What Parameters Determine the Best Organizational Model for HR?
I have worked in a number of organizations. The way the HR function and activities were organized was quite different.
1. CENTRALIZED. The most effective in terms of the number of HR positions was a centralized HR organization
2. DECENTRALIZED. The least effective was a decentralized HR organization.
3. SHARED SERVICE. I have also worked in a shared services organization, where the HR organization was considered as part of a larger corporate structure (i.e. corporate services), based on a model suggested by B. Quinn, R. Cooke, and A. Kris ( Shared Services - Mining for Corporate Gold, 2000), which centralized all HR services across all business lines.
4. OUTSOURCED. The fourth option was an outsourcing model, where HR services were contracted to another organization.
What organization models have you worked in and which was the most effective, efficient and economical? Are there factors that would favour (i.e. location, structure, culture, size, diversity, etc.) one model versus another? Why would you pick one model over another? Would you eliminate the HR Department? Thanks for your responses. Regards, David.
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