Key Components of HR Organizational Structure

The modern organizations use similar HR Organizational Structure to some extent. The HRM Function has to deliver about the same amount of services to the organization and the evolution of the HR Organizational Structure showed the best model to operate in.

Why is efficient HR Organizational Structure so important?

The HR Organizational Structure must be fit with the imperatives defined by the need to keep costs, provide operational excellence and to help to further develop the potential of the human capital inside the organization. The HR Management Team must focus on enabling the power of the team co-operation and HRM Management Team must focus on the optimal processes and communication flows inside the team.

The HR Organizational Structure must allow to Human Resources employees and the rest of the organization:

  • smooth co-operation among the employees;
  • smooth communication among employees;
  • clear definition of roles and responsibilities among the team members;
  • clear and easy-to-understand definition of processes;
  • understandable structure for the managers in the organization;
  • potential for the future development of new initiatives and potential to improve the current HR Processes;

As you can see, the conditions to be met by the HR Organizational Structure are not easy to meet, The HR Organizational Structure was generally developing over a long period of time till it reached the current status.

The HRM functions started to be organized as the complete organizations – with its sales force unit, unit responsible for processing the known requests and units, which are responsible for product management and product development. This organizational structure seems very easy to implement, but to solve all the issues on the way of the implementation needs a lot of the power and effort.

The resulting HR Organizational Structure

The HR Organizational Structure is nowadays mainly divided into three main functional areas:

  • HR Front Office
  • HR Back Office
  • HR Centers of Excellence

HR Front Office function is responsible for being a single point of the contact for the rest of the organization. This concept is very hard to implement as the employees in HR Front Office must be able to find their position in HRM Department and they have to be recognized by the managers as a helpful source of information. The HR Front Office employees must be able to recognize the real needs of the internal clients and they have to be able to translate them into the requests for the HR Back Office and HR Centers of Excellence.

HR Back Office is responsible for efficient and errorless production of the services being offered by HRM to the external and internal clients. HR Back Office also makes sure that the activities of HRM are fully compliant with the legal environment.

HR Centers of Excellence are responsible for keeping processes, policies, products and initiatives updated, developed and fully competitive with the external world.