The term Human Resource Management is widely used in organizations nowadays doesn’t matter how large or small, new or old the enterprise is. But people need to know that why do we need Human Resource Department in every organization and what it actually does. Many people have the perception that the HR department only talks in the interest of management whereas the fact is way different from this perception. In actual Human Resource is the people’s management. It is undoubtedly the key resources of any organization and the reason for the formation of HR department is to strategize and formulate the rules, regulations, and policies of the company keeping in mind the safety and security of employees as well as the employer too.

Today we will specifically, discuss the small setups having 10 to 50 or a maximum of 100 employees in the organization. Do these setups need a separate HR department? The answer is Yes! But why? As we said above the size does not matter, it is actually the work and importance of HR that need to be understood. Any small setup will ultimately grow and become successful one day. Mostly we have seen that at the initial phase small setups do not hire or have any HR department or HR manager but as the time passes and setup starts to grow they realize that they do need HR department. Secondly while establishing a new enterprise how management would hire and manage the staff and their concerns and issues, doesn’t matter if there are only five employees, to retain those five and expand the strength of the office HR department is required.

The most important reason to have HR department from the beginning of any setup is that HR’s tasks are not only to recruit but in reality  Human Resource Department is equally important as any other department because it keeps the company’s liaison with the market and people and then with your employees too. It serves as a bridge between the management and second or third party for business and for any other purposes too. To have HR department from day one will be beneficial because as time will pass your company’s rules, regulations and policies will be aligned according to the changing size of your company.

What Measures HR takes in New and Small Setups?

Let us talk about some important measures HR department takes:

• It develops an organization’s culture and it is the responsibility of HR department to keep the balance and to maintain the discipline in the office.
• Set your organization’s values and objectives and keeps on giving a reminder to the employees.
• Creates a hierarchal structure of organization.
• Develops the staffing plan according to the needs and requirements of the company.
• Plan the salary structure according to the budget.
• Advising compensation and benefits plan for employee’s attraction and retention.
• Introduce the company in the market amongst potential employees.
• Setup the hiring process and criteria
• Gives orientation, training, and molds the employee’s expertise according to the company’s requirements.
• Closely monitoring the environment of the office and each employee’s performance.

As time is passing, Human Resource Department is adding value and becoming more and more important for organizations. They are playing an important role in organizational development.