Communications of the ACM
Companies Say No to Having an Hr Department
Credit: The Wall Street Journal
Companies seeking flat management structures and more accountability for employees are frequently taking steps to streamline their HR departments, often with the help of new technology and software. Executives say the traditional HR department — which typically controls everything from hiring and firing to maintaining workplace diversity — stifles innovation and burdens businesses with inefficient policies and processes. At the same time, a booming HR software industry has made it easier than ever to automate or outsource personnel-related functions such as payroll and benefits administration. It's all part of a long-term trend, in which traditional HR responsibilities have been slowly diffused throughout the organization.
In 2012, U.S. employers had a median of 1.54 HR professionals for every 100 employees, up slightly from a low of 1.24 in the recession year of 2009, according to the Society for Human Resource Management. Startups usually launch without personnel teams, but SHRM advises that companies bring on an HR staffer once they reach 15 employees, the point at which personnel issues become complex enough to require specialized skills. Managers often lack specialized knowledge that is crucial for keeping a company competitive and on the right side of the law. In some cases, organizations forego a true HR department in favor of employees with customer-service backgrounds whose job is to handle HR responsibilities such as setting up mentoring sessions and career-development paths.
From The Wall Street Journal
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