Adapting another HR structure over developing a tailored structure:
Creates reactive and misaligned HR functions.
Contributes to confusion, delays, and wasted effort.
Increases overhead expenses when the structure is too broad or complex.
A well-designed HR structure:
Defines HR roles and accountabilities, decreasing duplication of effort and confusion.
Increases overall HR effectiveness and improves delivery of services.
Allows HR to focus on value-added work that pushes organizational performance.
Module 1: Align HR Structure With Strategy
The Purpose
Review the current state and desired outcomes.
Key Benefits Achieved
Design principles
Activities:
Outputs:
1.1
Review organizational and talent strategies and identify implications for HR structure.
1.2
Review organizational structure and identify implications for HR structure.
Organizational and talent implications on the HR structure
1.3
Review current HR structure pain points and identify implications for new structure.
Current HR structure pain points
1.4
Create design principles.
Design principles
Module 2: Define Delivery Characteristics
The Purpose
Classify HR functional capabilities according to their priority level.
Decide whether each capability will be mostly centralized or decentralized.
Outline client-facing capabilities and their mode of delivery (i.e. face-to-face vs. technology-enabled).
Key Benefits Achieved
Client-facing and virtual capabilities
Activities:
Outputs:
2.1
Identify and define HR functional capabilities.
Heat map of HR functional capabilities
2.2
Determine importance and effectiveness of capabilities.
Identified the degree of centralization, and the sourcing strategy, for each capability
2.3
Identify delivery characteristics for capabilities.
Identified client-facing and virtual capabilities
Module 3: Create the New HR Structure
The Purpose
Categorize work units for each capability.
Assign accountabilities and create mandates for each work unit.
Key Benefits Achieved
Work unit accountabilities
Work unit mandates
Activities:
Outputs:
3.1
Categorize capabilities into work units.
Future state structure
3.2
Identify which work units will be accountable and responsible for each HR activity.
Capability-based R/A chart
3.3
Create mandates for each work unit.
Work unit mandates
Module 4: Define Roles and Finalize Work Units
The Purpose
Identify roles within each work unit.
Confirm the new HR structure’s alignment with the design principles.
Key Benefits Achieved
Roles for each work unit
HR structure
Activities:
Outputs:
4.1
Define roles for each work unit.
Future state roles defined (two levels below CHRO)
4.2
Finalize the new HR structure.
Finalized HR structure (two levels below CHRO)
4.3
Ensure the new HR structure aligns with the design principles.
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