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STRUCTURE OF HR FUNCTION, encompasses the people, processes and activities…
STRUCTURE OF HR FUNCTION
ROLES OF HR
HR’s focus will always be people: acquiring, developing, and retaining talent
STRATEGIC ROLES: aligned with the organization’s overall strategy and business partners’ needs to create a stronger and more strategically focused organization.
- Participation in creating the organization’s strategy
- Aligning the HR strategy with the organization’s strategy.
- Supporting other functions in their strategic roles
OPERATIONAL ROLE
recruiting & hiring, resolution of employment issue & communication
- interact with line managers, consulting on specific issues and providing advice on improving performance, productivity, and job satisfaction
- aligning with the organization’s strategic objectives:
- Knowledge management can help the organization capture and share the wisdom and experience of all its members
- Targeted talent acquisition and development focus on bringing the organization closer to its goals.
- Incentive systems can be designed to promote rather than discourage desired behavior
- Employee engagement programs target increased productivity and retention
- recruiting and hiring, resolution of employment issues, employee communication—attend to the day-to-day management of people
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HR'S INTERNAL STAKEHOLDERS
- processes and abilities can be used to help other functions achieve their strategic objectives and plans
- strengthen the organization’s strategic posture tư thế
HR and the Organization’s Core Functions
- most effective strategies are produced by cross-functional collaboration
- value the organization is trying to generate and the role each function plays in producing that value.
:check: HR is well positioned to serve as a cross-functional bridge
- Facilitate the high degree of cross-functional understanding and collaboration required to deliver results
- Use its mission to advise core functions on how to align with the organization’s strategy and the best ways to elevate organizational performance.
- Identify and support the need for additional resources or training
- Deliver necessary talent throughout the organization.
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EXECUTIVE MANAGEMENT
(C-suite) is ultimately responsible for all of the core business functions and their effect on the organization’s performance.
PRIMARY RESPONSIBILITIES
- Develop and communicate strategy
- Monitor and control implementation of strategic and operational activities
- Be the primary interface with the organization’s stakeholders
- Lead the organization in all interactions.
How HR interacts:
- HR leadership interacts directly with executive management
- contributes to the development of organizational strategy, advising on the human capital implications of strategic decisions
- advise on executive compensation and matters of governance and with other members of the C-suite as they manage the development and implementation of operations and strategic initiatives.
FINANCE & ACCOUTING
FINANCE ACTIVITIES focuses on how the organization uses its financial assets to operate in the short and long term
- Supporting operations and strategic initiatives through the creation and monitoring of operating and capital expenditure budgets
- Providing financial analysis used in strategic planning. For example, finance is involved in decisions regarding global expansion, technology investments, and structuring strategic alliances
- Managing the organization’s “treasury” through short- and long-term investments and borrowing
ACCOUNTING ACTIVITIES focuses on tracking financial transactions and reporting financial information to finance (to support its strategic planning and management decisions) and to external stakeholders (to support compliance and demonstrate governance)
- Tracking revenue and expenses through accounting
- Supporting governance by maintaining records of finances and arranging periodic audits
- Producing financial statements, such as the income or P&L statement.
- Complying with financial requirements and reporting information to government agencies (such as for taxes), regulatory bodies overseeing publicly traded companies, and investors/stockholders
HOW HR INTERACTS
- HR depends on finance and accounting for everything it does or would like to do
- HR works with finance and accounting to plan and monitor annual functional and special project budgets and to manage relationships with suppliers
- provide governance and ethics training to board members and employees, participate in risk prevention programs (such as screening job applicants, fraud *gian lận investigations), and support the conduct of *external and internal audits.
MARKETING & SALES
MARKETING is responsible for positioning (marketing) and selling products and services (sales) to customers = 4Ps (price, product, promotion, and place)
Marketing strategy
- PUSH: focuses on getting products/services in front of customers
- PULL: attracts customers to the product
SALES strategy and its workforce characteristics are heavily influenced by an industry’s customary distribution practices and the company’s marketing strategy
- B2C: business to consumers
- B2B: business to business
by direct (through own sales resources) or indirect (through distributor)
HOW HR SUPPORT:
- ensure that its activities are aligned with the org identity that marketing is creating and use this brand identity to attract future employees
- creating teams and team cultures that embody brand characteristics
- design compensation systems that motivate sales behavior and to provide skills and knowledge training.
R&D
- is responsible for future revenue
- exists in the public sector (national research institutes or centers associated with universities) focuses on performing theoretical research, promoting science and new technologies, performing public-interest scientific research, and developing sustainable technologies.
- conduct R&D in a centralized manner (for example, with a globalized strategy), or decentralized
- R&D spending is not directly related to levels of innovation and performance
HOW HR SUPPORT
- R&D thrives on cutting-edge tiên tiến employee skills and knowledge
- HR is a partner in sourcing good job candidates and creating attractive compensation packages
- HR’s efforts to create inclusive and diverse cultures are also important to R&D
- HR can protect the organization’s investment in R&D by ensuring that contracts protect intellectual property rights.
- HR can consult with R&D on designing processes that support a culture of collaboration and innovation through
OPERATIONS develops, produces, and delivers products and services to customers generating the revenue for the org
- is responsible for building the products and services that marketing and R&D define and that sales monetize kiếm tiền từ việc bán hàng
- “Products”: tangible (automobiles) to intangible (software) to services (consulting engagements).
- is often challenged by having a workforce of the right size at the right time and equipped with the right skills.
- is almost always concerned with efficient use of resources, but issues of quality, environmental impact, and worker health and safety are also important
- The logistics, planning, and coordination among global operations is frequently complex and sophisticated in global context
HOW HR SUPPORT
- HR’s ability to analyze historical data and predict and creatively manage gaps in resources = hiring as well as downsizing
- to implement union contracts and advises on managing grievances bất bình and discipline and performance issues in an organized work environment.
- helps prepare managers and supervisors for these responsibilities and performs many compliance activities
IT area manages the storage, access, exchange, and analysis of information across the enterprise through hardware and software systems
- IT often oversees networks used & hardware components
- supports data storage and processing needs throughout the organization.
- IT’s major task is to support integration of data from different organizational processes through an enterprise resource planning (ERP) system include different modules according to an organization’s needs
CHALLENGES
- IT systems grow overtime :red_cross: Achieving smooth integration is often difficult or impossible
- IT is charged with maintaining the security and reliability of the organization’s data—an ethical, legal, and business requirement
- IT must manage the information systems for efficiency as well as security
HOW HR WORK
- HR providing a pipeline of qualified employees
- HR can develop and communicate technology policies. In return, IT supports HR’s technology and consults on HR’s technology projects.
HR ORGANIZATION
HR TEAM MEMBER
LEADER have a strategic role
- bring SWOT to the organization’s strategy to other leaders and participate in the development of overall strategy
- develop and direct the strategy, priorities, and focus for their HR team
MANAGER
- are responsible for units within the HR function
- plan, direct, and coordinate the activities for their unit and provide input to the leader for HR strategy
SPECIALIST/ Functional experts
- have expertise in specific areas
- role is to apply best practices in their discipline to advance the HR strategy.
GENERALLIST/ HR practitioner
- are familiar with all of HR’s varied services
- work closely with their specialist coworkers
- may also be embedded within countries or business units
HRBP are more experienced generalists
- represent HR services directly to other business functions
- use a deeper understanding of the business (organization and the function) to find ways that HR can help functions achieve their goals
:check: can be key to demonstrating HR’s value throughout the organization
HR FUNCTION, SERVICE & STRUCTURAL MODELS
ensuring that the HR structure is aligned with the organization’s strategic plan
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FUNCTIONAL / DEDICATE
FUNCTIONAL: Headquarters HR is staffed with specialists who craft policies. HR generalists, who may be located within divisions or other locales, implement these policies, adapt them as needed, and interact with employees.
:green_cross: Facilitates consistency between headquarters policy and practices and implementation in business units.
:red_cross: Can isolate cô lập headquarters HR from business realities perceived by all staff and employees.
DEDICATED: Allows organizations with different strategies in multiple units to apply HR expertise to each unit’s specific strategic needs
:green_cross: Promotes strategic alignment between headquarters and units.
:red_cross: Isolation of dedicated HR units and loss of shared knowledge and experience; may lead to duplications and inefficiencies.
SHARE SERVICES: Each business unit can supplement its resources by selecting what it needs from a menu of shared HR services (usually transactional) that the units agree to share.
:green_cross:Offers expertise efficiently, reducing load of transactional activity in favor of value-creating activity.
:red_cross: Risks underuse of service centers when their existence is not widely known.
COE: Leverages tận dụng strategic expertise to foster growth and continuous improvement.
:green_cross: Takes advantage of digital communications to create networks of experts in the organization.
:red_cross:Similar to shared services, risks underuse when its existence is not widely known
BUSINESS PARTNERS: Generalists who usually report to managers outside of the HR structure but indirectly report to HR and work to consult and help link their business area to the proper areas of the HR department
:green_cross: Allows business partners to acquire a deeper understanding of the business and enables HR to better support organizational efforts
:red_cross: Can be difficult to define roles and responsibilities for business partners, who may become a scapegoat vật tế thần from employees in both areas for issues that occur.
MATRIX STRUCTURE: HR staff report directly to HR senior management but also report to other departments through the senior management positions.
:green_cross:Works well when pressures originate from multiple areas or when the work is complex (such as setting benefit policies equitably between employee groups in different locations).
:red_cross: Blurred reporting relationships, time constraints, and increased workload may result. Opportunity for conflict between senior management of HR and business areas.
GLOBAL RESOURCES: Refers to the ability to attain support and resources from around the world, often via outsourcing.
:green_cross: Helps HR consider all areas when making decisions by avoiding the tendency to consider only local issues.
:red_cross: Can increase the opportunities for miscommunication or failure to recognize particular cultural norms if not done carefully.
OUTSOURCING/ CO-SOURCING
OUTSOURCING: third-party vendor provides selected activities
:check: provide cost savings for an organization, but there is a loss of managerial control
CO-SOURCING: third party provides dedicated services to HR, often locating contractors within HR’s organization
:check: can be more expensive than outsourcing, but there is more managerial control over the contractor.
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encompasses the people, processes and activities involved in the delivery of HR-related services that create and drive organizational effectiveness.