Profitability
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Why the HRS method is profitable? 


If we make a comparison between two organisation/departments in a real situation, we may find the following results:

Organisation/Department A

Work force: 20+

Diagnosis:

Vision and strategies                                                                     Not clear

Human resource situation:                                                             Not in order

Management-employee/

co-workers relations:                                                                      Not satisfactory

Employee satisfaction level:                                                          Low

Results:

Service loss (for various reasons):                                               8-12%

The efficiency loss:                                                                         50% (minimum)

Organisation/Department B

Work force: 20+

Diagnosis:

Vision and strategies                                                                      Not clear

Human resource situation:                                                              In good order

Management-employee/

co-workers relations:                                                                       Satisfactory

Satisfaction level:                                                                             High

Results:

Service loss (for various reasons)                                                  2-5%

The efficiency loss:                                                                            20%.

Comparative analysis:

Comparative Service loss

(X and Y),  (12-5 =7)                                                                        = - 7%

Comparative Efficiency loss: (50 - 20= 30).

In percentage 30 divided by 100 x (100-12)                                 = - 26.4%


Comparative total loss:                                                                = - 33.4%


NOTE. The HRS method is designed to decrease both service and efficiency losses.

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