Unit $3$ DB: The NEW HR $-$ Cost Center versus Profit Center

Unit $3$ DB: The NEW HR $-$ Cost Center versus Profit Center

Human Resources $($HR$)$ departments are often viewed as either a profit center or a cost center within an organization. This distinction can significantly impact how HR strategies are developed and implemented.

How would you define HR as a profit center and HR as a cost center? What are the key characteristics and differences between these two viewpoints? Provide an example for each.

Keep in mind, all departments are responsible for controlling or reducing unnecessary costs. This means, controlling and reducing costs does not make HR a profit center.