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Keeping Lean Resources and focus on Cost advantage per person

Our experiences of managing HR Function Outsorcing at Husys - Worlds true HR Function Outsourcing/Management Company.

One of the most important thing that has an advantage for the SME's is Resources who are flexible and used for multiplicity of tasks. This is possible by the sheer need to run the organisation with the existing resources.

As we grow the ability to continuously track the importance of each resources and ensure a maximum output from each of the resources becomes important. Generally due to the pressure situations to execute tasks the addition of resources become mandatory. However it needs a critical evaluation to ensure that the long term liability is reduced.

A continuous audit of the Resrouces and the viz. output would always help to control and manage the cost related to People.

Have some fundamental ratios to help you analyse the yeilds:

1. Per Person Yeild : The total revenue of the function / No.of avg. people during the time period
2. The similar function can be looked at the each division measured verses the ration of contribution : The total revenue of the organisation / number of divisions

The above can be interlinked to a day-to-day operations to ensure that we strive and design our objectives to achieve a higher scale of operations.

One common issue with SME's is that they resort to initiate some practices keeping in few intial set of people. Soon they become the unwritten policy and may turn to be a burden in long-term. Important to review and look at the long term implication of every cost would help to manage the organisation to Grow,Grow and Grow.

Please do comment with your inputs.....

-Reddy GR

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