The person or units who perform the HRM tasks have changed dramatically in recent years. This restructuring has often resulted in a shift in who carries out each function, not an elimination of the previously identified HR functions. Some organizations continue to perform the majority of HR functions within the firm. However, as internal operations are reexamined, questions are raised, such as: Can some HR tasks be performed more efficiently by line managers or outside vendors? Can some HR tasks be centralized or eliminated altogether? One apparent fact is that all functions within today’s organizations are being scrutinized for cost cutting, including HR. All units must operate under a lean budget in this competitive global environment and HR is no exception.
As a shift is made from Human Resource Manager (an individual who normally acts in an advisory or staff capacity, working with other managers regarding human resource matters), in allocating who will perform the human resource function, many HR departments continue to get smaller because others are now accomplishing certain functions. Shared service centers (a center that takes routine, transaction-based activities dispersed throughout the organization and consolidates them in one place.), outsourcing (process of transferring responsibility for an area of service and its objectives to an external provider), and line managers (individuals directly involved in accomplishing the primary purpose of the organization) nowadays assist in the accomplishment of human resource activities. This shift permits HR to shed its administrative image and focus on more strategic and mission-oriented activities.