The Functions of Human Resource Departments in Organisations
In this assignment, discuss about the functions of the Human Resource Department in an organization. As per case study, Reed Boardall is a typical company. It has 700 plus employees. This company does not have a HR department.
In this assignment there are four sections:
1st section is the introduction of the Human Resource Department. HR department is a department to settle personnel problem of an organization. HR department is the bridge of management and employees.
In 2nd section, regarding the study case, Reed Boardall decided not have HR department in his company, so there are advantage and disadvantage of his decision. For advantage of Chief Executive Keith Boardallâ€™s decision, not having HR department, can save up the money to pay the HR department staff, aim for cost saving. Simplified the management level, prevent unnecessary bureaucracy. Without HR Department, save up time to solve conflict. If some conflicts occur between employees, line manager can solve immediately, no need to pass through the HR department and analysis or investigate. For disadvantage of Chief Executive Keith Boardallâ€™s decision, not having HR department, will occur some problem regarding on employee relation, employment development and hiring process.
In 3rd ections discuss of function HR department. They plan the manpower the organization. HR department arrange the training for employee and the development plan for the employees, determined wages of the employees. Arrange performance appraisal once or twice a year to analysis and offer a promotion to good employees. Establish the organization policy and implement into the organization to all employees.
At 4th section, that is the last section, to conclude the whole assignment. HR department is important for the bigger organization. It is advisable to having a HR department if the organization having more than 50 plus employee.HR department is to handle the personnel stuff in the organization. Regarding the hiring process, training, wages for employees, company policy, all handle by HR department. So that, line managers can focus on their work scope. Every department can perform well in their own work scope.
The Researcher shows (Aminuddin.2009, p.2) human resource management is the development and implementation of systems in an organization designed to attract, develop and retain a high-performing workforce.
HR responsibilities are recruit suitable employees, Arrange the suitable training course to employees, plan the appraisal to the employees, state the compensation and reward policy to match with the employment laws. Keeping the employeesâ€™ disciplinary record update also is the HR department job scope.
There are some suggestions and details of HR Department function explain to Chief Executive Keith Boardall for persuade him to having HR Department in company better future.
As per case study, Reed Boardall company is a typical company, 700 plus staff working in the company at different department, include finance, marketing, PR. There are no Human Resource Department in company Reed Boardall. Below are the advantage and disadvantage of company Reed Boardall not to have HR Department.
2.1Advantage of Reed Boardallâ€™s decision
Company need to spend large amount of money to HR department as wage of employees, if the organization does not have HR department, the money can be re-invest on the company business.
2.1.2 Simplified Management
If there is no HR Department, the organization can reduce the unnecessary layers bureaucracy. If having HR department, more employee to watch over, and more procedure need to follow. It will causes business owner or manager less authorities to make a decision, and due to the process take long time to settle. The organization not having an HR department will simplifies the management process.
2.13 Time For Solving Problem
As per Keith said, if any conflict happened, line manager should do the personnel function and knew the incident clearly, so the line manager can solve the conflict efficiency.
2.2 Disadvantage of Reed Boardallâ€™s decision
2.2.1 Employee Relation
Without HR department employee in an organisation may difficult to developing and maintain a good relationship between one and each other. Human resources is the middle person between the owner or management person and the employees. HR Department is a place let employee to say out their unsatisfied regard their work. HR Department will understand the employee. It decreases the gaps between company management and employees and offers employees the opportunity to release their unhappy about the company. If your company does not have human resource department, it must develop a plan to effectively communicate with employeesâ€™ concern.
Another advantage of human resource planning involves employee development. As the human resource department identifies potential employees to promote them to management positions, send them to training, upgrade their skill and promote them.. HR department review employeesâ€™ appraisal report, and arrange the promotion.
2.2.3 Simplified Hiring Process
When there is lack of manpower in an organizational, managers or owner will be responsible for the recruitment, searching the applicant qualification, select the right candidates for the position. If there is Human resource department, owners and managers can focus on their daily tasks rather than searching for candidates, interviewing them and performing background checks. They can just give the work to the human resources department to focus on the hiring process.
In the conclusion, there have advantage and disadvantage of Executive Keithâ€™s decision to not having HR department. The researcher show (Hill, 2001, p225) if an organisational having less than 50 employees, the organisational should not have an HR Department because it will increase the cost.
But in other side, if the organisational having more than 50 employees, the organizational are advisable to have an HR department to manage the employee in the company. If the Organizational have an HR department, the line manger can more concentrate in their work scope, it may lead to the line manager have a better performance in their position.
Function of HR Department are recruit suitable employees for the organisation, send the suitable employee to the suitable training, arrange the appraisal programs, establish compensation and reward system, concern for safety and health of the employees, establish the organization policy with implementing the employment laws, improving employeesâ€™ productivity, and keep the employeesâ€™ record up to date. (Hill, 2001)
There are some suggestions and details of HR Departmentâ€™s functions explain to Chief Executive Keith Boardall for persuade him to having HR Department in company to had better future.
3.1 Function of HR Department
3.1.1 Manpower Planning
It involves the process of recruit the right candidates for the suitable position for the organization. Beside this, HR Department must plan how many should recruit for each department. HR manager must know the strength and the weakness of the employees; HR manager will design them in the position which employee can perform more productive. Prepare of Contract of employment also is the responsibilities of HR Department.
3.1.2 Training and development
HR department need to observe the product knowledge of the employeesâ€™, if employee lack of the knowledge, they would not perform well. HR Manager will send the employee to the course training to improve their knowledge, so that they will improve the skill and will performance well and become more productivity.
3.1.3 Determining wages and salaries
HR Department will analyst and surveys of the wages for different positions in an organization. HR department will review employeeâ€™s qualification, experience, and some family member details. The decision for employeesâ€™ wage will be consultaion with finance department also.
3.1.4 Performance Appraisal and promotion
Once the employees are recruited, the HR Department has to review their performance on a regular period, to make sure they are improving, keeping employeesâ€™ records update. Performance appraisal is the process of observe, analyse and recording information about the work perform of an employee. If the employee is potential to the better position, HR Department will make arrange of training and promotion.
3.1.5Implementing Organizational Policies
HR Department has to coordinate with line manager and see that the organizational policies are being apply to all employees. If there are employees against the company policy, or not following the organizational rules and regulation, disciplinary action for them. HR department will implement and conceive all the actions.
In conclusion, HR department have so many functions, and according Hill stated that if an organization having more than 50 employees, are advice to have an HR Department. Hence Company Reed Boardall having 700 plus staff, it consider are big organization. It should have an HR department to management the employee personnel problem. Although line manager know their staff well, but if these let HR department settle will be better put the effort on their
4.0 Conclusion and Recommendations