Look out, Human Resources departments

The Wall Street Journal says there's anecdotal evidence that some companies are choosing to get rid of their Human Resources department. Employers are asking managers to pick up all that interpoersonal stuff, with computer software picking up the payroll and benefits paperwork.

"There's something seductive about the logic of it." says Nancy Koehn, historian at the Harvard Business school.

But she's not convinced it's a good idea. "There's a reason that early twenty-first century companies of any size end up having...a human resource department."

Koehn says it's vital to have someone to settle workplace disputes, manage pay, and to make sure the employees and the company are compliant with state and federal laws.

She also points to companies known for their happy workforce, like Southwest Airlines, Coca-Cola, who invest in huge amounts of human resource management: "It's no surprise -- but an engaged, satisfied, non-bickering workforce that's legally compliant is critically important to the ka-ching, ka-ching of winning in the marketplace."

About the author

Kai Ryssdal is the host and senior editor of Marketplace, the most widely heard program on business and the economy in the country.


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