I think that old departments (personnel departments) should have been just modernized in reality. To be frank, in some cases a mix of HR/Legal department is cost saving too.
What it really comes to is that a lot of people love to micromanage everything. If you hire someone that has integrity and educational background in subject, he/she will warn you if the decision you are making will have consequences in the long run. If you have someone that does not have relevant education, that simply does not happen. The managers micromanage, those people receive salaries and if they step out of the line even when they are right, they are reminded that they do not have relevant knowledge in said department (law/economy). This in turn leads to a lot of people gaining something called shallow experience which then in turns leads those people to hire someone that des not pose the risk to their position further down the line.
The problem being in this case is that there are a lot of misses that happen when the HR is organized like that; from illegal hirings, not knowing key economic factors, not having a clue about the business itself, no clue about laws and procedures and so on. Which in turn does not really protect the company because the company loses both the money and employees.
What it really comes to is that a lot of people love to micromanage everything. If you hire someone that has integrity and educational background in subject, he/she will warn you if the decision you are making will have consequences in the long run. If you have someone that does not have relevant education, that simply does not happen. The managers micromanage, those people receive salaries and if they step out of the line even when they are right, they are reminded that they do not have relevant knowledge in said department (law/economy). This in turn leads to a lot of people gaining something called shallow experience which then in turns leads those people to hire someone that des not pose the risk to their position further down the line.
The problem being in this case is that there are a lot of misses that happen when the HR is organized like that; from illegal hirings, not knowing key economic factors, not having a clue about the business itself, no clue about laws and procedures and so on. Which in turn does not really protect the company because the company loses both the money and employees.