In the beginning, if we wish to change or make people to accept our opinions, there must be a powerful shield of evidence and relevant data for supporting us. It is because people have different perceptions based on their experiences and knowledge, they might either agree or disagree on a person's spoken idea. In this assignment, it is the same situation as what mentioned above. In an actual business community, there are some managers agree and disagree the necessity of Human Resource department. In my opinion, HR department is very crucial and required for an organization. It acts like a backbone for entire organization, without HR department there might evolve to failure in the future.
1.1 Perception of less emphasize in human resource (HR) department
1.1.1 Human Resource department is unproductive
In general, entrepreneurs and managers having a same thought which is profitability and always seek for the approaches to increase it. Profitability is the ultimate objective for entire business or organization in reality. Managers rather spend huge capital investment inject into the other departments such as engineering, marketing, finance and also production department instead of human resource department. In their point of view, human resource department is not generating any income or profit to the organization. Its contribution is less productive and lower than other departments.
1.1.2 Trend of technology advanced
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In the 21th century, technology has been developed dramatically into more integrative and advanced compared previously. In order to survive in the new era, a lot of traditional companies have been transformed into modern basis to become more competitive. The managers try to adopt and adapt with the new technology aids. This will allow Human Resource department (HR) to eliminate the messy and manual workload of administrative works. As a result, managers could reduce the number of HR workers and less emphasize in the HR department. It is because HR administrative activities can be replaced it with the software of Human Resource Management System (HRMS) and Human Resource Information System (HRIS). Besides, HRM can combine with the aid of information technology. Subsequently, the programming date processing system can be transformed into standardized routines of enterprise resource planning (ERP).
1.1.3 Increase extra expenses
In the manager's point of view, they might think Human Resource department (HR) is unessential and its works can be substituted by the accounting department. Normally, managers do not wish having a HR department which can increase the expenses of recruitment of HR people. In their mind, HR works is lighter and low complexity than others departments. Thus, managers are delegating the HR works to the accounting people. They believe that accounting departments can handle of such minor tasks like payroll, recruitment and others.
1.1.4 Organization's size
A lot of companies are eliminating HR departments, especially in small and medium enterprise (SME). In the owner's and manager's perception, they conceive HR department is unnecessary and can be excluded in their small size company. Generally, a company is needed HR department where it has 50 or above employees, then HR can be used in an effective and efficient way. However, most of the SME is not apply HR department. The main factor of absence in HR department is number of employee is very little. There are several examples in absence of HR department, we can see that restaurants, laundry shops and mini markets can reflect and demonstrate very well that HR is not needed in their businesses.
1.1.5 Close-minded manager
Not all managers are willing to accept and adopt new things or ideas from their subordinates. Sometimes, they are insisted the old management methods what they learnt before and refuse to change by adopting or adapting with the new management skills. They always believe that a hardworking person's can perform multiple tasks and handle in accordance well. In their mind, they perceive HR work is an easy task which they able to perform and handle. Thus, they take all the responsibilities of HR by themselves. As a result, managers could not make a good decision when facing a mass of workload and mistakes occur subsequently.
1.1.6 Relying on external sources
Some managers who do not wish having a HR department, they are usually relying on external parties or sources. Managers can have a charging service from executive recruiters, advertising, and also employment agencies. On the other hand, they can have a free recruitment via the internet like jobstreet.com, referrals and walk-ins, and college recruitment. Besides, managers rely on the service from banks which fixing the salary transaction to the staffs monthly. Therefore, HR department eventually can be closed and substitute by other parties to carry out. As a result, manager can hit the objective by lowering the cost expenditure on HR department.
1. 2 Overcome the manager's perception in HR
1.3 HR department is unproductive
Always on Time
Marked to Standard
In fact, HR department cannot be denied that it is an unproductive department compared to others. Nevertheless, it can be in a productive manner which helps an organization in reducing the cost structure as well.
1.3.1 Number of employees
Firstly, HR department can help a company to cut down number of employees which reduce the expenses. Thus, experienced employees can be delegated to perform multiple tasks to reduce recruitment of unnecessary extra workers.
1.3.2 Changing organization structure
Secondly, HR department can generate or suggest to the top manager in order to change the pre-existing organization structure. It is transforming from a centralized to decentralized structure. Thus, after the removal of old structure, all the employees are entitled the responsibilities in decision making. This will allow reducing the time consuming and communication flow from the bottom to the top based on the hierarchy pyramid.
1.3.3 Reducing reward and recognition
Thirdly, we can cut down the expenditure in reward and recognition (R&R). In employee recognition, organization can show their appreciation to the employee by advertising yearly which is 'Employee of The Year' instead of quarter basis. Besides, we can reduce the annual leave for all the employees.
1.3.4 Training and development (T&D)
In training and development, organizations no need to send their employees to professional seminars or skill enrichment. HR can apply training method like on-the -job training (OJT) for their employees. OJT consists of coaching, job rotation, mentor and mentee, and also special assignments. It helps an organization in reducing training and development expenditure and boost employees' effectiveness in learning by doing together.
1.3.5 Reduce accessories and stationeries expenses
Lastly, HR department can help a firm to save the expenses cost in an inconspicuous way which is accessories and stationeries. HR can set up the rule by limitation a person to own specific amount of accessories and stationeries. HR department can benchmark the other firm's practices like Public Bank, which every staffs are entitled having only 2 pens in every month. Moreover, HR can develop a sharing culture in the organization which all the accessories and stationeries can be used by any staffs.
1.4 Trend of technologies advanced
In fact, the technology aids is really effective helping a company in management complex activities. However, the HR software like HRMS, HRIS and ERP mentioned previously has its limitation too. System may break down, corrupt or data lost which is unpredictable, thus HR workers is still needed for backup the data in other place like external hard disks or paper works (files).
1.5 Increase extra expenses
Manager should not assign the human resource tasks to the accounting department. In fact, manager should separate the work into specialization and do not mix it to avoid confusion. Although the accounting department can do human resource works like payroll, staffing, retention, adjustment, training and development and others, but accountants are not really familiar with human resource management. They do not have a clear picture in planning, leading, organizing, controlling and staffing (PLOCS) compared to HR talents. HR staffs are more familiar with labor law, business law, payroll system, and also HR system like HRIS, HRMS and ERP.
1.6 Organization's size
However, parts of the managers are correct whether to set up HR department by considering the size of the company. Even in a small size company, it should have at least 1 HR officer to perform the HR works. This will lead to avoid job confusion among those who are not HR staffs.
1.7 Close-minded manager
In order to deal with close-minded managers, entrepreneur or general manager can have a discussion with them. If they still insist refuse to change or adopt new ideas, then entrepreneur or top manager should make a final decision and the entire bottom level subordinates must follow.
1.8 Relying on external sources
Managers should not only rely on external parties or sources in recruiting people. Thus, it must let the manager aware of the consequences about the importance of HR. In manager's point of view, they rely on third party like employment agency can help them reduce time wastage in screening applicants. Besides, they believe it would be easier to seek out qualified applicants. In addition, the managers also disseminate the recruitment notice via internet like recruitment website, jobstreet.com. Nevertheless, they can attract a large applicant pool, unfortunately there are many unqualified and minority applicants.
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In summary, I have realized that Human Resource department is very important and crucial for an organization. In my opinion, no matter how important of HR is, it must regard as the organization size as well. The reason is related to effectiveness and efficiency of a company. In actual reality, there is no one entrepreneur who does not concern about the desirability of setting up a HR department. There is no one would so fool who set up a HR department for his or her restaurant, right? In converse, if the company size is quite large enough and the number of employee is high, it confirms that company sure requires a HR department to cope with complexity of administrative activities. A company which has a HR department can take an advantage or competence strategy in recruiting people. It is because HR people could screen, select, and also filter those unwanted people. Finally, they are able to recruit the right people and allocate them into a right position. In common saying, in order to be successful company must recruit the right people at the right job at the right time.