What a weird assignment,” David said to Alberto. “Dr. Lombard wants us to write an essay on the department or functional area that is the least important to an organization and then defend our choice.” Alberto replied, “What are you going to write about?”“I don’t know,” said David. “Have you decided yet?” Without hesitating, Alberto said, “Sure. Human resources because it generates no revenue for an organization. And it imposes rules that nobody likes to follow.” If you had been listening to this conversation, what thoughts might you offer to David and Alberto?
CASE STUDY RESOLUTION
Returning to the conversation about Dr. Lombard’s assignment, you might offer the following thoughts. You would have agreed with Alberto that the HR department does not con-tribute to an organization’s bottom line because it generates no revenue while it does generate expenses. This reasoning is correct when only short-term financial outcomes (profit and loss) are considered. You might have suggested to David that HR is not a good choice for the least important department on the basis of the following reasons: 1. HR maintains an organization’s workforce through recruitment and training activities. 2. If HR did not keep accurate employee records and file reports that are required by law, the resulting fines and penalties would have the potential to bankrupt the organization. 3. HR coordinates and oversees disciplinary activities. By ensuring that the organization complies with legal guidelines, HR avoids fines and penalties.
Compensation and benefits are very important to employees. If an or-ganization misses a payroll or does not pay benefit claims in a timely manner, employees usually waste no time complaining to their managers. Senior managers dislike such problems. 5. HR coordinates training and career development activities and resources. Employees are more likely to commit to an organization that facilitates their growth and learning. Lower turnover and higher organizational com-mitment by employees generate financial returns for the organization.
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