Dec 5, 2006

Good HR not necessary for good profits

DD posts on Why Good HR Does Not Mean Higher Profits and I agree.

While an engaged workforce is a link to more satisfied customers and therefore better profits, HR alone does not translate into better engaged employees.

You can take all the best HR practices but if you pathetic management (lower, middle, senior or all of them!) then you can say goodbye to an engaged workforce.

On the other side, sometimes having a business model alone leads to higher growth and only when context changes like environment and business, do organizations realise the importance of people. Like in the end of the last century Dell realised that it needed some soul !

Issues in business are not linearly linked. Any business publication that tries to make that linkage is inherently flawed. You do not do 1 or 2 or 5 things to be successful. You have to do lots of things right and then rely on luck and on your competition to make mistakes too.