The drive to look at how HR is organised has in many cases been positive but it has often been a defensive reaction to
pressures both from within organisations and from external criticism*. Such a defensive reaction rarely produces an effective
response as it tends to focus on cost and efficiency rather than looking at overall effectiveness, especially how HR needs to be
organised to meet the changing needs of the businessand the environment in which it operates. Drivers for change:
•Dissatisfaction in many organisations with HR’s contribution to the restructurings and mergers in the early 2000’s.
•Increasing disillusion with HR’s contribution beyondfollowing the latest management fad. This disillusion has led to calls to
reduce the cost of HR and to see harder measures ofoutcomes, whilst increasing HR’s flexibility and business focus.
•The move in many businesses to outsource non core activities including HR whilst providing a stronger business contribution
by enhancing HR’s contribution to strategic businessinitiatives.
•The change in organisational models themselves that are trying to balance the need for centrally driven efficiencies with
locally driven responsiveness. This highlights thechallenge of providing strong functional expertise with the need to align with
different business needs.
•A shift in the role of HR from being employee focused to an organisational and management focus.
•The adoption of ERP systems accelerated by legacy fears in the run-up to Y2K and the use of these systems to improve and
systematise administrative and HR processes so they become more efficient and consistent whilst linkingseamlessly to the
front office.
As one commentator said: “The human resources function within companies todayneeds to look at itself much more as a
business, because that is how executives are looking at it and expecting it to operate.”