Can an AM-HR Sign Offer Letters for ASM-Sales? Seeking Clarity on HR Authority

Dear All,

Please advise whether an AM-HR can sign the offer letter/appointment letter of an ASM-Sales or not. I am working and faced this issue in my organization. There is no other HR except me in the firm, and I am handling the overall HR department of the corporate office. Your suggestion would certainly help me know my authority as an HR professional.

Warm Regards,
Sumiksha

Dear Sumiksha,

AM_HR shall sign the offer letter in the absence of the HR-Head or HR-Manager. However, the concerned person should have a letter of authorization recommending the individual who will be signing on his/her behalf.

Hi Sumi,

There is no doubt about this. You are the signing authority. How does ASM Sales enter into this picture? Sorry, I do not know.

Mano Kavin

It depends on the policy of the company. If the company has a policy that the Head of the Concerned department is authorized to sign the appointment or offer letter, then HR will not have the role. However, as seen in many successful and big organizations, this is usually done by the HR Department. Some companies reserve this authority for the Director of a particular department/ Managing Director/ CEO, etc. Please be clear about the policy followed by your company in this regard and follow the same.

Dear Sumiksha,

In my last job, I used to sign offer letters, exp., and relieving letters at all levels even though my designation is Sr. Executive-HR (Core). I was responsible for handling all core HR (post-recruitment) activities in the company. Our HR manager used to sign appointment letters.

Your reporting authorities in the company are better persons to guide you in this regard as responsibilities allocation varies from organization to organization.

The person who issues the appointment letter becomes the Appointing authority, in other words, the disciplinary authority. So unless you are the disciplinary authority, you are not competent to issue the appointment. But there is a way out. You can take the approval of the competent authority and issue the letter stating that this is issued with the approval of the competent authority. This would be the proper procedure.

Regards,
KK

To ensure proper formatting and correct any errors in the text, the revised version is as follows:

Get a Board Resolution passed empowering/authorizing you to employ, appoint, terminate, dismiss, sign legal documents on behalf of the company, etc., and then go ahead and sign the Appointment Letter.

Vasant Nair

Progressive and professional organizations have a document mentioning the authorities, powers, and limits of each designation. Anybody occupying that particular designation has those powers and authorities. This document is reviewed and amended from time to time as per needs and circumstances.

This document can be very exhaustive and detailed. For example:

- Who can sign cheques (there could be sub-limits up to Rs. 10,000, up to Rs. 50,000, etc.)
- Who can sign Purchase Orders
- Who can authorize Plant Shut Down for maintenance, etc.
- Who can sign appointment letters for which positions and which grades.
- Who can sign and approve leaves

You can introduce such a document in your company. If not for the entire company, at least for the HR Department.

The point is you will have to take initiative to introduce and implement systems and processes if they are not in place. There is no harm and nothing wrong if an Assistant Manager signs important documents, but make sure that he is formally given that authority and everyone in the organization is aware of this through the authentic document approved by management.

Thanks & Regards

Dear All,

I have thoroughly gone through your comments on the above concern. However, there is no other HR in the company except me. I have joined this organization recently, and this issue was created by the sales head for a new joining in his department (ASM), as discussed. Since there are no pre-defined systems, I tried to handle it on my own. Unfortunately, I was hindered by some individuals in the organization from doing so.

Please suggest...

Warm regards,
Sumiksha

As rightly mentioned by KK, you can sign offer letters, etc., but until and unless authorization is given to you, you are not supposed to sign the appointment letter. Once you have been given authorization, you ultimately become the disciplinary authority, etc. In some cases, you may even have to attend court as a disciplinary authority on behalf of management. Hence, please obtain necessary approvals before signing.

If authority is granted to you, there is no restriction on whether you are signing for an Assistant Manager or a General Manager, as you will become an Authorized Signatory. Normally, this is done with the Board's approval.

Regards,
Kameswarao