brian has recently been appointed as hr manager at the city of southbr

Brian has recently been appointed as HR manager at the city of Southbridge, a large metropolitan local government authority. The previous human resource manager, Howard retired recently after 30 years service with the City. He had been HR manager for 18 of those years. The organization employs more than 700 people in a range of professional, communal service, and blue collar roles.
As incoming HR manager, Brian set himself the task of reviewing the HR department to understand how things were done and what the major issues were. He made a point of speaking one-on-one with each of the departments 21 people. He also reviewed the various reports and other operational documents that were on the file, and spoke to all of the senior managers from other departments. After two weeks of research, Brian felt that he had a pretty good idea of the kind of HR department he had taken over, and most of it worried him.
First, it was evident that HR was practiced in a traditional way, with an emphasis on transactional functions and administration. The structure was functionally based, with recruitment and payroll being the largest sections. When Brian spoke to the senior managers about how they saw HR, the consensus was that, under Howards leadership, HR was seen as support function. As one manager said, We really just want to get paid correctly every fortnight and get job vacancies advertised when we need tothats really all we expect from HR. When Brian asked whether Howard had been involved in the strategic planning, most people just laughed. Howard was a nice guy and an effective administrator, one manager said, but there wasnt strategic bone in his body.
Brians interviews with the HR staff revealed that none of them had any relevant HR qualifications or were members of an appropriate professional association. They came from a range of administrative backgrounds, and in most cases, had been initially recruited to HR in low-level support jobs. Those who were now in more senior roles had worked their way up over the years. Few had done any professional development in past years, apart from computers applications and systems trainings. Brian could find no evidence of any strategic work being done by HR, and there seemed a little understanding of strategy among existing HR staff. Brain also noted that, despite the fact that there was a decent HR information system in place, there was a distinct lack of workforce data other than very basic information like numbers of employees and payroll costs.
The CEO expressed similar views to those of the other senior managers in terms of expectations of HR, but added that he also expected HR to keep us out of trouble in relation to employment matters. He also expressed some concern at the size and the cost of HR department, and wondered whether it was running as effectively as it might. Brian indicated that he believed that there was scope for significant reform of the HR function to make it more strategic. The CEO indicated that he was open to making changes and asked Brian to prepare a detailed proposal for his consideration.
Question 1: After reading the case, critically analyze the value of human resource in modern organizations from an investment perspective. Do contemporary organizations really consider their employees to be assets or is it just rhetorical?

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