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Introduction and Background of Memorandum

Category: Human Resource Management Paper Type: Assignment Writing Reference: APA Words: 1200

This report is based on the human resource recommendations to the young entrepreneur who recently started a business that has taken off far faster than the expectations.  Almost overnight, it seems, the business has grown to 50 employees, and the client has realized that with the increase in employees, a need for an HR function has arisen.  The client has approached a business consultant for advice regarding whether he should create an internal Human Resources department, or whether he would be better off retaining the services of experts via an external HR consulting firm at this time. The business consultant is asked to prepare a report that explains the two options and that provides a recommendation for your client’s business. This report briefly explains the aspects of internal Human Resource department and external HR consulting firm along with the benefits of each so that a broad perspective could be provided to the client that which option is better to adopt.

Internal Human Resource Department

Internal human resource department is established within the organization and no external entity is involved. The department is concerned with the problems regarding people management in the workplace. Moreover, the department is responsible for recruiting the suitable employees, meeting as well as identifying training requirements of existing employees, ensuring positive relationship among employees, ensuring the welfare of employees, ensure the safe working environment, and raising the awareness regarding workplace legislation (BBC). There are multiple factors to be considered in the internal human resource planning such as:

Structure of the Organization

Budget Planning

Skill Level

Productivity at workplace

Compliance with Regulations

The key roles covered in Human Resource Department are:


External HR Consulting Firm of grievance

When the grievance or disciplinary become complex then the necessary step is to hire the external HR consulting firm to manage the issue regarding the workforce. The external HR consultant helps the employer to keep the finger on the pulse in the world of HR. Regardless of the industry, the employer has to ensure that the HR functions performance while complying with legislation. Depending on the resource and time, developing HR department within the organization can be a challenging task, hence external HR firms provide support to such organizations. The external HR firm usually provides the following services:

Drafting and constructing the HR documentation and drafting

Training and Development

Managing Recruitment

General HR administration

Expert advice and guidance

Benefits of Internal HR Departments of grievance

Improve the Employee income: The company bottom line harmed by the higher employee income. As the present employee salary, its cost is also twice to calculate the along with train the new employ. As an HRM professional you know very well in what way to hire the people's for the organization form the start.HRM also need to pay the attention of the employee personal requirements. (Bhagria)

Divergences Declaration: During the study of HRM course you will know how to handle the divergence during a workplace along with in what way to declare it. It does not matter whether a divergence occurs among the employees along with someone during management, should be able to help equally groups.

Benefits of External HR Consulting  of grievance

Recruiting: While the HR business consultant, could not place the job commercial or sit during an interview for students, but it may recommend to you how it attracts an experts applicants. The successful as well as the well-organized along with hiring the process is compulsory on the behalf of the organization which remain competitive.HR Consultant could also help to reduce the employee turnover problem along with giving the strategies which keep your talents remain same.  (Hadjiandoniou) 

Litigation: A HR advisor can help you in taking care of worker relations matters, for example, examining casual and formal dissensions document by representatives claiming that your organization has occupied with unjustifiable business hones. HR specialists may likewise exhort you on proactive measures to guarantee worker fulfilment with the goal that you alleviate future dangers of obligation concerning representative issues. (Mayhew)

Expertise: HR advisors need to keep up their ability to be profitable to their customers. Entrepreneurs who don't have a devoted HR office inside their organization's advantage from an HR specialist who can give direction on the everyday activities.

Outsourcing: Numerous HR advisors are knowledgeable about the advantages and disadvantages of outsourcing HR capacities. HR advisors may not play out the obligations of an outsource supplier, for example, preparing finance or taking care of advantages organization. HR advisor can enable you to choose whether to employ an outsource supplier or help you measure the advantages of one outsource supplier over another

Recommended HR Option of grievance

In a nutshell, the client is recommended that it would be better off retaining the services of experts via an external HR consulting firm at this time. External HR consultant firm will be a useful tool because the business is small in size that doesn’t fulfil the demand and resources for the full-size HR department. The key point to be noted from the above discussion is that the reason at this stage for entrepreneur would be delegating the disciplinary duties to some experts or external HR consultants because of the size of the business. For the better policy of HR, the recruitments along with the selection are the best to approach, which belongs with the Externals HR consultant’s benefits.

That's why we recommended the External HR policy because it involves the Recruitments. The HR policies along with its procedures continue its review on the behalf of maintaining as well as updating the HR departments during their organization. The functions of the HR departments are very basic on the behalf business along with employees. Fundamentally the HR department's indemnity completes labour which connected with problems. The recommendations for the HR better policy are that, to suppose the Strategic Vision for the Company, where the effective HR strategies cannot survive in a vacuum. Because the Vision will give an indication of where the Company heading along with the people resources wanted to help it. The activities of the HR are to support the vision of the company, which calculate the current vision of the company. A further recommendation of the HR policy is that suppose the Demographics' to determining the gaps which may exist among the presents Skills along with a skill and experience which may be needed in future. This strategy of HR will focus on filling the gaps by strategic recruitments.

References of grievance

BBC. Role and importance of human resources. 2004. <http://www.bbc.co.uk/bitesize/higher/business_management/human_resource_management/role_importance_human_resources/revision/1/>.

Bhagria, Amit. 7 June 2014. <https://www.linkedin.com/pulse/20140607175426-15882566-top-5-benefits-of-human-resource-management/>.

Hadjiandoniou, Marianna. 18 April 2016. <https://www.linkedin.com/pulse/benefits-using-human-resource-consultant-marianna-hadjiandoniou/>.

Mayhew, Ruth. n.d. <https://smallbusiness.chron.com/advantages-hiring-outside-hr-business-consultant-57805.html>.

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