Case Study: The Birth of the Human Resource Department

1. Human resource department acts an essential role in developing a company's strategy as well as
handling the employee-centered activities of an organization. It is not just simply handling payroll and
employee records. From the reasons given, the following should be considered in deciding whether
to start a human resource department:
 “I don’t like to do the recruiting or interviewing.”
 “The human resource paperwork interferes with my time to line up to line up new
accounts.”
 “I’ve never had any training in human resource work, and I fear I might be
unknowing breaking laws.”

Having human resources function is important. A human resources expert on staff can increase the
understanding of how important human capital is to the company's bottom line. Therefore, recruiting and
interviewing applicants is very vital in the organization. Hiring workers also have cost including training.
With a well-constructed recruitment and selection process, the human resources function can minimize
expenses regarding advertising job postings, training new employees and enrolling new employees in
benefits plans. The human resource department also make sure that the potential candidates are able to fit
with the company’s culture.

Paperwork. The human resource department looks after the employees’ database, which includes
all of the information the company needs on any and every employee. Personal and confidential
information such as employee’s contract, job responsibilities, discipline records and performance
assessments are all being looked after by the human resource department.
Legal compliance refers to the various labour laws, which is the responsibility of the
human resource department. This comprises of informing all employees about the union and state
laws on information like break time, lunches, overtime, minimum wage and even all sorts of
discrimination. They keep the company in tune with any changes to the business’ and government
legislative and ruling if necessary.

While considering the above statements necessary, the following may be ignored:

 “Centainly, someone else could do this human resource work better.”

 “Without a human resource department, there is no one to whom I can delegate
these thankless tasks.”
 “I’ve done this woman resource work long enough.”

2. Not everyone fully understands the value of human resource department including Alice.
She has the traditional thinking of “hire and fire”. Human resources professionals are the
lifeblood of the company, because their job is to ensure that the business gets the most out of its
employees. In other words, the human resource department needs to provide a high return on the
business’s investment in its people.

The human resource department processes the recruitment and on-boarding. They also do
employee management and maintaining employee satisfaction, employment engagement and
even maintaining workplace atmosphere. They are resolve conflict and manage disputes that
occur within the workplace. They are also in-charge of training and development to improve
employee engagement and maintain its level of professionalism and skill.

While Alice thinks that the paperwork interferes with her other work, but paperwork iss
important because employees’ information should be readily available as and when it is needed. And
being aware of the laws is the responsibility of the human resource department. The human resources
department protects the interest, image and success of the company in every way possible by complying
with various laws, executing administrative processes, and creating policies in the most cost-efficient
manner. As Brownie Wise said “If you want to build business, build the people.”

3. Based on the reasons of Alice why human resource department must be set up, the responsibilities
that most probably be delegated to us would be staffing. Staffing function is defined as the activities in
HRM concerned with seeking and hiring qualified employees. Recruiting is frequently perceived as the
initial step in the staffing function which happens to be the part Alice doesn’t like. HR professionals must
direct recruiting efforts to find individuals with skills matching the organizational strategy.

Alice might also delegate the training and development function since she prioritizes the new
accounts. Training and development function is concerned with assisting employees to develop up-to-date
skills, knowledge, and abilities. It is a continuous process. The goal of training and development is to have
competent, adapted employees who possess the up-to-date skills, knowledge, and abilities needed to
perform their current jobs more successfully. If that is attained, HRM turns its attention to finding ways to
motivate these individuals to exert high energy levels.

Or she might assign the motivation function, which is helping employees exert at high energy
levels. And maybe the activities to retain productive employees that are involve in the maintenance
function of HRM. HRM must ensure a safe and healthy working environment; caring for employees’ well-
being has a major effect on their commitment.