Respected Seniors, mine is a small two wheeler dealership in a small town with around 35 employees. I want to add a HR manager..How can it help me and how to proceed.. Kindly enlighten
From India, Guwahati
Dear Anil,
Before answering your questions, let me understand the followings which will give clear picture on your expectation.
1. Why & How you decided to recruit Manager-HR for your business which is very small in size? what made you to think of this?
2. What you need an HR for? and is there any assignments which you have in your mind for him/her?
3. How the salary of your personnel is being paid? How many functions are there in your Company?
4. Who is now taking care of HR jobs like Recruitment, Payroll etc?
5. There any plan of expanding your business as soon as possible?

From India, Madurai
Dear Anil,
You wanted to "add" HR Manager amongst the staff members. I would like to add important point here. Please also concentrate on addition of proper HR systems and processes and not just one more person or position. The person who you will recruit should only facilitate the execution of those systems and processes.
Therefore, may I ask you that whether your HR systems and processes are ready?
Dinesh V Divekar

From India, Bangalore
Dear Dinesh,
I do accept your point and there is a need for Good system and processes for his business. But kindly let me know if he can have good system and process in his small office, will there be a need for adding an HR in his business which is very small in size?

From India, Madurai
Dear Mr M Kannan,

"HR Systems and Processes" is a vast concept and if earnestly implemented then the position of HR Manager will have more than sufficient job for eight hours a day, six days a week.

When I say HR Systems and Processes, broadly it consists of manpower planning, recruitment, training and development, career planning, performance management etc. Add up to this service functions of HR like statutory activities, payroll processing and other myriad admin activities.

Organisation culture is formed when the companies are "small". Once the companies become "big", it becomes difficult to change the culture. When companies grow sufficiently, they create position of "VP HR". But then it is too late and many times even VPs could not change the organisation's culture. Therefore, creating the culture that fosters growth is very important.

In fact I found companies floundering when they upgrade from Pvt ltd to Ltd. Therefore, right from day 1 each company should treat itself as public limited company. However, they can keep the balance sheet confidential.

"Systems and Processes" looks nice on paper. But then key lies in implementation. In fact leadership lies in execution.

India has very good constitution. But then when not implemented properly what happens that we see day in day out.

Hope I have given clarification to your satisfaction.


Dinesh V Divekar

From India, Bangalore

It is indeed great to know that a small firm is also planning to have a separate HR department.

But before we go further in setting up the HR department, we need to find out why.

Since your organization currently employs only 35-40 employees, I believe that no big systems or softwares are to be implemented as these many employees can be handled individually over the excel as well. (Saying so as I am exactly handling 40 people over excel)

But the important things to be ponder over before we bring aboard a HR are -

1. What will be the roles of the HR person you hire? - Recruitment, Performance Appraisal, Attendance & Leave Mgmt, HR MIS Handling, Employee Engagement, Grievance Handling, Statutory Compliance Handling, PF & Other accounts handling, Salary Handling, etc.

It is very important to first describe what the person will do. Chalk out a job role for the HR person first.

2. Who would the person report to?

What is the hierarchy of your firm? Will there be dual reporting or reporting to a group of seniors?

3. How is the person going to manage the people?

I believe since you are a 2-wheeler delaership firm, the most important department to you would be sales. So should the person be handling each sales man individually or you have team leaders and a sales manager as a point of contact to the person?

4. What is the budget for HR activities?

I do not mean to ask only the budget for the salary of the HR person or salary of the other employees.

How much are you willing to shell out if in the process the person suggests you some motivational and inspirational ideas to be implemented to keep your sales team thrive for more?

Lots of factors goes into designing HR department and honestly, handling HR is as well similarly difficult task.

It is true that on the face value we HR people seem least busy compared to the marketing, but that do not mean we idle away time. The kind of work HR does is all different and depends on -

1. Support from the management

2. Response from the staff

3. Budget of the company

Hope this will help you first chalk out a plan for HR and help you design the HR for your firm.

All the best :)

From India, Mumbai
I must at the very outset congratulate you for thinking about adding a HR function to your business.

I am sure that you practice a business philosophy which is what makes you succeed - meaning a vision, mission, ethics, integrity, goals, value creation, image - in terms of product performing in the market, etc., governing on the tone of behaviors, decision-making and priority-setting, as well as how communication is done internally and externally. Now this can be done best by you, however, if you are going to do this then what will happen to moving the business ahead, therefore, it is obvious that you are looking for a person you would want to engage to carry out these responsibilities, sharing your philosophy.

If you can relate, to this philosophy then go ahead with what ever is there in it for you.

This is by no means a comprehensive document. There is no limit to the creative solutions an organization can find to solve even its most challenging problems. Hopefully, you will find some advice herein that is relevant and helpful to your situation. You may find that you have additional ideas or advice, based on your own experience, which could be useful to others. This guide is simply a vehicle through which communication between such organizations can happen.

For any company to be successful it must have a philosophy that all business functions participate in, and so Human Resources Management is a prime position. (I'm not sure if still several business leaders would accept this truth). A good HR person can set the tone for any company to meet it's business goals and enable it meets all its responsibilities to all it's stake holders. Based on the vision and the chartered out mission, HR creates a conducive, and participative environment for all other business functions to incorporate in their day to day activities - beginning right from the top management down to production employees.

In our technology driven world, Human Resources has become an advanced art, some would say. Any seasoned HR person could spout methodology on how to achieve best practices in trying to meet the "philosophy" originally intended. But such methodology does not necessarily apply to the small organization as they are in a class of their own, and face unique challenges when it comes to finding the right person for the right job at the right time.

If this is ascertained and a person found, the next step would be the “Functional competencies” that you would expect from a HR person. These are job-specific competencies that drive proven high-performance, quality results for a given position. They are often operational in nature.

Competencies are used in human resources in a variety of ways: they describe the traits and skills and behaviors for a job role, they are used to establish performance and development criteria for performance management, they are used in the assessment of candidates for a position, and they are used in the assessment of people for leadership and new roles.

The best-practices in competency management involve four categories of competencies: company values (core principles) which apply everyone, broad general competencies which apply to the entire company (e.g. communications, integrity, etc),

leadership competencies (characteristics and skills we expect of leaders in our organization), and functional competencies (job-specific skills which are very different from role to role).

Competencies can be used for assessment, hiring, training, leadership development, succession, and many other important purposes.

Each of these four types of competencies is used for candidate assessment, evaluation, coaching, development, and assessment of potential. Every organization therefore should develop competency models with the end goal in mind.

Based on this to go a little further, there are many important functions, however, there are three crucial areas which make HR leaders. One of the major ways HR creates the environment is by encouraging employees to become and continue to be top performers. A second way HR sets the tone is by developing a diverse group of employees. HR must develop and uphold policy on diversity and other issues. Third, team building is essential to fuse a diverse group of individuals.

In order for a company to reach its full potential employees need to be top performers as individuals and as cross functional groups. Employees should be invested into their position.

HR can take the lead

1. recruiting candidates that are a good fit for the company and show potential for growth. Hiring the new candidates to competitive salaries with benefits will make for happy employees who want to give their best. Using a workable performance review process, employees can gain an accurate assessment of their performance. Employees will be able to understand their performance levels and work on areas that need improvement. Management will also understand employees' desire for growth. HR therefore plays a lead role in performance benefits and giving positive feedback. In this way employees will be able to realize their potential and will be able to take deliberate actions to have more say in driving their chosen career paths.

2. HR can lead is by developing a diverse workforce. Equal Employment Opportunity which refers to employment practices that ensure nondiscrimination on the basis of gender, religion, region, physical or mental ability, or age etc. The principle behind this is that everyone should have the same access to opportunities. Any company worth its name needs to be flexible and adaptable to meet new customer needs, therefore by developing a diverse workforce a company can gain diverse views especially when it comes to problem solving. Managing diversity well provides a distinct advantage in an era when flexibility and creativity are keys to competitiveness.

3. HR is its team building function. Team building can lead to several positive standards and make clear work objectives. The company will gain good communications with participants as team members and individuals. Departments will increase productivity and product creativity. Knowing exactly what is expected, team members will become more motivated to reach their goals. Having strong communication through teambuilding will create a climate of cooperation and collaborative problem solving, this will also increase trust and support from all employees. In many companies there is wasteful spending because of a lack of communication. By having regular interaction between teams a company will have better operating policies and procedures that can reduce cost. It also help knowledge building and knowledge sharing.

In this fashion Human Resources is one that becomes the locomotive for the train called 'company.' of which the first compartment will be that HR will make sure the company the company recruits well qualified candidates and ensure that they become happy and well paid employees. The other HR functions - induction, performance appraisal, compensations and benefits, training and development, etc. will make for the other compartment that can run on the rails of your company built on your philosophy - a lean running company that employees love to work for because they are well taken care and in return they offer high productivity and creativity.

Having said this it will also be appropriate to get the right person on board

Characteristics of a through HR Professional

Well qualified, well read, well bred, excellent communicator with the ability to influence and persuade across all levels of the organization exercising a high degree of confidentiality, professionalism, poise, tact and diplomacy to accomplish objectives. Excellent written, verbal, and nonverbal interpersonal and communication skills. Solid interpersonal, project management and presentation skills. Has and maintains a high standard of integrity & ethics; is aware of the business that the company prevails in therefore is customer-focused, creative & innovative, disciplined; with a can-do attitude; aggressive in the pursuit of goals; results-driven; action-oriented, flexible and adaptable, change agent.

Going on a little further, looking into the future and your company if it wants to get ahead of the race, you will have to hire "smart matured HR person," one who is a self-starter; highly organized; with a knack of complex problem-solving; has a strong analytical brain; strong in strategic management, who has the ability to work well in a variety of environments, and work well under pressure in a racy, speedy, dynamic, time-sensitive environment with shifting priorities and multiple deadlines. Also has the ability to - be proactive and independently advances skills as required to meet rapidly-shifting job requirements in a fluid but rapidly-growing organizational environment. One who can steer away from complacency, by effectively challenging and enhancing the professional development of others within the organization, at all levels drawing on an appropriate balance of assertiveness, tact, and respect.

.・ Possesses extremely good Communication Skills (Spoken/Written)

・ has Self-Awareness

・ is Proactivity

・ can Multi-Task

・ has the Ability to Prioritize

・ is Enthusiastic

・ has Integrity

・ Works well in teams

・ has Good self-organization and Organizational Awareness

・ is Effective in Problem Solving

・ has Self-Awareness, Proactivity

・ has the Ability to Influence

・ is Effective in Decision Making

・ shows Learning Agility

・ is Technical savvy

・ finally, is likeable by all.

It was lengthy, but I hope it clears up into several issues, as some honorable members have already raised some valid questions to stimulate the thinking process.

Best wishes..

From India, Hyderabad
Hi Anil
As you have medium size organization, My suggestion is you can outsourced HR functions to any of good hr consultant. As they have good experience also and you will get professional HR help at lower cost as compared to if you hire HR Manager.
If you will hire HR manager, it will cost very high plus you team size is also small, he would not have enough hr work for full time. At the end he may get bored sitting idle and may leave company very soon.
This is my personal experience.
Currently I am working as HR consultant for few medium size company in bangalore and delhi.
If you need further help please write to me on

From India, Ahmadabad
Respected Seniors Plz give me some guidelines for designing format for 360 degree performance appraisals in earliest. Regards Shweta
From India, Delhi
As per my advice, with an over six years of experience for recruiting in the automobile dealership companies, would be:
With a staff of just 35, don't hire a full time HR Manager.
Take the services of a process consultant. Put your processes in place.
Then designate someone into compliance or take the charge yourself.
Remember, your employees are your biggest assets and that is what the mindset should be, before you start acting on the compliance issues. Hire a change agent for 3-4 months if necessary

From India, Madras

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