Hr Department Setup in Logisticus Limited

HR department setup in Logisticus Limited

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Peush Garg

          MBA-HR- 1st Year

     HR018

Generally, it is believed that a company with the total employees’ strength of less than 20 doesn’t need an HR department, but with the growing employees’ strength, it becomes difficult to manage the real asset of an organization i.e. Human Resource.

Our company has evolved from 5 to 50 in the very first year of its existence, so to manage the human resource in a much better and efficient way, I have come up with the below plan:

1. Understand the business and requirement for an HR department: First and foremost, I will understand the existing logistics industry which will enable me to understand the existing business culture in the various other organizations. After that, I will analyze the need that arise the requirement of an HR department.

1. Setting of objectives: After analyzing the requirement, specific objectives need to be set for the next one year which will cover the various HR roles starting from recruitment to employee engagement to better employer brand.

1. Setting Vision & Mission of HR department: After understanding the need of an HR department, I will prepare the vision and mission statement of HR department which should be aligned with the organizational goals.

Vision: Our vision is to be recognized as a preferred employer and provider of innovative and results-oriented human resources services, policies, and systems.

Mission: To facilitate the alignment of human capital with organizational goals and to provide the best career opportunities to our human resource.

1. Determining the compliance issues: After creating vision and mission, I will check if my organization is facing any compliance issues which can be related to working conditions including work hours, leave system etc. and to work on formulating the compliance policies for my organization.

1. Employee handbook: The employee handbook is recognized by human resource professionals as an essential tool for communicating workplace culture, benefits and employment policy information to employees. I will work on creating a handbook which will describes information about our organization’s employment practices, benefits, equal opportunity commitments, attendance guidelines, pay practices, leave of absence procedures, safety issues, labor relations matters and sanctions for misconduct. This will include both the existing as well as new policies that are being implemented by HR department.

1. Personnel data management: I will implement the system for employees data management if no system is at place already and if a system is already in place, then I  will look to improve the same so that the same can be used for managing the human resource of our organization in a better way.

Various HR functions for our organization

After following the above plans, I will go ahead in the defining the plans for the above mention HR functions. Being in the first few years of its existence, all these functions play a very significant role in the growth of the organization but from the ROI (return on investment) point of view, we are not in a position to provide behavioral training to the employees rather we will go ahead with the technical training processes as of now. Also, we have very limited budgets for any employee engagement activities. Our main focus is to create a better employer brand which will help us in expanding our business.

I will define the various action plans for these specific functions:

1. Talent Management: As logistics is one of the volatile industries wherein it’s difficult to retain and hire new talent, so both the existing as well as the new hires should be managed efficiently. For this various steps can be taken:

1. Align the individual’s goals with the corporate goals and based on that new employees will be hired whereas corresponding job will be assigned to the existing employees so that we can create a Win-Win situation for the both the parties.
2. Pay for performance culture will be created for the existing as well as the new hires.
3. Cross functional work opportunities will be provided to the better performers after 2 years with the organization.

1. Training and Development: We will mainly focus on providing the technical training in the next one year plan. To have an effective training and development plan, we should follow the below steps:

1. Identify the training needs for the exiting employees (for new technologies) and for the new hires (to make them comfortable with the technology used in the organization).
2. While designing training and development program, ROI becomes very important point so it should be taken care beforehand.
3. Encourage teams to collaborate and learn from each other to create a base of in-house training only.
4. There must be some systems to measure the training effectiveness and to see whether we have achieved the desired objectives or not. This can be done via various one on one discussions, questionnaires etc.

After this year, we can work with any third party organization to provide the behavioral training to our employees.

1. Performance Management/Appraisal: Most employees want to be successful contributors to an organization. They want to know what is expected of them and how they can most effectively achieve those expectations. Performance management is the systematic process that a manager applies to involve employees in accomplishing a unit’s mission and goals, improving overall unit effectiveness, and helping employees understand the importance of their contributions. For an effective performance management system, we should follow the below action items:

1. First of all, employees should be segregated based on their job levels and nature of the job that they are doing.
2. After that, we should identify the job duties that each individual employee need to accomplish. For this we can define the KPI’s for each job level.
3. Performance management system should be practical in nature and it is easy to use for all levels of employees.
4. Communicate the competencies (job knowledge and job skills) necessary to be successful in a position to the employees before the performance appraisal cycle.
5. Pay for Performance will be implemented to encourage employees to work better and better.
6. Timely feedback should be provided to the employees so that they can channelize their efforts towards attaining their as well as organizations goals.
7. Open communication with the management will be encouraged so that any employee can approach anyone in case of any grievances.

This kind of performance system will motivate employees to put forward their point of view in front of management and will set the tone of organization’s culture and values for the long term.

1. Compensation and Benefits: Compensation is payment to an employee in return for their contribution to the organization, that is, for doing their job. The most common forms of compensation are wages and salaries. While deciding the compensation and benefits for the employees, we will use the benchmarking to see what other companies in the logistic field are doing, based on which we can decide our strategies for the same. While designing the compensation and benefits strategies, we will take care of the following parameters:

1. It should not only take care of the employee but also take care of employee’s family.
2. There should be one or the other kind of rewards linked to a specific performance.
3. It will fulfill both the internal as well as external equity for the employee.

More importantly, we have to ensure that all these plans fit into our budget. So for the very first year, we will include the short term benefits in our policies whereas all the basic compensations will be provided to the employees based on the benchmarking of the other logistics firms.

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