Answered Essay: Based on the article, answer the discussion question: 1. Should a company have an HR department? Please associate

Based on the article, answer the discussion question:

1. Should a company have an HR department? Please associate with “organizational demands and environmental influences ” such as business strategy,company characteristics, culture and so on.
I give thumbs up if you answer correctly 🙂
Companies Say No to Having an HR Department Sometimes the only thing worse than having an HR department is not having one. When LRN Corp, which helps companies develop ethics and compliance programs, restructured a few years ago, the 250-employee business abolished most job titles and department names. It also did away with its human-resources department, which had dealt with recruiting and compensation issues, among other things. We wanted to force the people issues into the middle of the business, said David Greenberg, Los Angeles-based LRNs executive vice president. Companies seeking flat management structures and more accountability for employees are frequently taking aim at human resources. Executives say the traditional HR department-which claims dominion over everything from hiring and firing to maintaining workplace diversity-stifles innovation and bogs down businesses with inefficient policies and processes. At the same time, a booming HR software industry has made it easier than ever to automate or outsource personnel-related functions such as payrol and benefits administration. Some workers say they feel the absence of an in-house HR staff acutely, especially when it comes to bread-and-butter HR responsibilities such as mediating employee disputes and resolving pay problems LRN and other companies that are going it alone say they are working out the glitches as they go. Buppert Landscape Inc., an 11-year-old landscaping company with 900 employees, has never had a traditional HR department. Instead, managers must balance renewing contracts and ensuring that a clients grass is cut to the proper height with hunting down talent at college recruiting sessions and teaching employees about the companys 401(k) pla CEO Craig Bupeest said the decentralized structure fosters autonomy and accountability among leaders across the company, which is based in Laytopsvile, Md., and covers markets from Philadelphia to Atlanta. He estimates that its managers spend 5% of their time on matters related to human resources. I just have a hard time understanding how somebody in an office two or four states away can do a better job of solving an employee problem than someone who has a vested interest in the employee, Mr. Buppet said. In 2012, U.S. employers had a median of 1.54 HR professionals for every 100 employees, up slightly from a low of 1.24 in the recession year of 2009, according to the Society for Human Resource Management. They earn a median annualized wage of about $51,000, government statistics show. Startups usually launch without personnel teams, but SHRM advises that companies bring on a human- resources staffer once they reach 15 employees, the point at which personnel issues become complex enough to require specialized skills. Whenever you consider eliminating portions of HR you have to think of the financial risk, the strategi said Steve Miranda, the managing director of Cornell Universitys Center for Advanced Human Resource Studies and a former HR executive at Lucent Technologies, now part of Alcatel-Lucent Managers often lack specialized knowledge that is crucial for keeping a company competitive and on the right side of the law, he said. If they dont understand the latest rules under the Family and Medical Leave Act, for example, they can open their company up to lawsuits; if they dont know where to find qualified engineers, they can end up behind in the battle for talent Outback Steakhouse, a unit of Blogmin Brands Inc., had no HR department before 2008 but created one not long after the Equal Employment Opportunity Commission sued the restaurant chain for sex discrimination. In 2009, Outback paid $19 million to settle the case and agreed to add an executive-level HR position. terpersonal issues must be handled differently when HR isnt around to mediate. Klick Health, a Toronto-based marketing agency focused on health care, has forgone a human-resources departmen
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Companies Say No to Having an HR Department Sometimes the only thing worse than having an HR department is not having one. When LRN Corp, which helps companies develop ethics and compliance programs, restructured a few years ago, the 250-employee business abolished most job titles and department names. It also did away with its human-resources department, which had dealt with recruiting and compensation issues, among other things. “We wanted to force the people issues into the middle of the business,” said David Greenberg, Los Angeles-based LRN’s executive vice president. Companies seeking flat management structures and more accountability for employees are frequently taking aim at human resources. Executives say the traditional HR department-which claims dominion over everything from hiring and firing to maintaining workplace diversity-stifles innovation and bogs down businesses with inefficient policies and processes. At the same time, a booming HR software industry has made it easier than ever to automate or outsource personnel-related functions such as payrol and benefits administration. Some workers say they feel the absence of an in-house HR staff acutely, especially when it comes to bread-and-butter HR responsibilities such as mediating employee disputes and resolving pay problems LRN and other companies that are going it alone say they are working out the glitches as they go. Buppert Landscape Inc., an 11-year-old landscaping company with 900 employees, has never had a traditional HR department. Instead, managers must balance renewing contracts and ensuring that a client’s grass is cut to the proper height with hunting down talent at college recruiting sessions and teaching employees about the company’s 401(k) pla CEO Craig Bupeest said the decentralized structure fosters autonomy and accountability among leaders across the company, which is based in Laytopsvile, Md., and covers markets from Philadelphia to Atlanta. He estimates that its managers spend 5% of their time on matters related to human resources. “I just have a hard time understanding how somebody in an office two or four states away can do a better job of solving an employee problem than someone who has a vested interest in the employee, Mr. Buppet said. In 2012, U.S. employers had a median of 1.54 HR professionals for every 100 employees, up slightly from a low of 1.24 in the recession year of 2009, according to the Society for Human Resource Management. They earn a median annualized wage of about $51,000, government statistics show. Startups usually launch without personnel teams, but SHRM advises that companies bring on a human- resources staffer once they reach 15 employees, the point at which personnel issues become complex enough to require specialized skills. Whenever you consider eliminating portions of HR you have to think of the financial risk, the strategi said Steve Miranda, the managing director of Cornell University’s Center for Advanced Human Resource Studies and a former HR executive at Lucent Technologies, now part of Alcatel-Lucent Managers often lack specialized knowledge that is crucial for keeping a company competitive and on the right side of the law, he said. If they don’t understand the latest rules under the Family and Medical Leave Act, for example, they can open their company up to lawsuits; if they don’t know where to find qualified engineers, they can end up behind in the battle for talent Outback Steakhouse, a unit of Blogmin Brands Inc., had no HR department before 2008 but created one not long after the Equal Employment Opportunity Commission sued the restaurant chain for sex discrimination. In 2009, Outback paid $19 million to settle the case and agreed to add an executive-level HR position. terpersonal issues must be handled differently when HR isn’t around to mediate. Klick Health, a Toronto-based marketing agency focused on health care, has forgone a human-resources departmen

Expert Answer

Answer

In my opinion a company should have an HR department to take care of the people’s side in this business driven world. HR acts as a bridge espcially when it comes to conflict resolution or a raising a concern with the management. It, as said in the article is, “a point of contact which is confidential”. Though lots of start-ups at very early stage do not have an HR department which is understood that they are a small team also they are short of fundings. Let us look at broader picture od having and not having an HR in companies, let’s look at this under different headings:

1. Administration: Contracts, employees database and payroll are important which need to be maintained by special team. Imagine a scenario when a manager is maintaing the contract and payroll management of all the employees under his belt. He would not have a focus on his core job which i believe is not great for a business.

2. Recruitment/ Talent Management: HR makes the job easier for the Manager to hire a good candidate as he checks for the organizational fit in the candidate. Though a lot of companies outsource this aspect to a thrid party provider but still someone from outside can never totally understand the culture of a comapny and its needs

3. Training & Development: HR department is in many ways responsible to train employees and thereby comply with the highest standards of code of ehtics in the busness which is a huge benefit for a company.

4. Conflict Resolution: HR is one of the key department which helps resolve issues between employee and the managers. As Mr. Ruppert said: “I just have a hard time understanding how somebody in an office two or four states away can do a better job of solving an employee problem than someone who has a vested interest in the employee,”. Managers themselves would not be able to resolve issues involving them as it might bring bias.

5. Business Strategy: Steve Miranda said “Whenever you consider eliminating portions of HR you have to think of the financial risk, the strategic risk,” Which is true as there are many financial and strategic risk which might occurs once the HR department is eliminated. Such as company culture. HR in a company is important to build a company culture, in absense of HR department there will be a strategic risk of loss of comapny culture.

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