Human Resources Management Creates Value…

Recently I went through an Article in HBR ( Harvard Business Review) which discussed about the value created by HR. In my career in HR what I have realized is that the value created by HR is not seen and at the same time is hard to quantify. However the key towards true value addition in HR is connected with possessing an overall understanding of the business.

HR professionals should be well rounded individuals who have a good idea about business strategy, Finance, Marketing and Operations. Agreeing with article HR value addition does not come through the traditional HR functions such as the payroll but through creation of a effective structure, performance measurements, alignment of the capabilities of employees with the market requirement since at the end of the day people make things happen and not machines.

what are your views on the above? Let me know and your comments are appreciated

For more insights please go through the below article.


8 thoughts on “Human Resources Management Creates Value…

  1. Agreed, and HR should also get involved in key business decisions, rather than being stuck with having to simply drive the decisions.


  2. Agree to the point. Further I would like to add a quote from professor Dave Ulrich and Wayne must read book “The HR Value Proposition’ therein he states “HR Professionals add value when their work helps someone reach their goals. It is not the design of a program or declaration of policy that matters most, but what recipients gain from these actions thereby delivering real value to the organization

    Liked by 1 person

  3. Well, It is good that “HR professionals” are trying to now add value to the business by focusing on critical areas mentioned. However, the challenge is still that 80% of HR professionals, still only understand the concepts, but lacks the overall business awareness to create value in the organisation by applying these theories.
    For example, an “HR professional” would spend countless hours, to keep the most up-dated image of the Org. Chart in the HR database. But are they really able to help an organisation to re-structure to meet emerging or future needs, to challenge the current structure, positions, job-roles? I have not come across that many.
    We could take many examples… but at times I wonder if some of the “HR professionals” are becoming glorified and over-paid clerks, who does the same old things but with a bit more management Fad words ? 😉 .

    Liked by 1 person

    • I totally agree with you, that’s the challenge it’s not only managing the perceptions of the other deportment but really doing something about it and moving away from the traditional approach to HR and there is more to HR than being glorified data entry operators. Even organizations need to be careful in designing job roles.


  4. We should drive to get a system to quantify value created through HR – tying into the triple bottom line concept. Only then will the true value be realized & HR will be made a key decision making party in a conversation.

    Liked by 1 person

    • I believe one way of looking at quantifying the HR contribution is through the level of retention and also we could have a over all satisfaction index including some of the key KPIs


  5. Well as some as mentioned, i do believe that HR people first needs to understand the overall business before we practice our HR tools. Many of still dont know the business and hence why the credibility for HR is low.

    Liked by 1 person

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