STRATEGIC HUMAN

RESOURCE MANAGEMENT

The structure and function of the HR

department

Associate Professor dr. Valentina Mihaela GHINEA

 SWOT
analysis

GENERIC GENERIC
VISION MISSION OBJECTIVES STRATEGY STRATEGY
creation implementation

vision mission Strategic SWOT analysis Generic Generic

objective strategy strategy impact
s considered over the HR
Strengths How to emphasize
them?

Weaknesses How to treat them?

Opportunities How to take

advantage of them?

Threats How to avoid / treat

them?
 Generic Generic HR function HR HR strategy implementation
strategy strategy strategy
impact creation Action plan Action Duration
over the steps - &
how it will financial
HR
be done? impact

Personnel WHO will do?

Low-cost leadership
Generalist WHAT will do?
Differentiation
When will do?
Business partner
Customer
relationship
Call center
Network effect
Outsourcing

Centers of excellence

Self-service

Fact-based decision
making

e-HR

Performance culture
 Company’s size CO’s strategic
HR structure & function
priorities
Small, medium, large ↓ COSTS CHARACTERISTICS:
- Centralised
sC - ↓ IT
mC Complying with
Focus on = 1. Payrolls (total earnings):
regulatory
requirements Salary = sum of money received for the work
PERSONNEL performed during a certain period
A single person runs Contingent pay = additional financial reward
(related to performance, competence, contribution,
HR Perfecting basic skill, experience).
transactions - added to base pay (‘consolidated’)
- not added to base pay (‘variable pay’)
Many “rules” are Allowances and other Payments:
defined by the union - Location allowances
contract, if there is such - Subsistence allowances
a contract - Overtime payments
- Shift payments
- Stand-by and call-out allowances
2. Benefits:
- pensions,
- sick pay,
- insurance cover,
- company cars
- and a number of other ‘perks’ (not strictly
remuneration, such as annual holidays)
Possible related generic strategy :
Low-cost leadership
“+” transactional excellence
“-” MINIMAL strategic impact
 Company’s size CO’s strategic
HR structure & function
priorities
Medium to large Providing excellent CHARACTERISTICS
hands-on - Descentralised
mC
- No extensive use of IT
Geographically Localized HR services
dispersed delivered by generalists Focus on HR transactions =
managing the HR business unit’s
priorities, issues, constraints, etc
GENERALIST - More often, it implements &/or solve
headquarter the requirements/orders transmitted
from the headquarter
- In the best case, it also acts as an
advisor

Business Business
Unit 1 Business Unit 3
Unit 2

“+” excellent hands-on

HR HR
Generalist 1
“-” MEDIUM strategic impact
HR Generalist 3
Generalist 2
Company’s size CO’s strategic
HR structure & function
priorities
Medium to large Focusing more on CHARACTERISTICS
strategy and less on
mC 1. Senior mg staff
transactions
2. Strategic elements of HR =
Involving HR centralized
BUSINESS
practitioners more
PARTNER 3. Non-strategic activities => moderate
heavily in formulating
no. of generalists (when it is the case)
strategy
4. Relies significantly on external
consultants

HR manager = Medium use of IT

strategic adviser external
HR
(staff mg. + strategic HR consultants Focus on :
aspects) -Service
delivery
-Employee commitment

-Change management

Generalist Generalist
“+” / “-” MODERATE to HIGH
1 Generalist 3
strategic impact
2
 Company’s size CO’s strategic
HR structure & function
priorities
Small / large Focusing on core CHARACTERISTICS
corporations with competencies
outsourcing support 1. Outsourcing = for the HR
functions that do not provide
sC competitive advantage
OUTSOURCING
2. HR manager = focus on specific
areas within HR having a strategic
impact
outsourcing
HR manager HR –
=
strategic adviser non-strategic
(staff mg.) aspects
↓ IT (while the outsourced HR
service = extensive used of IT)

Generalist Generalist
1 Generalist 3
2
“+” / “-” MODERATE to HIGH
strategic impact
 Company’s size CO’s strategic
HR structure & function
priorities
Large / global Internal “consulting CHARACTERISTICS
corporations quality” helps to
solve advanced Hr 1. Many external HR consultants
problems CENTERS
2. Many internal groups of
OF
EXCELLENCE
consulting experts led by a
generalist (= senior HR manager or
vice president )
HR mg. (generalist )=
SENIOR Mg. or external HR
consultants
VICE PRESIDENT

↓ IT

Internal Internal
consulting Internal consulting
experts = consulting experts =
gr.1 experts = gr.3
gr.2 “+” / “-” strategic impact depends
on the quality of internal groups
 Company’s size CO’s strategic
HR structure & function
priorities
Large corporations CHARACTERISTICS
1. Call center = basic HR questions
reported directly to HR generalist
2. HR generalist
STRATEGIC
MANAGEMENT
CALL
CENTER
HR generalist

↑ IT
(telephone & knowledge-based
Service similar to a
systems)

call-center on
HR topics

Employees
“+” / “-” MINIMAL strategic impact
(in terms of quality and quantity
 Company’s size CO’s
strategic HR structure & function
priorities
Global business or Encouraging CHARACTERISTICS
an organization with managers & - It generally works together with the PERSONNEL
a strong IT staff employees to function
become more
self-sufficient

SELF-
STRATEGIC SERVICE
MANAGEMENT
↑ IT (extensive use)
= CO’s intranet used as a kind of call-center
HR generalist for transmitting and/or answering the basic
HR issues

INTRANET
for basic HR
aspects “+” / “-” MINIMAL strategic impact (in terms
of quality and quantity
 Company’s size CO’s strategic
HR structure & function
priorities
Medium / large Extensive use CHARACTERISTICS
technology – driven metrics & analytic -HR provides data on metrics
ORG. with tools to continuously
-Forecasting to anticipate the problems
enterprise – wide improve the way
software work is done -R&D teams develop new people

applications (potential match: management tools

1. continuous ↑ use of technology
mC improvement in FACT-BASED
opperating efficiency DECISION Possible related general strategy:
– kaizen / MAKING Seldom in Low-cost leadership;
reengineering Differentiation;
More frequently in Network effect
2. Exploatation of Focus on :
the experience curve) -Transactional leadership
-forecasting

-job description (appropriate recruitment

and selection)
-training on IT knowledge

-performance appraisal

“+” / “-” HIGH strategic impact

 Company’s size CO’s strategic
HR structure & function
priorities
Large / global Reducing CHARACTERISTICS
organizations paperwork
-1. e-HR = workforce planning +
Accelerating HR
- assess job candidates online +
processes - e-learning programs +
- generates management reports
Assigning HR 2. Line managers = assessment &
decisions to line e - HR compensations + retention + employees
managers
relations

↑ IT
Focus on :

“+” / “-” HIGH strategic impact

Company’s CO’s strategic
HR structure & function
size priorities
Highly Transforming the CHARACTERISTICS
competitive organizational
-HR = consulting function
environment culture so that
everyone is HR focused more on:
“no. 1” in focused on -Measuring productivity & results
performance &
employee -Recognizing productivity & results
productivity results
-Rewarding productivity & results
PERFORMANCE
CULTURE

↑ IT
Focus on :
- employees’ evaluation

- performance appraisal

- employees’ motivation

-High assertiveness

“+” / “-” HIGH strategic impact