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.
What should the team do to gain acceptance for its proposals?
A . The team should organize a meeting with the head of the SBUs to determine the appropriate HR structure to adopt for the entire organization.
B . The team should rely on the sponsorship of the organization to intimate the stakeholders on the necessity of the change.
C . The team should utilize an employee opinion survey and focus groups to determine the level of resistance to the change.
D . The team should utilize a business case detailing its recommendations as a presentation to the
leadership team.
Answer: D
Explanation:
A business case provides justification for undertaking a program. It evaluates the benefit, cost, timelines, risks of alternative options and provides a rationale for the preferred solution. A business case is the best tool for communicating recommendations to executive leadership (who are the core decision makers), as it provides a well-rounded, business-based guide to share the recommendations. Note that it is senior leadership’s buy-in that is most critical to obtain.
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