Justin Baghai
DQ3

1. Human Resources has the possibility to impact a firm’s profitability on several levels. First, I will discuss how an HR department in a firm can make the company more profitable. For example, the HR department of a company is responsible for hiring the most qualified employees with the highest motivation and skill. This takes a lot of practice and skill to be able to find the right people. By hiring the best and brightest of the talent pool, employees are more likely to come up with innovative ideas and push the company forward, bringing in extra revenue. This is one way that HR can help the company change their profitability and increase their value. Also, HR is in charge of providing their current employees with the latest training in their respective field. HR can set up seminars, webinars, as well provide classes to their employees. By doing so, their employees will gain knowledge that they can apply to the firms business and eventually lead to better productivity. On the other hand, the HR department can cause a firm to decrease their profits. Some ways that this could occur would be an overvaluation of employee’s compensation packages, hiring unproductive employees, and having glitches in their time reporting system. For example, if the HR department does not know how much to pay each employee fairly, they could be overpaying employees, which is a cost that figures in to profitably. It is important that the HR department be aware of the market averages for each employee’s talent level.

2. As mentioned above, the Human Resource department will have an effect on the profitability of a firm. In some cases, the effects of the HR firm’s practice can have an effect immediately. For example, as mentioned above, if a firm is paying their employees the wrong amount of money for their talent level, the firm will immediately see profits less