Dear members,
On one of the WA groups of HR, the Administrator of the group has raised a topic for discussion. Today's topic is on the Difference Between HR Functions in Manufacturing and Service Sector. He has asked the following questions:
How are HR functions different in manufacturing or service industries?
Do candidates having worked in diversified industries make a difference in getting miraculous results?
Why do the Talent acquisition teams or the recruiters insist to have a candidate from a specified industry?
I have given replies to the questions. These are as below:
Dear Rajaram,
The replies to the questions are as below:
Q. 1 How are HR functions different in manufacturing or service industries?
Reply: Whether in the manufacturing sector or in service industries, the "Personnel Management" part of HR does not change much. Nevertheless, the benefit of working in manufacturing organizations is that the product has a physical form and measuring quality issues or inventory is easy. In contrast, in services, there is no product as such, and perishability or under-utilization of capacities is an important factor. Secondly, each service will have unique costs associated with the business. Understanding those costs is a challenge for HR.
Q. 2 Do candidates having worked in diversified industries make a difference in getting miraculous results?
Reply: Yes, working in diversified industries is always better as one develops a better understanding of how the business functions. Nevertheless, expecting "miraculous" results is a bit of an exaggeration. Miracles by the staff also depend on their empowerment and the authority that they enjoy.
Q. 3 Why do the Talent acquisition teams or the recruiters insist on having a candidate from a specified industry?
Reply: Talent acquisition teams or recruiters insist on having a candidate from a specified industry because that is what they are told to do. Leadership looks for candidates from the same industry as they are expected to know the dynamics of the particular industry. Over time, business issues or issues related to customer satisfaction become ingrained within the candidate. A candidate from a different industry might not understand the psychology of the people working in that industry. Furthermore, when a person works in the same industry, he/she might attend industry-related seminars or guest lectures and come to know more about the industry. Lastly, today, most Managers and above are like placement agencies. They are expected to help HR in recruiting the right candidate. This is another advantage of hiring a person from the same industry.
Occasionally, HR or even leadership is too clannish. HR builds a mental wall calling their industry different. Can you expect any non-IT HR to enter an IT company easily? No way! But then this is what happens across industries. Worse still, let me give you an example of my friend who is a civil engineer and has always worked in the real estate industry. However, HR turned down his candidature because he had built 15-storey buildings whereas their project had 25 storeys! With this kind of mindset, expect the clannishness only to flourish further rather than diminish.
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(2)
Amend(0)
8071On one of the WA groups of HR, the Administrator of the group has raised a topic for discussion. Today's topic is on the Difference Between HR Functions in Manufacturing and Service Sector. He has asked the following questions:
How are HR functions different in manufacturing or service industries?
Do candidates having worked in diversified industries make a difference in getting miraculous results?
Why do the Talent acquisition teams or the recruiters insist to have a candidate from a specified industry?
I have given replies to the questions. These are as below:
Dear Rajaram,
The replies to the questions are as below:
Q. 1 How are HR functions different in manufacturing or service industries?
Reply: Whether in the manufacturing sector or in service industries, the "Personnel Management" part of HR does not change much. Nevertheless, the benefit of working in manufacturing organizations is that the product has a physical form and measuring quality issues or inventory is easy. In contrast, in services, there is no product as such, and perishability or under-utilization of capacities is an important factor. Secondly, each service will have unique costs associated with the business. Understanding those costs is a challenge for HR.
Q. 2 Do candidates having worked in diversified industries make a difference in getting miraculous results?
Reply: Yes, working in diversified industries is always better as one develops a better understanding of how the business functions. Nevertheless, expecting "miraculous" results is a bit of an exaggeration. Miracles by the staff also depend on their empowerment and the authority that they enjoy.
Q. 3 Why do the Talent acquisition teams or the recruiters insist on having a candidate from a specified industry?
Reply: Talent acquisition teams or recruiters insist on having a candidate from a specified industry because that is what they are told to do. Leadership looks for candidates from the same industry as they are expected to know the dynamics of the particular industry. Over time, business issues or issues related to customer satisfaction become ingrained within the candidate. A candidate from a different industry might not understand the psychology of the people working in that industry. Furthermore, when a person works in the same industry, he/she might attend industry-related seminars or guest lectures and come to know more about the industry. Lastly, today, most Managers and above are like placement agencies. They are expected to help HR in recruiting the right candidate. This is another advantage of hiring a person from the same industry.
Occasionally, HR or even leadership is too clannish. HR builds a mental wall calling their industry different. Can you expect any non-IT HR to enter an IT company easily? No way! But then this is what happens across industries. Worse still, let me give you an example of my friend who is a civil engineer and has always worked in the real estate industry. However, HR turned down his candidature because he had built 15-storey buildings whereas their project had 25 storeys! With this kind of mindset, expect the clannishness only to flourish further rather than diminish.
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(2)Amend(0)
Dear Rajaram, I would like to share my views as follows:
1. Unlike the manufacturing industry, the focus on the customer is far sharper in the service industry. The majority of employees come into direct contact with customers on a day-to-day basis. Therefore, the development of distinguishable quality service offerings becomes a critical challenge area for HR. The difference between HR functions in manufacturing and service industries lies in the emphasis and not in kind. Undoubtedly, the very survival and growth of the service industry depend on attracting and retaining a customer base through quality manpower, which should form the entire pivot of HR policies.
2. For this purpose, service performance standards and their measurements need to be well defined and communicated to all service providers.
3. Candidates who have value-added experience in diversified industries, in my view, can certainly contribute better compared to others. However, making a blanket statement would be unfair.
4. The bias of recruiters in selecting individuals from the same industry is prominent. However, this paradigm needs to change, and some out-of-the-box thinking or experimentation is required in trying out individuals from diverse backgrounds.
Regards, Vinayak Nagarkar HR Consultant
From India, Mumbai
Acknowledge(0)Amend(0)
1. Unlike the manufacturing industry, the focus on the customer is far sharper in the service industry. The majority of employees come into direct contact with customers on a day-to-day basis. Therefore, the development of distinguishable quality service offerings becomes a critical challenge area for HR. The difference between HR functions in manufacturing and service industries lies in the emphasis and not in kind. Undoubtedly, the very survival and growth of the service industry depend on attracting and retaining a customer base through quality manpower, which should form the entire pivot of HR policies.
2. For this purpose, service performance standards and their measurements need to be well defined and communicated to all service providers.
3. Candidates who have value-added experience in diversified industries, in my view, can certainly contribute better compared to others. However, making a blanket statement would be unfair.
4. The bias of recruiters in selecting individuals from the same industry is prominent. However, this paradigm needs to change, and some out-of-the-box thinking or experimentation is required in trying out individuals from diverse backgrounds.
Regards, Vinayak Nagarkar HR Consultant
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
HR Job Functions.doc