HRM Focus: Do You Believe It's More About People Than Profits? Share Your Thoughts

Do you agree or disagree with the statement ‘HRM deals with people not profits'?
give your valuable opinion with valid reasons....

The final objective of any organization is profit. And our human resources are crucial for achieving this objective. We have to maintain and develop our HR in a way that contributes to profitability. Therefore, we cannot directly compare profit with manpower. We are dealing with people to achieve the organization's objectives, so we serve as the link between profit and HRM. This is my personal perspective.

Regards,
Abhayraj Zala

Hi, this is Shimit here.

First of all, I would like to appreciate your topic of discussion that you have posted. After a long time, I have seen such an interesting topic.

So, my suggestion would be that the ideology for a good HR manager is that primarily people come first. There is a long chain that goes like this: employee satisfaction -> good work -> high profits. Hence, the profit for a company will automatically increase if employees of a company are satisfied.

We can take an example of a family; if family members are happy, then there are no problems among family members, and they remain happy. Similarly, the employees in a company are like a family, and it is the duty of an HR manager to keep them happy and satisfied.

Therefore, for HRM, people come first!

HR deals with human beings in such a way so that they are motivated and enjoy their work, improve upon their efficiencies, and all this leads to an increase in profit margins of the organization in the long run.

Saurabh

Hi All,

As the name suggests, HRM obviously deals with people, but they are also the people who bring in profits. As HR professionals, we need to always ensure the profitability of the organization in our processes by making it more cost-effective, efficient, and effective. HR also works as a business partner in many organizations. Therefore, the paradigm for HRM is changing very rapidly in the current business environment.

Regards,

Hi,

That's a good question. In fact, a business runs for profit - do you agree? And we need "talented" people to run this whole plan. So what's the point in just caring for people if the same people do not deliver? That means they don't do anything to make the profitability visible. Therefore, HR's job is to hire the right talent, train/coach them to perform better, ensure that they deliver, and remove hindrances blocking their performance. HR should also motivate them (monetarily/non-monetarily) and take actions if someone is not performing (coaching/evaluating/terminating). HRM deals with managing profits by managing a skilled talent pool.

Thank you.

I disagree because in the current trend of HR, if we see the concept of the balanced scorecard, it is mainly dealing with aligning HR department goals with the company's mission and vision. It's simple; the company is only there for profit. However, those profits can only be earned when employees are satisfied, motivated, and, in turn, are efficient and effective in delivering performance. Therefore, HR serves as a bridge between the company's profitability and building a profitable workforce.

Human resources are one of the most precious assets for any organization, which can help in achieving maximum profits. Hence, HRM has to manage the workforce in a manner that increases profit margins with a human approach.

I don't know how you guys assume and sit in the office. HR is an absolute business, and business is all about profits. I request you all to speak to your seniors and do some soul searching; you all will get the answer.

You, me, and everyone work so that our organization grows and increases its value (profit) year over year, and each department works in the same direction where the means and responsibility are different, but the goal is the same. Some do it on a short-term basis, and others do it on a mid to long-term basis, but the path and goal are the same.

HR is all about profits, which could be measured through employee productivity, which is nothing but profit. You all can learn from your seniors, and if they are unable to give you an answer, then don't work under them because they don't deserve to be in that position.

I like your style of giving opinions in an explicit manner. Most of the replies here are vague and confusing. Many individuals seem unaware of a company's corporate goal, which is to earn a profit. Therefore, thank you for your opinion, and I totally agree with you.

Management hires HR people so that HR can hire the right professionals for the right job to earn more profit for the organization. By observing this fact, we can say that these are two aspects of one coin.

Hi,

HR is the only department which deals with people. It's like dealing with the blood, bone, and emotions of people, not just machines without life. Therefore, I would strongly agree that HRM deals solely with people and not with profits.

I fully agree with Asha and Abhayraj. Any business has an objective to be profitable. Nowadays, we have people-centric organizations whereby hiring, training, and motivating good manpower can make organizations profitable. So, I would like to reiterate the statement by Asha - HRM deals with managing profits by managing a skilled talent pool.

Regards, Chetan Bhojani Business Head-HR i-Tech Infonet Pvt. Ltd.

Obviously, you will earn a profit with the help of employees working in an organization; otherwise, you will be in a soup.

The effective and efficient use of Human Resources is not only a key factor to earn profits but also acts as the most powerful tool to attract talent and to remain ahead of the competition.

Therefore, HR augments profit through the proper management of its people and their careers.

I agree that HR is for people, which in turn leads to profits, prompting me to ask a question. Why are we, as people, taught to be diplomatic (or in other words, why do people think that HR professionals are diplomatic)? Your answers will clear my doubts.

Dear All,

It is ultimately the ends that matter. So what is the end we are looking for—mere profits or worthy human resources? If you take ample care of people, will not enduring profits come? Where have all those organizations gone which were widely lauded for their profits but not for their people practices?

So being an HR professional, we need to be extra alert on this issue—the worth of human beings. Unless the organization truly recognizes the worthiness of human beings, the profits and the growth dreams would remain a mirage. Great organizations have people delivering great results. So, is it profits that are multiplying themselves or the people behind it who are responsible? Undoubtedly, it is the people. Remember the TISCO slogan: "We make Steel Too."

Thanks for raising this interesting issue.

Regards, KK Nair

HR business in any organization is to ensure that people, departments, and business units contribute to profits (which is about hiring the right people and letting go of the wrong ones). I know many companies that focus on activities like dances and songs for their employees and consider this as what HR is all about. However, the intelligence and substance of HR professionals are evident from their focus and approach.

Each function in an organization, such as Sales, Finance, Operations, and HR, has clear objectives that either lead to profits or create a conducive environment for profitability. If any function fails, it can result in profit leakage for the organization.

Therefore, strategies and skills to contribute to organizational profits may vary from one function to another, but the ultimate goal remains the same. Hence, HR is fundamentally about driving profits, and its approach can involve managing people, ensuring compliance, and providing training and development, all aimed at the bottom line.

NS