What company does not appear to have established best practices in HR (most likely not a large company)? This could be due to reasons such as they do not have a well established HR department or...

What company does not appear to have established best practices in HR (most likely not a large company)? This could be due to reasons such as they do not have a well established HR department or their HR department is failing in one or more areas. Please advise me.

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Karen P.L. Hardison | College Teacher | eNotes Employee

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The function of Human Resource (HR) departments is a dynamic topic in the present milieu. The value of and necessity for HR best practice is in the cross-hairs of debate, and the debate relates to both large and small companies. For example, some company leaders complain that business outcomes are inhibited by HR best practice procedures, while others complain that without HR and best practice procedures they fear legal liability for firing, hiring and payroll issues. Some, but not all, of the most important responsibilities executed by HR are:

  • new hire recruiting
  • application tracking
  • diversity management
  • payroll management
  • retirement benefits management
  • performance evaluations
  • performance rewards and incentives

Often, companies without HR departments, thus without HR best practice application, are startup companies. The Society for Human Resource Management recommends that startup companies introduce HR specialists after they have more than a dozen employees.

One top recent startup is SoftRock, located in Orlando, Florida. According to their web-published Timeline, SoftRock still has no HR department, even though they have an international arm in India, so is without HR best practice procedures and processes.

Other small companies that may lack HR and HR best practices trade as penny stocks on the over-the-counter penny-stock exchange. One such company trades as Max Sound Corporation (symbol MAXD) and is known as MaxD. MaxD has six employees so has as yet no need of HR specialization.

Lack of HR best practices led to what the Wall Street Journal reported as "bottleneck" in the hiring process at LRN Corporation. LRN managers struggled to identify job skills, salaries and experience background requirements that would otherwise have been addressed by the HR department. Under conditions of adoptive HR best practice--adopting HR metrics and analytics, as described by an HRO Today report--the HR department would have analyzed and identified those job markers so that corporate managers could have seamlessly focused on business outcomes. LRN has since hired a new executive to handle all issues relating to LRN people, but, according to the WSJ, she doesn't hold the title of Human Resource Executive.

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teachsuccess's profile pic

teachsuccess | High School Teacher | (Level 1) Educator Emeritus

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Companies with bad H.R. reputations usually turn out to be unattractive options for job-seekers.

You asked for companies which have likely not established good H.R. practices. Well, there are a few, although I can say that most of these companies would beg to differ with employees about the state of their H.R. department.

First, let's establish what less than adequate H.R. practices are. Here's a Forbes article detailing what is problematic about the modern H.R. department. For example, the article cites the statistic that more than 90% of H.R. managers are women. By implication, the author of the article asserts that women often get the shaft when it comes time to get hired because H.R. women are looking to increase their own options in meeting eligible, good-looking male employees. Therefore, if you are a young, pretty, female job-seeker, odds are that your chances for getting hired are exponentially lower than for your tall, handsome colleague. Another H.R. practice which many disgruntled employees complain about is the tendency to elevate compliance to company policy above the 'people' factor.

After you have read the article, it will prepare you to decide which companies below you will choose for your project or assignment. Among the companies which seemingly have the worst H.R. practices are Radio Shack and Family Dollar Stores, and this is according to market research based on employee reviews. Employees cite bad management styles, chaotic schedules, unreliable work hours, and low pay as reasons for marking down these two retail stores. Again, part of good H.R. practice is to know how to meaningfully engage employees to raise morale and increase job satisfaction. Below is the link for the companies with the worst H.R. practices, making these companies distinctly unattractive options for extended employment.

America's Worst Companies To Work For

Hope this helps!

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