How should the team start the process of determining the appropriate HR servicing model?

A hybrid multinational consumer goods corporation operates 8 strategic business units which are fully-functional units with their own vision, direction, product/service, location, and target market under the umbrella of the larger business entity. The corporation has a corporate HR department while the SBUs each have autonomous HR departments that are largely independent from corporate HR. The Head of HR of each SBUs has significant authority to operate in a polycentric fashion and only interact with the Head of Corporate HR on a quarterly basis.

Due to a significant reduction in revenue during the pandemic, the organization has made a decision to streamline its HR structure by adopting a more centralized HR structure that can provide HR services to corporate and the SBUs. The proposed centralization of the HR function is expected to result in cost reduction, consistency in HR operations, and increased HR proficiency.

Corporate HR has created a team comprising of HR managers, HR business partners and HR admin personnel to originate and implement the new HR services model. Anna is a HR manager from a strategic business unit in California that has been drafted to join the team. Anna has 8 years of cognate HR experience working with various SBUs in the organization. Anna is the only team member who has worked with an SBU, the rest of the team have only corporate HR experience. The team has been working for over 3 weeks reviewing the feasibility, advantages and disadvantages of several HR structures, with most team members favoring a shared services and center of excellence model.

How should the team start the process of determining the appropriate HR servicing model?
A . Through the use of business cases, surveys, focus groups and cross-functional team reviews to determine the structure that is most cost-effective and efficient for the company
B . By benchmarking, researching and implementing trends and best practices of other organizations
C . By determining a structure that will align with the company’s strategic plan and objectives
D . By talking with employees to gain insight about what outcomes they are looking for in HR services

View Answer

Answer: C

Explanation:

HR’s function is to serve the strategy of the overall organization. The company’s strategic plan should guide all HR processes, procedures and decisions, including the HR structure model as HR exists to enable the success of the business strategy of the entire organization. Note that cost-effectiveness may not translate into the appropriate model for business success. The best practice of other organizations may not be ideal for this organization. Employee involvement at this stage is premature.