Integrated HR and Business Planning
Human Resources is an integral part of business’s operations and requires a strategic plan no less than operations or marketing. People are the engine, energy, and inspiration for business success and plans must be made to ensure the right candidates are recruited, that adequate numbers of skilled laborers are hired, and strategies for compensation, labor unions, and training have been given mapped out.
All companies need smart, adroit, savvy people at the helm. These might be seasoned professionals or newly-hired candidates straight from college. Without key people in management roles throughout the company, large companies would be unable to operate. Increasingly as a business grows, the need for executive and middle management people is critical. Part of a business’s HR function would be to determine management needs and plans for recruitment.
A company needs manpower to operate machines in manufacturing companies, staff the floor in retail operations, and answer the switchboard phones in the customer service department. Without these critical labor staffs, the wheels of industry would come to a grinding halt. It is the job of HR to not only know the company’s need for labor but to ensure those labor needs are met through hiring and compensation.
Human Resources must work with Finance Department to determine pay scales for all jobs in the company both hourly and salaried. They work with individual department managers to discuss employee recommendations for performance and merit bonuses.
HR works with legal and finance departments to determine the kinds and suppliers of employee benefits like health, dental and life insurances, 401k and profit sharing plans. They must work with manufacturing to ensure annual company holidays and employee vacation plans do not interfere with business operations.
Employee Training and Performance
HR plays a central role in the training of new employees. Often training on newly acquired equipment or new processes requires lead times that both HR and operations would need to work out jointly. HR works with individual division and department heads to evaluate employee performance and mediate employees cited for poor performance and/or targeted for termination.
Most industries have strong labor unions representing the interests of their membership and HR would play a central role in labor union negotiations and interpreting the provisions of company and union negotiated policies and procedures. HR would be part of a key company team along legal, finance and operations people when the time for contract negotiations.