How Do I Build an HR Department from Scratch in a Small Manufacturing Company?

Hello, I'm new to this site. This is a great learning platform with lots of advice coming from our colleagues and seniors.

Recently, I joined a small-scale manufacturing organization which has around 30 workers and 30-35 staff. The organization has been around for more than 15 years, and I need to set up an HR department here from scratch. I also need to act as a liaison between staff and senior management.

There is currently no increment policy, employee orientation, etc., in place. I am also uncertain about how much management is willing to invest in HR, including orientation sessions, soft skill trainings, employee welfare schemes, medical and accident insurance policies, and other HR policies and procedures to retain and develop employees.

I would appreciate practical, step-by-step suggestions from you on how I should approach this responsibility!

P.S. I come from a consultancy background and am pursuing an MBA in HR.

Hi friend,

If you have been appointed as an HR in any company, you have to start by developing the organizational structure. You will need to chart out the structure of your company, including the number of divisions, departments, units, subunits, levels of management, designations, salary structure, and so on.

Once these tasks are completed, you can proceed with preparing the employee manual and other policies and procedures.

For any clarification, you can email me at tejaswini_a@rediffmail.com.

Thanks

This is a nice opportunity for you. You can gain very good experience and learn new things. This will also be good for your career growth.

First of all, you need to talk to the management about the budgetary provisions made for HR. And remember, before going to the management, do your own homework like preparing an HR budget and showing them.

After that, you can start with an HR Manual or HR Policy for the organization, which will contain the terms of employment, leaves, T&D, exit, misconducts, etc. Once you are ready with these policies and procedures, you can seek management's approval and start implementing them slowly and gradually. You need to go really slow because you may encounter resistance to change from the employees. You need to work like a change agent here.

This may seem overwhelming at first, but once you start working on it, you will find yourself sailing through it smoothly.

All the best to you.

Regards,
byomjeet

Hi Sanjiali,

Your profile looks similar to mine. It feels nice to hear that you are also setting up the whole system step by step, as I did.

1) Firstly, collect data from existing employees for company record purposes – their names, contact numbers, alternate email IDs, etc.
2) Formulate an HR policy covering office timings, lunch breaks, employee insurance, claims procedures, approval hierarchy, travel, etc.
3) Do you have a format for the appointment letter? Start issuing it to employees if they have not received one. (If you need the format, please revert back with your email ID).
4) Regarding insurance, if you need help, there is a broker called PNB Principal who can assist you in obtaining the best and most reasonable quotes for Personal Accident & Mediclaim Insurance. If you wish, email me at the address below, and I will provide you with the details.
5) Also, if you require it, I can help you with an HR policy presentation.

Can you tell me what your company is involved in?

Regards,
Sonia
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Dear Sanjali,

As I see it, there is a good chance that the management is merely paying lip service by naming a department as the HR Department when the actual tasks may relate more to Administration and Industrial Relations.

You can begin by clearly defining the organizational structure and outlining your job description in as much detail as possible. Subsequently, you can determine your priorities by assigning weightage to each of your Key Result Areas (KRAs).

Engaging in such an exercise will bring clarity both to you and the management regarding the role of the HR Department.

Best regards,
Deepak

Date: 14-11-2009

Dear Sir,

I need your suggestion and guidance for setting up an HR department in a new setup. Please advise me on the procedure and the type of format/form required to maintain HR department work.

Thanks.

Chanchal Maitra
E-mail: maitrachanchal@sify.com