HRM1340_Chapter 02

HRM 1340
Human Resource Management
Year I: Semester II
2021
Chapter 02
Human Resource Department (HRD)
Department of Human Resource Management
Faculty of Management Studies and Commerce
University of Sri Jayewardenepura

Intended Learning Objectives

• Define what HRD means.

• Understand why a separate HRD for an organization.

• Understand different natures of HRD.

• Describe five bases for departmentalization.

• Understand the way of staffing HRD.

HRM1340_Department of HRM 2

(c) Department of HRM 1

HRM1340_Chapter 02

Definition
• The department established for coordination of HRM
functions in an organisation is HRD (Opatha, 2009).
• A manager called HR Manager or Personnel
Manager heads it
• Facilitates to proper functioning of the HRM
functions throughout the organisation.
• HRD is not indispensable But HRM is an integral
part of the organization.

HRM1340_Department of HRM 3

Why is a Separate HRD for an

Organisation?

• It is not necessary for an organisation to establish a

separate department for HRM.

• Even though there may be organisations without

HRD it does not mean that HRM does not exist.

• Successful performance of HRM functions has to be

done irrespective of that the organisation is a small
one or a large one or a public one or private one.

HRM1340_Department of HRM 4

(c) Department of HRM 2

HRM1340_Chapter 02

Why is a Separate HRD for an

Organisation?

• Separate department for HRM has to be established

when the manager finds that HRM functions
seriously disrupt his/her other duties;

• when the manager does not have the required

competence to manage people at work.

• when HRM functions become more complex and

time-consuming.
HRM1340_Department of HRM 5

Why is a Separate HRD for an

Organisation?

• When the chief executive officer perceives that HRM

can be done better if there is a specialist in HRM.

• When the organisation is commenced as a large scale

industry.

• To form a separate department the expected benefits of

establishing a separate department should exceed its
costs.

HRM1340_Department of HRM 6

(c) Department of HRM 3

HRM1340_Chapter 02

Organizing HRD
• It may depends on
• Nature of the organisation
• Size
• Top management philosophy
• Financial strength and profitability
• Geographical location etc.

HRM1340_Department of HRM 7

HRD in a Small Business Organisation

HRM1340_Department of HRM 8

(c) Department of HRM 4

HRM1340_Chapter 02

HRD in a Medium Size Business

Organisation

HRM1340_Department of HRM 9

HRD in a Large Business Organisation

HRM1340_Department of HRM 10

(c) Department of HRM 5

HRM1340_Chapter 02

Organisational Bases
• There are five bases for departmentalisation of
HR function.

1. Functional Bases
2. Field Bases
3. Employee Bases
4. Business/project Bases
5. Mixed Bases

HRM1340_Department of HRM 11

Functional bases

HRM1340_Department of HRM 12

(c) Department of HRM 6

HRM1340_Chapter 02

Field Bases

HRM1340_Department of HRM 13

Employee Bases

HRM1340_Department of HRM 14

(c) Department of HRM 7

HRM1340_Chapter 02

Business/project Bases

HRM1340_Department of HRM 15

Mixed Bases

HRM1340_Department of HRM 16

(c) Department of HRM 8

HRM1340_Chapter 02

The Role of HRD

• Line Managers responsible for the operations of

those departments that make or distribute the
organisation’s products or service.

• As HRD exists to support line managers it is a

service department.

HRM1340_Department of HRM 17

Types of authority delegated to HR

Manager

1. Compulsory Staff Consultation

2. Concurrent Authority

3. Functional Authority

HRM1340_Department of HRM 18

(c) Department of HRM 9

HRM1340_Chapter 02

Types of authority delegated to HR

Manager
1. Compulsory Staff Consultation - it is compulsory for
managers to consult the human resource manager before
making any decision relating to his/her subordinate.

2. Concurrent Authority - it is compulsory for any

managers to get an approval from the human resource
manager before making any HR decision.

3. Functional Authority – it gives line authority

(legitimate power to give orders which cannot be rejected).

HRM1340_Department of HRM 19

Staffing the HRD

• It is essential to acquire and employ people who
possess right knowledge, skills and attitudes to perform
successfully the jobs of the HRD.

• Quality of HR Dept. is depending on the quality of the

people in the HRD (Schular and Youngblood, 1986).

HRM1340_Department of HRM 20

(c) Department of HRM 10

HRM1340_Chapter 02

Jobs in the HRD

• Support Jobs
• Typists
• Clerks
• Receptionists
• Technical and Professional jobs
• Labour relation specialists
• Compensation specialists
• Training specialists

Stone and Meltz (1993)

HRM1340_Department of HRM 21

Jobs in the HRD

• Operating HR managers
• A person in such a job- often called a HR generalist-
handles most or all of the HRM functions in a small
organisation or in the plant of a larger firm.
• HR executive positions
• Persons in these posts are “generalist and
administrators who manage larger HRDs that include
specialists, operating HR managers, and support staff.
They provide the linking-pin between top management
and the HRD.
Stone and Meltz (1993)

HRM1340_Department of HRM 22

(c) Department of HRM 11

HRM1340_Chapter 02

Types of HR managers
• HR Specialists
e.g.
• Reward Specialist,
• Job Analyst,
• Labour Relations Specialist etc.
• HR Generalists
e.g.
• Personnel Manager
• Group HR Manager
• Factory HR Officer etc.

HRM1340_Department of HRM 23

How to be a
Good HR
Specialists?

HRM1340_Department of HRM 24

(c) Department of HRM 12

HRM1340_Chapter 02

How to be a
Good
HR Generalists?

HRM1340_Department of HRM 25

Session Summery
• What is HRD?
• Why separate HRD for an organization?
• Size of Organization vs. Natures of HRD.
• Bases for Departmentalisation
• Role of HRD
• Way of staffing HRD
• HR Specialists vs. HR generalists

HRM1340_Department of HRM 26

(c) Department of HRM 13

HRM1340_Chapter 02

Activity 2.1:
Explain the difference between HR
Generalist & HR Specialist

Activity 2.2:

Explain the qualities of Human Resource

Manger

HRM1340_Department of HRM 27

Critical Incident 2.1:

The Birth of a HR Department

Case 2.1:

Commencement

HRM1340_Department of HRM 28

(c) Department of HRM 14

HRM1340_Chapter 02

HRM1340_Department of HRM 29

(c) Department of HRM 15