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fundamentals of Human Resource Management
The management of human resources is critical for companies to provide “value”
to customers, shareholders, employees, and the community where they are located.
Value includes not only profits but also employee growth and satisfaction, creation
of new jobs, protection of the environment, and contributions to community programs.
All aspects of human resource management including acquiring, preparing,
developing, and compensating employees can help companies meet their competitive
challenges and create value. Also, effective human resource management requires an
awareness of broader contextual issues affecting business such as the economic recession,
legal issues, and globalization. Both the popular press and academic research
show that effective human resource management practices do result in greater value
for shareholders and employees. For example, the human resource management practices
at companies such as SAS, Google, Edward Jones, and W. L. Gore help them
earn recognition on Fortune magazine’s list of “The Top 100 Best Companies to Work
For.” This publicity creates a positive vibe for these companies, helping them attract
talented new employees, motivate and retain current employees, and make their services
and products more desirable to consumers.
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