Nonexistent HR in organizations present a number of risks. However, since HR had received a lot of battering through the years, many organizations do not see the important role of HR. Yet!
The virtual nonexistence of HR in an organization indicates how poorly people are treated there.
Your organization cannot afford to take a simplistic view of HR. There are organizations that are successful resulting from decision making HR as important as the other organizational functions. These other functions include operations, finance, marketing, and so on.
No HR Department?
Where HR is nonexistent, this indicates that the HR function is not assigned to HR Department. This indicates that an HR department may not exist.
Although, line management can carry out the HR function, sound HR policy dictates that a particular department or skilled persons can achieve better results. Of course, this is subject to personnel in the HR department having the required skills, competence and expertise.
This may not only refer to the absence of the HR department. Basic HR policy may not exist. The organization may not have implemented HR processes and systems that link what employees do to the overall objectives of the organization.
If this is so, dysfunction may exist in the organization.
Nonexistent HR may also indicate a poorly-managed HR database, poorly-designed HR policy or even the absence of a well-coordinated HR system. Questions arise as to adequate knowledge of the principles of human resource management. In such circumstances, it would seem that HR is virtually nonexistent although there is an HR department with sufficient number of people.
However, it can happen that even if there is a so-called HR department in an organization, the HR function may not run effectively. It depends on the people who work there and how the department or division is run, among many other things.
Risks include the lack of organizational capability to recruit the right talents, inability to provide sound and effective advice to departmental heads and supervisors facing HR-related problems from time to time, haphazard employee development programs, and lack of HR direction. What more, what HR people may not correspond much to what the organization is doing.
The absence of HR in your organization may indicate that your organization is not treating its employees well. This goes against the objective of making your organization a preferred place to work. This is contrary to good motivation practices.
Where this is the case, your organization stands to lose a lot. So ensure that HR do not only exist but is fully supported by management, particularly top management.
In this way HR can become a strategic business partner.