This paper examines the structure and operations of a human resources department through an interview-based exploration of a mid-sized express delivery company (referred to as XYZ). It outlines the core HR functions — including recruitment, engagement, performance management, and reward — before focusing on employee motivation and internal promotion as key retention strategies. The paper then analyzes the evolving relationship between HR and line managers, emphasizing HR's growing strategic role. Finally, it evaluates the extent to which the organization's HRM practices align with established management theory, tracing HRM's intellectual roots and its continued challenge of balancing administrative, strategic, and employee advocacy roles.
The HR manager interviewed identified the following functions as having the highest priority within his department (Campbell Clark, 2001):
Recruitment and selection: Following best practice in drawing up relevant documentation — from advertising a vacancy and formulating a job description through to interviewing and making a sound decision in appointing the correct candidate.
Engagement procedure: Providing contracts of employment, written particulars, and a staff handbook to meet all legal requirements and give employees all the information they need.
Record keeping: Collecting information in manual or computerized form to enable the company to plan and monitor effectively.
Performance management: A range of activities designed to develop and reward good performance while managing poor performance and disciplinary issues.
Dealing with absence: Monitoring and controlling short- and long-term absence to ensure good attendance.
Reward: Examining salary and benefits packages to reward and motivate staff.
Dismissal and other termination: Examining valid reasons for dismissal, associated procedures, and employment tribunals.
It is increasingly recognized that the motivation and development of staff — and the retention of high-performing employees — are critically important in giving companies of all sizes a competitive edge in efficiency and in delivering superior quality products and services. A major challenge for companies is to develop HR strategies and practices that support their business objectives.
As companies grow, it becomes important to establish a dedicated HR function. In medium-sized companies this can mean creating a formal HR department. In smaller companies, where a full department may not be justifiable, one senior person may be entrusted with coordinating the HR function as part of their role, or HR services may be purchased from an external provider (Fletcher and Rapoport, 1996).
At XYZ, an express carrier and package delivery company, service is the core business and employees are its star players. Motivation can take different forms when seeking to build a career. "You look for a company that is innovative enough to create new business and people opportunities by promoting from within," the HR manager explained. "XYZ is a company that keeps its promise to promote from within. I've seen junior XYZ employees work their way up to senior management. In a service industry, an employee can make lateral moves — with each move, you learn and acquire experience."
Through careful career planning, coaching, and counseling, the company identifies employees who are ready to take on bigger challenges. This policy of promoting from within has not only resulted in extremely low staff turnover; it is also an important motivator in building employee morale. The present chairman of the company, as well as two previous chairmen, all started with XYZ thirty or forty years ago as drivers or customer service representatives and rose through the ranks.
At XYZ, the human resources department fuels employee motivation through the various programs it implements. The recruitment team not only identifies a talent pool for the company but also monitors market developments. The compensation and benefits team administers day-to-day salaries and benefits while simultaneously developing an understanding of market best practices and designing employee incentive schemes.
"HR's strategic role and communication with line managers"
"Comparing organizational HRM to academic management theory"
HR continues to balance the demands of several different roles: business partner, internal consultant, operational and administrative expert, and both employee and employer advocate. This may sound like business as usual — roles unlikely to spark urgent reinvention. In reality, however, they are fundamentally new. Although the questions HR faces may remain the same, the answers most assuredly are not. The ongoing challenge is to establish new deliverables and to sustain strong partnerships with both internal and external customers. The ability to see the big picture — and to deploy resources accordingly — will be more important than ever.
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