The Changing role of Human Resource Management:

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• The Changing role of Human Resource Management
• What is Strategic Partner?
• Apply logic and good business sense this means
  applying a systematic and consistent approach to
  identifying problems in the business
• Address real and tangible issues that relates to
  business objectives

As Peter Drucker puts it "If you want it,
measure it but if you cant measure it, forget
it!" Thus use financial measurement for HR, since
it is a typical measurement that is applicable to
every function.
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Developing a business case for HR
The roadmap 1. Principles of Need
Recognition Every HR activity should be based on
a need to solve problems or lead to intended
results. 2. List of Problems or Intended
Results HR should first compile a list of the
problems or intended results.  Then, it should
use the "Peeling the Onion" Example Someone in
your company gives this statement "Our
communication is lousy!". Raise questions to
clarify the meaning of "communication" and
"lousy." Find out if the situation has any
financial impact by asking "When the
communication is lousy, what happens?" The
answers will provide evidence on this situation.
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• 3. Get the Evidence
• When you find hard evidence, ask the following
  questions
• How do you measure it?
• What is it now? What is the current situation?
• What would you like it to be?
• What is the value of the difference?
• What is the total value over time? (3 to 5 years)

4. Formulate the Impact When measuring the
impact, we use the "back of the envelope"
economics
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Example Problem "Low Sales Productivity" How
do you measure it? Calls per hour What is it
now? 15 calls per hour   What would you like it
to be? 20 calls per hour   What is the value of
the difference? 5 calls x total headcount (200)
x average profit per call (Rs. 10,000) x total
hours per week (30 hours) Rs 300,000,000/week
Rs 1,200,000,000/month What is the value over
time? (3 to 5 years) Rs. 43,200,000,000,000
(for 3 years) Rs. 72,000,000,000,000 (for 5
years)
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• HR measures - Examples
• Here are several examples of HR measures that
  provides financial analysis
• Productivity Ratio
• Absenteeism Ratio/Cost
• Employee Turnover Cost
• Recruitment Cost
• Replacement Cost
• Training Cost
• Administrative Cost
• Total Personnel Cost