What Does HR Really Do for a Company and Why Is It Essential? Let's Discuss

The Role of HR in a Company

What does HR really do for a company? What is the role of HR? Why do companies need to hire HR, and why must they proceed with HR? Can't a company manage the HR department on its own? Can't a company fulfill the responsibilities of HR, which are currently handled by so many HR professionals?

Skills and Responsibilities of HR

If HR must be hired for an organization, should HR professionals have any special or exceptional skills beyond their typical responsibilities (like recruitment, statutory compliances, HR budgeting)? Everyone who wants to enter HR is aware of these responsibilities. However, they may struggle to understand new tasks or problems when they arise. For example, controlling attrition, retaining employees, reducing the HR budget, efficiently utilizing human resources, framing policies, addressing manpower gaps, and managing induction, training, and development. They might not fully grasp the company's situation or its business strategy, right?

HR and Business Strategy

How is HR related to a company's business strategies, employee growth opportunities, and profitability? Consultants and companies are hiring graduates...

Regards

The Importance of HR in Organizations

The answer to the question of whether companies can do without HR is 'yes' if they can do without people. If someone in the company can perform HR functions, why do companies opt for HR recruitment? Functions like recruitment may seem like merely going through some CVs and shortlisting candidates, but it is not as simple as it appears to be. Facilitating the entry of the right and best candidates into an organization requires various specialized skills such as job analysis, skills analysis, confirming job fit of the candidate, and trait and personality analysis to ensure the culture fit of the candidate. All this is of paramount importance to an organization since the quality of the seed sown determines the yield of a crop. Hiring the right candidates significantly impacts industrial harmony, productivity, quality of customer service, and provides a competitive edge in fast-paced markets.

The Role of Statutory Compliances

Similarly, statutory compliances involve more than just filling out paperwork and filing before statutory authorities. The key in this role is to comply with the requirements stipulated by the relevant statute, which necessitates a good understanding of statutory provisions to avoid penalties, both pecuniary and penal, as stipulated in the Acts. This is just a sample, and one can imagine the importance of other functions like performance management, organizational development, training, career pathing, competency mapping, talent management, and talent retention performed by HR. These tasks require special skills, highlighting the necessity of HR.

The Need for Skilled HR Professionals

The efficiency with which HR fulfills these functions depends on the quality of HR professionals assigned to these roles. You cannot expect a raw candidate or a fresher to perform these duties as adeptly as a veteran or a senior professional. It is crucial to recruit talented individuals for senior leadership positions in HR who can guide and provide direction to their team, making HR a strategic partner in the business.

Regards,
B. Saikumar
HR & Labor Law Advisor
Mumbai

Agreed fully with your views. When we talk about organizational development, productivity, yield, employee satisfaction, customer focus, CSR, and profitability, all the processes have to be aligned with each other. Four-wheelers can't run on three wheels. We can't expect production/quality people to comply with labor laws or other statutory provisions. There are specialized people to do specific jobs. Hence, HR comes forward.

We can't run organizations without manpower. The HR job seems very simple to others, but it is not so easy. See the role in the strikes. See the role in counseling and motivating. Human resources are very sensitive issues that need to be handled very carefully. They are strategic partners for business houses. They are considered the mouth, ears, and nose of the organizations.

So, they play a very crucial role in the organization. You can handle all the assets very easily, but HR handling requires specialized skills. Hence, the HR role is very important for the overall development of the organizations.

Regards.

Interested to read the replies of B. Sai Kumar and Ramesh Bharadwaj.

In reality, HR activities are very crucial and important, like a mother's care from birth to death. On the other hand, it acts as an intermediary between the employee and employer. However, most of them are misused/misguided by HR professionals. No proper suggestions/modifications are provided to principal employers to formulate leave policies or any other policies in practice.

The system of performance appraisal is also misused in many companies. No fixed parameters are used for assessing an individual. Ultimately, decisions are made according to the will and wish of the concerned departmental heads/HODs/Reporting Manager.

Grievance procedures/redressals are not followed properly. Exit interviews are maintained only for the sake of ISO 9001 documentation. The comments or grievances mentioned by outgoing employees are not taken into consideration. No action is taken, causing the company to suffer losses.

If anybody (HR & Admin staff) strictly complies with the rules and regulations, other non-HR staff will try to eliminate those persons, and Corporate HR and Local HR Heads do not bother to interfere or safeguard the interests of the company.

HR professionals may feel bad about some of my findings. I am sorry for the same. These were my bitter experiences over the last 26 years. Please do call on my mobile for suggestions.

Regards,
S. Rao
[Phone Number Removed For Privacy Reasons]
Hyderabad

The Role of HR in Organizational Growth

I think, as per the company's prospects of growth, HR plays a 100% role. Without HR, no organization can function. For career planning and succession planning, HR plays an important role in the organization. Nowadays, HR's role in strategic planning is also crucial.

Regards,