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Designing The HR Department Through Decentralized System


A perfect HR structure will always much the business structure. There are four approaches to designing the HR Designing The HR Department Through Decentralized Systemdepartment as discussed by Ulrich and Grochowski (2012:137-138) which include the centralized HR, decentralized HR, matrix HR and outsourced HR. A Centralized HR department is where all the available department report to one HR leader. In this case, the functional duties of the HR department are delegated to different HR personnel who at the end submit reports to the Overall leader (Bryant, McCarthy and Smith, 1961). In a decentralized approach, the organization structure is divided into factional business units with the unit or departmental HR heads performing specific functions. In the matrix, approach roles are shared, and the model tries to combine the centralized and decentralized models for it to realize both benefits. Finally, we have the Outsources HR design structure where the human resource services are externally acquired when needed. In this case, the HR department acts as a negotiator for the required human capital needs such skill and talents (Fitz-enz, 2010). For the earlier given scenario as an HR director, I take the decentralized HR approached to design my HR department and draw upon the existing human resource staff resources. In this paper, we will discuss the above decentralized approached in relations to other approaches regarding benefits and disadvantages of hence pointing out clearly why I settled down on the decentralized approach. We will also handle how a decentralized system fosters creativity and innovation.

The Decentralized Approach

Being the HR director of the department we are mandated to lead and manage the entire HR department and its human resource staff. As stated in the description the companies are merging to form a single operational unit but with independent department drawn from the previously existing companies. Each department has newly formed department is already equipped with their director of the HR department. For this reason, I choose the decentralized approach in the designing of our HR department. Decentralization implies the transfer of limited administrative power and responsibility from the overall central administration unit to distinctive units/departments (Pierantoni and Garcia, 2011). In other words, it entails delegating the human resource responsibilities like staff recruitment, compensation, career development, payroll and training to local business unit-heads. The decision is derived from the fact the newly formed business structure is a decentralized one. Hence it is essential to align the departmental structure to the business structure to enable leaders and employees readily understand and agree upon the proposed strategic change.

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