I don’t agree with the statement. HR is much more than just shielding the company from legal problems. Not only HR, every department in the organisation ensures that they do not get into any legal problems. For example , consider product department. They ensure that the product being produced is adhering to all government standards to avoid legal actions.
HR has a big role to play in any organisation. They take care of the recruitment, various policies, employee compensation and benefits , learning and development ,etc.
Benefits of having a formal HRM process:
> It helps evaluate HR policies currently. HR policies need to be aligned with the organizational vision and strategies. Implementation of a formal HRM would ensure that all the redundant and ineffectives policies are eliminated and policies which ensure a better work place environment, motivated employees, growth of organisation,etc., are implemented
> It helps monitoring the progress. Involvement of various departments is necessary for the success of an organization. A formal HRM can help is aligning the employees towards the common goal and with company’s vision and strategies.
Drawbacks:
> Lot of personal information of employees is available with HRs. A breach of security and accessing fellow employee’s sensitive data may land up company in legal issues
> May affect the way the performance appraisals are made. Lot of objective data is available and supervisors give ratings looking at this data, They may not spend time with sub ordinates to understand how they work, what help do they require ,etc.
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