THE ROLE AND IMPORTANCE OF THE PERSONNEL SYSTEM IN ENHANCED BUSINESS EFFICIENCY

Abstract

Understanding of people are how important for the enterprise, has also increased the importance of personnel management. The human factor, which has become a must for enterprises, plays a key role in increase of the effectiveness and efficiency of the enterprise. As a result of the growth of the enterprises, the need for supervision has arisen and this has led to the centralization of the authority. As for the centralization has resulted in coordination and communication difficulties, and this has led to the loss of information and alienation between the administration and the implementers. This also has increased the importance of personnel management and created the need for personnel system.
Establishment of management systems for the created personnel potential, plays a very important role in increasing the effectiveness of performance management system and the enterprise. It is required to determine the benefits of performance planning and performance management system, and what are the problems related to the personnel system created in modern conditions and how to solve them. It is a fact that it is worth to time, labor, budget and energy, which the enterprises will spend, when investment is made in human resources. In a knowledge-based service business, the effective human resources management will be the only real basis creating a distinctive competitive advantage that will last long.
In order to be able to increase the effectiveness, efficiency and prestige of the enterprise, first of all it is required to create a strong, systematic and harmonious working system. And then this created personnel system is required to be supported, developed and its problems are required to be identified and be freed from these problems. While one of the two enterprises having the same features and establishment conditions can grow as a giant after a few years, the other may disappear within the same period. It is a fact that the real underlying problem is the management. Management is a process, which starts with the planning function, ends with the control function, and continues with the re-planning