[This is the first part of the 4 part series on Business Management.]

If you believe HR management was limited to your company employees, you wasted your MBA degree. If you think HR management was about hiring and retaining, you are only partially right.

HR management at the base of it is motivating humans to achieve a desired goal. You could do this with your company employees or your customers or suppliers or family members.

Here’s a quick example.  When you appreciate your girl friend for the lovely dinner that she made(even if she hasn’t), you are (un)knowingly practicing the art of Human Management. When you appreciate her even for the not so good food, she will try harder next time. And even next time if the food is not good then point out a genuine fault. Not a fault in her, but in the food. When first time you appreciated her you have created an authority for yourself to comment on her food the next time. But if you tell the (bitter) truth in the first time then probably she would disagree and the reply could be “but everyone else at home loved it… may be your taste buds are getting bad… you should quit smoking”.  You get the point.

Same goes with your employees. Just because you are his boss you don’t get a default right to comment on his working. You have to first create that respect for yourself in his mind else the coffee machine conversation would be like, “Nerd(thats you)! Knows nothing but just to find mistakes”.

As chairman, my main responsibility is to inspire respect…

…to be a leader you have got to lead human beings with affection.  - JRD Tata

Though financial compensation are a form of motivation but as Maslow said, they are only good to meet ones physiological needs. And again the financial compensation is given by the company, not the boss. There’s a difference. Appreciating is one way of human motivation that is practiced after the work is done and works with almost everyone. The other way is to throw challenges. This works with the more self motivated employees and what motivates them is not the challenge but the anticipation of the appreciation, that he can foresee, on the other end.

Here are some free ways to influence Humans (applicable to employees and others)

1. Send a personalised mail on his birthday and not send the standard template that HR department follows. Even better, visit him in his cubicle or atleast call him. Or a day before just ask him ”What are your plans for tomorrow?”. He will be surprised that you remember.

2.  Appreciate his interests. Ask him genuine questions about a field that he is interested in. As if you are seeking help.

3.  Send an email in the companies mailing list appreciating some thing he did. Even if  he is your client or supplier. Appreciate some genuine effort of his in the mail and CC it to him. Like “We won the contract from ABC company. Mr. XYZ (Linkedin profile), the COO of ABC had shown his genuine effort in closing this deal. We wish to develop some business leaders like him in our organisation as well.”

Everything can be bought. You should  be able to quote the right price. - Dhirubhai Ambani

The above quote is not a lesson for finance management but for human management. Remember, at all times you are talking to a human who will take the decision and not a company that will become your client.

Next: Money (Finance management)

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[Naman is a startup enthusiast and has worked with couple of Indian startups as Product Manager. He writes at The Inspire Blog]