Human Resources Department: Functions and Structure

Concept and Organization

This department organizes, directs, coordinates, and studies the activities of remunerated workers within a company.

Organization of the Human Resources Department: Formal and Informal

Enterprises are created with a number of departments, to which are assigned particular roles. This is called formal organization. Informal organization, on the other hand, arises from impulsive and personal relationships, communication channels, leaders, etc.

Formal Organization

  • Sets the direction
  • Hierarchical relationships
  • Positions are defined
  • Activities are defined
  • Pursues business objectives
  • Communication is hierarchical
  • Workgroups are formed by department
  • Management authority is exercised

Informal Organization

  • Springs up spontaneously
  • Relationships are based on friendship, kinship, enmity, etc.
  • Activities are voluntary
  • Does not necessarily pursue the objectives of the enterprise
  • Communication occurs through spontaneous discussions, rumors, and contacts during breaks, etc.
  • Groups are formed out of friendship, kinship, affinity, etc.
  • Authority may be exercised by people considered “leaders”

Organizational Hierarchy

This is a system based on the authority of senior management. The chief indicates the targets to be met. The division of a company into different departments is known as departmentalization.

Management by Objectives

Management by objectives subdivides the overall business objectives for a given period. These objectives are assigned to each department or area. The company will have sufficient autonomy to achieve them. A mode of management by objectives is participative management by objectives. In this mode, targets are negotiated between management and those responsible for compliance, so that the targets have been previously accepted by those who will achieve them.

Duties of the Human Resources Department

These can vary from one company to another, depending on the size and activity of the company. The functions performed in most human resource departments are:

  • Job function
  • Personnel management function
  • Retribution function
  • Human resource development function
  • Relations function
  • Social service functions

Downward Communication

This spreads from the upper hierarchy to subordinates. Downward communication is channeled through the line by hierarchical address meetings with middle management, to institutions, and transmitting orders.

Upward Communication

This occurs from the lower hierarchical levels of the company towards their superiors. These are usually opinions, complaints, suggestions, and grievances.

Horizontal Communication

This occurs between departments and individuals at the same level. It consists of joint work, sharing, resolution of labor issues, etc.

Internal Circulars

When certain institutions need to report to large numbers of workers, they use written rules, apart from the direction of the company. These are called circulars.

Notices

These are communications that contain institutions, clarifications, and news of general interest.

Memorandum

This is a brief communication used to transmit information between different departments within the same company, and reports accompanying documents.

Staff Reports

The business applies staff reports on the services of a new employee, or when they want to know the performance activity or the fundamental characteristics of a person in their position.

Newsletters

These are newspapers and magazines that report economic, union, cultural, etc., information to staff to improve relations between personnel.

The Personnel File

This is a set of documents, arranged chronologically, that reflects the employment history of each employee of the company. The classification of records may be:

  • Small businesses: Records are sorted alphabetically.
  • Big businesses: The personnel department handles and stores personal files of employees. The experience is sorted alphabetically by department, within each department by occupational categories, and within each category, alphabetically by surname and name of the workers.

Records must be updated constantly.