In the last decade, most HR functions have undergone transformation.
This generally implies redefi ning the goals and restructuring
the function. The goals of an HR function should be drawn
from the capabilities that the organization needs to succeed. If an
organization requires innovation, speed, or leadership as its capabilities,
these should be the goals of the HR function (often called
HR vision, mission, or purpose statement). When the function’s
goals and organization’s capabilities overlap, HR will be more able
to contribute to business success.
Restructuring HR has occurred with the delineation of the
transaction and transformation work of HR. HR transaction work
includes the administrative, compliance, and routine processes
necessary to support an organization. Many of these processes
may be more effi ciently accomplished through technology. By
separating the administrative from strategy work, the HR function
has mirrored changes in other staff groups (fi nance and accounting,
data centers and strategic formation systems, marketing, and
sales).
The structure of an HR department varies depending on the
structure of the business.9
Companies typically organize along a
grid of centralization/decentralization, which leads to three generic
ways in which a company operates (see Figure 8): functional
organization, holding company, or diversifi ed/allied organization.
The HR department should align with the structure of its business
operations