HR Structures

Question 1

HR Structures - Centralized

Answer 1

• HR staff is part of a centrally located department and provides services to the whole organization
• In larger companies, there is a corporate HR department that creates policies and makes all strategic HR decisions that are then executed by the HR department
• Benefits: operational efficiencies and standardization
• Drawbacks: inflexible communication and slower response times

Question 2

HR Structures - Decentralized

Answer 2

• Each area has HR staff that executes corporate HR strategy and policies
• Benefits: improved responsiveness and efficient and timely communication
• Drawbacks: inconsistent policies or policy application

Question 3

HR Structures - Functional

Answer 3

• Corporate HR staffed with specialists who craft policies related to their particular HR discipline
• HR generalists assigned to business units who implement corporate policies

Question 4

HR Structures - Dedicated

Answer 4

• Corporate HR structure, complete with specialists and generalists
• Embedded HR and business unis develop local HR policies and practices
• Benefits: ideal in organizations where business units have different strategies; allows the company to adapt corporate policies and apply HR expertise to the strategic needs of the specific business unit

Question 5

HR Structures - Shared Services

Answer 5

• Center of excellence
• Business units utilize a central HR location staffed with specialists to execute certain routine, transactional activities, such as payroll or benefits administration
• Benefits: Reduction in time spent on routine administrative tasks, reduced administrative costs and consistent and more accurate employee data tracking

Question 6

HR Team Roles - Leadership

Answer 6

• Common titles include CHRO, VP of HR and HR Director
• A part of the senior leadership team reporting to a CEO or COO
• Lead strategic people initiatives

Question 7

HR Team Roles - HR Business Partners

Answer 7

• Internal HR consultants
• Represent HR services to assigned business functions and business functional leaders
• Possess a deep understanding of business operations and business strategy
• Key to demonstrating HR’s value through the company

Question 8

HR Team Roles - HR Managers

Answer 8

• Plan, direct and coordinate activities for an HR function: employee relations, talent acquisition and organizational development
• Provide input to HR leaders on strategy

Question 9

HR Team Roles - Specialists

Answer 9

• Functional experts (compensation and benefits design, talent management, workforce relations, etc.)
• Apply best practices to improve HR strategy in their areas

Question 10

HR Team Roles - Generalists

Answer 10

• HR practitioners
• Familiar with and proficient in all HR areas
• Expertise in one or more HR areas