Process involved in setting up a New Human Resource Department

1. Pre-Recruitment Process
a. Receipt of requirement of manpower from various department heads.
b. Scutinise them and take approval from concerned authorities if the post is new.
c. Prepare a recruitment budget and CTC for the employee and take approval.
d. Select the appropriate Recruitment process.

2. Recruitment Process
a. Prepare Advertisements etc for the recruitment.
b. Scrutinise and shortlist the applications received.
c. Send interview call letters/mails as required.
d. Conduct Interviews through panels.
e. Preparation of offer letters as required.

3. Joining Formalities:
a. Administrating Joining formalities.
b. Pre Employment Reference checks.
c. Preparation of Appointment Advice and intimating the same to other departments.
d. Preparing and entering new hire paperwork.
e. Co ordinating to get Employee ID Cards.
f. Handing over the New hire to the concerned HOD/Manager.
g. Preparation of Job Profiles co ordination with HOD/Managers for new posts.

4. Employee Personal File Maintenance:
a. Opening new file and Closing the Resigned employee’s File.
b. Make sure all Employee files are maintained safely with care.
c. Make sure all personal records are available in the files.
d. Periodic Personal File Auditing.

5. Employee Data Base:
a. Keeping Track of Knowledge Management Software.
b. Maintenance of HRIS.

6. Confirmation Formalities:
a. Intimating the concerned HOD/Manager about the due dates for confirmation.
b. Conducting Confirmation Appraisals.
c. Co ordinating for Skill Gap Analysis.
d. Co ordinating to set Quality Objectives for each job profile.
e. Ensuring updation of the existing Job Profiles.
f. Processing the Confirmation.

7. ISO Compliance:
a. Ensuring all the updation of the ISO documentation and HR Formats.
b. Learning and enforcing Standard Operating Procedures (SOP).
c. Facing the Internal and External Audits, accountable to enforce the correctional actions.

8. Statutory Compliance:
a. Handling PF and ESI formalities and co ordinating with other departments.
b. Handling Apprentice Training, Submitting Periodic Returns to Board.
c. Submitting other returns to the labour Department as per Shops and establishment Act.

9. Training And Development:
a. Conducting Induction Training for new hires.
b. Training Need Analysis based on Skill Gap Analysis, Appraisal Feedback and suggestions.
c. Co ordinating External and Internal Training Programs.
d. Maintaining Training Records.
e. Analysis of Training Feedback.

10. Performance Appraisal:
a. Prepared the new Appraisal Form.
b. Educated employees about self-appraisal.
c. Provided inputs to HOD’s for Appraisals.
d. Prepared Appraisal Letters.

11. Employee Relation:
a. Having formal and Informal counselling with employees.
b. Prepared Event Calendar of monthly recreation to motivate employees.
c. Handling Corporate Medical Insurance.
d. Processing required letters on employee’s request.

12. Report Generation:
a. Generating and analyzing Employee Attrition Reports, Training Evaluation, and Manpower Status.
b. Weekly and monthly recruitment reports
c. Report generation of Pre appraisal, Appraisal and Post Appraisals.
d. Salary Details Reports to Accounts Department.
e. Reports as per the HOD’s request.

13. Exit Formalities:
a. Administering Exit paper work including all Statutory requirements.
b. Conducting Exit Interviews.
c. Preparing Exit Interview Summary.
d. Giving post employment reference for relieved employees.
e. Processing File to Accounts Department for final settlement.

How to set up a New Human Resource Department?

If you were given the task of setting up a new Human Resource Department in a small company where would you begin? Such a task would be extremely daunting, but not impossible, if you follow a few tips. To begin, you need to answer some basic questions:

* Why do you want to set one up?
* What’s changed to make you or the organization believe that an HR department is needed now?
* What do you want the HR department to do? How will this function contribute to the success and bottom-line of the organization? Will it add value?

In other words, before you begin the task, you need to have a clear definition of the mission and goals of the department and secondly, what role you will play as “head” of the HR function. Once you have clear direction, there are some key “audit” issues that you need to focus on.

* Do you have personnel files on all your employees? Are they current? Do you have all the legally required documentation? Do you have items in the files that don’t belong there?

* Do you have policies and procedures? Are they up-to-date? Are they followed?

* Do you have an employee handbook? Do you have the right language in it? Have you inadvertently created a contract between you and your employees?

* Do you have policies dealing with sexual harassment, workers’ compensation, safety, benefits, discipline, etc.?

* Are you in compliance with state regulations?

* Do you have a working knowledge of the law? Do you have all the required postings, forms, and documentation required by the respective governmental agencies? Are all the managers aware of their legal responsibilities and liabilities?

* Are you recruiting and selecting the right people? Are you aware of the talent and skills needed to move your organization forward? Do you know where to find these people? Are you recruiting in a cost effective manner? Are your managers trained in interviewing techniques?

* What kind of compensation plan do you have? Is it meeting the organization’s needs? Is it motivating your employees? Is it competitive and fair?

* How about your benefits? Are you getting the best coverage for your people at a price the employees and the organization can afford? Is your total compensation attractive enough to retain existing people and be an incentive to new people?

* What’s it like working at your company? Are people productive and motivated? Are you looking at the indicators of a productive and motivatedworkforce (absenteeism, tardiness, turnover, grievances, high workers’compensation rates, poor quality, missed deliveries, and poor productivity)?

* What about your training? Are manager’s and employee’s skills current? Is training a “way-of-life”? Are you growing your people or do you have to go to the outside every time you need someone with a specialization? Are supervisors effectively managing their employees?

* Are managers and employees kept informed? Do they know what’s going on? Is the grapevine the main source of communication? What are the sources of communication?

As you begin the process, get some professional help, whether through networking with peers, other organizations, or outside expertise. It is a big task, but one that is critical to the organization.

When Is An HR Department Necessary?

How many employees should a company have before there is a need for an HR Department? As companies grow, there is a need to administer the HR function, but that doesn't necessitate an HR Department. In fact, 30 years experience has shown that until the company has at least 50 employees, that "department" -- really a function -- can consist of or be handled by one person.

Between outsourcing such things as payroll and the initial writing of an employee handbook, and with the plethora of software for HR today, one person should be able to develop and administer the function.

Of course, there are variations to this theme. In some companies where recruiting has been a major activity, there may well be a need to have an HR administrator or recruiter. But in most small companies an Office Manager can suffice.

STEPS TO ESTABLISH HUMAN RESOURCE DEPARTMENT

The first step is to determine what the expectations are of the manager who realized the necessity of HR function.

After that, determine the compliance issues which pertain to your company. The most basic of these have to do with wages and hours of work, classification of employees, leaves of absence including maternity leaves, harassment, and others.

Then, determine whether or not you need to have an employee handbook or other formal policies and procedures manual to cover everything from establishing the company as an at-will employer to benefits. If a handbook already exists, be certain that it is in compliance with state regulations and that the policies and the way they are written are in the best interests of the company.

Are all the basic policies included? These can be thought of as grouped into conditions of employment, benefits, and disciplinary processes. Is there a balance between stated corporate and employee rights and obligations?

Take a look at existing employee files or, if no files exist, gathering all the papers into coherent personnel files. Minimally, you should have an Application for Employment form or resume, , any insurance forms that the employee may have signed, and performance appraisals.

Who takes care of payroll? There used to be an ongoing fight between HR and accounting as to who gets payroll.. So make sure of this point to have a clear picture on this.

One person should be responsible for new employee orientation. In order to inform new employees of their benefits and the policies of the company, you will very simply have to be the expert in benefits and policies of the company.

HR has an information function that you should think through. Changes in policies, changes in benefits, even changes in laws must be communicated to all employees. Major changes may call for training such as in harassment a few years back. Therefore, HR becomes a kind of pass-through in the information cycle.

To summarize the steps to set up an HR DEPT , the following things should kept in mind.

1) Recruitment and selection (i.e. job descriptions, selection tools, background checks, offers)
2) Compensation (i.e. methods, consistency, market)
3) Employee relations (i.e. labor agreements, performance management, disciplinary procedures, employee recognition)
4) Mandated benefits (i.e. social security, , worker's compensation, )
5) Optional group benefits (i.e. insurance, time off benefits, flexible benefits, retirement plans, employee assistance programs, perks)
6) Payroll (i.e. internal vs. external options, compliance)
7) Recordkeeping (i.e. HRIS, personnel files, confidential records, other forms)
Training and development (i.e. new employee orientation, staff development, technical and safety, leadership, tuition reimbursement, career planning)
9) Employee communications (i.e. handbook, newsletter, recognition programs, announcements, electronic communication)
10) Internal communications (i.e. policies and procedures, management development, management reporting)

Once you have carefully evaluated each of these areas, you are ready to put together your strategic human resources business plan. This will help you map out exactly what you need to do and how it impacts the bottom line, plus when you will need to do it. With a good grasp on this plan, you are ready to sell it to management

Ten things you must do to be an effective negotiator

- Gary Gorman

Contrary to what some believe, negotiation is not a game. Games have rules whereas negotiation has none...anything can, and often does, happen. Games have procedures, whilst negotiation is often subject to uncertainty and alternatives are frequently proposed and considered.

However, whilst there are no rules in negotiation, there are guidelines that need to be adhered to in order to be an effective negotiator. This article explores these ten key guiding principles.

These are as follows:

1. Effective negotiators know that all offers must be conditional upon the other party giving them something of value in return. They will never give anything away for nothing.

2. Effective negotiators never think on their feet or negotiate 'in the heat of the moment'. Proposals and counter proposals can come quickly, but an effective negotiator will consider, evaluate and reflect on the proposal, taking whatever time is needed, before making a counter proposal of their own.

3. Effective negotiators are capable of strict self-discipline. They remain calm, collected and composed in order to 'keep a clear head'.

4. Effective negotiators spend a considerable amount of time on planning, evaluating and testing their assumptions about the other party.

5. Effective negotiators maintain high aspirations throughout the negotiation. They build upon common ground rather than merely focus on areas of difficulty.

6. Effective negotiators take control of the negotiation before it begins. They take charge of the venue, timing, agenda, and other participants because they know it is more difficult to take control once the negotiation has begun.

7. Effective negotiators continually create room for manoeuvre. This is normally done by opening with an extreme but credible position, and being continually creative with the shape and value of the package.

8. Effective negotiators are rarely the first to move. They do not make an early concession to soften the other party up as they recognise this has the opposite effect and actually toughens up the other party. When they do move, they tend to move fewer times than the other party and in ever decreasing amounts of value (both tangible value and in-tangible value).

9. Effective negotiators get into the head of the other party in order to see the deal from their perspective. This enables them to offer concessions of value and interest to the other party.

10. Effective negotiators keep a close watch on the shape of the package and never forget where the money is. By keeping their ego- and the need to 'win'- in check they are able to both track and maximise the value of the deal.

When negotiating, effective negotiators always challenge any rules, structures, policies, time scales if it is in their interests to do so. They recognise that these tactics are generally used by the other party in an attempt to restrict them and to make them feel uncomfortable. However, effective negotiators are comfortable being uncomfortable!

Above all, effective negotiators recognise that these are guiding principles, not rules. In negotiation, unlike a game, there are no rules.

(c) Gary Gorman, 2008.