Why don't HRs get to make the decision related to compensation?

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We have seen many times that HR is not taking direct decisions on any compensation and salary increment without consulting with operations and the owner of the venture. Are they not capable or something else?

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Paramjit Sodhi
Paramjit Sodhi 15 days ago

Since HR is not the sole decision taking authority the involvement of the function/department to which the employee belongs is required. The Head of that function/department is in a better position to assess the performance and other related factors in respect of the particular employee as well as in relation to the other employees in that department. In any good organisation there are well laid down PMS policies where salary increases can be decided using PMS as a tool.

Please note that this in any way does not reflect on the capabilities or competencies of HR personnel.


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