1.5 The HR Department

In addition to discussing the roles and competencies of HR professionals, it is also important to discuss the roles of the HR department. Based on our discussion so far, it should be evident that for human resource management to be effective, HR must take a strategic approach that helps the organization reach its goals and objectives. While there are no formal rules about how an HR department should be organized, there are some commonly established criteria that should guide how they are structured.

Roles of the HR Department

1. HR managers should be at the top of the hierarchy.

2. The HR department ensures fair and consistent policy implementation.

3. The HR department stays abreast of change.

4. The HR department becomes an agent for change.

5. The HR department empowers line managers.

HR Managers Should Be at the Top of the Hierarchy

For HR to be effective, HR managers should be at the top of the organizational hierarchy. Encouragingly, over the last few decades, we have seen more and more HR managers placed at the vice-president level of the organization, equivalent to other VP positions such as those in production, marketing, finance, and accounting. Being at the top of the organization allows the HR manager to play a critical role in HR policy formulation and provides the power necessary for fair and consistent implementation of HR policies. When HRM is considered this important within the organization, HR is much more likely to be engaged in operational, managerial, and strategic activities.

The HR Department Ensures Fair and Consistent Policy Implementation

Although HR managers may delegate much of the implementation of HR activities to line managers, the HR department is still responsible for ensuring that policies are implemented fairly and consistently. Because organizations must comply with state and federal legislation, expertise is needed for implementing many HR activities. Responses to legislation are best made by a central group of individuals who have accurate information and the support of top management. Because having HR experts can be expensive for the organization, many organizations will hire as few experts as possible and then centralize them. Once centralized, the expertise can filter to other areas of the organization. In organizations that have several locations and several divisions or units, tension often exists between the need for decentralization and the need for the expertise necessary to comply with regulations. As the costs associated with HRM increase, HR departments may begin to measure the costs and benefits of various HR policies in order to implement only those policies that will best help the organization reach its goals while minimizing costs.

The HR Department Stays Abreast of Change

An important and ever-expanding role for the HR department is that of providing up-to-date application of current techniques and developments within the field. In this way, HR pushes organizations to explore innovative approaches to personnel problems and concerns. HR professionals must be attuned to changes in their field and the set of issues confronting a particular company. In periods of rising inflation and escalating wage and salary demands, for example, the emphasis must be on compensation and negotiation. On the other hand, when it’s necessary to pull back or downsize, more creative work arrangements and layoff plans may be needed.

The HR Department Becomes an Agent for Change

The need for organizations to adapt constantly to new technologies, structuring processes, cultures, and procedures is increasing because of greater competition. In this fast-paced and global environment, HR departments are expected to become agents for change and have the necessary skills to facilitate organizational change and maintain organizational flexibility and adaptability. Because HR departments are experiencing the same pressures as the organizations they work for, many HR departments are streamlining and automating their operations. In fact, in many “flat” organizations today, most HR departments are organized as small, high-performing teams.

The HR Department Empowers Line Managers

Finally, because the success of any HR initiative is based on the line managers who implement it, the HR department must have the ability to empower line managers to make things happen. In the more traditional HR activities such as selecting, interviewing, training, evaluating, compensating, rewarding, counseling, promoting, and firing, the HR department is basically providing a service to line managers. Since line managers are ultimately responsible for their employees, the HR department helps line managers by providing information about and interpreting equity legislation and court decisions as well as health and safety standards.

In sum, the responsibilities of the HR department are to provide the services needed by line managers on a day-to-day basis, to keep them informed about regulations and legislation regarding HRM, and to provide an adequate supply of job candidates for line managers to select from. To fulfill these responsibilities, however, the HR department must be accessible, or the HR manager will lose touch with line managers’ needs. In other words, the HR staff should be as close as possible to where the people and the problems are located.