I have a few clients who, like me, were used to be corporate bums and decided to venture into small business. They have little misgivings and some (maybe valid) bad impressions about the role of HR departments in their previous organizations. They think that it is merely a recruitment office, none else. One even thinks, it is a guidance counselor’s office –the designated psycho-therapy clinic of the organization. I cannot really blame them. Perhaps, their HR failed to meet certain business expectations and hence were labeled as such.
There are many different roles and responsibilities that can be performed by the HR department depending on the size of the organization, the demographic profile of the employees' roster, the industry where the business belongs, values and corporate culture prevalent within, and the priorities of top management, and in the case of a small business, the priorities of its owner .
The HR in small organizations may take full responsibility for all human resource activities. Whereas in others, it may share the roles and responsibilities of other departments such as the finance or administration. While in others, it acts as an internal consultant and makes all the HR-related decisions in support of strategic business directions.
In the recent years it is noticeable that more and more organizations are looking at HR professionals as their strategic partners in quality management, corporate planning, business operations, and business profitability. HR management now takes the forefront in strategic planning and expansions in ways that enhance the image and value of the organization.
For the sake of brevity, allow me to use the table* below to highlight the specific KRA (Key Result Areas) that any HRM department should deliver results to; and hopefully enlighten some of you regarding its real roles and responsibilities:
Employment and Recruiting:
Interviewing, recruiting, testing, temporary labor coordination.Training and Development
Orientation, performance management, skills training, productivity enhancement.Compensation
Wage and salary administration, job descriptions, executive compensation, incentive pay, job evaluation.Benefits
Insurance, vacation leave administration, retirement plans, profit sharing, stock plans.Employee Services
Employee assistance programs, relocation services, outplacement services.Employee and Community Relations
Attitude surveys, labor relations, publications, labor law compliance, disciplinePersonnel Records
Information system records.Health and Safety
Safety inspection, drug testing, health , wellness.Strategic Planning
International human resources, forecasting, planning, mergers and acquisitions.
*SOURCE: Based on SHRM-BNA Survey No. 66, “Policy and Practice: Human Resource Activities, Budgets, and Staffs. 2000-2001.” Bulletin to Management, Bureau of National Affairs Policy and Practice series. June 28, 2001. Washington, DC: Bureau of National Affairs.
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About the Author
Nor Franco is the Managing Director and Virtual CEO of nextManager.net. He's a former corporate executive whose passion is bringing out the full potential of HR in Businesses. This time that passion is pursued through Virtual Management. He writes and blogs about his management views and insights here. Follow him on Twitter.
