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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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How did the HR function evolve?

In an earlier article “What are the Career options in HR?” (Posted on December 11, 2013), we discussed on the fundamental nature of the HR function. We also addressed some important questions on the importance of the HR function as a support to business, pay and growth in HR careers. If the HR function is indeed looking attractive, what should an aspiring candidate do to prepare for a career in HR? A good understanding of the evolution and changing nature of the HR department is an apt starting point and that is the focus of this article! Core Business Processes:  Any business has to have some product or service to offer and address a customer need. To deliver what the customer wants, one needs to have a facility to make the product (manufacturing), a channel to tell and sell to the potential customer (marketing/sales) and a process of managing the cash flows (finance). This is a very rudimentary view of core business process. With the increased complexity and to compete with the other players, organisations do add several functions like IT, supply chain, research and so on. Please note that we have not included HR function yet!  How did the need for HR emerge? It is common sense to understand that all these departments perform their roles only through people and those people do have some needs. That is where the need for some essential services of administration and employee welfare started. Organisations felt that there must be some department that takes care of the work place administration like seating, transport, food and so on. In addition, there is a need for someone to attend to the personal aspects of the employee or their families. It includes essential services like salaries, health care, insurance, loans/advances, provident fund and so on. On the other hand, government agencies wanted to ensure that the organisations comply with certain norms and rules to prevent any exploitation of those people who work for the organisations. It called for someone to be responsible for all compliances. To address all these needs of the employees, organisations felt the need for a separate department. Consequently, the personnel and administration (P&A) department came into existence. P&A department essentially took care of facility administration, employee services and statutory compliance. Anyone who is good in excellent coordination, liaison, service orientation, interpersonal skills and with good understanding of labour laws fit this role. Of course, as one grows in these areas and becomes a manager of a team, other team management skills are also called for. By the way, in some places, the same P&A function is renamed as HR department (while the true meaning of HR function includes several other aspects beyond P&A).  What is the present status? From the way the need emerged, it is an essential function and if we do not cater to any of these requirements, there is bound to be employee dissatisfaction and possibility of non-compliance to the laws of the land. Therefore, in most of the companies of decent size, these functions are usually performed at the required level. At the same time, the present outlook of the organisations is that P&A is necessary as an essential service, but not good enough to make a huge difference to the business. Consequently, companies do not want to spend too much of money on these functions. As the recent trends are emerging , organisations may opt for outsourcing. The expected benefit of outsourcing is greater efficiency, lower costs and better compliance. In light of these changes, aspiring candidates can opt for a job in P&A function of an organisation or in a company that offers outsourced services. A graduation with a diploma in labour laws and basic computer skills is essential for a career in these areas.However, due to the outlook of the organisations towards this function, salaries are usually not very high. Also, it may not offer too much scope for innovation except some ideas for process optimization. As the demands from employees kept increasing, organizations’ expectations kept changing from the P&A department, hitherto performing essential functions! That led to new age HR function! More on that next week! This article was published in:  HR Mirror Hans India Follow us on Twitter @hrfootprints                       Follow Dr. Raj on Twitter @drraj29

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