Over the past 50 years, Human Resource Management went a long way from hiring and firing. Today they also arrange coaching and comfortable working conditions for their people. HR business partners are the productivity centers of the company as they create comfortable conditions for effective work to everyone. Managers may still receive the directions from the executive team, but most often they participate in meetings and offer their approaches and business solutions on how to improve the performance of teams. As HR managers set the tempo for the company’s performance, executives take it essential to introduce some innovative HR practices. Here are a few of them.
Adopting an employee-positive HR philosophy helps business partners to build a healthy atmosphere in their teams. It is important to create the place where people want to go to every day to communicate with colleagues, get inspired by new ideas, and show their expertise completing everyday tasks. Managing people is not about installing space and time limitation for their work but about empowering them technically and emotionally.
Reducing the administrative work of HR partners is a necessary step in the 21st-century Human Resource Management. 50 years ago, the tasks of HR workers actually came down to doing paperwork. But today we have entirely different views on what is good to business, and HR business partners foster creativity and innovation. To let them perform at the high level, companies need to go away from excessive paperwork.
And last, members of HR teams also require education like any other employees. HR trends change fast, and executives have to make sure that their HR managers receive up-to-date training. Businesses have to invest time and money in developing their HR teams because they manage all the remaining staff.
Being a socially-responsible business is a comprehensive notion. Social responsibility stimulates companies to take care of their customers, employees, and even people who have never heard about them. But contributing to our planet is another great way to show corporate social responsibility. Tech giants such as Google, Microsoft, Intel, Bosh, and many others are ranked with the highest CSR level not in the last place because of their environmental impact. However, they also participate in charities and provide the global education.
CSR practices do not only make a picture of a perfect business; they make it highly efficient in fact. To start with, energy-efficient lights would help in every office. Corporate programs like Google Green allow companies to cut their energy requirements, which is a tangible financial relief. Saving energy or doing some recycling, businesses can reinvest the money in innovation.
Except for saving energy, companies can largely benefit from generating it. Even individual households install solar batteries to be independent of fossil fuels, and companies can make a very smart investment doing so for their offices. Going green is a global trend, and socially responsible businesses lead the way to what will be the norm of life very soon.
Conducting ethical behavior, deploying fair and transparent business practices, complying with governmental standards, and staying off the scandals, businesses can also greatly enhance their CSR ranking. Being responsible is not only about making an extra contribution to the society. It concerns complying with all norms in the workplace and running a fair business in the first place.
Digital technology holds together the present-day business. All companies use cloud computing, social networking, digital marketing, and online shopping to sell their products, not even to mention techniques involved in manufacturing. Technology allowed us to produce as many goods as we do today and sell them quickly through physical retailers or online shops. Due to the revolution in computing, we can advertise, provide instant customers support, and use real-time monitoring. If we switch off the technology we have today, all businesses will stop functioning.
Another reason why business owners fell in love with technology is innovation. New revolutionary ideas have been developed in all times, but it was very slow until the invention of the computer. Yet 50 years ago, businesses could perfectly exist deploying proven traditional business models. But in the present-day competition business cannot rise to the top without having a couple of original ideas. Computers help to generate these ideas and implement them into life. Businesses that develop digital products solely depend on technology because it generates 100% of their income.
Unlike 50 years ago, the kind of technology we use for their business today can predict the future success of the enterprise. Smart software and advanced computerized machines directly determine how much goods we produce and sell to the customers. They also can help us outrun competitors that are not empowered as we are. Therefore, technology is everything for the business and its future.
As a comprehensive process of storage and distribution of goods, logistics is vital to all types of business. Many goods and services still have to be transported to the target audience, and companies often need to import raw materials from abroad – this is why we cannot avoid logistics in doing business. Though the notion was not used until the 1960s, the concept of logistics existed yet in times of the Roman Empire, ‘logisticas’ were military officers who distributed services and resources. They aimed to damage the supply locations of enemies strengthening their own. The US military logistics was effectively used against the German army during World War II, which greatly influenced the outcomes of the war. Since the 1960s, the concept of logistics passed on to business.
Several parts of logistics make it unavoidable for business. The first one, an inbound logistics, is used to arrange the shipping of raw materials from the suppliers. Then there is a material management that helps to move materials between different facilities of one company. Physical distribution is the part of logistics that transports the finished goods from the manufacturer to the consumer. Logistics is closely tied to the supply-chain management; it includes all intermediaries who supply goods from manufacturers to customers.
For the past 50 years, several trends changed our way of doing business and assured that it cannot work without logistics. Production became highly efficient, and transportation costs rose because of the fuel prices. Retail chains became large, and globalization filled the markets with foreign goods. All these processes were enhanced by computerization and required companies to make the distribution of materials fast and effective.
Expansion into the foreign markets is the aim for many businesses. About 90% of all income opportunities lie abroad, and entrepreneurs try to push their products to the global market as fast as they can. But going global can take a lot of business assets and disrupt the existing activities. To better understand the benefits and risks of international expansion, entrepreneurs have to deeply understand the target markets and the competition. Practically every business can go global but not all of them will get as much revenue as they expect.
Before developing a business strategy for international expansion, we have to define the place of our product in the foreign market. Do foreign customers have the same needs as our domestic clients? Who are our primary competitors in the target country? Does our product have any advantages before their ones? In case our product can actually compete in the foreign market, we shall start developing a localized business plan. The corporate strategy and objectives will remain the same, but the business structure, marketing, retail, and financial backing can differ from what we do at home.
Partnering with local companies can help businesses to understand the foreign market and integrate into it. Localization of a product can be challenging, and foreign experts can do it better for our business. The product must be enough comprehensible and innovative for people to consider buying it. Setting in the foreign market is legally challenging. Foreign taxes and trade policies can also differ so that businesses have to know everything about the economic conditions in the target market.
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Presence of xenobiotic chemicals in the soil environment causes soil pollution. It is essential to keep our planet clean as the plants we eat grow in soil. When it gets contaminated, we either consume spoiled products or have less territory to grow food on.
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