A critical analysis of the linkage between effective people management and organizational performance
In the recent past, many organizations have started looking critically at their management styles and changing old systems to adapt new ones. People management is one of the areas that many companies are revamping in order to improve their competitiveness in the market(Armstrong and Baron 2005). People management involves the measures put in place by companies so as to ensure that their most valuable asset, that is their employees, are producing results that are positive and beneficial to the companies by providing them with all sorts of support to make this a reality. It has actually been shown by many studies that companies that value their employees perform better than companies that do not. This is because employees who are satisfied with their jobs, bosses and the general work place tend to work harder and produce better results than those who are not satisfactory. Organizational performance is also not measured in terms of profits generated alone. Many organizations’ performances are now measured in terms of the profit generated, their corporate social responsibilities, customer satisfaction and employee satisfaction. This approach of gauging performance is usually referred to as the balanced scorecard method (Richards et al. 2009).