I am trying to put some of my views on this...
The major functions of HR would be
Policy Formulation & implementation
Recruitments & Formalities
Employee File Management
Training & Developement
Compensation & Benefits
Exit Formalities etc
Based on the current strengths of the HR people in the system you can look at adding team memebers where ever it is required.
Usually policies can be on salary disbursement, leaves, travel (local conveyance, accommodation etc), mobile, relocation, transfers, sexual harassment, employee benefits like insurance, etc. I am sure they are available on internet / citehr.
The attachment on the procedure to set up the HRD is very elaborate and clear, we are planning to set up the HR dept for a garments factory, this seemed very useful. Also let me know if there are any specific points to work on for a garments company.