Yes, you can make an employee a Head of Department in the Organization Structure for a specific department. They will then have access rights similar to a Supervisor but for a larger audience than a Supervisor.
The difference will be that Supervisor can have authority over the employees directly report to him but the HOD can have authority over all employees in the department, regardless of direct reporting to the HOD.
Once an employee is assigned as a Head Of Department, they can have access to the employee records of the department he/she has been allowed to and manage. He also can perform certain actions like approve leave requests, timesheets, etc for employees within his/her department.