10 Reasons Why the Human Resources

Department and Its Performance Are Important

A human resources department is an essential part of any company, as it plays an active role in
almost every area of the company. The main focus of the department is to keep the company
strong, successful, functional, and free of costly litigation from lawsuits through sound policies
and actions for handling personnel matters.

 Recruitment
Employee recruitment, including interviewing and selecting new hires, is a responsibility of the
human resources department. This also includes monitoring personnel resources to determine
when recruitment is necessary to benefit the company.

 Training
Training new hires and continuing the education of established employees is a role the human
resources department fills. Ongoing employee training is essential for a company to maintain its
level of professionalism and skill. The department finds or creates various types of training, such
as safety classes or customer service courses, to ensure that the staff is properly educated
 Employee Benefits
Management of employee benefits includes offering and processing application and claim
forms, as well as distributing booklets and other information about the benefits programs. The
human resources department is also available to answer questions an employee might have
`about his benefits.

 Performance and Incentives

The human resources department is largely responsible for creating and tracking performance
reviews, and administering company incentives. Bonuses, raises, transfers, promotions and
demotions are typically determined by performance evaluations, so proper reviews are
important tasks of the department.

 Staff Database
A staff database includes all of the information a company needs on every employee, such as
personal information, job responsibilities, training, benefits, discipline records and performance
assessments. The human resources department manages this database so that all employee
information is readily available when needed.

 Quality of Work Life

The human resources department actively works to improve the quality of work life by creating
and implementing programs and policies such as sick leave, vacation time, the opportunity to
purchase stock options, profit sharing, job sharing, day care services, and various incentive
opportunities.
  Legal Compliance
Legal compliance to the various labor laws is a responsibility of human resources. This includes
informing all levels of employees about the federal and state laws, such as information on
breaks, lunches, overtime, minimum wage, safety, a drug-free workplace, and discrimination.

 Public Relations
Building public relations is a part of establishing a company as a contender in its field. The
human resources department plays an active role in building public relations by arranging
business meetings, seminars, and official gatherings to assist in establishing the company with
other businesses and the target market.

 Future Forecast
The long-term management of a company is essential to the success of the business. The
human resources department evaluates the future of the business and creates strategies, plans
and goals to ensure that the business has the resources necessary to be successful in the long
term.

 Protection
Overall, the human resources department protects the interest, image and success of the
company in every way possible by complying with various laws, executing administrative
processes, and creating policies in the most cost-efficient manner.
BUDGET FOR IT DEPARTMENT (argument and its counter argument)

What is IT budgeting?
Budgeting is the process of allocating monetary resources to various IT programs. These could
range from recurring expenses like hardware leases and staffing to expenses dedicated to a
fixed-duration project or initiative. In some companies this is primarily an annual exercise, while
other companies might demand budgets for each initiative as it arises.

In the worst case, an IT budget is a wish list of funding for every conceivable project and
technology that's expected to be reduced, trimmed, and rejected. In some companies, a
reasonable budget is developed and then doubled or tripled to try to "game" the budgeting
process and garner what's actually needed. Your approver, whether he or she is in IT or from
the finance side, is probably on to this game, has a general idea of what's appropriate, and will
probably impose increasingly draconian cuts as you respond with increasingly ridiculous
increases.
BUDGET STRUCTURE FOR IT DEPARTMENT

ARGUMENTS
 Budgeting is obviously important, as it provides the funding to keep departments
running. Beyond just "keeping the lights on," dep budget is an important tool for
identifying and executing the IT initiatives that are crucial to any department.
 To Control Costs. A budget will allow us to spend money when we need it. It ensures
that the funds will be available (according to your budget) when we need new
equipment, software, upgrades, or training.
 To Keep Equipment Current. Hardware and software are constantly changing. Existing
equipment wears out or stops performing as required—it has to be replaced. A well-
thought-out budget plans for those upgrades and replacement cycles and will limit.

 To Encourage Your Business to Articulate Its Vision, Strategy, and Goals. Plans
are there to make sure everyone is working toward the same goals. Having a
plan for we IT department will let everyone know where we are headed and what
tools will get us there. Our IT budget will grant a sense of confidence to our
employees and department heads because they know their tools will be provided
for. It reduces worry from company leadership because a plan is in place.
 To Make Sure You Are Meeting All Your Needs. How do you know what you need
if you don’t evaluate your needs and plan for them? A budget will look at your
current needs and ensure they are all taken care of. A great budget will anticipate
future needs and provide a road map for fulfilling those needs.
  To Ensure the Company Is Ready for Future IT Needs. Our budget includes more
than our immediate needs—it plans for the future. Without those plans, we will
have no way of knowing what we will need to finance the company’s IT needs.
 To Provide a Number That Management Can Use to Determine Daily Operating
Costs. Management likes numbers—reliable, real-world numbers. Projecting our
IT budget will help management plan for all of the company’s needs beyond IT. It
allows them to make sure they have enough cash to give you a nice bonus this
year.
COUNTER ARGUMENT
Corporate budgeting is a joke, and everyone knows it. It consumes a huge amount of
executives' time, forcing them into endless rounds of dull meetings and tense negotiations. It
encourages managers to lie and cheat, low balling targets and inflating results, and it penalizes
them for telling the truth. It turns business decisions into elaborate exercises in gaming. It sets
colleague against colleague, creating distrust and ill will. And it distorts incentives, motivating
people to act in ways that run counter to the best interests of their companies.

For examples. At one international heavy-equipment manufacturer, managers were so set on

hitting their quarterly revenue target that they shipped unfinished products from their plant in
England all the way to a warehouse in the Netherlands, near the customer, for final assembly.
By shipping the incomplete products, they were able to realize the sales before the end of the
quarter and thus fulfill their budget goal and make their bonuses. But the high cost of
assembling the goods at a distant location—it required not only the rental of the warehouse but
also additional labor—ended up reducing the company's overall profit.