Many organizations consider their HR Department as a cost center. For them, their HR department is responsible for managing the various transactions including employee joining, exits, payroll processing, compliance & basic record keeping. Some may give additional responsibilities of policy formation, adherence & tracking of employee performance. Some even use their HR as a provider who implements tough decisions. Some recognize their maturity wherein the HR Department plays important role in organizational goal setting, tracking, budgeting, development & cost control. While some let HR can play crucial roles in employee motivation, increasing productivity, retention, skill development, potential assessment, compensation bench marking & succession planning.

If you study an organization that is able to stay competitive in the market over a period of time you would realize the role played by HR in that organization. A successful CEO realizes the full potential of its HR department considers it as a Business Enabler instead of merely an overhead cost center. Organizations that are aware of the potential of their HR department find it easier to stay competitive in the market. HR Department can bring to the table a culture of employee contribution that could foster new ideas and innovations to stay ahead of the competition.

Business departments typically have a set goal to implement which is to achieve the sales or production target. New ideas and innovations come from employee feedback, which is seldom captured by the business heads, as their focus is usually on meeting the targets. The HR has a different approach towards the employees and hence find it easier to connect with them and are better able to put across the organizational viewpoint than the business managers.

HR department is most experienced while dealing with the employee and understand employee mindset. Some of the key qualities of HR managers that enables them to perform the strategic objectives:

Compassionate

Good organizer, planner and process-oriented

Good listener

Positive in approach

Balanced thinker

Open to new ideas

Once a CEO is able to identify and utilize their HR department’s potential, they can then turn their HR department from a Cost Center to Business Enabler.

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From India, New Delhi
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Hi,

Normally, the HR department improves employee relations and performs recruiting for new employees in the organization. Without employees, the organization can't do anything. Therefore, the HR department plays an important role in employee recruitment as it bridges the gap between the company and the employees. Employees can easily contact the HR department in the company for any queries, as it acts as a mediator. Thus, the HR department is crucial for the company to effectively manage its employees. It is within the organization's control to position the HR department as a Business Enabler or a cost center.

From India, Chennai
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