HR Services1

HR Services1

Friday, 15 February 2013

Step by Step guide to set up HR Department in an organization

Step by Step guide to set up HR Department in an organization

This blog is an endeavor to help HR professional, who have just started their career or moved to managerial profile recently and given responsibility of setting up HR department in an organization, which don’t have HR system in place. We will discuss each and every function of HR one by one so that you get the clarity on why a particular function is important and how to implement in your organization.

Broadly HR department can be seen as below mentioned segments and we will discuss each segment more in detail one by one:
  • ·         HR Operations, formally known as Personnel Department
  • ·         HRD (Human Resource Development)
  • ·         Automation/ MIS
  • ·         Business Partner


As you can see that I have already compared HR Operation segment with function of Personnel Department. HR Department early used to known as Personnel Department. Function of this department was primarily of support, which liaison with government department for statutory compliance, manage attendance and leave, take disciplinary actions, facilitate recruitment, training and more like a clerical job. I am referring it as HR Operation. It is basically a segment where you as HR Professional need to take care of hygiene factors of HR. If HR Operations are not in place then you can not move ahead to HRD. As my earlier boss said it correctly, “It is bread and butter for HR Department”. Hence we need to ensure that these hygiene factors are in place.

These Hygiene factors are as below:

HRD (Human Resource Development)

It is the part of Human Resource department which focuses on ensuring that the biggest asset of an organization which is Human is aligned to business. It addresses human related aspect like performance management, training etc.

Here are some of the areas which we will discuss going forward:
  • ·         Performance Management System
  • ·         Training Need Identification
  • ·         Training
  • ·         Employee Engagement


In today fast growing market, every function of organization is on fast track hence HR as function should also be armed with technology hence knowledge and power of automation should be known to you as HR professional. At the same time MIS (Management Information System) also helps you to take informed decision basis data points you gather through various reports.


You as HR professional need to learn, how to be a business partner than a support function. What does a CEO expect from you? How you can contribute to growth of organization? Etc
You need to learn those deliverable which make you integral part of organization and its success story.

We will now take each topic one by one and see how we as HR should implement to setup our HR department which serves its purpose in organization.

If you are really serious about learning HR and want to grow then visit our web page LEARN HR THROUGH PRACTICAL IMPLEMENTATION

Visit HR Forum for your other queries :


Jasdeep Singh said...

Very informative...

bhupi said...

I guess this will help novice as well as the professional people as well.

Swetha said...

informative for a beginner..

Anonymous said...

helpful information

Govind Negi said...


Govind Negi said...

Thanks Jasdeep

Govind Negi said...

Thanks Bhupender

Prasad said...

This is useful to just pass-out's

Govind Negi said...

Dear Prasad,
You are correct. This post of mine is for HR professionals who have just started their career or new to process of setting up HR Department.

Anonymous said...

Hello Negi ji

Hope Doing Good

I am a new comer in HR nearly one year experience as HR Generalist.So I need some books and cites which grow my knowledge such as PF,ESIC,BONUS,VRS,Factory Law,Gratuity,Leave System all Related HR.

So Plz get me noted name of books and publisher.

Thanks & Regards
Jagdish Rawat

Govind Negi said...

Dear Jagdish,

Good to know that you are in process of building your career. I regularly refer two website for updated HR related information: and

Also as per books related to labour law is concerned, i would strongly recommend a book which i bought few days back. I am not able to remember the name right now, it was like "Labour law one should know". i will reconfirm. For regular updates on labour law related you can subscribe to "Labour Law reporter"

Anonymous said...

Hi! Negi Ji

Your job is fabolouse and thanks for information.

Govind Negi said...

Dear Friend,

Thanks a lot for your appreciation.

Anonymous said...

Hello Negi Ji,

I ve started my career 3 yrs back in HR. As I am in a construction company MNC, you can easyly imagine how much knowledge I ve gained in these 3 yrs. I am not able to learn new things here, as my boss himself hold all the things & not giving any chance to do at my own. In his opinion as I am new there are more chance of doing mistakes. I ve some knowledge but i do not have any confident abt my work because of less work experience. But I want to do some work to gain my knowledge, which is not seems possible here. I need your suggestion how can i gain some knowledge and switch my career to some other company. Waiting for ur valuable reply.............

Govind Negi said...

Dear Friend,

First suggestion for your manager is that "Knowledge increase by sharing", a manager is consider good if he has ability to create future managers.

Now coming to you query regarding how do you learn. For learning new things in HR, you should keep visiting website which has HR discussion forum, share your thoughts and get opinion of other HR professional. This way you will come to know whether your thought process is correct or not. Also read some good books on HR including statutory compliance. Hope my blog will also help you in future to learn new things.

Anonymous said...

Thanx for your reply sir. I am already a contributing member in CiteHR in the name of Santosh_Nayak and also in Can I suggest some books to improve my knowledge in HR. I find your blog from CiteHR itself and find very impressive.

One thing i want to mention here that I am now 30, & I ve started my career from 27 due to some family issues. I am in a grt depression that in this age how can I stabble my career.

Govind Negi said...

Dear Friend,

There is no age limit to kick start things especially career. So dont be sad about it. In case you need any help regarding HR processes etc please let me know. I will be more than happy.

Santosh Nayak said...

Thanx for your intrest to help me sir. Can we have a telecon.

Govind Negi said...

Send me email at

akanksha saini said...

Dear Mr. Negi, i appreciate your all your blogs.. I recently started reading it n must say, Its worth reading and informative

Govind Negi said...

Dear Akanksha,

Thanks for your appreciation and good to know that it is helping you in some way.

Anonymous said...

Thanks for your informatics blog Mr. Negi.


Govind Negi said...

Thanks Mr Gupta for your encouragement.

Rashmirajsingh Gahilot said...

Dear Negi Sir,

Its really very helpful for the beginner like me.
Hearty Thanks and Blessings to you for sharing your valuable knowledge with all...
m a new member of ur excellent become excellent by learning
under the guidance of Experts like you..

Regards :
Rashmirajsingh :-)

Govind Negi said...

Dear Gahilot,

Thanks and keep visiting us.

Anonymous said...

very Informative.....!!!
pleased to know, if you can share some information on superannuation process or nay policy material on it.


Pushkar Bisht

Govind Negi said...

Dear Pushkar,


I will surely try to write something about superannuation process in my upcoming posts. Keep in touch.

Anonymous said...

Definitely i will...!!

Ur Blogs r very informative. Specially, very helpful for new entrant in this Profession.


Pushkar Bisht

Govind Negi said...

Thanks Pushkar. Provide me your email id and in case you have gmail, please share that also.

Anonymous said...

Anonymous said...

Dear Negi ji,

Can I get your contact no, please send on email id.

Govind Negi said...

Dear Friend

My email id is You can send your queries and concern there.

Anonymous said...

I have gone through y each and every article till date. The articles gives in depth knowledge of each concept tapping all the dimensions. I am a tyro pursuing PGDM in HR .And I surely know this will be of great help and also will be edge over others topics discussed provide us information which are not generally discussed in the class.Would like to follow more articles also would be looking forward for suggestions.

Shubhi Bhalla

Govind Negi said...

I have sent request to add on gmail. Accept whenever you get it.

Govind Negi said...

Dear Shubhi,

Thanks a lot for your encouragement and good to know that my post are adding values to students also.

I would suggest you to post your further queries on HR SUCCESS TALK Forum which is

You will keep getting response from different HR Professionals on your small or big queries.

varsha ramnani said...

it helped me alot thanx for sharing it:)

Govind Negi said...

Dear Varsha,

Pleasure is mine

Anonymous said...

I work as the HR Manager in Malaysia with the German based company, which HQ of course in German. I need few bullets for the reason why I need to visit the HQ.

Manish Kamble said...

Dear Mr. Negi,

Thanks for your all blogs, it is very informative.

I am working in Aviation industries, we are the ground handling agencies. take care of all ground handling services in the 4 airport in India. We have 90% labour class workers. we are planning to have motivational activities at all locations.
Please advice as we want to start this from Jan 2014.
Manish Kamble

Govind Negi said...

Dear Manish,

Request you to be more specific. I would like to understand what is the objective. Is it some fun games, training, engagement towards organization etc. Also if you have any budget in mind.

Also it will be good if you post your query on our forum so that other members can also share their views.

Link of forum:

Vivek Rajan said...

Dear Mr. Negi,

This blog has been very helpful to me as I am a fresher MBA establishing the HR Department in my company of 80 employees down south in Tamil Nadu.
Thankyou so very much for the effort put in by you.

Could you please also give your valuable inputs on
ESI,Gratuity,Bonus etc which you have left out?
And maybe later on the rest of the hygiene factors?
It will be really useful to me Sir.

Govind Negi said...

Dear Vivek,

Thanks for your appreciation. Please note that, you can find so many posts on PF, Gratuity and Bonus or other labour law related matters. On the right side, of this page you can see "Category wise Blog", Click on labour law and explore.

Sarita Pareek said...

Dear Sir,
Whenever a HR makes a policy whether its office timing, leave policy etc. employees become unhappy with the HR. They don't show their anger openly but their behavior shows that. Many times HR try to explain them bt they don't understand. What will you suggest how the HR should deal with this?

Sarita Pareek said...

Please reply.

Govind Negi said...

Dear Sarita,

Policies should be in line with local labour laws. Example, if as per state leave act, you need to give 20 leaves in a year then you can not make policy for lesser. Employee do understand else you can refer law. Majority of employees do understand and agree with a fair policy, if some do not then they should be informed about it and logic should be given behind it.

shreyasi said...

this blog is really nice and very informative..Thanx for sharing.. :)

Govind Negi said...

Thanks Shreyasi

Amr said...

this is a very informative blog . i'm in the same situation now where i have offered a job to establish an HR department for a small company .

my plan will be after understanding the business very well is to start to write an HR policy to organize all the HR operation activities before moving to the HRD part .

Govind Negi said...

Dear Amr,

I would suggest that you should write your query on our HR Forum

Also there are many other blog posts in this blog which can help you to get your answers.

Karen Glover said...

Thank you for the information, this is very informative and it will help me with my team paper; I will cite this information. Thanks again

Govind Negi said...

Dear Karan,

Thanks for your appreciation.

Rocky M said...

Human resource help the organization to build capabilities, talent acquisition, leadership development. Human resource help to keep company environment healthy and joyful. many companies outsource hr activities to hr consulting firm.

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