Business management and human resource management are two critical functions that contribute to a company’s success. Business management refers to the coordination of all business-related activities, such as operations and innovation, to achieve company goals and generate profits. On the other hand, human resource management is primarily focused on the well-being of employees and fostering a positive company culture to ensure employee satisfaction and productivity. Both functions are essential for a company to thrive in the competitive Singaporean market.
In Singapore, the role of business management and human resource management has become increasingly important due to the rapid economic growth and competition in the region. With an abundance of skilled labor and talent, Singapore has emerged as a hub for businesses across various industries. However, this growth has also led to increased competition and the need for companies to be innovative, efficient, and productive.
In this article, we will discuss the differences and how they contribute to an organization’s success
What is Business Management?
Business management refers to the coordination of all business-related activities to achieve the company’s goals and generate profits. It includes managing processes, systems, and resources to innovate and strategize company performance. The role of business managers is to ensure continuous improvement at all levels to achieve the company’s objectives. According to a report by the Singapore Department of Statistics, employment of management occupations is projected to grow 5% from 2019 to 2029, faster than the average for all occupations.
What is Human Resource Management?
Human resource management focuses on the well-being of each employee in the organization. It involves encouraging collaboration, building relationships, and maintaining connections within the workplace to ensure that employees are content, happy, and continue to thrive in their roles. HR managers mediate and find resolutions when conflicts or challenges among employees arise. They also oversee employee well-being and relations, draft company policies, recruit and train new employees, and manage performance reviews and rewards.
The primary difference between business management and human resource management is their focus. Business management emphasizes a company’s operational potential, whereas human resource management focuses on the company’s employees. Business managers work within the parameters of the company culture set by HR managers, who influence and set the company culture. A study by Glassdoor found that 77% of adults in the workforce are looking for companies with policies that prioritize employee well-being.
Another key difference is in their approach. Business management holds people accountable to their roles and responsibilities with set goals in mind, while human resource management focuses on the values and mission of the organization from a broader perspective with added empathy.
Which One is More Important?
Both business management and human resource management are essential to an organization’s success. While business focuses on achieving the company’s goals and generating profits, human resource ensures that employees are satisfied, engaged, and productive. According to a study by Deloitte, organizations with highly engaged employees are 21% more profitable than those with low employee engagement.
Effective business management and human resource management are critical to the success of any organization. It is essential to strike a balance between focusing on company operations and valuing employees as a valuable resource.
Utilizing HRMS or outsourcing to HRMLabs can be a great solution for businesses looking to streamline their HR processes, improve employee well-being, and enhance overall organizational performance. By leveraging technology and expertise, businesses can ensure compliance with labor laws, manage payroll and benefits, and attract and retain top talent. Ultimately, investing in HRMS or outsourcing can result in higher employee satisfaction, greater productivity, and increased profitability.