No human resource department, no problem.
As your small business or nonprofit grows beyond a party of one, the people that work with you will need holistic resources to complete their work efficiently and purposefully. These resources are managed in what is known as functional areas. Some subsets reside in more than one functional area but have a specific focus. For example, risk management can fall under each and may be highlighted in financial management differently than when it’s addressed in human resources management. The core functional areas of smaller businesses or nonprofit organizations are:
Human Resources Management - the process of managing an organization’s employees. HRM includes all aspects of people management to effectively meet an organization’s goals. (source)
Recruitment, Retention, Policy, Compensation, etc.
Financial Management - the business function that deals with investing the available financial resources in a way that greater business success and return-on-investment (ROI) are achieved. (source)
Financial Asset Control and Procurement, etc.
Operations Management - the administration of business practices to create the highest level of efficiency possible within an organization. (source)
Occupational Safety and Health, Logistics, and IT, etc.
Firms like Sabrina Narcisse Consulting have narrowed their service offerings to allow small businesses and nonprofits the opportunity to outsource these core functions to extend capacity and expertise. Society for Human Resource Management (SHRM) recommends hiring a dedicated HR team member when your company reaches 15 to 25 employees. Until that time your business can benefit from outsourcing human resources management services.
