Dear all,
Recently, I received a private message from a new member regarding setting up the HR department for an FMCG.
My response is being shared with all of you.
1. Find out answers to the following questions to determine how many people you'll need in HR and what the organization structure will be like:
- The total number of employees/contractors in the organization
- The number of departments
- Business plan (any possible expansions?)
- What are the dire needs on people issues?
- What solutions are being expected/required by employees/line management?
2. Define the organization structure of HR. Please keep in mind that the organization structure you define will ultimately dictate the efficiency of HR services and HR capabilities & development of your organization. The nature of your business organization will primarily dictate whether you'll need a flat organization structure, a pyramid structure, etc.
3. For an FMCG, I feel HR should have three wings:
- HR services (hiring & placement, training support, relocation, payroll, employee group insurance administration, leave administration, employee database/HRIS, etc.)
- Organizational Development (policy & process development & review, internal customer satisfaction survey & improvisation efforts, policy/process orientation and interpretation, performance management counseling, career management counseling, grievance/harassment handling, HR communication, etc.)
- HR Development (Develop/outsource customized training/workshops and necessary development events focused on enhancing workforce capabilities to yield better business results)
4. Once you have the wings identified, engage the appropriate number of capable personnel with overlapping roles to make necessary switches to any HR wings as and when required; Establish a working relationship within the HR group to serve as reasonable backup for one another. This will also enhance chances of career growth of the HR folks in the department.
5. Consider automation as a leveraging tool for employee self-service. Try getting rid of administrative HR work through outsourcing, automation, or obsolescence and focus on developing HR capabilities to serve better and contribute to business results.
These are just insights to chalk out the HR philosophy and how you can go about establishing the department. Hope they're of help.
Regards,
Rajat