What are the advantages of this structure?
The main advantages of the new HR structure are increased efficiency and cost savings through centralization. By dividing the HR department into separate functional units, it allows Corporate HR to work closely with senior management and align the HR strategy with the overall business strategy. In addition, the new model allows the organization greater flexibility when the needs of the business changes direction or focus. The units would be well equipped to handle the immediate and rapid changes needed for the business to thrive. For example, if the company decides that it wants to invest in new systems that will increase overall productivity, this would require a massive retraining of its workforce. This can be addressed directly through the Solutions Inc. training arm of the organization. Likewise, if, a new benefits program was to be introduced, Services Inc. would be able to quickly retool their infrastructure to accommodate the new program. The Organizational Capability Consultants division will give the HR department a higher profile overall. By having a constant HR presence throughout the organization, it will provide another perspective to corporate, as well as allow employees better access to services provided by HR. Utilizing newer technology such as interactive employee websites and dedicated service lines will answer employee questions quickly, effectively and efficiently, all at a lower cost in the long-term.
Would managers and employees of an organization prefer this model to the traditional functional structure?
I believe that managers and employees would prefer the new structure by having dedicated resources to address their specific questions and concerns. This enables HR units to focus their efforts solely on the needs of the employee. In a number of organizations, I feel that a number of employees do not realize the service that HR professionals can provide to them. The...