The role played by the human resource department saw a major transition with the acceptance of the part human capital has in the service based industry. The human resource department has to ensure the appointment of the suitable candidate to each role who can contribute significantly to the organisation. They are accountable for their actions to the management, share holders and the employees of the entity.

The management expects the human resource department to perform its various activities at the right time thereby ensuring a smooth flow of activities in the business. When the marketing and the delivery come up with the strategy plans, the human resource department has to identify the skills that will be required by the company to meet the long term plans. They are accountable for every selection of the candidates made by them. The company expects the human resource department to adopt the right channel in recruiting the most suited candidate for the job. The management also expects them to keep a careful watch over the activities occurring in the external environment and the competitor policies and create an attractive package for luring expertise into the entity.

The task of retaining the key talents lies in the hands of the human resource department. The management, shareholders, and the employees expect the human resource department to create a healthy environment in the entity. They are accountable to the management in keeping the attrition rates to the minimum. Through the exit interviews, the human resource department is expected to identify the reasons for employee attrition and take the corrective measures, if required. They are accountable to the management in controlling the attrition rates in various levels of the organisation. The shareholders, on the other hand, expect the department to lure and retain the best of the human resources, thereby adding to the company profitability.

The employee expectations are very much higher. A healthy environment is a prerequisite in guaranteeing better performance. The major task of the human resource department starts only recruitment. The employees must be provided with benefits that are profitable to them after taking into account the changes in the taxation laws and employee needs. For example, with the medical treatments on the rise, the employees must be given an attractive package which negates the worries over how to meet with the rising medical expenses to a large extent. They are also accountable in guaranteeing safety to the employees. With many incidents of sexual attacks springing up, especially in the BPO sector where the employees have to work during odd hours, the safety provided to the employees should be placed at high priority.

The rise in the employee stress related problems expects the HR to identify the causes for the same and take the corrective measures. The recognition and appointment of the right number of employees helps to minimise the burden on the existing employees to a large extent. They are also accountable in creating and maintaining an environment free from nepotism and sexual harassments.

From mere recruiters, the task of the human resource department has risen to that of a crucial player accountable to all people related to an entity.