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In any business, there is need to have an overall person or tier to manage the company and make company policy. It must also ensure that this policy, including budgets and remuneration is followed by all the other departments within the company. There is also need for a department or segment within the department that handles all the issues pertaining to employment and employee motivation. This department, whether autonomous or embedded, must ensure the smooth flow of communication between all the parts of the business related to the workforce, it must also keep records of all the employees.
Human Resource services refer to the department or segment within a business that handles the sourcing, interviewing and hiring of employees. It is also the department where all employee track records of qualification, skills and development are prepared or processed and stored. It is the most important department for any company that wants to maintain a track record of its employees. In essence, the department integrates all the other departments in the company because all the people within the company must have a file of records there.
It handles the sourcing and hiring of all employs within the company. The professionals within this department are refered to as human resource managers and they must have experience and qualifications in personnel management. This is because they are the intermediary between the company and any potential employee. The department also handles all logistical matters of retirement benefits, payroll, employee reviews, taxes, social payments and other monetary issues. Human resource, in essence, encompasses the whole of the employee's life within the company. Before he or she can join the company, it is the department that outsources or advertises for the job. All the job interviews are done by the department personnel. Background checks, validation of legal and educational documents and the aptitude tests all fall within the job description of the company.
It is the responsibility of the department to inform the applicant on whether the application is successful or not. If it is, it is the human resources responsibility to introduce the successful applicant, new an employee, into the company. All employees training are a matter facilitated by this department. The issuing of payrolls with relevant deductions or additions is handled by the human resources department and the accounting department. The two might exist as one entity or as two distinct departments within the company. The accounting department receives calculations of employee remunerations from the human resources and pays as required. If an employee has a question on an item in his or her payroll, then the matter must be handled by the department.
Employee discipline issues can either be raised within the department or from the relevant department where the employee works. These discipline issues must be expeditiously handled within the shortest time. Where there is no choice but to fire the employee, then it is the departments work to inform him or her and make sure that terminal dues are paid. Where the matter is minor and can be handled without having to fire the employee, then the department must either form a disciplinary committee or follow the procedure in the company policy or organizational constitution. If an employee is to be suspended without payment or with half-salary, then the department must ensure that it is communicated clearly with the employee and the accounting department.
Full autonomous human resource companies exist because there are many companies that have budgets that cannot accommodate a full internal department. They exist in several forms depending on the needs of the company. There are those that take the overall role of the department such that they are embedded with the company itself. These Professional Employer Organizations become sort of business partners and have the full responsibility over the state of the employee. Others are Business Process Outsourcing which is different because it focuses on the outsourcing of all employees as opposed to concentrating on the overall human resource services. Some companies apply Application Service Providers and E-services which are basically software's and the use of web-based applications that are designed to mimic a human resources department. The downside to this is the impersonal nature of the transactions and the processing of the payroll. Payment errors can go unnoticed and a computer error can coast the company in terms of money and employee satisfaction.
Management within a business can refer to two things. One, it can refer to the act of coordination of all that happens within the entity. It exists as one of the most important factors of production. It is important because it is the coordination centre of the company, responsible for keeping the costs of production reasonably low and raising the output.
Two, management could also refer to the top tier of the business. These are the managers or directors who are tasked by company policy to run the business. Management in this sense refers to a group of people, although not exclusive to the utmost tier of the company. They are distributed within production lines and services and all departments must have management representation. Their main work is to come up with policies that increase consumer satisfaction, keep costs at a minimum and keep the employees happy. In small companies this could only be one person but in multi-nationals and other big companies, management could comprise of hundreds of personnel.
The link between the two is that one is an action of the other, the management as a segment is tasked with managing the company. The directors of the company are responsible for the overall running of the company while managers are designated specific areas to organize, coordinate and manage. They must sort out employee issues to try and keep employs dissatisfaction at a bare minimum where possible. These could mean raising the salaries or allowances of the employees. They are responsible for resource allocation and ensuring that money is spent as is budgeted. These means that the management is the brain of the business, decisions are made here when motivated by other parts of the body.
Human resource services and management are intertwined in very many ways. First, all personnel in management must have gone through the human resources department. This would vary where the entity is sole proprietorship and therefore the manager started the department. The human resources department is responsible for the outsourcing of managers. Since managers are also employees, their employee records are maintained and updated by the human resources department. Their paycheck, terminal dues, and other matters concerning money are handled by the department. The basic work of the human resource department is to act as the intermediary between the two of the company tier and the workforce. It works like a blood circulatory system, where the core of the business and the rest of the body are connected through many links. Errors are sorted out within the system and records kept. The companies that offer these services are diverse and any company planning to outsource must study the offers and legal implications of contracting an external human resource manager.
On the other hand, management makes policy that governs employee outsourcing and hiring. They might outsource the services, but even then the terms of contract must agree with company policy. Management is also responsible for raising disciplinary issues for any employee or department and passing them to the HR department for relevant action. It is also responsible for overall budget for the company; this includes the HR department as a segment of the business.
The management must be careful about the legal implications of the HR departments actions at all times. This is because it is the avenue of communication between the brain and the workforce and any turbulence can result in legal suits against the company. It must make sure that the HR is headed by competent persons and that the policies of the company pertaining to all matters affecting employees are followed to the letter. It must ensure that the department remains relevant to the needs of the company and keeps within its budget. Where it might decide to outsource the services, the management is tasked with ensuring the viability of the terms of contract, the image of the HR Company and its impact on the company and the history of the company.
The management needs the HR department because to achieve set goals set for the company, the workforce must be competent, relevant, well-trained, and motivated. This is only possible where the HR department is thorough in its work and hires qualified personnel with the right mix of character and experience or competency. The payroll systems of the company must be kept updated and as error-free as possible to avoid issues of erroneous payments. The management also depends on the HR department to ensure that all matters of discipline are expeditiously sorted out and the recommendations followed. The result of this can be negative for the company where an employee is fire or suspended and they feel that the process was unfair or they did not get a fair hearing. The employee conduct and motivation are matters the management maps out, but it is the HR department which handles them.
It is important to take note of the inter-dependence between the management and the HR department. The two are both important parts of the company and contribute majorly to the overall performance. Goals set by the management depend on employee motivation and adequacy to be met. It is the responsibility of the human resources department to hire employees and ensure they are paid accordingly. The human resource services can only be carried out within management policies and any decision made the by the management trickle down and affect the HR department. The two are inter-dependent and they are both vital for the success of the company.