Forums: Discussions for entrepreneurs and small business.

One of the accusations most frequently levelled against human resources development teams is that its operations are no more than sporadic reactions to crisis, making no essential difference to the organisation, its products or services, or its people. In other words, that the development of people does not add value to the business.

First of all, HR shouldn’t get ‘sniffy’ about this but be prepared to stand up and be counted. If it does add value, this should be clear and persuasive even to the most hard nosed CEO or business owner.

So here’s how HR adds value to a business

• Turning around a failing business unit / troubleshooting
• Identifying and delivering cost savings
• Preparing a business for sale, merger, acquisition or takeover
• Identifying and opening up new markets

Interim Executives are a cost effective and flexible strategic resource, and increasingly organisations are recognising the benefits of deploying their skills and expertise including:

• Importing and hiring experience quickly
• Project delivery and outcome focused, so the Interim Executive is not distracted by corporate politics etc
• Hands-on with full responsibility, recommends and implements based upon practical and proven experience
• Will coach, mentor and share wisdom with your existing staff

Increasing the value of human capital

People are increasingly referred to as human capital and if the workforce is an asset, it’s worth protecting that investment and getting it to appreciate. This can be done by looking after the welfare of people and investing in training and development leading to a more motivated and skilled workforce.

The bottom line

The net result is that you have reduced costs in litigation and putting things right, a more stable, motivated, skilled and productive workforce leading to fewer errors and customer complaints, increased sales and greater market share and ultimately, increased profits. That’s how HR adds value!

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Human resource management is very important for all kind of business, I am really very impress with all above information.

Thanks experts

You are right!!! Effective human resource management is integral for the success of a business organization. Employees are the heart and soul of a company.

very good

It is definitely right to say that HR department can really add value to any business. It is the life blood of business.

Very well laid out.  Whether it's effective HR classes to help establish a precedent for current and future employees, or setting rules and regulations through OSHA training, an HR department can help balance out business management and prioritize productivity throughout every facet of the company.

i agree that HR has a place in any organization; however hate it when they become the people who hire employees and give them to the operational management.  I still believe that the managers on the front line have to have a say in the entire hiring process because it is they who have to work with the employees.

yes   Effective human resource management has a place in any organization...

It's easy to overlook HR's importance, when thorough HR standards have created the optimum business environment it gets completely over looked as a contributory factor. Its time for a change in the blame culture that constantly vilifies individual parts within a business. What is one arm without the whole body attached?