We support the view that there is not one model for delivering HR that is suited to all organisations. How an organisation should structure its HR function depends on its organisational strategy, wider organisational structure and the requirements of its customers and the organisation it is supporting. These things can be influenced by other factors such as size and maturity of the organisation. Potentially there are some principles that can be applied in all organisations.
Decisions about how to structure the function should be taken using a rigorous approach to organisational design, starting by looking at the organisation holistically rather than straight at the HR function.
You should ask the following questions:
- Does your organisation have a clear organisation strategy?
- Is your organisation structured to deliver this strategy?
- Do you have a clear HR strategy that is aligned with your organisation’s strategy?
- Does your HR structure replicate your business structure?
- Is your HR structure set up to deliver your HR strategy?
- Do you understand the capabilities your organisation needs to deliver upon its strategy?
- Will the decisions above withstand change?
You should also consider:
- Who are your clients and what do they need?
- What capabilities do you need within HR and how might these be organised into roles? How can these capabilities be developed?
- How will the different roles work together?
- How can you use technology to improve processes and your client experience?
- To what extent might you want to outsource some of your HR activities?
- What role will your line managers be playing and do they have the required capabilities?
- How will you evaluate and measure HR’s performance?