Setting Up an HR Department for a Small Team: What Basics Should I Focus On?

Dear Sir,

Please help me in setting up an HR department in my organization and also planning to apply balanced scorecard. Could you please tell me what all basic things we have to do? We are currently having 16 employees.

Thanks and Regards,
Riju

Hi Riju,

Let me know what type of organization you are working for. Is it IT-related or non-IT? As far as my knowledge goes, you will have to finish off with the statutory formalities. Please note the following points:

1. Find out whether your company has been registered under the Shop & Establishment Act or with the Registrar of Companies, whichever is applicable.

2. Find out whether your company has intimated or registered with the Provident Fund / ESI & Professional Tax, if applicable, and whether they have allotted a particular Account no. for your company in terms of PF / Professional Tax (if applicable in your state).

3. Once the same has been complied with, you can allot the respective account no. for employees for the PF, etc.

4. Maintain a personal file for each employee. Since you are only 16 people, it won't be too taxing.

5. All personal papers will be maintained by the HR dept for the respective employee.

6. Leave records, attendance register, and payroll are the most important functions you will have to handle.

7. I hope that your company has the respective formats for interviewing/selection, etc., which are a must for the HR dept. Maintain the format of offer/appointment letters, memos for indiscipline/termination/relieving letters, etc., which will be handled by HR.

8. Since you are initially setting up the department, these are the basic and important points that you need to know. As I am based out of the country, whatever I knew I have put forth. Hope it helps you out.

Hoping that other senior members in this field based in India help you out. All the very best, and I am sure that setting up the HR department is going to be your stepping stone for advancement in this field.

Regards,

Sadashiv :)

Hi Sadashiv,

You have provided valuable inputs. Riju also suggested consulting an advocate who can offer insights from a legal perspective.

Thank you,
Moiz

Dear Sir,

Thank you for your reply. Please advise me on setting up a Personnel Department in the educational sector where there are 20 faculty and 30 non-teaching staff. Our organization is located in Nepal. I am aware that the necessary statutory arrangements should be made according to Nepal Government Rules. Sir, I would like to know the following:

1. Is there any difference in the application of Personnel Management (documents) for teaching and non-teaching staff?
2. Is there any possibility of obtaining the Nepal Government Personnel Management rules?

Please help me in this regard.

Thanks and Regards,
Riju

Hi Neelu,

The same applies to your organization as to what I wrote to Riju. In your case, also find out whether your organization comes under the Companies Act and whether you have registered with the Registrar of Companies (whether you are a Pvt Ltd or Ltd co., the number of employees, etc.). All these factors are very important.

Rest assured that you are aware of statutory requirements like PF, PT, and ESI, which will be applicable as per the salary slabs of your employees.

Keep in touch! I hope this is clear to you.

Best regards,
Sadashiv

Hi Neelu,

Thank you for your email. It is interesting to know that you have a good teamwork. Half of your problems are solved there itself! Coming to your query of Time Management (very important), there are books available on this topic, but let me tell you, practically, it is also possible:

a. You need to have a meeting with department heads firstly.

b. You need to maintain the job profile of all employees in their personal file so that at a glance, you know what the profile of each employee is.

c. Delegation and allocation of specific jobs or tasks can also determine how much time an individual will require to perform a task.

d. All departments are interlinked function-wise, and they should be given a deadline so that the end result comes on time.

e. Productivity increases when all given tasks are performed on time.

I hope these points help you to sort out some issues pertaining to time. I am sure that other senior learned members will also come forward and provide much better suggestions and inputs that should solve your problems.

All the very best!

Regards,

Sadashiv 8)

Hi Sadashiv,

There are twenty of us here: 6 in Designing, 6 in Production, 2 in client servicing, 2 in Accounts, and 4 junior office Assistants. Since we all relate to each other well, personally and professionally, we show good teamwork. However, the issue is that while everyone works hard, they are not working smart. Personal crises are resolved or attempted to be solved on priority.

My concern is how to tactfully teach them time management while keeping the unity and spirit intact. Do you think it would be a good idea to have these types of weekend workshops? We don't have a proper HR department as we never needed it since leaves, PF, etc., were never issues.

What are your thoughts?

Neelu