Dear All,
I am a new member of the group. I want to build up my career in HR. To enrich my knowledge in HR, I need the following books:
1. Human Resource Management
2. Human Resource Management and Planning
3. Strategic Human Resource Management
Please share these books with me at
.
All the Best,
Asiq
From Saudi Arabia, Riyadh
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I am a new member of the group. I want to build up my career in HR. To enrich my knowledge in HR, I need the following books:
1. Human Resource Management
2. Human Resource Management and Planning
3. Strategic Human Resource Management
Please share these books with me at
All the Best,
Asiq
From Saudi Arabia, Riyadh
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BADLU,
I HAVE COVERED BOTH AREAS: 1. GROWTH-ORIENTED INITIATIVES. 2. COST SAVINGS.
PROFIT CENTER DEFINITION HAS MANY VARIATIONS. 'What it really means': How much - a section, a department, a business unit - can make a contribution to the gross profit. If it is a business unit, it can manage to control the fixed/variable overheads. But a department like HRM has limited control over the company's fixed overheads, but it can contribute to the gross profit contributions.
AS AN EXAMPLE OF 'GROWTH-ORIENTED' INITIATIVES, HR can develop a specific training program for managing the key accounts/major accounts sales reps. These skills/knowledge can help the reps improve sales into the major/key accounts, which means more sales/more gross profit.
THERE ARE MANY SUCH AREAS WHERE HR TRAINING CAN OFFER 'GROWTH-ORIENTED INITIATIVES.
REGARDS, LEO LINGHAM
From India, Mumbai
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270I HAVE COVERED BOTH AREAS: 1. GROWTH-ORIENTED INITIATIVES. 2. COST SAVINGS.
PROFIT CENTER DEFINITION HAS MANY VARIATIONS. 'What it really means': How much - a section, a department, a business unit - can make a contribution to the gross profit. If it is a business unit, it can manage to control the fixed/variable overheads. But a department like HRM has limited control over the company's fixed overheads, but it can contribute to the gross profit contributions.
AS AN EXAMPLE OF 'GROWTH-ORIENTED' INITIATIVES, HR can develop a specific training program for managing the key accounts/major accounts sales reps. These skills/knowledge can help the reps improve sales into the major/key accounts, which means more sales/more gross profit.
THERE ARE MANY SUCH AREAS WHERE HR TRAINING CAN OFFER 'GROWTH-ORIENTED INITIATIVES.
REGARDS, LEO LINGHAM
From India, Mumbai
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Dear Lingu,
Thank you for your prompt response. Although this explanation is an integration of HR initiatives linking with the overall end result, justifying the approach for the existence of such activities which is process-driven. However, the issue remains sandwiched between the egg and chicken theory, but it's okay.
Best regards,
Badlu
From Saudi Arabia
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Thank you for your prompt response. Although this explanation is an integration of HR initiatives linking with the overall end result, justifying the approach for the existence of such activities which is process-driven. However, the issue remains sandwiched between the egg and chicken theory, but it's okay.
Best regards,
Badlu
From Saudi Arabia
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Thank you, Leo,
Excellent post. There is no harm in trying to implement HR as a Profit Centre. We simply need to ignore those who criticize valuable information that is shared.
For those who are unwilling to try, please do not attempt it.
Keep sharing valuable insights.
Regards,
Satishkumar
From India, Mumbai
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Excellent post. There is no harm in trying to implement HR as a Profit Centre. We simply need to ignore those who criticize valuable information that is shared.
For those who are unwilling to try, please do not attempt it.
Keep sharing valuable insights.
Regards,
Satishkumar
From India, Mumbai
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Dear Tarun,
While Leo has given some wonderful insights on the focus, business orientation, and strategic perspectives of the HR function, strictly from an Indian mindset and perspective, here's some insight on how I attempted a Profit Centre model for the HR department covering streams of related businesses with topline and bottom line, P&L responsibilities, years back:
1. Recruitment - set up and drove a recruitment cell with the Group's branding that included head search assignments, database hiring for clients, advert. solutions, media selection, and optimal insertion solutions, screening solutions (including resume weeding, shortlisting, tests - structured/unstructured/depth/psychometric/job aptitude, etc).
2. Training, OD & Learning - Covered the gamut of programs/symposia/audio visuals/seminars/town hall briefs/visioning/leadership/mentor programs/skilling workshops, management devp. initiatives for mid/frontline/senior management, offer on building coursewares, refresher programs, faculty (internal/external offerings), TNAs/feedback modeling, productivity analytics, competency matching/synch. initiatives, train-the-trainers for internal faculty, etc.
3. Outsourcing Services: Manpower outsourcing for non-key (tech/non-tech) positions with key deliverables based on contractual obligations (more like client SLAs) such as meeting guaranteed performance parametrics, maintenance of mp inventory levels, conformance to other Co. guidelines, etc. The other offering extended to the outsourcing model covering HR/Personnel processes such as statutory compliance, leave management, payroll management, tax advisory, monthly/quarterly/bi-annual/annual returns, IR case representation (arbitration/conciliation/adjudication), representation in domestic enquiries, empaneled advisory services, etc.
4. School of management studies - This was in tech/collaborative tie-up with Carnegie Mellon Univ, IIT, and IGNOU with concerted efforts at courseware building/evaluation, induction of competent Professors as faculty, students enrollment, long-term affiliations for accreditation as deemed univ over time, etc. The model represented that of a deemed univ. with comprehensive capital investments into land/building/study material/resources that possible with corporate backup. This was indeed an HR initiative but with time was to be hived off as a separate SBU given the size/magnitude of operations and a niche vertical by itself.
Note that these were big challenges and apart from the HR/Personnel responsibilities of the Group (comprising of around 22 companies across India and some abroad) and therefore needed dedicated specialized teams with defined competencies. The model worked well and proved the true spirit of entrepreneurship of HR. The business streams were backed up by the strong Group branding that came in handy and acquisition of business was relatively easier than anticipated. The revenue modeling was based on multiple streams as a de-risking strategy with niche offerings.
With these HR initiatives, the respect of HR as a function and its ability to run as a profit center was enhanced manifold. The second year recorded a gross margin in excess of 18% with a decent PAT, much above what was anticipated. The clientele represented almost the entire spectrum of industries covering verticals and business domains.
Much later, I left the organization for greener pastures and was not able to keep track of the sustenance of these models though they were extremely viable. What was remarkable was the management willingness and the initial investments that flowed from the corporate, I being in the corporate.
Times have changed a bit from then on but the models are still very viable. It is rare that a big corporate would support these models given the recent economy meltdown and a general lack of foresight or confidence in HR being able to deliver the goods.
Unfortunately, HR in most organizations is taken as an (internal) service/process department with mundane practices and routine processes. Given the present economic downturn, organizations hard-pressed for business or liquidity may tend to think of trimming such departments that do not directly (or remotely) contribute to the baseline revenues unlike marketing/sales, operations, or even finance. Therefore, it becomes imperative to emphasize in many myriad ways that it indeed contributes to the bottom line significantly and showcase it.
I am sure, HR can work truly as a Profit Centre head as I did with the buy-in of the top brass of management. HR is not a pushover by any means. Surely there can be more business models such as these and a bit of brain racking can yield some really innovative, "cost-effective" offerings.
Rahul Kumar
From India, New Delhi
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While Leo has given some wonderful insights on the focus, business orientation, and strategic perspectives of the HR function, strictly from an Indian mindset and perspective, here's some insight on how I attempted a Profit Centre model for the HR department covering streams of related businesses with topline and bottom line, P&L responsibilities, years back:
1. Recruitment - set up and drove a recruitment cell with the Group's branding that included head search assignments, database hiring for clients, advert. solutions, media selection, and optimal insertion solutions, screening solutions (including resume weeding, shortlisting, tests - structured/unstructured/depth/psychometric/job aptitude, etc).
2. Training, OD & Learning - Covered the gamut of programs/symposia/audio visuals/seminars/town hall briefs/visioning/leadership/mentor programs/skilling workshops, management devp. initiatives for mid/frontline/senior management, offer on building coursewares, refresher programs, faculty (internal/external offerings), TNAs/feedback modeling, productivity analytics, competency matching/synch. initiatives, train-the-trainers for internal faculty, etc.
3. Outsourcing Services: Manpower outsourcing for non-key (tech/non-tech) positions with key deliverables based on contractual obligations (more like client SLAs) such as meeting guaranteed performance parametrics, maintenance of mp inventory levels, conformance to other Co. guidelines, etc. The other offering extended to the outsourcing model covering HR/Personnel processes such as statutory compliance, leave management, payroll management, tax advisory, monthly/quarterly/bi-annual/annual returns, IR case representation (arbitration/conciliation/adjudication), representation in domestic enquiries, empaneled advisory services, etc.
4. School of management studies - This was in tech/collaborative tie-up with Carnegie Mellon Univ, IIT, and IGNOU with concerted efforts at courseware building/evaluation, induction of competent Professors as faculty, students enrollment, long-term affiliations for accreditation as deemed univ over time, etc. The model represented that of a deemed univ. with comprehensive capital investments into land/building/study material/resources that possible with corporate backup. This was indeed an HR initiative but with time was to be hived off as a separate SBU given the size/magnitude of operations and a niche vertical by itself.
Note that these were big challenges and apart from the HR/Personnel responsibilities of the Group (comprising of around 22 companies across India and some abroad) and therefore needed dedicated specialized teams with defined competencies. The model worked well and proved the true spirit of entrepreneurship of HR. The business streams were backed up by the strong Group branding that came in handy and acquisition of business was relatively easier than anticipated. The revenue modeling was based on multiple streams as a de-risking strategy with niche offerings.
With these HR initiatives, the respect of HR as a function and its ability to run as a profit center was enhanced manifold. The second year recorded a gross margin in excess of 18% with a decent PAT, much above what was anticipated. The clientele represented almost the entire spectrum of industries covering verticals and business domains.
Much later, I left the organization for greener pastures and was not able to keep track of the sustenance of these models though they were extremely viable. What was remarkable was the management willingness and the initial investments that flowed from the corporate, I being in the corporate.
Times have changed a bit from then on but the models are still very viable. It is rare that a big corporate would support these models given the recent economy meltdown and a general lack of foresight or confidence in HR being able to deliver the goods.
Unfortunately, HR in most organizations is taken as an (internal) service/process department with mundane practices and routine processes. Given the present economic downturn, organizations hard-pressed for business or liquidity may tend to think of trimming such departments that do not directly (or remotely) contribute to the baseline revenues unlike marketing/sales, operations, or even finance. Therefore, it becomes imperative to emphasize in many myriad ways that it indeed contributes to the bottom line significantly and showcase it.
I am sure, HR can work truly as a Profit Centre head as I did with the buy-in of the top brass of management. HR is not a pushover by any means. Surely there can be more business models such as these and a bit of brain racking can yield some really innovative, "cost-effective" offerings.
Rahul Kumar
From India, New Delhi
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Good and very informative post.
Sir, can you please help me with a standard format in which I can compare the monthly salary being paid to each employee every month? This is just a check-up to ensure that the amount being disbursed is correct. I need some sort of standard format where I can input the figures for a review. Please help.
From India, Mumbai
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Sir, can you please help me with a standard format in which I can compare the monthly salary being paid to each employee every month? This is just a check-up to ensure that the amount being disbursed is correct. I need some sort of standard format where I can input the figures for a review. Please help.
From India, Mumbai
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Hello Leo,
Your post is very informative. In fact, I have been working on the balanced scorecard and thinking of implementing it in my banking institute for a long time. I believe this will be of great help in its implementation and also in clarifying other employees' opinions regarding HR's contribution to profitability.
Regards,
Saima Asghar
AM-HR
From Pakistan, Rawalpindi
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Your post is very informative. In fact, I have been working on the balanced scorecard and thinking of implementing it in my banking institute for a long time. I believe this will be of great help in its implementation and also in clarifying other employees' opinions regarding HR's contribution to profitability.
Regards,
Saima Asghar
AM-HR
From Pakistan, Rawalpindi
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dear Leo Linghamleo,
thanks For Your Wonderful Post. This Article Has Very Good Potential To Deliver Easy Understanding The Whole Process About How To Make The Hr Department A Profit Centre.
in Fact Hr Is Not A Cost Centre, It Is Always An Effective Profit Centre And If You Use The Given Data Properly, You Will Get The Right Answer.
an Incapable Man/professional Has Always A Negative Current In Their Mind, Body And Soul. So, Do Not Care About Those, They Will Demotivate Only.
can I Expect A Correct Answer From Mr. K Ravi Or Mr Captancook About This?
not Only Rahul I Also Want To See The Correct Answer.
copy And Pest Formula Is Applicable In All Sector Whether It Is Science Of Making Missile Or Doing Accounts Audit
but Hr Professional Look Always “continuous Improvement” (ci) In Copy And Pest Word Too, Which Make Big Difference In Business Development.
kashi
From India, Benaulim
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thanks For Your Wonderful Post. This Article Has Very Good Potential To Deliver Easy Understanding The Whole Process About How To Make The Hr Department A Profit Centre.
in Fact Hr Is Not A Cost Centre, It Is Always An Effective Profit Centre And If You Use The Given Data Properly, You Will Get The Right Answer.
an Incapable Man/professional Has Always A Negative Current In Their Mind, Body And Soul. So, Do Not Care About Those, They Will Demotivate Only.
can I Expect A Correct Answer From Mr. K Ravi Or Mr Captancook About This?
not Only Rahul I Also Want To See The Correct Answer.
copy And Pest Formula Is Applicable In All Sector Whether It Is Science Of Making Missile Or Doing Accounts Audit
but Hr Professional Look Always “continuous Improvement” (ci) In Copy And Pest Word Too, Which Make Big Difference In Business Development.
kashi
From India, Benaulim
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