HR should administer payroll and benefits and deal with basic policies (like time-keeping, vacation, etc.) and otherwise stay the fuck out of the way. I worked in a functional HR dept. for a summer, it was maybe 10-12 people total for a 1000-person company.
I also work for a small company right now and can tell you that making all those policies and dealing with payroll and benefits is a total fucking drag. We have to deal with the DCAA though, because we have gov't contracts.
We heard you in our twilight caves, one hundred fathom deep below, for notes of joy can pierce the waves, that drown each sound of war and woe.
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