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HR as PROFIT CENTER
Human Resources » Case Studies


Chrm Message From: prakash_chintamani Total Posts: 18 Join Date: 10/05/2007
Rank: Executive Post Date: 02/06/2009 15:38:35 Points: 90 Location: United States

Dear All, 
 
In todays scenario when the industry is going through a rough phase  and every body is talking about cost cutting and try to make the cost  centers also a a profit centers......... 
 
My query to all my distinguished friends is that how HR can be made  as a profit center. 
 
With warm regards,

Prakash

Chrm Message From: jayde_renee Total Posts: 26 Join Date: 10/05/2007  
Rank: Executive Post Date: 02/06/2009 15:39:43 Points: 130 Location: United States

Though I strongly believe in making HR more accountable towards business contributions, I am not in favor of considering HR as a pure profit center in its classical sense.

Imagine for a moment that HR is a profit center. That means its objective is "maximization of the profit". That means it has right to follow all avenues of increasing the revenue. that means HR can even offer training to the competitors at cost. (Remember.. MRF tyres are fitted on Bajaj as well as HONDA autocycles. Just no difference. Customer is a one who pays money.) Is any CEO ready to transfer Know How to his/her competitor?
Best alternative is to outsource as many function as possible. And retain in house as COST CENTER.

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