Effective Communication, HR Management, and SMEs

Communication Channels

Effective communication channels: The communication must be effective and not distorted. According to Koontz, an agent is not needed as much as information. The established channels and command levels are a consequence of the leadership styles:

• Descending communication: Management transmits the information the company believes is desirable for the institutions and to carry out the company's orders and policies. It occurs through the hierarchical line of direction, mediante meetings with middle management. It is self-communication of authoritarian styles.
• Upward communication: Reflecting the situation of subordinate levels while collecting aspirations and concerns of their own. It uses various means of participation: meetings, questionnaires, surveys.
• Lateral communication: Occurs between different levels and departments composed of the same.

Human Resources Management

The management of Human Resources: The objectives are to effectively and efficiently reach others, to create, maintain, and develop a group of people, maintaining and developing the conditions of the organization. Currently, management is based on 5 points:

• The organization is analyzed through the structures and the described job positions.
• Planning: Analyzing the needs of qualified and quantitative HR areas.
• Recruitment, retention, and development: Hiring staff and hourly workers.
• Labor relations according to the collective agreement.
• HR legal function.

SMEs

SMEs: The majority of Spanish companies (98%) are SMEs, with enormous importance in the country.

Characteristics:

• It is customary that the property belongs to a person or a small group of partners.
• Their decisions are usually autonomous because there is no external control.
• Participates with a minority in the market.

Advantages:

• Proximity to the client.
• Motivation.
• Flexibility.

They have autonomy, and their activity goes more unnoticed, allowing SMEs to settle in specific markets.

Drawbacks:

• Contains a less efficient economy, especially in obtaining financing.
• Less investment and less skilled in technological HR.
• More resistance to change, normally because SMEs are directed by the owner, giving excessive centralization that can lead to slow processes. This occurs in innovation.

Inventories

Inventories: Companies need to provision themselves with materials and finished products. To manage the inventory cycle, it is essential to know the company.

Advantages of exploitation:

• Anticipation of demand.
• Supply and reduced costs.
• Decreases business risk.

Stock rupture: There is a risk that the company is unable to meet orders.

Costs:

• Order or renovation costs.
• Storage or possession cost: This is the main problem of inventories. It includes the premises' rent, management, inventory maintenance, and variables.

Management costs: Companies need to raise the standard of optimal inventory.

1. ABC Method: Classify products into 3 categories:
   • A: A few products that would give us the greatest benefits.
   • B: Intermediates.
   • C: The worst.
   Management is based on the "A" products.
2. Just in Time: Make only the products needed, in the form of raw materials and semi-finished products.