Personnel department was the department that
administered these essential staffing tasks. Nowadays the role has grown and
with it has come a name change. In many organizations what was once the
personnel department is now the human resources department and it handles a lot
of essential functions for your company. Some of these functions are so
specialized that some companies choose the out source their HR requirements to
a provider with the specialist expertise to handle HR tasks.
So, what does the 21st century personnel
department have to handle the modern HR department recognizes the key role of
staff in a company’s success and manages the staff from entry to exit. That
means that human resources officers will be involved in planning staffing
strategy, recruiting and administering staff. In addition, personnel officers
will have to keep up with the latest changes in employment law and reflect
those changes in staff and company manuals.
The reasons why personnel department are often
referred to human resource department are as follows:-
1.
For small
businesses and large conglomerates alike, the human resources or personnel
function can be helpful for much more than simply processing payroll or
handling the open enrollment season once a year. Human resources plays an
essential role in developing a company’s strategy as well as handling the
employee centered activities of an organization.
2.
Human Capital Value: Having an in house human resources function is important. An in-house
human resources staff on a human resources expert on staff can increase the
understanding of how important human capital is to the company’s bottom line.
For small businesses, in particular, human capital is critical because so many
smaller firms have employees who perform cross-functional duties with a smaller
workforce, if just one person leaves.
3.
Budget Control:-
Human resources curbs excessive spending through developing methods for
trimming workforce management cost, which includes negotiating better rates for
benefits such as health care coverage. In addition, human resources ensures
competitive and realistic wage setting based on studying the labour market
employment trends and salary analysis based on job functions. As some small
businesses have budget constraints, this human resources function is especially
helpful.
4.
Conflict Resolution:- workplace conflict is inevitable, given the diversity of
personalities work styles, backgrounds and levels of experience among
employees. A human resources manager or a staff person specially trained to
human employee relations matters can identify and resolve conflict between two
employees on a manager and employee and restore positive working relationship.
5.
Training and Development: human resources conducts needs assessments for the
organizations current workforce to determine the type of skills training and
employee development necessary for improving stills and qualifications
companies in the beginning or growth phases can benefit from identifying
training needs for existing staff. It’s muchless expensive than the cost to
hire additional staff or more qualified candidates.
6.
Employee Satisfaction:- Human resources usually are charged with the
responsibility of determining the level of employee satisfaction often an
ambiguous measurement at best with carefully designed employee surveys, focus
groups and an exist interview strategy, human resources determines what
underlies employee dissatisfaction and addresses those issues to motivate
employees.
7.
Cost Savings:-
The cost to hire new or replacement workers including training and ramp-up
time, can be exorbitant for employees, especially small businesses with a
well-constructed recruitment and selection process, the human resources
function can minimize expenses regarding advertising job postings, training new
employees and enrolling new employees in benefits plans.
8.
Performance Improvement:- Human resources develops performance management
systems. Without a human resources staff person to construct a plan that
measures performance, employees can wind in jobs that a rent suitable for their
skills and expertise.
Additionally employees whose performance falls below
the employees expectations can continue on the payroll, thereby crating wasted
money on low performing employees.
9.
Sustaining Business:- Through succession planning that human resources develops, the
company identifies employees with the promise and requisite capabilities to
eventually transition into leadership roles with the company. This is an
important function as it can guarantee the organizations stability and future
success.
10.
Corporate Image:-
Businesses want to be known as the employer of choice employers of choice are
the companies that receive recognition for the way they treat employees, they
are the companies for whom people want to work.