6 Keys to Increase Profits Using Organizational Development - The Role of Human Resources

What is the role of Organizational Development, also known as Organizational Effectiveness, in Human Resources? Why is this so important to an organization? Will OD affect the profitability of your organization?

Organizational Development Defined

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"Organization development is the process through which an organization develops the internal capacity to most efficiently and effectively provide its mission work and to sustain itself over the long term. This definition highlights the explicit connection between organizational development work and the achievement of organizational mission. This connection is the rationale for doing OD work.

According to Warren Bennis, organization development (OD) is a complex strategy intended to change the beliefs, attitudes, values, and structure of organizations so that they can better adapt to new technologies, markets, and challenges.

Organization development, according to Richard Beckhard, is defined as: a planned effort, organization-wide, managed from the top, to increase organization effectiveness and health, through planned interventions in the organization's 'processes', using behavioral science knowledge.

Warner Burke emphasizes that OD is not just "anything done to better an organization"; it is a particular kind of change process designed to bring about a particular kind of end result. OD involves organizational reflection, system improvement, planning, and self-analysis.

The term "Organization Development" is often used interchangeably with Organizational effectiveness, especially when used as the name of a department or a part of the Human Resources function within an organization.

Organization Development is a growing field that is responsive to many new approaches including Positive Adult Development." (Quote From Wikipedia, the free encyclopedia.)

Human Resources and Change Management...

Positive change is necessary for any organization and the highest levels of management need to understand how to work with Human Resources (HR) to help bring about the positive changes that can move your business to higher levels of effectiveness and productivity. Strategic Planning, system improvement, and the successful implementation of the organization's development plan are essential functions that can be developed and carried out through Human Resources. This process will have positive outcomes on your organization's profitability and demonstrate the value of HR. As communication improves and the organizational plan unfolds, managers and frontline personnel can better understand their roles in your organizations strategic plan. "The Big Picture" will allow for a greater investment in, and motivation for, organizational success and leads to greater work satisfaction, reduced turnover, and increased profitability. HR can be the "Change Agent" and help to create "Buy in" for more of your organization's key personnel.

What is the role of Organizational Development, also known as Organizational Effectiveness, in Human Resources? Why is this so important to an organization? Will OD affect the profitability of your organization?

As a Human Resource Professional use these 6 focus areas to enhance your organization's profitability:

1. Improve organizational communication

2. Assist in management development, especially for new managers or technical personnel raised to project or team leadership

3. Enhance the Emotional Intelligence of leadership and managers

4. Organize mentors or executive coaching opportunities

5. Bring in the training that your organization requires including: EQ-emotional intelligence, leadership, communication, time management, etc.

6. Lead strategic planning, goal setting, implementation planning

6 Keys to Increase Profits Using Organizational Development - The Role of Human Resources

Forex Trading - How to Ensure Profits With the Use of Forex Megadroid

In any business endeavor, the primary motivation and concern for one engaging in said business is how to increase or at the very least ensure profits. This fact holds true most especially in the currency trading industry, which is a very competitive yet lucrative field. Some people invest in resources such as time, additional training or automated systems to help them secure profits. The Forex Megadroid belongs to the third type of resource, which are commonly known as forex robots.

Forex robots are automated software or programs that allow traders the flexibility of being able to trade 24/7 without having to be in front of the computer monitor all the time. What makes these robots effective in making trades that will result in profits is that they can make analysis, computations, and forecasts at a higher speed than humans can. Thus, in concept, using these software will significantly increase your chances of ensuring a return on your investment in the currency markets compared with just relying on manual trading techniques.

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That being said, these software were not created equal. The capabilities of each particular robot mainly depends on their developers or creators. Some robots were made by computer programmers who harness mathematical skills as a technique in trading. Others are traders themselves who use their expertise in the field to make an automated version of their forex trading method. The Forex Megadroid falls into the latter category.

The two creators of the Forex Megadroid have been working in the forex industry for a lot of years already. Because of this, they are in a position to infuse this robot with technology that is a result of all their knowledge and skills. Because of this technology and artificial intelligence, this forex robot is able to analyze past data such as previous markets trends and even the results of its own trades that it has done in the past. Because of this, it can make forecasts that are 95% accurate, which means to say that it will give you a higher chance of earning profits from forex trading. When you think of investing in an automated system for your trading business, be sure to study all your options as there are many different kinds of robots or software around.

Forex Trading - How to Ensure Profits With the Use of Forex Megadroid

Discover Profits Through Activity Based Costing

As businesses grow and expand, the business owner needs to know further details about the sources of revenue, costs and profit. Many people believe the 80/20 rule can apply. For instance, 80% of their profit is coming from 20% of their products or services. That may be correct but there is a more definitive method to discover the exact source of the business profits. This method allows the business owner to identify what product and services are the true profit generators.

This method is called activity based costing or ABC. Note: Activity Based Costing is a management reporting and decision making tool, it is not appropriate for accounting records as it allocates most of the company's overheads, not just those overheads that are supporting the direct production or service delivery. It removes the assigning of an "overhead percentage" or overhead lump sum to the business to obtain a profit number.

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Let's take an example of a computer hardware company. This company sells computer hardware but also has a services division. The services division will host client servers as well as provide software as a service or cloud computing. Our company is a medium size business and it does not have separate management teams overlooking each area of the business. The human resources such as technicians and sales people work in both the hardware and services business.

In a standard model of accounting all revenue will be recorded and the cost of sales would be removed and we calculate a profit or loss. Revenue and product margins will be visible but some of the important costs slip into a general cost of sales account, or are hidden elsewhere within the accounting statements of the company.

It should be noted that because ABC allocates different overheads and different costs than standard accounting methods, the margins we can see from ABC are usually significantly different, and prove to be a better tool for making management decisions.

If we recast the business accounting numbers into an activity based costing report we could find deeper meaning or the "behavior of our costs" in the numbers.

For instance:

How much of our overhead costs are allocated to service the customers, whether they place an additional order or not? This could be the sales force maintaining existing relationships and the cost of acquiring new clients. What are the indirect costs required to manage the production/delivery of what the customer is buying? This could be the production area overheads such as supervisors, rent, and depreciation of front line equipment, delivery vehicles and so forth. Are there indirect costs associated with merely receiving an order from a customer? There may be a need to schedule with production to ensure the order can be satisfied, to buy any materials and supplies to satisfy the order, the production line may need to be modified to accommodate the order.

Once we understand the behaviors of the costs then the "true" overhead costs required to deliver the product or service to a customer are revealed to the business owner.

The result can be quite astonishing. Perhaps the business owner will find that the 15% product margins on the computer hardware sales are being eaten up by the free installation costs. The software as a service provides the business with 60% profit margins, 20% of the sales revenue and 80% of the overall profit. This kind of information allows the business owner to market their product differently. Emphasis on converting hardware customers to software as a service clients with 15 days free trials will allow the hardware to be a loss or break even leader into the client. The hardware business is now known to be the lead generator for the software as a service business. Or the business owner may find that the 15% margins on hardware sales are not enough to support the service and administrative costs. The owner now has information that can be used to transform the business from a hardware supplier to software provider. Another software as a service offering can be provided as the basic infrastructure is in place and the expansion of services can result is higher margins and better cash flow.

Activity Based Costing is a powerful decision making tool for the business owner. It can be the difference between the business breaking through or breaking down.

Discover Profits Through Activity Based Costing