Are There Fortune 100 Companies Without HR Departments? Exploring the Future Role of HR

Hello,

Can anyone tell me the names of companies (Fortune 100) that do not have an HR department? This question was asked to my friend during a TCS interview.

If all HR processes can be outsourced, what will be the new role of HR in an organization? A consultant? A strategic business partner as Dave Ulrich (HR Scorecard) had put it? Suggestions are welcome.

Hi rajinitp24,

"Can anyone tell me the names of companies (Fortune 100) that do not have an HR department? This question was asked to my friend during a TCS interview."

Hmm, I don't know the answer to the question. Frankly, I doubt if companies in the Fortune 100 would operate without an HR department unless they are family-owned, and the owners handle HR functions themselves. It's unrealistic in today's dynamic global economy. Just think about how companies like the East India Company or the Mughal Army were successfully managed. Food for thought! 😊

"If all HR processes can be outsourced, what will be the new role of HR in an organization? A consultant? A strategic business partner as Dave Ulrich (HR SCORECARD) has suggested? Suggestions are welcome."

Yes, if the transaction process of HR is outsourced, then HR can play the role of a Business Strategic Partner as illustrated by Dave Ulrich, being a member of the top management and addressing issues proactively before they escalate or anticipating bottlenecks.

Regards,
Rajat Joshi

Rajini...

There is no company without an HR Department. Yes, I did mention in some of my articles that the way HR departments work in most companies... the day is not very far away when all HR processes will be outsourced. That will be the time when there will be HR companies dealing only with HR strategies, processes, hiring, training, etc., just like product-based or service companies. At that time, employers will be free to choose the best HR service provider from the market.

Just look into the future and imagine those days.

Regards, Sanjeev Sharma

With RPO's coming into the picture, recruitment activities can be easily outsourced. Similarly, various other key processes like payroll, etc., are outsourced. This reduces the headcount in HR; however, complete elimination of the department is not feasible, at least not in Fortune 500 companies.

In small private firms, HR is not typically in the picture. There might be an admin person who takes care of all the HR-related activities.

With RPOs coming into the picture, recruitment activities can be easily outsourced. Similarly, various other key processes like payroll are outsourced. This reduces the headcount in HR; however, complete elimination of the department is not feasible, at least not in Fortune 500 companies.

In small private firms, HR is not in the picture. There might be an admin person who takes care of all the HR-related activities.

There are different roles HR has to perform, mainly I have categorised them in three heads:

I. Basic Administrative Services and Transactions role involved with compensating, hiring, training and staffing

--- Emphasis on resource efficiency and service quality

II. Business Partner Services role involved with developing effective HR systems and helping implement business plans, talent management

--- Emphasis on knowing the business and exercising influence--solving problems, designing effective HR systems to ensure needed competencies and talent.

III. Strategic Partner Role contributing to business strategy development and implementation based on considerations of human capital, organizational capabilities, and readiness. Developing HR practices as strategic differentiators

 --- Emphasis on deep and broad knowledge of HR and of the business, competition, and market of business strategies.

Now it is upto the company whether to outsource all these, which in any case is not possible. The other option is to let some of the work and more routine jobs to be transferred to some other partner, which is known as outspourcing firms.

I hope that satisfies your query, There are none of the companies which have outsourced 100% of HR function.

Regards,

Archna

Thanks Archna. For Detailed information. You categorized the functions and role of HR in a nice manner. Incidently and coincidently, same classification of HR Roles has also been given by John Boudreu and Edward E. Lawler III of University of Southern California
Dear all, find enclosed some data explaining various Roles and Challenges for HR.
I am sure this will help everyone.
I don't know if you will be able to open this file....just incase if you are not...you can find the detailed report at http://usc.edu <link updated to site home>
Thanks.
Regards
Sanjeev Sharma

Hi Sanjeev,

Thank you for the information. I remember studying the classification during my MBA, but to be honest, I can't recall who authored it. It seems like you spent a significant amount of time surfing the internet to gather all this information. Nevertheless, I appreciate you sharing it with me. :)

Enjoy!
Archana

Hi Rajinitp24,

The company named Berkshire Hathaway is one of the Fortune 500 companies that does not have a Human Resource Department. I came across this information while I was researching the leadership styles of Warren Buffet, the CEO of Berkshire Hathaway.

Regards, V.S.Shalini Asst. Manager HR & Admin Redcastle Events Pvt. Ltd.