When an organization is using a centralized business model, some leaders implement the shared services HR model (top right in Figure 1). For instance, one insurance company was a centralized business with a single business unit and a strong, centralized operating model. The HR department tried for years to implement a shared services HR department, but it did not work. In small or single business companies, HR should be centralized. In other cases, a business (e.g., Tata, Virgin) may operate as a holding company, and HR should be organized independently within each business. See Figure 2 to capture the alignment between the business organization and the HR department.
When an organization is using a centralized business model, some leaders implement the shared services HR model (top right in Figure 1). For instance, one insurance company was a centralized business with a single business unit and a strong, centralized operating model. The HR department tried for years to implement a shared services HR department, but it did not work. In small or single business companies, HR should be centralized. In other cases, a business (e.g., Tata, Virgin) may operate as a holding company, and HR should be organized independently within each business. See Figure 2 to capture the alignment between the business organization and the HR department.
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