Adjusting to HR restructuring trends—who performs the human resource management tasks? The
traditional human resource manager continues to be in place in most organizations, but some organizations
are also using shared service centers, outsourcing, and line managers to assist in the delivery of human
resources to better accomplish organizational objectives. Additionally, the size of some HR departments is
getting smaller because certain functions are now being accomplished by others. This shift permits the HR
managers to focus on more strategic and mission-oriented activities.
i. The Human Resource Manager--An individual who normally acts in an
advisory or staff capacity, working with other managers to help them deal with
human resource matters. One general trend is that HR personnel are servicing an
increasing number of employees. The human resource manager is primarily
responsible for coordinating the management of human resources to help the
organization achieve its goals. There is a shared responsibility between line
managers and human resource professionals.
ii. Shared Service Centers—Take routine, transaction-based activities that are
dispersed throughout the organization and consolidate them in one place.
iii. Outsourcing Firms—The process of transferring responsibility for an area of
service and its objectives to an external provider. The main reason for this
movement was to reduce transaction time, but other benefits include cost
reductions and quality improvements. Companies found that administrative,
repetitive tasks are often performed in a more cost-effective manner by external
sources.
iv. Line Managers—Line managers, by the nature of their jobs, are involved with
human resources. Line managers in certain firms are being used more to deliver
HR services. When implemented, this change reduces the size of the HR
department.
v. Decentralization: In the traditional organizational structure, most major
decisions are made at the top and implemented at lower levels. It is not
uncommon for these organizations to centralize major functions, such as human
resources, marketing, and production, in a single location (typically corporate
headquarters) that serves as the firm's command center. Multiple layers of
management are generally used to execute orders issued at the top and to control
the lower ranks from above. Employees who are committed to the firm tend to
move up the ranks over time in what some have called the internal labor market.
However, the traditional top-down form of organization is quickly becoming
obsolete, both because it is costly to operate and because it is too inflexible to
compete effectively. It is being replaced by decentralization, which transfers
responsibility and decision-making authority from a central office to people and
locations closer to the situation that demands attention. HR strategies can play a
crucial role in enhancing organizational flexibility by improving decision-making
processes within the firm. The need for maintaining or creating organizational
flexibility in HR strategies is addressed in several chapters of this book, including
those dealing with work flows, compensation and training.
vi. Downsizing – Periodic reductions in a company's work force to improve its
bottom line-often called downsizing-are becoming standard business practice,
even among firms that were once legendary for their "no layoff' policies, such as
AT&T, IBM, Kodak, and Xerox. In addition to fostering a lack of emotional
commitment, transient employment relationships create a new set of challenges for firms and people competing in the labor market, as well as for government
agencies that must deal with the social problems associated with employment
insecurity (including loss of health insurance and mental illness). However, the
good news for laid-off employees is that the poor-performance stigma traditionally
attached to being fired or laid off is fading.