In the list of HR activities, you have not mentioned manpower planning, training and development, career planning, performance management, talent management, etc. HR also has to handle administrative jobs like managing attendance, payment of salary and wages, and other statutory activities as per the various statutes.
All the HR practices are not implemented because of a lack of understanding of the HR function by the business leaders. They give prominence to marketing, finance, and then operations, considering HR as a secondary function.
The second reason is that not enough examples are available in the industry wherein CEOs had an HR background or even business owners had an HR background, attributing their success to the HR background.
Not that HR professionals do not start their businesses. However, when they venture on their own, the general tendency is to get into recruitment, training, performance management, and organizational development, all part of HR. Nevertheless, we do not have an example wherein an HR professional gets into hardcore business and demonstrates to the world that expertise in areas like "Talent Management," "Performance Management," or "Organizational Development," etc., helped in building their business.
When we have sufficient examples, the HR profession as a whole will become attractive, and obviously, full-fledged HR practices will start getting implemented.
Regards,
Dinesh V Divekar
Beware of false knowledge; it is more dangerous than ignorance.