ORGANISATION OF HR DEPARTMENT Two issues become relevant in a discussion on organization of an HR department.

They are (i) place of the HR department in the overall set-up, and (ii) composition of the HR department itself. Status of the HR department in the organizational structure depends on whether a unit is small or large. In most of the small organizations, there is no separate department to co-ordinate the activities relating to personnel. In fact, there may not be any personnel managers at all. Services of outsiders who specialise in maintaining accounts and records relating to provident fund, pension and other statutory requirements are retained for a fee. Alternatively, a low-placed employee may be entrusted with the task of attending to these functions. Figure 1.3 shows a structure of this type. In fact, it was this arrangement which was followed in the past, irrespective of the size of the organization. Earlier, personnel departments were called health and happiness departments. The people assigned to deal with personnel issues were often individuals who were past their prime. The personnel department was seen as a place where the lesser-productive employees could be placed with minimal damage to the organisations ongoing operations. Individuals in the personnel department were perceived as those responsible for planning company picnics, vacation schedules and retirement parties. Personnel, as an activity, was seen as a necessary but unimportant part of the organization. Fortunately, things have changed for the better, and the status of the personnel department has improved enormously over the years.

A large-scale unit will have a Management/Director heading the HR department. His or her status will be equal to that of any executive. Figure 1.4 shows this structure. This arrangement hold good when the company has a single unit. Where the company has multiple plants located in different parts of the country, there may be a centralized HR/personnel department at the main or registered office and each plant will have separate HR/personnel departments. Routine activities relating to each plant are handled by the HR/personnel department attached to the work, whereas the

broad policies, matters concerning executives, and the like are handled by the central department. This is the case with conglomerates as BHEL, ITI and L&T.

Coming to the composition of the HR department, it may be stated that it depends on the scale of operations and attitude of the top management towards its personnel. However, a typical HR department (see Fig. 1.5) is headed by a Director, under whom are Manager-Personnel, Manager-Administration, Manager-HRD and Manager-Industrial Relations. The department will grow in size and importance when new demands are placed on it by the top management.

IMAGE AND QUALITIES OF HR/PERSONNEL MANAGER What sort of an image does a HR or a personnel manager project? Caught between the conflicting interests of management and labour; weighted down by his/her loyalty to the

management and duties to the workers; subjected to political and bureaucratic hassels; ruthlessly cross-examined in courts; and scorched by the glare of occasional publicity, the HR/personnel manager does not have one permanent image. It changes from one set to another set of people and from one situation to another. To the aggrieved and oppressed labour, he/she is the managements henchman, self-serving and unscrupulous. To the enraged trade union, he/she is the villain of the piece, holding back an acceptable settlement, and a representative of the exploiting class. To the unsuccessful job seekers, he/she is the corrupt officer. To the poor vindicted worker, he/she is a good Samaritan. To his/her own family and friends, he/she is the poor self-suffering fellow. But, to the students of HRM, he/she is purposeful, tenacious and bold. Thus, the image is never the same. The HR functions give us some idea of the qualities which a successful HR/personnel manager must possess. The most important quality is his/her ability to deal successfully with people who have likes and dislikes, whims and fancies, who favour some and are prejudiced against others. He/she has to deal with workers who refuse to see reason and who believe that violence pays, and nothing else does. The other qualities are stated below: 1. Fairness and firmness: This is a basic quality of the HR manager. He/she should be fair in matters of promotions, demotions, transfers, lay-offs, and be firm in enforcing discipline. 2. Tact and resourcefulness: The HR manager must be tactful in dealing with difficult situations. Tact implies determining what is good and fair in trying conditions, and skill in dealing with the most demanding situations. Often, tact is misunderstood as cunning. People with these wrong perceptions resort to unethical practices of dividing workers, setting one group against another, using unlawful means to deal with bold workers or strong union leaders. Such practices are justified, quite unjustifiably, by the argument that they are necessary when workers are not amenable to reason or when they resort to violence. But, such thinking is highly dangerous, to say the least. People, particularly the HR managers, should never give up their belief, however trying the circumstances may be. They should remember that violence begets violence; that wrong deeds do not breed good deeds; that fairness pays and pays well; and that respect for lawful course of action often draws workers on strike to the negotiating table. The HR manager must be resourceful, too. He/she should have an open mind, objectivity and adjustability to tackle a difficult matter from different angles. 3. Sympathy and consideration: The HR manager must be guided by sympathetic attitude towards employee demands. True, several of the demands are unreasonable, but patient listening, open mind, and concern for employees welfare make recalcitrant workers relent. Similarly, intentions and actions of the HR manager must be tempered with consideration for others. 4. Knowledge of labour and other terms: The HR manager must possess a sound knowledge of the Constitution and other acts that influence labour interests. He/she must also be aware of the governments policy towards labour and the general economic conditions prevailing at a given time. However, the HR manager is not directly concerned with the compliance of provisions in the Constitution and other acts. There is a separate manager in charge of this job (see Fig. 1.5).

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Still, the HR manager is the head of the HR department and it is desirable that he/she is familiar with the legal provisions affecting labour. Broad social outlook: Social responsibility of business is a topic much discussed these days. Business units undertake several activities in the name of social responsibility. It is desirable that the HR manager has a social outlook and contribute towards the betterment of quality of life of the employees and those who live around and beyond the company. Others: The HR manager must have the competence to perform activities relating to personnel better than his/her subordinates. This would earn him/her their enormous respect. Competence gives robust confidence to the HR manager about himself/herself and about his/her team. It is confidence which equips him/her to face adverse situations with courage. It enables the manager to kindle hope in subordinates when their spirits are down, which is usually the case when the organization is passing through a lean period. The HR manager must have a long-term perspective, so as to map out a future for the organization 15 to 20 years ahead and even beyond. Communication skill is yet another quality which the HR manager must be endowed with. Great oratorical skill is not what is needed, but the ability to express a view point clearly and concisely. What makes the HR manager successful is the ability of quick decision making. Vacillation in decision making is a sure way of becoming unpopular. The HR manager must be even tempered, however trying the situation may be. Losing temper means losing balance. Besides, anger betrays the weakness of an individual. Selflessness pays rich dividends to the HR manager. Success, if any. Is achieved through team work, and the credit for success must be shared among the team mates. Above all the HR manager must have a character. Character refers to the quality of completing what has commenced, living upto promises and expectations, and acting as a role model for others. Academic qualifications: The sequencing is deliberate-we have put academic qualifications of the HR manager as the last in the series. The reason is simple-the HR manager needs no specialized academic degrees, unlike a cost accountant, chartered accountant, doctor, engineer or a professor in a university who must possess the prescribed qualification to enter their respective professions. The apex body of personnel management in India, namely, the National Institute of Personnel Management (NIPM), is also silent about the qualifications of HR managers.