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Why HR? Jobs & Careers

Faced with a choice between an MBA in HR and a general MBA, I had to ask myself a lot of questions. In addition, peers who were in similar situations helped me by discussing their queries, and helping me answer mine. I am trying to reproduce my answers to some questions here, hoping they'll be us...
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freakinbubu Says
Superb post Sumit....u addressed all the doubts I had regarding HR.......I always had felt an inclination towards HR since the day I started having the feeling that an MBA was the true calling for me but then I always had doubts......and I also have heard that HR people are paid less than other MBAs.....thats the thing that still haunts me :new_bat_angel::new_bat_angel:




Thanks bubu and monsty for raising a pertinent question. Let me try answering it.

Question: I have heard that HR managers are paid less than Marketing or Finance managers.

Ans. Traditionally, that has been the case. Broadly, organizations split functions into two categories - cost functions and revenue functions. Revenue functions earn money for the organization and improve the bottom line. However, cost functions are a drain on resources, and are given 'stepmotherly' treatment.

HR used to be considered a cost function earlier, and still is considered one, by many organizations. However, due to a change in policies, many organizations have converted it into a revenue function.

For example, in my current organization, there are two kinds of HR - corporate HR and line HR. Each department of the organization has an HR wing, that takes care of appraisals, employee relations, hiring etc. They have a tough life, coz they are cost functions.

However, corporate HR, includes strategic planning, recruitment planning, hiring, policy-making, training and development. These folks earn a lot of revenue by billing other departments. Essentially, by training say 5 people for another department, they're adding on to the productivity of those people. Hence, that department can be billed by HR, and thus the .

Yes, there are pros and cons of an HR profile. Being in a cost center can feel thankless and unrewarding sometimes. But then, if you like being in the frontline, and being blue-eyed boys/girls, there is no dearth of dream jobs. Also, not all cost center jobs involve drudgery.

Salaries are important, no doubt. The initial start that you get may be lower than peers in other 'important' functions, but as you get closer to the top, things do balance out.

Personal opinion: I don't mind compromising a bit on the salary factor, as long as I'm doing something that I love doing. :)

P.S. Please don't get me wrong. The idea is not to glorify HR, but to move people from a mindset of 'Why HR' to 'Why not HR?' :thumbsup:
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