Human resources

HR Functions

What does HR really do? – HR Functions

If you are someone from the HR fraternity facing this question, in all likelihood you will answer it in the most expected way. That is to elucidate the various functions of the HR department. Let us briefly understand some of the most crucial functions of HR. Talent Sourcing: It is hitherto known as “recruitment” and usually said to be the first step in the entire employee life cycle; it includes understanding the talent requirements of the business, sourcing potential talent from various sources and facilitating the selection process which finally culminate with a formal offer of employment getting released and employee coming on-board.   Compensation & Benefits: This function determines the compensation ranges for different levels of employees; defines the policies of employee benefits such as car, accommodation, insurance, employee stock options and so on. It is also important to note that the C&B professionals, ­ as they are mostly popularly known as ­ also keep a track of the total employee costs and provide the periodic information to the top management. Learning & Development: In some organisations, the L&D (learning & development) team takes over from the talent sourcing team at the time of employee joining. All new employees are put through an induction and company orientation program (in IT industry, it is mostly known as on boarding). L&D also focuses on enhancing the employee skills and thereby help them perform better on the jobs. Employee Relations: In traditional brick & mortar industries, it is more popularly known as Industrial Relations (IR), which forms an important part of HR’s role. It involves managing cordial relationships with the employee unions, compliance all labour laws, addressing any employee disciplinary issues and so on. HR Policies & Processes: This is one wing of HR that standardizes the various employee related policies and processes. It not only designs the policies but also facilitates execution uniformly across the organisation. We do all the work of HR; what does HR do? Incidentally, all the key functions listed above are conceptualized and formulated by HR; but with a very active involvement from the non-business managers. For example, the business manager is fully involved in deciding the organisation structure, assessing how many people are required and in the selection of the candidates. In some cases, even the salaries that are offered to the new employees will be decided after consulting the business manager. Similarly, non-HR managers from business are actively involved to other HR implementations also. Naturally, business managers have every reason to say, “We do all the people management work; what does HR do?” The question often haunts HR colleagues. I too faced the same question during the early part of my career until I had this wonderful session with my boss (SG Iyengar ­ a veteran in HR, inspirational leader and a wonderful human being). He gave us a mantra that defined the role of HR with stunning simplicity. While performing our HR manager’s role, his advice for us was to focus on service, expertise and control strictly in that order. A company works on its people and it’s the HR department which brings in people service. Firstly, the business managers should experience a sense of relief that the HR team is addressing their people related needs. It is true that they too can perform the people management activities. However, they have other business functions to manage. Therefore, any efficient service that addresses their HR needs and allows them to focus on their core will always be welcomed. Expertise: Secondly, the business managers tend to respect and seek HR support when they see the HR managers operating with cutting edge expertise. HR managers should bring in the best practices and deeper technological understanding of the emerging HR tools. Control: Based on the credibility built through excellent service and expertise, HR managers may gain control in the interest of the organisation (and certainly not to feel more powerful politically). It must be clearly noted that control is pegged at third position. Some HR managers commit a grave mistake of wielding control even before they offer service or demonstrate expertise. The business managers often question such HR managers more. So, what does HR do? First, service and then expertise; power & control are simply by-products. This article was published in: HR Mirror, Hans IndiaFollow Dr. Raj on Twitter @drraj29

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What are the career options in HR?

“The irony is that businesses are not able to find many good HR professionals coming from premier institutes. The result is demand supply gap of HR professionals!” Follow Dr. Raj on Twitter @drraj29 Recently, I was talking to the director of a top management institute. We were discussing about various specializations like finance, marketing that students are opting. He expressed his concern on the poor turnout for HR specialization. Same was the case at another global institute which withdrew the HR specialization due to poor enrollment of students. On the other hand, there are specialized institutes in India like XLRI, Jamshedpur and Tata Institute of Social Sciences (TISS), Mumbai who offer HR stream in their management education. Overall, the scenario in premier institutes is short supply of graduates with HR specializations. There are many companies which require efficient HR hands as a part of their scale up. They believe in HR function to add value to their employee satisfaction and retention. As the business grows, they need more HR professionals to handle the needs of employees. The irony is that they don’t find so many good HR professionals coming from premier institutes. The result is demand-supply gap of students who want career options in HR! A quick look at the above aspects might help in better understanding of HR function. Is HR truly a soft, non-business function? The general perception is that people in HR are soft, mild mannered, courteous and generally subservient to other business functions. While it is partly true that HR professionals are expected to demonstrate greater restraint during their interactions of employees, it is not true that they are mild. On the other hand, it is also true that HR is viewed as a staff function or support function, which is generally not involved in direct business operations. They may not have concrete revenues or profits to show as their contribution! However, the enablement role of HR is too vital for business success. HR department is expected to support and enable other revenue generating functions to perform. Many organisations do recognize the value of HR! HR managers may not be kings, but they are kingmakers! Pay and growth prospects:  It is baseless to think that pay in support function like HR is lower and not valued at par with others! Over the past 15 years, the salaries of HR have been revised drastically. They are now at par with some of the other business functions or sometimes even higher! Moreover, the entry level salaries for Management Trainees are not usually differentiated based on the areas of specialization. Vertical growth in terms of designations and hikes in pay are dependent on the performance (like in any other function). The only caveat is the lack of sufficient examples of growing into a business head or CEO role. In India, we do see a limitation of HR people growing into head business. Alternatively, seasoned professionals can grow into becoming business consultants. Reward and Recognition:  Is HR’s contribution valued, recognized and rewarded in organisations? In my view, the answer is YES! However, the recognition does not necessarily come because it is HR function, but it comes because of your competence and contribution. If you carry yourself as a highly-value adding individual, recognition is going to be yours! In future columns, we will discuss more about competencies required to become a respected HR professional, and the several career options in HR! If HR is required in organisations, valued by business leaders and offers decent pay checks, then what else is required for you to take a plunge into HR career? You must have a deep understanding of what is expected of the HR function and what are the competencies required to perform those roles. Such understanding will address the apprehensions if any and enhance your preparedness for deciding among career options in HR. Watch out this column for continued discussion on the above aspects! This article was published in:  HR Mirror Hans India Follow us on Twitter @hrfootprints

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You love or you hate … but you need HR!

Try asking this question – “do you like HR department?” You are bound to get mixed responses depending upon their experiences with the HR folks, but there is no denying the fact that you need HR! When are HR people loved? When are they hated? Whenever they meet the expectations of their stakeholders, the HR folks are loved. For example, when a good compensation hike has been announced, all those people who received the hike praise them and say that the HR department is very proactive and keeps the compensation in line with the market. They love HR! What about those who were not given any increment? They say that HR practices are unfair and unprofessional and may feel that practically there is no HR and everything is decided by the line manager while HR ends up as a mere paper pusher. They hate HR! Story has not ended there…. In an effort to keep as many employees happy as possible, if HR department proposes attractive hikes and liberal performance standards (thereby having 0% bottom performers), they are hated by the top management. Yet, stakeholders always need HR. When top management wants to communicate tough messages, they need HR. When employees want the policies to be friendlier, they need HR or when managers want more manpower, they need HR to recruit. How should the HR manager feel? Surely, mixed emotions! Confused focus…. Mixed emotions because they are loved by some and hated by some. Confused because they do not know which stakeholder to satisfy and which stakeholder to ignore. There are built-in contradictions in the expectations of disparate stakeholders. With this confusion, HR managers evolve themselves leaning towards one of these stakeholders. Therefore, we end up seeing HR department that is leaning towards ‘management’ and thereby displeasing the employees; some HR departments leaning towards ‘employees’ and thereby in conflict with the management. Those HR managers who retain their balance and conscience will carry themselves as per the situation and keeping the larger picture in mind and not aiming for popularity!

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