The Importance of HR Department in Organizations: A Critical Analysis

Group Presentation

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
INTRODUCTION
HR department is the task which maximizes the employees productivity and protecting
the company issues. This essay is about the founder of CEO who doesn't believe that HR

departments make the employees happier or productive. This is the reason why Octopus Energy
does not have such HR department. In this project the individual perception of HR is shown as a
transactional bureaucratic and old-fashioned business function. It has been shown in some
modern organization which are cutting edge and agile in their operations have been able to
successful in without an HR department. Greg Jackson once quoted that “drown creative people
in process and bureaucracy”, meaning that for an organization to be successful it is important for
them to hire creative people which will develop their operations and process. This is the reason
why Greg believes that Human Resource department are not the ones which are responsible for
uplifting the organization despite having specialization in hiring of employees. In this essay the
importance of HR in adding the value to the employees of the organization will also be
discussed. This critical analysation of the importance of HR department will utilize
organizational examples for showing the relevancy to the theoretical concepts which will be
discussed the HR department.
MAIN BODY
Greg Jackson the CEO of Octopus Energy explained how he does not believe that the HR
departments are capable in making the employees happier or more productive for the company.
This claim was a very bold one as it is very common phenomenon to have an HR department in
an organization. However, there are reason why certain company would prefer not to have
services of HR. These companies are generally too small or are the one which have made a
choice of not outsourcing these services of HR. For example a company like Octopus which
despite hiring HR team focuses on having a more centralized function (CEO Secrets: 'My billion
pound company has no HR department', 2021). Most of the HR tasks are then dealt with by the
managers which are responsible for their own team. It is a very effective way as the managers are
able to make selective hiring of employees which means creativity and highly productive
employees. This approach increases the work pressure on the managers as they have learned
from the practices of HR department.
Jackson also admits that this method of not having a proper HR department for managing
the people in the organization is a system which will not work because it is considered to be very
reasonable in sizing the organization towards eschewing the traditional HR structure. Greg
believes that in Octopus they give their management exercises which provide experiences in
relation to the management of the peers (Brannon, Higginbotham and Henderson, 2017). It can