Company who doesn't pay enough attention to its human capital won't be able to survive. Human resource is the most critical and important asset of a company. It is their people who make the difference between one company to another. A merit system of employment is a crucial thing to bring the company to its highest performance possibly. Company should know how to maintain the best employees it has. To appreciate them and give rewards to those who deserve without being asked for. On the other hand company should be decisive to award an early retirement to those who are not perform and often only as trouble maker. Otherwise they will give bad influences to other good employees. It is wise to give reward to good performing employees but a big mistake to maintain the bad ones.
A reward in form of bonus, incentive, promotion or whatever appropriate to a deserve staff will affect the rest of the staffs positively. They will not be jealous if the reward is given based on the fact and not because of like/dislike. Even they will also try to do their best in order to be rewarded the same as their colleague. In turn it will boost the overall performance of company. Leader of company should never take advantage of employee's weaker position. All of employees must be treated equally regardless their social background. The evaluation must be solely based on his performance, contribution to company. Bias must be avoided to the best effort. A leader who practise like and dislike or even over protective to some of his staffs without any reasonable justification would eventually kill himself.
Leader in company should be sensitive enough to know what is going on with his best employees. Are they happy in their work? Are they motivated enough in doing their work to the best they could? Do not wait till employee tender a resignation letter then company just give a sudden great attention to that employee and make him/her a king/queen of the day. It's most likely has been too late besides it doesn't give a good image to the company. Leader must not make any promise to employee if he can not deliver his promise. Once promise is given it must be fulfilled at all cost.
HR manager should play its main role in balancing the employees and employer interests. He has to stand in the middle of the line. He may not side to employer just because where he get his paid from. Nor he may stand behind his direct boss or the staffs with higher rank against the lower ones just to play safe for himself. He has to play his role as HR, not just doing administrative work. He must think the most on how to create condusive atmosphere and comfortable working environment through HR matters.
In short I would like to say that a good company must have these three fundamental elements (written in order of importance): capable employees, unbiased HR practice and good system.
