The twenty-first-century HR organization

Abstract

Like any value-creating staff function, HR departments should operate as a business within a business. Others have focused on the strategy and direction of HR departments. This article examines the next evolution for how HR department organization structure can deliver value based on two premises: (1) HR organization should be structurally aligned with the organization structure of the business and (2) because diversified/allied business models prevail, it is important to lay out the five roles and responsibilities of HR that respond to this organization model: service centers, corporate, centers of expertise, embedded HR, and operational HR. The article lays out the duties of each role, the relationship among these roles, and suggestions for implementing this new HR structure. © 2008 Wiley Periodicals, Inc.