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Dear All, Most of the Company does not have the HR department.Where as other functional department having .Why they do not give the importance of HR Functions. MK Verma
From India, Ahmadabad
Process Industry Consultant / Soft Skill
Consuting - Life Coaching
Human Resource Professional
Sr.manager Hr & Legal
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Dear Mr. Verma,
I guess those companies owner they have better understanding of HR stuff, they can manage better
Or company resource ll be less or at last they think they can manage all the stuff and save money.����

From India, Gurgaon

Good Qus!!!
owners should know about sensible assert(Human). if assert get loss the loss will be assert alone but the human assert affecting or loss it will be affect all.
Thanks and regards
Madesh M

From India, Namakkal

Dear MK,
Could you share me How many company have not HR department. I think only small scale industries have not separate HR department but A/C department are looking HR function also.
But big thing is that why HR dept not given so much importance. In business profit is the big thing, so how can HR department being a strategic partner of business is main issue.
At present HR department acts like data bank or clerical department ,or deal with labor contractor or labor department. So how can HR department come over this situation and synergy the business to get more importance.

From India, Bangalore

I guess only small comapnies or those comapnies which deal in conventioanl business but not in knowledge based bsuiness or knowledge essential business may subscribe to such view since they may be operating in small or limited markets which evrey one shares and there may not be competetion and business comes to them on their own.
HR & labour Law Advsior

From India, Mumbai

Dear Verma

The statement has no universal application and may be a subjective perception or maybe true of small sized companies..Companies engaging in competitive products and services like telecom and FMCG and operating their business in markets both locally and globally that challenge their survival constantly, need not only to safeguard their market shares and if need be, snatch some from the competitorsí. If they remain complacent, someone may move their cheese. It is any bodyís knowledge as to how market shares are switching among big players in telecom business.

Then who provides this cutting edge to the companies over others? It is the people. When there are people, there shall be HR. Here it is why.

1) Though the vision and goals of the companies are spelt out by the Board of Directors or the senior leadership of the company, they can be achieved thorough peopleís collective and collaborative work.

2) HR has to recruit people with right talent, traits and competencies to realize these goals. For this it uses HR tools like job design, skills design and knowledge profile etc to indentify the right talent and facilitate entry of people with right job fit and culture fit.

3) It provokes business ideas by pooling the best minds in the company through introducing various HR Initiatives like quality circles or employee engagement activities etc.

4) HR keeps itself abreast of changes taking place in business, markets and customer behavior so that it can equip the people with right skills by HR initiatives like training and coaching etc so that the company keeps itself fit to take on sudden challenges .

5) It endeavors to retain and mange talent well by :

a) sustaining their motivation on continuing basis through various HR initiatives like rewards, incentives and promotions;

b)empowering them through delegation of authority and responsibility;

c)developing them in leadership traits by making them participate in decision making process through employee engagement and other HR tools.

6) Thus through itís talent acquisition, retention and development strategies, it endeavors to save hiring cots, minimize idling costs by reducing the incidence of absenteeism because of the satisfied employees, improve ROI on training, ensure customer satisfaction by better customer service which means drawing more customers to the company, peaceful industrial relations which means uninterrupted production and delivery of goods and services. Thus HR is trying to shed itís cost centre image and trying to don the profit centre image by directly impacting the operations though aligning itís HR strategies to the corporate goals.

Thus there is increasing awareness and recognition among progressive companies about this ability of HR to add value to ítheir business as a strategic business partner and are going for hunting HR talent.

Given the range of critical functions explained above carried out by HR, it is hard to visualize a company in the thick of break-neck competition can ever venture to do away with HR.


HR & Labour Law Advsior


From India, Mumbai

B’coz, they consider it as non productive department, but, you can check the growth of such company, it’s restricted till some extent.
From India, Nasik

Dear Mr. Verma
I would like to thank that you raised this question that Most of the office does not have HR Department. Yes some offices and organization do not have such types of departments their HR function done by their Accounts department.
It may many reasons
1. Due to small budget
2. Company/organization/ firm have small size.
3. Less number of employees.
4. Less knowledge about the HR Department.
But gradually many organizations understand the importance of HR Department.

From India, New Delhi

Majority of the company do not understand how important an HR function is. Accounts and HR department work closely with each other but neither of the department can be a substitute for the other department.
But this trend is changing. A practical example would be that in my organization (FMCG), the entire HR activity was outsourced but gradually the management realised that a dedicated in-house HR department is required.
Sheeja Nair

From India, Ahmedabad

Follow this link, please it proivdes the framework for HR.

Is HR Too Important to Be Left to HR? - Armin Trost - Harvard Business Review

There is a sanskrit saying, "Yatha Raja, Thatha Praja," which means like King, so the People.

No one can underestimate the role any good HR can bring to an organization, however, it can grow and nuture only if it has the support of the CEO, who reports to the Board of Directors. It's here that one has to examine what the Boards do when they meet. Emphasis is laid mostly on to Production, Sales, Revenue etc., as the Board is responsbile to it's stakeholders, who in turn only have their eyes trained on looking at balance sheets, retun on investment, dividends etc., and when all of things domaniate the way companies are run and perform, people will hardly give credit to HR, as it is a matter of least concern for them.

Exception to this are some companies of eminence like Unilever, which have strong HR practices, which are examples one needs to take, but one wonders if anyone ses it that way.

One must also read the book "Employees First, customers Second" by Vineet Nayar, who is the Vice Chairman and Chief Executive Officer of HCL Technologies, an India-based global information technology services company, and author of the book Employees First, Customers Second: Turning Conventional Management Upside Down (Harvard Business Press, June 2010). You might folow this link to read the book excerpts: Book Excerpt: Employees First, Customers Second - Businessweek <link updated to site home> ( Search On Cite | Search On Google )

All anwers lie in the links provided.

Warm regards,

TSK. Raman

From India, Hyderabad
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