Human Resource is used to describe individuals in the workforce of an organization, even if it is also applied in labor economics, for instance, industries and even entire nations. Human resources is also the name of the function in a body with overall responsibility for implementing strategies and policies on people management. Human resource management involves the development of a perfect blend between tradition and administrative functions well-being of all employees in an organization.
Top management care little about human resource compared to production, marketing, finance, and engineering. There are some reasons.
Marketing department is the process by which companies create customer interest in goods or services. It generates the strategy behind the sales techniques, business communication and business developments. It is an integrated process by which organizations build strong customer relationships and create value for their customers and themselves. Marketing is used to identify the customer, to satisfy the customer, and to keep the customer. With the customer at the center of its activities, it can be concluded that marketing management is a key component of business management. The adoption of marketing strategies requires companies to shift their focus from production to the perceived needs and desires of their customers how to stay profitable.
However human resource is not relative customer. It is relation between manager and workforce or worker, which clearly shows that human resource, has got to care much of the company’s employees as well as its employees’ attitude towards the customers, which means that the employees have to be well trained.
The finance department of a business takes responsibility for organizing the financial and accounting affairs including the preparation and presentation of appropriate accounts, and the provision of financial information for managers. The main areas covered by the financial department include book keeping procedure, creating a balance sheet and profit and loss account, providing management information, management of wages and raising of finance.
The foundation of every production department is to create goods or services. Basically, production included the physical assembly of goods, however, production can also include data-based goods such as websites, analysis services and order processing services. The main function of the production department is to produce a product or service that creates profit and revenue for the company. Every production and operations department must function as self-evaluating entity that monitors the quality, quantity, and cost of goods produced. Forecasting, scheduling, purchasing, design, maintenance, people management, flow analysis, reporting, assembly and testing are the common task functions in a production and operation department. Production and operations departments typically function as a fulfillment entity that ensures the timely delivery of the output from production to customers. Critical path analysis, stock control analysis, utilization analysis, capacity analysis, just-in-time analysis of inputs, quality metrics analysis and break-even analysis are included in standard analysis functions in a production department.
Most probably it is because human resource is harder to manage since it involves managing people in the company. Other departments like marketing, finance, production and engineering are aimed to increase the profit whereas for human resource, it is to manage the employees, to hire, to train or even to fire. Main difficulties would be things like turnover or quitting without informing and etc, since when such things occur, it is not something that manager can solve in a day. For example, when the employees just quit without informing earlier, it is not that simple to get another employees to replace. Even if employees are found to replace, it takes time to train them. Therefore, human resource is more troublesome to manage compared other department, that’s why top managers care little about human resource. And also, human resource department, in order to achieve the organizational objectives of the organization for talent acquisition, development cooperation, while maintaining their ability to establish a system to unleash it as a process can be, which means that it is less productive compared to other departments.
Solutions to Change Top Management Perception in Human Resource Department
There are some ways to change top managements perception in the human resource department;
- Human resource department can help the production department recruitment the labors: Human resource department is not a significant revenue generating department but it can help the production department with the recruitment of labors, especially the technicians. When it comes to hiring workers, they should consider about workers’ abilities and skills that they are capable of.
- Human resource department can help company save cost: Human resource department does not control and manage the cash flow of the firm, but human resource department can help company to save cost. Human resource department helps the company to reduce the cost. For example, through lay off unnecessary people in the company or reduce the number of employees, providing multi-tasks for the employees, reducing reward such as annual leave and bonus of year, save cost in stationary by sharing with colleagues, save training cost of employees by providing job training. If the costs are saved in such a way in Human resource department, the company will have more money liquid to run the business.
- Payroll can manage by technology: Payroll can be managed by technology however; the experience cannot be substituted by technology. Normally human resource is a challenging department in the company, with the facts that the department carries the responsibilities for interview, promotion to employee, labor law knowledge, and psychological knowledge to take care the employees’ problem such as what employees need and want, which has to be coached by the human resource department. If one of the employees in the company is not satisfy with the company, employee will eventually resign and this will affect the turnover, especially the marketing employees. The employees working under marketing are more likely to be pressured compared to employees working under other departments. It is because if there is a decrease in the company sales, they might face layoff from the company, and this is why technology cannot substitute in the human resource line.
- Human resource department is not a payroll department only: The top human resource department is not a payroll department; many special jobs which can only be handled by human resource department cannot be substituted by other departments. Training, interviewing, recruiting the right person and so on and so forth is very important. It is because if human resource department recruit the wrong person and place him or her in the wrong position can make be an issue in the company. And if human resource department cannot train the employees well, they wouldn’t be able to feel or really not able to improve any longer in the company.
- Planning a mentoring program: One of the best ways to overcome human resources issues is to launch a mentoring program for diversity. This could entail involving different departmental managers in a mentoring program to coach and provide feedback to employees who are different from themselves. For the program to run successfully, it is wise to provide practical training for these managers or seek help from consultants and experts in this field. Usually, such a program will encourage members of the organization to make their views known and to learn to resolve conflicts because of their diversity. More importantly, the purpose of a Diversity Mentoring Program seeks to encourage members to go beyond their own cultural frame of reference to recognize and fully exploit the productivity potential inherent in a diverse population.
Human resources managers can conveniently employee relations between ministries and the scope has for the lower-rung of communication with employees at different levels. The field is a derivative of system theory and organizational psychology. Human resources have won a number of interpretations related in time, she continues to defend the need to ensure the well-being of employees. Every organization now has an exclusive human resources department to interact with representatives of all factors of production. The department is responsible for the development and application of current research on advanced strategic while engaging end and staff training.