Hr Head With Pmi
Hr Specialist - Policy,compehsation &
+3 Others

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Hi All,Recently I gave an interview and asked to justify "Is HR cost-effective" since HRO is becoming popular we need very strong points to justify this question.
Please share your thoughts for the same.

From India, Bangalore
Ofcourse yes.

HR is cost effective......I am working for India's biggest retail company...

We do follow the cost cutting measures if require as we have recently amended our policies and shared new guidelines for employees.

1. Traveling has been reduced by conducting meeting through video conferencing.

2. Cab booking has been reduced by telling employees to commute on their expense initially and can reimburse from the company(Saves extra cost what we used to pay to the vendor)

3. Strictly based on eligibility criteria befits would be given.

4.We have even put control on the outgoing couriers as telling employees to not to send any baseless document. ( Scan documents & send it to the desired person)

6. Not to print documents if not required & suggested to use duplex printing mode.

So,there are many more measures what we have taken to be cost effective.I guess if taken seriously these measure can help in so many ways.In our company we proudly say that "HR IS COST EFFECTIVE".

Shweta Jaitly

From India, Coimbatore
Dear Abhiman,
Yes, HR is cost effective because HR person has responsibility to reduce cost in terms of recruitment via Video Conferencing, through telephonic interviews, negotiating salary with selected candidates. And as Shweta said in terms of cab booking, reducing traveling & so on. You remember “Maximum utilization of resources which is done by Human Resource Department”.

From India, Calcutta
Hi Abhiman
Is " HR cost effective" i thk i depends on the individual,there are ppl who will sit in office vid out doing any wrk and give lots of responsibility to thr assistant and they will not do any quality wrk and which rely affect the culture of HR department bz employees feel tht HR manager will not do any wrk,so as far as my concern HR cost effective it depends on individual if HR is smart rely HR is cost effective there are lots of way were HR can minimize the cost ie in time of recruitments,outings etc. BUT THAT ONLY WHEN HR IS SMART

From India, Bangalore
thanks for your response, but the objective of this question was relating to importance of HR in the company. For example the above said can be handled by admin too.. i think we should speak about core HR.. can any one talk about the Importance of HR please.
From India, Bangalore
HR-Admin is one only. Admin is just the part of HR.
HR defines/design Structure & Policies for an Organization and Administration Executes and decided the methodology for the same....In other words Admin & Hr just two sides of same HR Importance is very much there.

From India, Coimbatore
Hi Abhiman,
There are two dimensions to your question.
If you are talking about the HRO process, then yes definitely it can be a cost effective option because in some of the companies abroad, the management (support/staff) is paid higher than the employees and if they are outsourced to India, then the companies can actually benefit alot through billing at decent rates.
If you are talking about the importance of HR in contributing to operation efficiency in terms of costs, then the answer would depend on how strong are we to implement good practices to yield the maximum out of the resources and infrastructure keeping the human dimension in mind.
If you would like to discuss further, then you can call me on 09985227000.

From India, Mumbai
In todays economic scenario, every one is looking for cost cutting
Following ideas can be tried
1)For company owned cars , car pool is useful
2)late sitting beyong is justified.Even if required extra lights ,fans are switched off
3)Travel expenses are optimised.Tour circuit has to be rational & better cover more meetngs in one visit in a area rather than revisit
4)Fix mobile bill limit
5)Freeze on new printers,copiers,etc ulnless approved by sr. managers/sr authority

From India, New Delhi
Hi All,
Could we justify stating that HR and Admin are different segments of the organisation.........................if yes how...............................and if No how............................................... ..........

From India, Gurgaon
run HR on profit centre basis rather than cost centre.
also there are hundreds of ways to eliminate waste which are not the sole domain of HR. any person could spearhead such an initiative.
eg seven deadly wastes.
it could even be focussing on "must haves" rather than "good to haves" while preparing job description.

From India, Delhi

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