A global pandemic. Essential workers at risk. Whole companies suddenly working from home as offices fall silent. Millions reevaluating their lives and careers. The “Great Resignation.” Wage increases amid a tight labor market. Who’s responsible for navigating this upheaval? Human resources, which in many organizations now sits awkwardly between its history as a support function and its future as a strategic partner. Show
While the nature and purpose of the HR function have been evolving for years, the demands of the pandemic dramatically accelerated this transition. In interviews with more than 80 chief human resources officers (CHROs) at some of the largest organizations in the United States and Europe, we found more than 90 percent predict significant changes to the HR operating model during the next two to three years. “The pandemic showed HR is as relevant to business success as typical core functions like R&D, sales, or production,” said the CHRO of a European semiconductor company. “In fact, it was our duty as HR to ensure the entire company could still be operational during the pandemic.” Stepping up to this new responsibility requires HR to transform itself, adopting the organizational principles and key performance indicators of core business functions. HR leaders need to drive more agile and fluid organizations, shift the role of business partners, and drive the employee experience—and do it all with a clear leadership mandate. We’re not suggesting it’s easy. But according to the vast majority of CHROs we interviewed, organizations may not have a choice. A new HR operating modelThe following situation may sound familiar: your organization faithfully follows the Ulrich model, with the HR function represented at the leadership table with its responsibilities split among three pillars: business partners, shared services, and centers of excellence (CoEs). HR endeavors to listen to employees, be an agent of change, and reflect the broader business strategy. Yet we also know theory doesn’t always translate into practice. It’s never been more important for HR to be a true strategic partner and a bridge between the workforce and the organization. “We learned how to go significantly faster on the business side as a result of the pandemic,” said the CHRO of a US-based pharmaceutical company. When it comes to creating a more dynamic talent and work model for the future (exhibit), CHROs across Europe and the United States said the future operating model of HR will likely feature the following:
Exhibit
We strive to provide individuals with disabilities equal access to our website. If you would like information about this content we will be happy to work with you. Please email us at: There were some differences between European and US CHROs. First, almost 60 percent of European CHROs are considering virtualizing CoCs and CoEs, while none of their US peers discussed this. Second, US CHROs seem more inclined to use employee journeys as a mechanism for determining HR’s functional responsibilities and priorities. And third, European CHROs are planning to have HR business partners work on dedicated functional HR topics, bundling competencies virtually through chapter or cluster logic to virtual CoEs and CoCs. The reason for this is the multinational setup of many large European organizations, in which HR expertise is distributed across multiple countries and regions, requiring sophisticated systems of collaboration and coordination. Many large US organizations remain US-centric, given the size and relevance of their home market. “We have a tendency to still align our HR organization very geographically,” said the CHRO of a European chemical company. “We still need that where we need to be close to the business, but where we need the best expertise in HR, we have to link that beyond geographic boundaries.” Moving from support to leadershipPivoting to this new HR operating model—in which the function has a legitimate seat at the leadership table, recognized for the critical role it plays strategically and operationally—requires significant change. Many companies are already on this path, with varying degrees of success. The CHROs we interviewed identified four areas of focus that will support such a refined approach:
Transforming HR isn’t easy, but it’s worth the effort. Driving more agile and fluid organizations, shifting the role of business partners, and elevating the employee experience are central to evolving the HR operating model—which benefits not only the function but also the broader organization. What are the 4 main functions of HR?The four basic functions of the HRM are similar to those of any manager – planning, organizing, directing, and controlling.
Which of the following statements is true of Human Resource Management HRM in modern organizations?Which of the following statements is true of contemporary human resource (HR) managers? They possess general management abilities that reflect conceptual, diagnostic, and analytical skills.
Which of the following statement is correct about Human Resource Management?Human resource management or HRM is a very important factor in any business organisation. HRM means effective and efficient management of the employees working in the company.
Which of the following is the HR function?Some of the primary functions of HRM include job design and job analysis, recruitment/ hiring and selection, training and development, compensation and benefits, performance management, managerial relations and labour relations.
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