Small is Beautiful:  What Does HR Really Do — And Why It’s More Important than Ever today - Part II

Shortage of skilled and trained manpower, low productivity & difficulty in attracting talent continue to be a “high intensity” in most enterprises in the manufacturing and service sectors. Why is skill shortage, low productivity, and difficulty in attracting and retaining talent a lingering challenge in the sector?

The answer is not very far to seek. The Talent Architect, the Specialist People & Culture, better known as the Human Resource Professional, is either deprioritised or missing in action. Focus and Investments are made in hiring business professionals who have a proven record of scaling the business.  Size and Stage of the Organisations are often cited as reasons for undervaluing the importance of the Human Resource function responsible for sustaining high performance/ productivity, attracting, retaining, developing and engaging Talent.

The Human Resources function, beyond leading Talent Acquisition, People Development, Total Rewards, and Performance Management strategies, processes, and execution as outlined in Part I, plays a pivotal role in organisations of all sizes and stages, bolstered by strong leadership support.

Part II

5. Culture & Values — Creating a Cohesive Identity

Your culture isn’t your office layout or a feel-good slogan on the wall or perks and posters. Its behaviour, norms, and decision-making — shaped intentionally. It is how people behave when no one’s watching.

HR plays a major role in:

• Defining company values and ensuring they show up in day-to-day actions.
• Creating & sustaining rituals, recognition systems, and communication frameworks that build trust.
• Addressing toxic patterns early before they erode morale.
• Helping leaders walk the talk — consistently.
• Code of Conduct: Establishing what's acceptable, encouraged, or unacceptable.

Why it matters: Culture isn’t fluff — it’s your operating system.

6. Employee Wellbeing — Supporting the Whole Human

You can’t separate performance from health. HR builds systems to prevent burnout, not just react to it. Burnout isn’t a badge of honour. HR champions healthier work environments by:

• Promoting boundaries, mental health days, and manageable workloads.
• Work-Life Balance Initiatives: Meeting-free days, mental health breaks, boundary-setting.
• Wellness Benefits: Gym memberships, therapy sessions, stress management webinars.
• Safe Spaces: Anonymous helplines, internal counsellors, Open Door Practices
• Check-ins: Regular emotional wellness check-ins via surveys or manager touchpoints.

Why it matters: Healthy people build healthy companies. Making employees feel safe, seen, and supported — mentally and physically.

7. People Governance - Protecting People and the Company

Whether it’s contracts, grievances, policies, or audits, regulatory compliances, industry standards, data privacy frameworks, global mandates regarding quality, child labour, environment, etc, people risk, HR acts as the governance champion. When HR does compliance right, no one notices. When it’s missing, lawsuits, audits, and reputational risk appear fast. HR takes care of:

• Creation, Review, Updating of Policies and Compliance with all Guidelines, Laws and Standards
• Rendering Documentation support, Monitoring & Reporting, Liaison, and timely advice
• Policy Communication & Implementation: POSH, Maternity, Leave, Retirements etc
• Disciplinary Process: Handling misconduct fairly, legally, and sensitively.
•  Sensitive People and Organisations concerned with confidentiality and courage.

Why it matters: A safe workplace isn’t optional — it’s a right. To create a workplace that’s not only productive, but protected.

8. Organisation Design — Scaling Systems with Structure to enhance efficiency & agility

   As companies grow, chaos creeps in, and roles blur. HR brings order through:

• Org Structuring: Functional, matrix, or hybrid — based on business goals.
• Role Clarity: Updating JD, accountability charts, and span of control.
• Internal Mobility: Smooth transitions between teams, functions, or geographies.
• Workflow Optimisation: Automating repetitive HR tasks via tech (ATS, HRMS, chatbots, etc.)

Why it matters: Without structure, growth collapses under its weight.

9. Voice of People: Capturing it, analysing it, and actioning it

Engagement Surveys, Satisfaction Polls, Pulse Checks, Stay Interviews, Town Halls, Culture audits, are part of the Tool Kit to deep dive and understand the changing aspirations of the employees especially today where business is driven by multi generations working together from a work place which has been redefined by the pandemic and its aftermath. HR ensures that: Participation in Periodic Surveys/ Polls / Interviews / All Hands is a “Must Do”. Results are analysed to the minute, reports on key metrics to assess impact and address gaps, Action is taken, follow-throughs are serious, and outcomes are demonstrable.

Why it matters: Building trust, transparency, psychological safety and an inclusive working environment where every voice gets heard.

10. HR Technology Optimiser: Drive HR Technology Adoption

To enhance process efficiency, user experience & business outcomes, today HR Professionals are “Go To” experts for technology platforms, providing deep functional and technical knowledge to internal stakeholders and external partners to streamline processes

What HR Does:

Supports end-to-end lifecycle for system changes, including requirement gathering, design, configuration, testing, training, deployment and post-implementation support. Works with vendors for platform upgrades, patch management and release cycles to evaluate and adopt new functionalities. Monitors SLAs, resolves escalations promptly, coordinates UAT with HR Teams and documents outcomes

Why it matters: Shifts the focus from HR transactional work to strategic work impacting business outcomes

11. Offboarding & Alumni Relations

Every career move isn’t permanent. Churn could be a healthy number.  HR ensures exits are handled with empathy & respect. HR ensures that:

• Exit Interviews are not a check box
• Notice Period Management: Transition checklists & knowledge transfer are concluded
• Final Settlement & Documents: are closed on time
• Alumni Programs: Staying connected for future roles or referrals.

Why Is HR Crucial Today?

Because companies don’t run on code, products, or capital alone.

They run on PEOPLE.

And HR?

• Finds them
• Grows them
• Protects them
• Inspires them
• Aligns them with the mission and metrics.

Organisations may choose to deprioritise it at their peril. HR has a seat on the table today; it owns the table.

If you have personal experiences to share that support this prescription or add to it, write to me at [email protected].

By Sunny Sharma, MHROD Class of 2023 | Edited and Researched by Triveni Mehta, Senior Human Resource Consultant