of praise, recognition and awards could definitely spin your business to the top.
2. Give the necessary feedback to your employees on a regular basis – weekly, fortnightly or monthly so they are aware of the wrongs and do not repeat it again. Feedback should include both positive and negative views.
3. Provide feasible solutions to improve on specified parameters like quality and quantity.
4. Invite suggestions from the staff members to boost productivity. Most of the reputed organizations have installed facilities like soft stimulating music, gym or a recreation room and found employees to be much happier.
5. Ensure that the compensation, incentives, rewards and recognition programs are paid on time.