Are HR Departments Really Necessary for Business Survival? Let's Discuss Why They're Under Threat

Hi all,

Can businesses operate with no infrastructure? Can enterprises survive with no funding or finance? Can organizations plan strategies, focus, or have vision with no information? Then how can they survive with no Human Resource departments? Why is the sword of Damocles on HR function? Any comments?

I'll try and throw some light on that, Sajid.

What I've noticed today is that management perceives HR as only a service provider and not a strategic partner. They feel that HR is there solely to ensure that no jobs are left pending, and all legal formalities are complied with and executed. That's their main perception of HR.

They feel that anyone can come and do the work that HR is doing. For them, we are not a profit center but a cost center. Yes, there are companies that do not think this way, but most do. I've come across many like this.

Regards,
Sandeep

Dear friends,

I can't agree less with Sandeep. Top management, especially in the Middle East, perceives HR as an operational and administrative function rather than a strategic business partner. It is unfortunate but true. The HR role in small to medium organizations is to process visas, book flights, ensure compliance with labor laws, and maintain employee records.

The main reason for this flaw is the absence of an HR department from the inception of the organization. HR departments are typically created when organizations reach the maturity phase, and even then, it is often solely for the purpose of "FIXING THE MESS."

Thanks, Dr. Bharti for your views. As an HR Manager, do you oversee most of the active functions under HR, correct? Most organizations have, if I am not wrong, at least very much required functions active, such as Recruitment, Training, Planning, etc.

I think we should include Leadership Trainings for Top/Senior management as mandatory requirements and add them to your annual needs analysis as well. The whole approach of HR is changing worldwide, and it should be seen in the UAE as well.

Cheers,
Sajid Rasheed

I think do senior / top management people need leadership trainings? I feel they already have the quality in them. As far as taking the advice of HR in strategic decisions is concerned, it is just impossible because HR does not have knowledge about the main money-earning activity of the company; for that, the production / technical people are the best.

HR people should just do their work and not think that they are gods. They should not demand more respect and power, become greedy, and neglect their duties. Even if the HR department is not there, its functions can be done by other departments. Still, HR can't do the job of other departments.

Dear Sajid,

I am handling HR functions and fixing the mess. Regarding leadership training, individuals at the top should possess the essential qualities of leaders.

My friend Ravi, you are correct that HR cannot participate in strategic decisions when financials and business plans are not shared. Organizations lacking a human resources presence are essentially running on financial resources alone.

Cheers,
Dr. Bharti

Dear Doctor Bharti,

Educating and learning is an ongoing dynamic process. No individual can claim to have reached full capacity and be a perfect example of a flawless personality with all the necessary competencies for any given position. It is all about finding the balance between what you already know and what you can still develop.

In many parts of the world today, people perceive learning or training as a way to address shortcomings and therefore resist it. In all my training programs, I always advise people to view any identified need as an opportunity for further development and consider themselves fortunate to have room for growth.

From an organizational standpoint, there used to be a clear distinction between leaders and managers. Leaders were seen as dynamic risk-takers with a strong vision, inspiring people towards change and innovation. While some believe that leaders possess inherent qualities that cannot be gained through training, it is essential to note that leaders also require management capabilities. Managers typically focus on procedures, controls, and maintaining the status quo. In today's uncertain and volatile business environment, it is crucial to cultivate both traditional management skills and leadership qualities such as honesty, trust, enthusiasm, integrity, and courage.

Training alone is insufficient; it is necessary to examine core beliefs and values, often reflected in mission statements, quality policy placards, and employee manuals. Over time, it is crucial to learn how to consistently display the appropriate leadership behavior in all situations without exceptions. Successful organizations often have HR as an integral part, not isolated from the rest of the organization.

I acknowledge that people have varying thought processes and levels of understanding. The attached document contains excerpts from a program brochure on leadership development. A careful reading of the document can help clarify many doubts and misconceptions.

Cheers,

Sajid

Thank you, Sajid. It is just that the leader (dept. mgr) would never like to be managed by a follower/manager (top mgmt). Top management must have leadership traits (no doubt, this skill needs continuous development) for the success of the organization; otherwise, they are not in the right position.

The PDF file is worth reading. 😐

Dr. Bharti

Are HR departments really a cost to the company? Are they liabilities instead of assets to the company? 🤔

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In the corrected text above, I have addressed the spelling and grammar errors, as well as added a single line break between the two paragraphs for better readability. The original meaning and tone of the message have been preserved.

Greetings,

I have been silent for a bit as a major project has been taking considerable time. However, I would like to comment on those who think that HR cannot be a strategic business partner; nothing can be farther from the truth.

Individuals who see HR as only administrative and operational in nature, i.e., handling paperwork related to the people coming in and out of the organization, or handling only recruitment or exit activities, you really miss the potency of HR.

When you speak of financial success, talent management is integral to attaining success. Like any good stewardship of "assets," deploying your human capital at the right time, with the right competencies is critical especially in times of change.

We would all agree that it's prudent to have an inventory of all the hard assets in an organization, to evaluate their effectiveness, to provide routine maintenance, or better yet to ensure that preventive maintenance ensures functionality.

The human element of an organization requires more than the shuffling of papers and ensuring that the right documents go to payroll. Rather, an effective HR team understands the mission of the organization, its products, and its organizational business strategy. A productive and effective company requires timely assessment of KSA's, of its staff, a solid understanding of what training and development are required to keep the organization running like a well-oiled machine. Furthermore, HR needs to be adept at managing change initiatives, skilled at the development of solid programs for development and retention of top talent for when times get better, and they always get better.

HR professionals, when given the opportunity to be part of the C-level team, have a great deal to contribute.

What appears endemic in this region is a belief that any "fool" can be an HR staffer. Then those same organizations cry that HR cannot or does not think strategically or add real business value.

Maturity in a market or growth in the size and revenue of an organization does not indicate a reduced need for top-caliber HR practitioners; rather, it is precisely the time when good talent management strategies are paramount.

Success and healthy margins do not create themselves; effective use and support of the people who do the work of the organization is what drives or stagnates profits. If you only hire poorly trained, uncompensated, narrow-thinking, rule-bound, paper pushers, then you have no one to blame for staffers who are not able to add substantive value but your own shortsightedness.

Bruncha