A Human resource department is an organizational entity which is primarily formed to report organizational relationships, organize people and function in a manner that best supports organizational goals accomplishment. The key behind any Human resource department is the organizational devotion towards availing of efficient procedures, policies and people-friendly guidelines that will give support to the company (Cole, 2002). The department equally ensures the corporation vision, mission, values, company metrics together with other factors that keep the company on visionary focused are optimized.
With this consideration, the focus of this paper will be on the benefits of having a Human resource department, the negative impact of not having a the department, the possible benefits or negative side effects a Human resource department on employees and the various types of Human resource departments. In tackling the issues that revolve around Human resource, the research done entailed past information concerning this sector in any organization.
According to Cole (2002) the Human resource department in any organization its cornerstone in the sense that it gives the guideline that keeps the organization functional. In the course of this study, the benefits of having a Human resource department was attained in from both primary and secondary sources but the core information was obtained from secondary sources mainly text books. The negative impact of not having this department is a matter that has only been handled from one perspective by most of the authors in the sense that they mainly focus on the importance and advantages of having a Human resource unit in the organization.
The danger or risk in evading this organizational unit has seldom been addressed and just a few writers among them McConnell (2001), Lewin, Mitchell, Sherer (2002) & Cole, all of whom have been engaged in writing about the same in their Human resource texts. The possible benefit of a Human resource sector on employees is equally an important focal point that had a lot of content as far as the sources used to carry out the research are concern. As observed the positive impact of the Human resource subdivision in the organization has a huge contribution to the employees’ welfare and output.
According to some literary critics it was found that negative side effects of the Human Resource department on employees are equally present and form a major area of concern for most of the modern organizations. As a result of the numerous benefits that are associated with the various Human resource departments, they have been forced to have several sub units in order to carry out all their functionalities to total satisfaction. Benefits of having a Human Resource Department There are several benefits of the Human resource department to an organization such as employee recruitment and training.
This department develops a systematic plan that is used when hiring the staff and aiding the building of professional work teams. The strategies that this department puts in place in implementing employment appointments are several. These include creation of internship opportunities, developing of test plans for the employees to be hired, allocating training sessions for the recruited employees and keenly analyzing any interviews. Building public relations is another vital role played by the Human resource section in an organization.
An organization is aided by the Human resource to build proper referral systems and have proper public relations standards. It is very essential that a company develops excellent associations with other enterprises in the market so that it propels its earning by way of cooperation with other commercial sectors. The Human resource department is responsible for arranging business meetings, seminars and official business gatherings for an organization in order for the company to get acquainted with other businesses and the market at large.
The same department is responsible for ensuring that the firm’s pay scale meets the terms of the changing laws and regulations. This in effect aids the firm in attaining and retaining competitive staff. The compensation managers determine commission rates and administer executive compensation programs for corporate staff that may be involved in issues such as sales on commission basis (Mathis & Jackson, 2007). When it comes to the developing of an organizational business plan, this department is an active participant.
The plans in question involve both marketing and business decisions. The Human resource units’ dedicated professionals have the ability to implement marketing strategies and provide new plans that bring more capital and business to the organization. The end result increases the overall firm’s profitability. On the same note, expert consultants in the mediation and configuration of various opinions in the development of the business plan are situated in this very department. Consultancy provision is another gain that comes along with having a Human resource department.
In an organization, the work-team or individual members of staff usually face numerous issues in the course of carrying out their duties (Lewin, Mitchell, Sherer, & Industrial Relations Research Association, 2002). The Human resource acts as a medium for all the advice employees seek and avail answers to general queries. Any managerial disputes are effectively handled by the Human resource department and employee problems are settled down proficiently and professionally. The Human resource branch acts as a business’ forethought by the fact that it deals with long-term business management.
This department goes ahead to evaluate the business’ future scope and formulates approaches that seem most profitable to the organization in the long run and as such lead to business stability by establishing a firm medium for the corporation to stand on in future (Mathis & Jackson, 2007). In case of any potential business valuations by any other department in the firm, the Human resource unit works alongside the department in question to weigh the viability of its valuations.
Due to the several benefits of having a Human resource division in the organization there are serious consequences of failing to incorporate this vital section into any corporation. A firm that either does not have a proper Human resource team in place or doesn’t have any has a lot of difficulty when it comes to having proper public relations. The reason is that, it’s a sub-section of the Human resource department which has the duty of ensuring the business maintains good public relations (Cole, 2002). The organizational referral systems would be in jeopardy due to inadequate public relations standards.
This inadequacy in public relations eventually causes the business to relate poorly with other firms in the same industry and as such profitability gradually declines. A further cause for the profitability to decline would be as a result of in-capacitance of the organization to schedule business meetings, seminars and official business gatherings for acquaintance with other businesses. The firm’s ability to keep on monitoring the pay scale in relation to any changing laws and regulations would be a great challenge without the hand of the Human resource department.
This in effect results in the firm failure to hire competent staff and retaining the same because qualified people in most cases are usually aware of the market wages of their profession. Adequate determination of commission rates for sales agents and administration of executive compensation programs for corporate staff would be a stumbling block for the organization in terms of employee motivation (Lewin, Mitchell, Sherer, & Industrial Relations Research Association, 2002). In developing organizational business plans, if present, the Human resource department is an active participant in the articulation.
Due to the expertise involved in coming up with marketing and business decisions, it’s a great challenge for an organization without this department to have dedicated professionals to implement marketing strategies and work out new plans that bring more capital and business to the organization. The end impact is that the overall firm’s profitability would not rely on the business future plans as expected. When hiring staff, it’s very difficult for a company to come up with a proper procedure of the recruitment process and so they may end up hiring unqualified staff or worse still, turn away persons that are well suited for a given post.
The main cause of this would be insufficiency in development of test plans for the employees to be hired, allocating training sessions for the recruited employees and poor analysis of interviews. Building of professional work teams is not possible when qualified persons from the Human resource department are not in the picture because the strategies that the professionals in such a department put in place can not be substituted by anyone who is not qualified to deal with Human resource related tasks professionally (McConnell, 2001).
The creation of opportunities within the organization that would allow for internship opportunities may be overlooked. Unless the importance of allowing for internships is properly understood and its overall impact to the organization, only qualified employees may be considered in joining the organization. In any organization, the work-team or individual members of staff are bound to face numerous issues in the course of carrying out their duties. Without the Human resource incidences of strikes, go-slows, increased complaints and general worker dissatisfaction would be on the increase.
This in effect lowers output and general company’s profitability declines (Lewin, Mitchell, Sherer, & Industrial Relations Research Association, 2002). Managerial disputes will equally result in resignations that effect loss of competent staff or frequency in engaging the organization in labor related cases in the courts. Business’ foresight especially in long-term business management is hampered if a company has no proper Human resource in place.
The main reason for this occurrence is in the fact that evaluation of business future scope and formulation of profitable approaches to the organization in the long run is highly dependent on a competent Human resource team. A further cause would be alluded to the fact that, it’s only the Human resource department expertise employees that can work alongside other department in the firm if a thought emanates and they would see its fulfillment. Benefits of the Human Resource Department on employees Establishment and maintenance of a firm’s pay structure is done by the compensation managers within the Human resource sector.
With the aid of compensation analysts, compensation managers formulate ways of ensuring that the pay rates are fair and equitable. They take a further step by participating in salary surveys to find out if the firm’s pay matches up to others in the same industry. Additionally, the department oversees the company’s performance management system compensation side. In effect, this ensures that they design a reward system for pay-for-performance plans that includes the setting of merit pay guidelines and incentive or bonus pay criteria.
The major beneficiary in this instance is the employee so that underpayment is avoided. The employee assistance plan managers in the Human resource segment are responsible for programs that enhance employee wellness and safety which improves their work-life balance. These may comprise of occupational health and safety standards and practices, physical fitness and health promotion, minor health treatment and medical examinations, transportation programs and carpooling, employee suggestion systems, elder and child care plus counseling services.
The counseling aids employees deal with alcoholism, emotional disorders, consumer, marital, legal, family and financial problems (McConnell, 2001). They do this by maintaining the application forms for the workers that are beneficiaries, claim forms and benefit booklets so as to give out to the relevant employees. Moreover, this department handles the distribution identification cards that insurance firms provide for the employees. Besides, the Human resource section helps employees by ensuring that they receive pay rises and promotions and the end result is motivation, enhanced morale and productivity.
Labor relations managers within the Human resource department implement industrial labor relations programs that benefit all the employees. Information for management use during collective bargaining agreement consultations is prepared. The labor relations staffs then administer the contract after interpreting it in relation to salaries and wages, grievances, employee welfare, healthcare, pensions, union and management practices together with other contractual stipulations.
Educating of organizational employees on the laws that protect their rights and development of their skills via availing courses and classes that teach them new skills and upgrade their prior education is another importance of the Human resource department. With better skills the staff is in a better position to benefit the company more, furthermore the employees are well prepared for jobs that require greater skill (McConnell, 2001). Training of workers to a level that their output meets the required standards is necessary if the organizational goals are to be met.
In addition, the Human resource department trains employees on safety measures at work and on how they should look out for each other including the new employees. The workers are educated on skills that improve their interpersonal relations both in and out of the organization (Grundy & Brown, 2003). The Human resource department has training specialists that set up executive or leadership development programs for employees that aspire to move up in the organizational rank.
Other training programs assist employees on job transitions due to consolidations or mergers and retraining programs as result of technological changes. Negative effects of the Human Resource Department on employees The establishment of Human resource departments has some negative impact to the employees. For instance when it comes to wages and maintenance of a firm’s pay structure revision, issues to do with inflation and the value of a country’s currency are at times not put into consideration.
This occurs in such a way that, as much as the pay is increased it fails to add value due to the cost of living. The salary surveys taken are at times done on a random basis and not fully competent in the industry but their overall result has to be incorporated in the firm. During implementation of programs that enhance employee wellness and safety, the criterion of merit keeps on shifting from time to time and as such some employees are forced to seek their own medical attention and insurance cover especially when it is decided that such benefits will not be given to all the employees (Guerin & DelPo, 2009).