How Is the Role of Human Resource Management Evolving? Seeking Your Insights

Hello, I am interested in knowing the changing role in Human Resource Management. Can anyone please guide me on it?

Thanks and Regards,
Ruchira

Dear Ruchi baby,

The challenging role in HR is to prove that HR is not a cost center but to demonstrate that it is a profit center for the company you work for. You have to generate revenue rather than saving revenue and improve productivity and efficiency.

Partho

Ruchi,

The way I see things, basically HR professionals in any organization have a two-fold role: (a) transactional and (b) transformational. Transactional HRM is related to what was historically called personnel functions like managing leaves, monitoring travel advances, and salary fixation. Transformational HRM is the strategic part of HRM where the HR manager deep dives into the strategy as well as the business ecosystem of the organization, assesses the sort and size of manpower required, competencies, learning and development programs, as well as retention strategies.

Transactional HR can and is now being handled by ERP and could also be outsourced (depending on the RoI), but transformational HR requires the HR manager to have a deep understanding of the business first. No longer can we have this function divorced from mainstream business.

I see the transformational role assuming more importance during the current recession as well as during and after the upturn. The HR manager will have to examine how to optimize costs without upsetting and losing vital talent - a delicate job indeed.

Hope that gives a perspective to your query.

Dr. Shiv Dhawan (shiv.dhawan1@gmail.com)

Dear Ruchi baby,

The challenging role in HR is to prove that HR is not a cost center but to demonstrate that it is a profit center for the company you work for. You have to generate revenue rather than saving revenue and improve productivity and efficiency.

Partho

Hi Partho,

In fact, you have taken the question to a different level.

Anyways, the challenging aspect you were talking about would actually benefit every HR person, not just by bringing attention to the challenge but also by shedding some light on how to approach it.

As you said, to prove HR as a profit center in a company, have you followed any new practices to achieve it? Would you be able to suggest everyone, especially all the new HRs, where they could have a metric-driven perception at the start of their career?

All these challenges look good on paper and in meetings, but making them practical is a real challenge. I have succeeded in quite a few aspects but would like to know how you have achieved it.

It would be kind of you if you could also share your ideas on generating revenue in HR as you mentioned.

Looking forward to your inputs.

Naveen
HR - Exec.

Naveen,

My posting had some of the answers to your queries. The only way to show HR as a profit center is to automate and/or outsource all transactional HR processes and make them process-driven. This would allow for a reduction in HR staffing to the bare minimum required for transformational HR functions.

Regards,
Shiv Dhawan

Hi Partho,

Thanks for your reply. I completely agree that the role of HR has become more challenging. However, I wanted to know the changes that have taken place in HRM concerning the change in policy. Could you provide some examples of a company that underwent a change in policy from establishment to globalization and now in the recession period?

Regards,
Ruchira

Dear Naveen and Ruchi,

First, I express my gratitude to Mr. Badlooser for this subject and advice to me because this is his idea. He has guided me to explain this approach, which was different from the conventional HR approach of following market practices. According to him:

If you see this as an opportunity with a theoretical HR perspective, such as bookish HR initiatives and interventions, it will remain of academic interest only and have no practical impact on your business's health. Therefore, it may not be worth considering it a challenging HR approach because we would be joining the same bandwagon as those who follow identical practices across the industry.

However, we need to think differently and be very practical in providing typical solutions that add value to the business model.

We first have to understand the business process and the role of HR in the revenue generation process as one of the vertical business lines.

Then, we have to do a SWOT analysis to prepare the HR agenda and set targets. For example, we often forget to take HRM measures that generate revenue by improving the efficiency and quality of the workforce.

The standard or quality and efficiency of the workforce definitely drive business operations, and by improving this human capital, we can increase revenue.

This increase can be measured in per-employee revenue generation ratio by removing redundancies and cumbersome systems that are not worth it. For this, you need to conduct activity analysis and process mapping. Through this method, you may arrive at the best model of restructuring with an appropriate Human Capital Management model that will be more efficient and effective.

Kind Regards,

Partho

Hi Ruchika,

Are you an IGNOU student? Well, I am pursuing an MBA from IGNOU and am searching for some extraordinary materials from experienced friends. Have a nice day and take care.

Kesu