Why Do We Need An HR Department In A Company
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why do we need an HR department in a company

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Asst Manager HR
As company grows, there is a need to administer the HR function, but that doesn't necessitate an HR Department. In fact, as per my experience, I suggest until you have at least 30 employees, that "department" -- really a function -- can consist of or be handled by one person...often much to the dismay of that one person.

What necessitate an HR Department are the functions and responsibilities which no one else either wants or is capable of doing.

From recruiting to orienting new employees, from writing job descriptions to tracking attendance, and from instituting and monitoring policies to monitoring benefits, there has been a need for an HRD to assist management in establishing a structure to holding down costs of administration.

In your company, this is often the high cadre employee  who just returned from a meeting where an advocate (can be clients legal advisor or vendor manager) -- or a whole herd of advocate -- has scared the hell out of him by pointing out the complexities of complying with basic facilities in office/site, Child labour, least wages act, security at site, worker, insurance, ESI and PF or labor laws.


Using some of the responsibilities listed below; we can develop a job description with that manager which at least outlines what the job entails.

After that, we will determine the compliance issues which pertain to our company. The most basic of these have to do with wages and hours of work, classification of employees, leaves of absence including maternity and family leaves which differ from state to state in our country. PF, ESI, EDLI, Industrial relations, employee’s basic benefits, harassment, and a host of others.

Then, determine whether or not we need to have an employee handbook or other formal policies and procedures manual to cover everything from establishing the company as an at-will company’s to benefits. If a handbook already exists, be certain that it is in compliance with Indian Govt.  and Rajasthan state regulations and that the policies and the way they are written are in the best interests of the us(company).

Are all the basic policies included? These can be thought of as grouped into conditions of employment, benefits, and disciplinary processes. Is there a balance between corporate (Asia’s Management) and employee rights and obligations?

Our new HR manager will be advised to take a look at existing employee files or, if no files exist, gathering all the papers into coherent personnel files. Minimally, we should have an Application for Employment form or resume, photographs, any insurance/PF forms that the employee may have signed, and performance appraisals. It is to see start dates, dates of reviews, dates of promotions, and all the changes in wages or salary. Because personnel still runs on paper and paperwork, do not rely too heavily on computerized files. (Besides, such files seem to disappear with regularity nowadays.)

Who takes care of payroll?

I have no idea why anyone would want it and it (payroll) does belong to accounting more so than in HR but, should the question arise, the answer today is to outsource payroll to a payroll service. There are still responsibilities such as informing the payroll service of changes in individual wages or salaries, docking, and final pay, but payroll services are definitely the way to go. They do vary in quality and quantity of services, so you will have to compare. Do not let a payroll service sell you more than what you need...which means that you'll have to do some research into what you need.

Benefits administration is and should be separate from payroll.

Even if you have the best Liaison agent/CA in the world (who you only have to monitor on a semiannual basis), there is always internal audit of such packages. Further, you will have the responsibility of being the source for answering questions about all forms and types of insurance, the differences in options, and the cost to employees. One of the ways that HR can contribute to the company is by keeping the costs of benefits down, and this means auditing the policies periodically to be certain that there haven't been increases in premiums either directly or indirectly through a decrease in benefits.

One person should be responsible for new employee orientation. In order to inform new employees of their benefits and the policies of the company, you will very simply have to be the expert in benefits and policies of the company.

Does the company have a compensation system or is it pretty much a hit-or-miss proposition?

Are there job descriptions? Job specifications? Is compensation tied to responsibilities? Are increases in pay tied to contributions to the company, i.e., pay-for-performance? Do you need a graded compensation system?

What you will have to do is become proficient in writing or formalizing job descriptions. The HR role is there with certain decision powers

MIS and IT

HR has an information function that you should think through. Changes in policies, changes in benefits, even changes in laws must be communicated to all employees. Major changes may call for training such as in harassment a few years back. Major changes in medical insurance benefits have to be disseminated to all affected employees. Therefore, HR becomes a kind of pass-through in the information cycle.

Interviewing, selection, and placement are part and parcel of recruiting and knowledge of the techniques involved is very important. Hiring the wrong person(s) is extremely expensive. Therefore, if recruiting is a major function, it may be in the company's best interest to have a professional recruiter and another employee to handle all the other functions. (The recruiter must also have knowledge of benefits and policies and procedures, but his or her primary function would be to find and hire the best person at the "best" salary, i.e., one that satisfies the applicant and is affordable to the company.)

HR plays a vital role in strategic business plans...Responsible for manpower..."Getting right people for the right job"

If you categorize HR works under various Sub departments....It would be like:

  1. 1.    Development and Employees retesion:

 HR  Dept is specifically designed to take care of  company relation with the operational Employee. The company Employees queries & apprises staff on future developments. Replying to the Employee queries well in time& relevant information. Legal Issues in case of absconded Employee/Recoveries at separation not paid.

Raising Appraisal Documents, Performance Evaluation of existing Manpower, arranging events within the organization


  1. Joining Formalities : Inductions/Presentations on company's policies & Procedures, Creation of User ID/Visiting Cards/IT Facilities(Operation team has to forward these request to the concern Dept), Formal Introduction within the Department, Employee D/B Entire
  2. Payroll Section(PF & Tax related Queries): Retentions, Recoveries(If Any), Full & Final Settlement./Clearances.., Medical
  3. Most Important is

Administration: Company Structure (organizational chart), Manpower Projection / Planning, Sourcing, Designing JD's, Head Hunting, Issue Reliving/ Experience/ Termination/ Transfers Letters, Entire Data, AMC(Annual Maintenance Contract-New & Renewal on year End) Introduction of New Vendors, Facility Management, Assets Record& Up keeping, Corporate Connections(if Any), Blackberry/ mobile Sets/ Sim Card/ field tools/ Laptops/ Data Cards(Issue)

  1. Training & development.: Motivational Training, Leadership Training, Any new Software/Implementation of process updation to the employee Orientations on the development strategies of the Organization to the employees.

Certainly there are other responsibilities, but they should be considered as secondary. Delegating the Diwali/Holi/New yr/Christmas party and company picnic to someone else should be HR’s first priority. Don’t make him the company's "cruise director."  HR got better things to do.

I am suggesting you these activities on outline bases but further if you require any help, give me call at 9214444446  email: devesh.human.resources@gmail.com


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