Do Human Resources Department Make Money?
PRESENTED BY PAYSTUBMAKR.COM
04-19-2019
What is making the role of HR a strategic business partner
How can an HR department deliver its traditional role of hiring, maintaining, and terminating your workforce and impact the results of the business by increasing the profitability decreasing the cost of production and get higher satisfaction rate of the customers?
Common Manager’s reaction will be in two ways
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Why the HR staff is wasting time on issues that are not hiring and firing.
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Why we did not hire this level of HR managers six years ago?
Thinking of the Human Resources department as a profitable part of the organization is relatively new in the U.S. but gaining an important place in the businesses and need more attention. David Ulrich of the University of Michigan Tells us the change of HR is spreading as 20 % of the managers have the opinion of innovative HR concept, other 20% are still conservative about the HR roles. The 60% of the managers and CEO start to think of the HR department as part of the whole organization in making it more profitable
Competitive Pressure
Thee change in the HR role is a result of the fast-changing business world. Management is changing in all aspects, the responsibilities are delegated much more than in the past. The workforce must be more independent, hierarchy is less influencing because decision making is moving towards the lower level, what makes the executive management depending on their HR to find this kind of employees that can work more independently. About today’s H Revolution David Ulrich
The need for a higher quality workforce makes the HR to be more influencing on the capacity of the workforce to rich the goals of the business.
The traditional role of HR was exclusively administrative overhead and nonproductive. The traditional activities of HR are payroll, benefits control record-keeping and hire and fire of employees are changing into digital systems or outsourced with lower cost.
Fewer employees and less storage are needed. One employee with one workstation can do the work of a few people and use the same hard disk to store the whole information of the HR department.
HR as a Revenue Enhancer
Considering the HR department as a revenue enhancer is not yet accepted by most CEOs CFOs, it has to take time to get used to.
Are they asking the right questions? What is in it for the organization? Where are the improvements in the revenue? How does it create new customers? How we can see the profit?
Those executives will quickly change their thinking about HR enhancing revenue after they will get solid answers from competent HR managers.
The answer will be available by working constantly on the company’s wide value chain analysis. Looking for the data and analyzing it is the only way a company can know where or how business goes.
It is common to see that CEOs ask their HR department to deliver flawless functional reports and work, and be a knowledgeable partner of all other disciplines in the company in executing the company’s business plan.
Professions are breaking down, the disciplines like finance, marketing, sales, operation, and HR all work these days as a chain, interdependent with one another.
The chain must be equally strong, the HR became as important as all the other disciplines for the success of the whole operation.
Questions: f of the performance enhancement metrics of the company?
Those executives will quickly change their thinking about HR enhancing revenue after they will get solid answers from competent HR managers.
The answer will be available by working constantly on the company’s wide value chain analysis. Looking for the data and analyzing it is the only way a company can know where or how business goes.
It is common to see that CEOs ask their HR department to deliver flawless functional reports and work, and be a knowledgeable partner of all other disciplines in the company in executing the company’s business plan.
Professions are breaking down, the disciplines like finance, marketing, sales, operation, and HR all work these days as a chain, interdependent with one another.
The chain must be equally strong, the HR became as important as all the other disciplines for the success of the whole operation.
Questions:
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What is the value that HR department contributes to the organization?
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What are the HR activities that helps direct the company to achieve the boards’ economic objectives and goals
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Do the HR team have credible arguments pro or cont the business strategy of the other departments heads on the decision-making the process?
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How the selection and implementing of the HR department strategies that benefit the whole organization is selected and implemented?
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What is the contribution of the HR department for the customer or the end user of the business production or service? Sales and QC are not restricted to sales or QC anymore.
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W. Edwards Deming Taught organizations that the quality of their products starts with the quality and traits of the workforce they recruit. The customer’s satisfaction depends on the employee that attends them. HR has a part in the new hire with the other departmental silos that creates the company a vendors choice of the customers.
As we read above today’s HR, need more than preparing payroll and paystubs. Or put adds and hire who replay it.
To be able to accomplish today’s HR large job, there are more competencies needed for an HR leader to be credible to the other organization and get successes. Core business skills are different for different industries. The team of each one must have to go beyond their expertise. This topic has become so important that universities add it to the graduate and undergraduate levels of business programs. The new textbook includes now chapters on financial calculations and corporate social responsibility, Globalization and significant workplace diversity.
Ignorance is the significant barrier to profitability – Many people are ignorant on how the company makes money and how to achieve its objectives, and how all the departmental arsenals are depending on as part of a tissue. The traditional concept the each disciplinary has to know its narrow.
The tradition that people know only about their roles, finance, know about economics and marketing about marketing and so on, is disappearing. Today’s business environment, is the multi-skilled employees’ world, to keep the profitable organization employees must be highly skilled and trained to work together with multiple discipline teams.
In today’s business environment, successful organizations require highly skilled employees who can solve complex problems using multi-disciplinary teams.
Dave Ulrich quotes
“Improving the skills of HR colleagues. The best learners are also teachers. Investing in building the skills of HR colleagues requires individuals to be clear and disciplined about a restricted area, tool, or technology.”
― David Ulrich, HR from the Outside In Six Competencies for the Future of Human Resources“When desperate people seek easy solutions without doing the hard work of fundamental learning and change, resilience is undermined and real growth and learning fade.”
Like“Often the hands will solve a mystery that the intellect has struggled with in vain.
“HR professionals play three roles: • Storyteller • Strategy interpreter • Strategic facilitator.”
“HR professionals play three roles: • Storyteller • Strategy interpreter • Strategic facilitator”
“Often the hands will solve a mystery that the intellect has struggled with in vain.”
“Improving the skills of HR colleagues. The best learners are also teachers. Investing in building the skills of HR colleagues requires individuals to be clear and disciplined about a topical area, tool, or technology.”
― David Ulrich, HR from the Outside In: Six Competencies for the Future of Human
To be continued in the next publication.
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