In my experience - not saying either is right or wrong. Doomed for failure. Once things go wrong and they always go wrong he won't have a fair process to fall back on. This is a small business mentality scaled up in to a big business and it will very likely fail. You need great HR people to manage onboarding, staff development and training programmes, performance management and help the company grow/perform for the benefit of all (ideally) or you have have loose cannons running around making it up as they go along. It does not make much sense why all big companies have absolutely similar departments. There are successful startups and technology companies which operate in a very lean way without nonsensical departments and work. If you are a technology company and hire only technologists, you are spending all your resources in people who can develop your products/services.
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