Recent Trends in Human Resource Management

Wednesday, February 4, 2009

Looking Beyond Return On Investment

Looking Beyond Return On Investment

Organisations are increasingly investing in automating HR applications and employee self-service tools. These result in improved services and cost reduction. Organisations, now, recognise the benefits of business value for long-term.

HR departments have been focussing on saving costs on people and paper. With changing times, perspectives too have changed. Today, HR experts and practitioners believe that modern Human Resource Management systems (HRMS) have successfully reduced HR staff and improved their operational efficiency. Now, the focus is on better productivity and added business value.

Course of action

Automation of processes does not necessarily imply reduction in staff. It gives HR the scope to play a strategic role in business. HR now utilises tools that result in effective time management. To ensure a ‘positive business impact’ of investing in HR systems, its business plan should be based on


What it is expected to achieve?


Outcomes and efforts that would be recognised and rewarded by the organisation
What employees must achieve to deliver these outcomes?

Business outcomes decide the use of technology to redesign processes.

Greater value addition


In most organisations HR doesn’t share the HRMS data with other departments. This is in order to maintain its confidentiality and control. Sharing the data can add great value to the business. It saves time and money. Hence, organisations must invest in such systems.


HRMS is the strategic approach to ROI (return on investment) that balances investments with returns expected. It reduces the risks involved. Thus helping HR gain greater credibility.


Ref: TheManageMentor.

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