1.

The Birth of A HR Department

In 1991, X and Y decided to form an agency to provide travel facilities to tourists. By the
end of the 1990s, X was still handling all personnel records, employment training and
compensation for sixty employees in the organization. Business activities were very
successful so far and a further rapid increase in operations is expected next year (2001).

Talking with Y, X listed the following reasons why he thought a HR department should be
formed.

a) “I don’t like to do recruiting or interviewing.”

b) “The personnel paperwork interferes with my time to line up new appointments.”
c) “Certainly, someone else can do this HR work better.”
d) “I’ve never had any training in HRM work, and I fear I might be unknowingly breaking
laws.”
e) “Without a HR department, there is no one to whom I can delegate these thankless HR
tasks.”
f) “I’ve done this HRM work long enough.”

It was decided to hire a recent graduate in HRM of a reputable university for training as the
HR Manager.

(1) Of the reasons X gave, which should properly be considered in deciding whether to start
an HR department? Which should be ignored?
(2) What is X’s view of HRM?
(3) If you were hired to fill the new opening of HR Manager, what HR responsibilities do
you think X would delegate to you?

Source: Adapted from Werther, B. W. and Davis, K (1993). Human Resources and Personnel Management,
4th ed, New York: McGraw- Hill Book Company.

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