The setting of HR department The HR department is generally a formal unit within a firm that develops and implements policies, programmes and procedures for the acquisition and development of the firm’s human capital, consistent with the needs of the firm’sprimary stakeholders. Whether to set up a dedicated HR department is mainly subjected to the numbers of employees, and also influenced by ownership and performance of company. It was found out that 88.24% of the responding firms have set up specialized HR department or personnel department. Statistical tests show that significant difference (P = 0.001 < 0.01) exists between large, medium and small firms in terms of this part. 100% of large and medium-sized companies have independent HR departments while 76.47% small firms do not.