How we carry a fundamentaly flawed view of HR function

Pose this question to anyone in HR - "what is the function of HR in an organization?" and note their response. I have done so many time. The answers will range variously from a complicated jargon-filled yarn to something as simple as "to keep the employees happy". Really, the last one always kills me.

Take another angle - "why did you join HR?". I'll list the answers through a small side-story. There used to be ritual in XLRI, Jamshedpur - during those initial days when everyone is trying hard to impress everyone else, one Dr. E M Rao would ask all the rangroots the same question, and then proceed to recount what he/she answered during the selection interview. Phenomenal memory used to devastating effect. Everyone loved to interact with people right from childhood. Or having the ability to understand people, or empathise with other' problems. Then using his impressive voice to maximum effect, he will murder everyone. From anyone else it could have been humiliating; from him it was enjoyable. Sadly, most missed the point of the exercise. Or soon forgot.

Now forget HR. What is objective of your business? Junk your loftily worded corporate vision and ask again - what is the objective of any business? It is to make money. Period. If anyone disagrees, don't do business with them; they're not being honest.

So how can the objective of any function supporting that objective be any different? For making money, any entity has to ensure that the resources employed give maximum productivity. No exceptions for the employees a.k.a. manpower.

Ergo, the function of HR within any organization is to ensure maximum productivity of employees. Period.

You can well say that I am merely playing with words. Research has shown that well-cared-for, happy and satisfied employees show the maximum productivity, so the objective of making them happy is same as making them productive. I disagree - not quite.

The distinction is subtle yet it affects your working style profoundly. This distinction determines your focus; the point where you start from: the end objective. One forces you to look at your work as a business function and analyse each task as business decision. Think in terms of productivity and you'll start thinking in terms of overall cost-benefit, root-cause analysis, return on every paisa spent on employee related activity. And leaves you free to weigh alternatives. This is HR as a business-driver, business-partner, strategic HR and what have you.

On the other hand, the happiness conundrum leaves you deciding whether you should host you next office-party in November or in December. And in a foul mood if someone mentions budget. This is working in, pardon a terrible cliche, silo. No wonder your function becomes a target for ridicule. Conveniently left out of most important business decisions.

So next time when you are pondering over some issue - be at policy level or day-to-day business, I'd advise you ask yourself - do you have an overall plan? how does this issue fit into it? Is it complementing some other initiative or being strengthened by others? what value does it add to your business?

You can still host your office party, but please take out your budget sheet before you plan that 6 hundred thousand spend on it!