The role of the human resource department saw a radical change over the period of years. It is said that the history of creating a new division to deal with the interests of the employees can be traced back to the socialist parties who appreciated the employees’ role in the output created to the company and worked for better employee benefits. The increase in the size of the business operations have made it impossible for the top management to maintain a direct contact with the regular employees, leading to the development of the human resource department. In today’s business world, the role of the human resource department is highly prominent for the business success.

The purpose of having the human resource department can be analysed on the basis of the functions performed by them. Employees are the most valued asset in any given organisation. The human resource department is to guarantee that the right candidates get appointed to the right task at the right time and the job offered to them is capable of utilising their capabilities to the maximum, adding to self motivation leading to better performance. They help in the adoption of the best technique for recruitment based on the needs of the role. Creation of an image of being a most favoured company by the employees is an important task of the HRD as it helps in drawing the best possible recruits to the company. The HRD is also responsible for the creation of the hiring plans for the organisation. It has to decide on the best way of recruiting possible candidates through internal or external hiring sources. The HRD is to formulate a good salary policy which is capable of helping in hiring the best in the industry without compromising on the company profits.

Once appointed, the employee must be given proper training to help him understand the way the business operates and to work using the best possible method. Training also helps in easy adaptation to the company as it throws light on the employee policies, code of ethics expected from them and other business procedures. Training also helps in adding to the creativity of the employees by developing an innovative culture within the entity that is capable of accepting changes into their system. Innovation is inevitable for the success of any business. The employees must be directed and assisted in effectively utilising their resources and capabilities for maximum output, leading to job satisfaction and a higher rate of company profitability.

HRD is allotted with the task of creating a healthy environment within the entity through employee favourable policies. Today, with the companies having a global mix of the employees, understanding their needs and negating their differences of opinion through a proper understanding of the employees is a tough task in the hands of the human resource department. Handling them and making them work together towards the common objective is a massive task. A global mix expects the company to understand the labour laws applicable to each country. The HRD has to promote a fair and equitable treatment to all its employees. The employee disputes must be identified at the preliminary stage and steps to resolve amicably lies on the capabilities of the HRD.

Creation of a good working environment is a prerequisite for employee satisfaction. Policies favourable to the employees without compromising on the company interests can boost the employee morale resulting in lesser employee turnover. The HRD should have the skill to forecast the future changes in the technology and make its employees capable of adapting and adopting the same into their environment with less complexity. The HRD is also responsible for maintaining a social relationship with its external environment. It conducts seminars and workshops inviting people from the industry to expand the knowledge of its employees through proper interaction.

The human resource department plays the role of the initiator, planner and executor in every organisation.