Indeed, human resource management is perhaps one of the fundamental entrepreneurial challenges that need to be addressed right at the behest.

An entrepreneur faces many challenges on the road to entrepreneurial success and overcoming them effectively is often the key to greatness.

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While ideas, funding and daily running of the business efficiently are one end of the picture, the other end involves creating the condition conducive for efficient output.

By that, we mean handling the staff that is responsible for the efficient running of the firm.

The firm’s efficiency, as well as overall success, is deeply connected with this key factor.

As the entrepreneur creates an enterprise, it gradually transforms from being a one-man show to a team effort.

The entrepreneur, therefore, wears many hats.

Not only should they be able to deliver their dreams, in reality, but they also need to understand that they have to get the entire team to work with them.

So as an entrepreneur, the challenge for you is to understand that it is no longer your independent show.

The brilliance of your plan will come forth only when you are able to pass on the passion to your team, and they are able to share your ideas.

They need to be engaged continuously and bring forth a meaningful value addition to the effort that you are putting together.

And, that essentially would be effective human resource management.

What Are the Key Principles of Human Resource Management?

Here is the list of the human resource management key principles that make you a successful entrepreneur:

  1. Creating A Strong Human Resource Management Team
  2. The Right Recruitment
  3. Communicate Your Expectation Well
  4. Responsibility Allocation
  5. Respect Privacy & Confidentiality
  6. Encourage Talent & Diligence
  7. Dealing With Problematic Employees

1. Creating A Strong Human Resource Management Team

Human Resource Management TeamFirst and foremost, you need to create a strong team.

For that, you need to first and foremost make a broad plan for the overall recruitment drive.

Bringing in the right amount of staff is extremely important.

Too many people would mean chaos and too few would hinder efficiency drastically.

The first challenge is, therefore, fixing the total number of staff that you need and then go about recruiting them.

As an entrepreneur, you must understand that human resource management is all about creating a happy marriage between the requirement of the department in focus and the budget that has been allocated for staff recruitment.

You have to remember balance, just like in financial management of a company, is very important while you are trying to bring in a happy mix of efficient and talented staff.

2. The Right Recruitment

The Right RecruitmentAchieving the right recruitment mix is not just bringing in a lot of talented people.

As a keen entrepreneur, your focus has to be on getting the right person for the right job.

Here more than talent, it is important that you get a person who is well suited for the job.

Even if that means you settle for someone with lesser degrees or lesser experience, it is fine.

But while recruiting you must ensure that this person totally understands the job that is expected from him/her and is well geared to deliver it flawlessly.

One important aspect that can ensure this you have to be very clear in your overall directive about the job requirement.

People who you are interviewing must understand clearly what’s expected from them and how you want the job to be executed.

The tests that you formulate during the interview should also aim to find out the person’s adaptability to the job requirement more than the general talent.

For example, if you are looking to hire a manager, that person needs to be an excellent team leader, and it is okay to be perhaps slightly mediocre in core area expertise.

This is what will ensure effective human resource management.

4. Communicate Your Expectation Well

Communicate Your Expectation WellSo now that the team has been hired, you need to engage in effective dialogue with them.

Interact with them in a friendly but effective manner so they totally understand what your expectations are from them and how well they can work towards fulfilling your passion.

So avoid rhetoric and get to more direct and to the point speaking.

This will ensure that there is no ambiguity and the staff understands the challenges and expectations clearly.

The right understanding often yields the most appropriate solution.

When the staff you hire understand the requirement clearly, they will be able to deliver the job a lot more efficiently.

This will mean that there will be additional positivity all across the workplace… a happy you and a happy workforce would only mean a happy workplace.

While the smiles of your staff might not show on the balance sheet directly.

But they surely reflect in your overall success and precision in your output.

Thus human resource management brings in a greater degree of commitment from your staff.

And in many ways it can also address potential attrition conditions a lot better.

5. Responsibility Allocation

Responsibility AllocationClarity in communication is not just important for efficient output but also for effective execution of responsibilities.

Therefore it becomes immensely important that the staff gets a clear idea about who does what.

In this way, you can ensure that there is no doubling of responsibility and wastage of time in delivering them.

For example, let’s take the HR department only.

Let’s say you have a total staff of 10 to handle the responsibility of 200 people.

Now instead of all of them handling everything, you must allocate responsibilities very clearly.

One person needs to handle payrolls.

The next one could handle benefits, one for enrollment while the fourth one could look at overall recruitment and talent management and the like.

This kind of distribution ensures that the team is able to perform a plethora of responsibilities in the same go.

Time, as a result, is much better managed this way and the staff too can work under a lot less pressure as they go about performing their responsibilities.

Therefore what an entrepreneur achieves is effective human resource management and precision in overall execution.

This no doubt leads to creating effective delivery channels.

6. Respect Privacy & Confidentiality

Respect Privacy & ConfidentialityIn many ways, efficient human resource management is a lot about respecting individuals and allowing them their privacy.

Just because you have hired them, it does not mean that your staff is answerable to you for every action they undertake to keep it very professional.

Of course, they are answerable to you in terms of the time they spend in the office and the responsibilities they undertake.

But that does not mean that they are in anyway answerable for what they do beyond office hours.

Keep your relationship with the staff strictly professional and convey your empathy for them in a dignified manner.

The other key aspect in this context is respecting an individual’s confidentiality.

By this, we mean that when you hire your staff, they need to disclose a lot of details about their health, wealth and family.

You as the entrepreneur and the HR staff who handles this information on your behalf should be discreet about not sharing the information with anyone outside the office.

The confidentiality of the staff details cannot be compromised at any cost.

The effort needs to be taken that it is protected and in no way misused with any type of ulterior motive.

7. Encourage Talent & Diligence

Encourage Talent & DiligenceRemember whenever talk of efficient entrepreneurship, innovation is often considered the core of excellence.

In this context, it is important to mention that as your enterprise grows, it becomes essential for every member of your staff to try and innovate as efficiently as you do.

Often to achieve this, you also need to don the role of a mentor in your firm.

You have to try and encourage staff to start thinking out of the box, take ownership of the responsibilities that they take up and importantly they are able to deliver as well as you expect them to.

To bring about appropriate human resource management, you might sometimes even need to encourage them to undertake some training if required.

This is to ensure that the innovation procedure is not compromised under any circumstance in your firm.

Additional training processes, regular knowledge upgradation and even team engagement measures like offsite can go a long way in encouraging your staff’s talent and diligence to come to the forefront.

This also ensures that they are able to go about executing their responsibilities a lot more efficiently and appropriately.

As a result the positive vibe in the workplace gets enhanced.

8. Dealing With Problematic Employees

Dealing With Problematic EmployeesWhatever initiatives that you might undertake to make your staff happy and engaged there is always a chance of having a small percentage who are not happy.

Remember that human resource management is a lot about helping all of these people to change their stance as well.

So how do you deal with unhappy employees?

Here is a quick rundown:

1. Thorough Assessment

First and foremost you must work towards identifying the problem area and work towards alleviating it.

In this context, you must remember that you need to avoid assumptions at all cost.

Do not jump to conclusion, give your staff a patient hearing and then work towards creating a sustainable solution.

Whatever the problem is whether they are unhappy with the management, staff or just their job profile, always give them a patient hearing and then work towards a solution.

Look at offering assistance through various employee-related programs.

2. Delaying Tactics do not help

Always remember the longer you wait to address an issue the worse it becomes and in some cases even irreversible.

No one really looks forward to situations like this, but if you have t handle it, it is much better to do it now more than any other time.

Confrontation is most times the best way to deal with these kinds of problems.

Not only can you help root out a problem.

But you can also nip in the bud any kind of unwanted negative forces building up in your firm.

3. Don’t Compromise Privacy

Remember the cardinal rule of privacy is important in this case as it is in any other aspect of effective human resource management.

If you have to address a particular staff or if you need to speak with a specific team, it is always better to do it behind closed doors.

In this way, you are conveying the message to your staff that you are looking at resolving their issues and also committed to their happiness and satisfaction.

This also helps you in winning your team’s commitment at all times and them looking at you as your genuine well wisher.

They begin to see you as stakeholders in their happiness and often reciprocate it helping enhance the team’s efficiency.

4. Don’t Lose Your Cool

Remember that when you are trying to address an unhappy situation, it is quite simple to lose your cool, but it might not be the best course of action.

Tempers will be frayed anyway, and you cannot achieve anything by it.

On the contrary, a level-headed approach can always help in bringing out long-term gains.

The staff members in question will also be more comfortable in talking about their problem.

Unnecessary shouting can only make them more uncomfortable and even convince them to stay quiet.

The problem is the bargain you might lose out on a talented asset.

So best to try and remain calm and talk politely.

Mutual respect is one of the biggest policies that you must follow in the workplace.

5. Don’t Be In a Hurry

When you are dealing with unhappy customers and trying to fix the unhappy situation, please remember that it never helps to try and rush through it.

Speed does not help at all.

On the contrary, it could only add to the existing problems and even complicate the matter.

Don’t be under the belief that you can fix everything in one simple meeting.

Often it takes a lot more than that, maybe series of chats.

Yes, it can be often problematic and even frustrating to you as an entrepreneur.

But remember, in this case, patience is the key to efficient human resource management.

6. Don’t Forget To Record

Most importantly it is important to document and keep records of all the conversation that you have with your staff.

You must always document the outcome and result of anything you speak in meetings.

So you can clearly put forward your case in case of future conflict.

Remember to keep a positive tone, and the records should not work against you.

Also remember that if you have to part ways with an employee, it is always better to do it on a positive note.


As a successful entrepreneur you have to work continuously in creating an environment conducive for your staff to excel as well.

Efficient human resource management is about managing your staff efficiently, keeping their interest in your mind and looking at long-standing and sustainable solution that also aids future growth going forward.