Effectiveness and Efficiency
Organizations often talk about effectiveness and efficiency to attain and maintain high performance. One of the ways to achieve that is by having the right organizational structure. An organization’s structure allows them to align what they do with how they will do it, thus achieving their performance goals. Two of the most common organizational structures include:
Centralized versus Decentralized
Centralized refers to a structure where most decision-making resides in a central location, like a headquarters office.
Decentralized, by contrast, is when local operations have a role in decision-making, even when there’s a corporate function.
Functional versus Divisional
A functional structure is when the organization is arranged by their functional role. Examples of functional roles include accounting, marketing and sales, operations, research and development, and human resources.
A divisional structure is when the organization categorizes itself by either location (as in the North America division) or by product line (as in the “smartphone division”).
One reason that organizational structure matters is because it’s often the foundation for how individual departments – like human resources – might structure themselves. Like organizational structure, department structure has an impact on effectiveness, efficiency, and performance.
HR Department Structure: Generalists and Specialists
When it comes to a human resources department structure, a starting question to ask is how HR wants to provide services to the organization. They can use generalists and/or specialists.
Generalists are professionals who handle matters in all areas of human resources. Think of them as the people who might be doing interviews in the morning, conducting a training program in the afternoon, and coaching a new supervisor at the end of the day. No two days are ever exactly the same.
Specialists are professionals who focus on one aspect of human resources. Their area of expertise could be talent acquisition, labor relations, compensation and benefits, or learning and development (L&D). They have a deep knowledge of their area of specialization and understand how it impacts the rest of the department and the organization.
HR departments can have a blend of generalists and specialists based on the needs of their organization. For example, an organization experiencing rapid growth might opt for talent acquisition specialists and HR generalists. This structure gives the organization the expertise they need in recruiting, since it’s a priority, and flexibility with the other HR functions.
Another example is an organization with a headquarters office and several locations. The company might have specialists at headquarters and generalists at the individual locations. The independent locations have a generalist who can handle their needs and if something new or unusual arises, they can tap into the expertise of a corporate specialist.
Digital HR Specialists
One function of human resources that is starting to develop its own specialization is technology. Sometimes it’s being referred to as digital HR or eHR. Digital HR specialists are responsible for managing the human resources technology environment. This includes, but isn’t limited to:
- Optimizing the connection between manual processes and technology
- Identifying organizational HR technology needs and implementing solutions
- Managing relationships with human resources technology providers
- Providing technology training, support, and data to key stakeholders at every level of the organization
- Monitoring and auditing HR-related data for accuracy and compliance
- Measuring HR performance and providing recommendations as necessary
Specialists could hold roles at an entry, mid, or senior level depending on their level of experience and expertise. Here’s what the role of digital HR specialist might look like at each of these entry, mid, and senior levels:
At the entry level, the position could be titled digital HR coordinator and focus on providing support to the organization. This could involve answering questions, running reports, communicating with technology partners, and auditing data.
At mid-level, the position might be titled digital HR specialist or representative. The position could include playing a role in technology implementations, conducting training, and providing guidance on technology-related policies and legislation.
At the senior level, a digital HR manager would be involved in selecting a technology provider, offering sensitive data to key stakeholders, and reporting HR-related metrics and analytics.
The number and type of digital HR positions in the organization could be driven by the size and structure of the company. For example, an organization with a decentralized structure might have more digital HR specialists than with a centralized structure. Also, an organization with a functional structure could have fewer digital HR specialists than an organization with a divisional structure.
HR Specialists: Knowledge, Skills, and Abilities (KSAs) for Success
Specialists should be prepared to work across the entire organization and at every level. They are a part of the HR team. They might have direct reports. They’ll certainly have a boss. And they will be regularly asked to provide information to the operation.
To be successful as an HR specialist, there are a few competencies that professionals will want to focus on for success. This is certainly not an exhaustive list, but a good place to get started.
Know your specialization / functional area. Obviously, if someone is a digital HR specialist, they need to know technology. Just like if someone is a learning and development specialist, they need to know L&D. It’s equally important to note that knowing your specialization includes staying current with what’s happening in your functional area.
Have strong written and verbal communication skills. Being a good communicator is an essential competency for human resources professionals. Keep in mind that in today’s business environment, written and verbal communications could be delivered over a variety of mediums (i.e. in-person, phone, video, collaboration platforms, etc.)
Develop proven critical thinking and problem-solving skills. As mentioned earlier, one of the reasons that organizations use specialists is because they have a depth of subject matter expertise. This means that a specialist could be responsible for researching an issue, identifying the problem, developing a proposed solution, and then implementing the solution.
Finally, whether a person is currently a specialist or generalist, they should be prepared to flex and change. Organizations might ask someone to transition from a generalist to specialist (or vice versa). The company might offer to provide training and professional development opportunities to set an individual up for success.
In addition, the organization might decide they want a combination of generalists (in the field) and specialists (in corporate HQ). The world of business is changing all the time and professionals need to be prepared to change along with it.
Good Structures Create Good Results
As mentioned at the beginning of this article, organizations are always looking for ways to be more effective and efficient. Refining their organizational structure could be an activity that helps them do that. The good news is there’s no one best way to structure the organization or the human resources department.
- Align HR structure with organizational structure to achieve maximum effectiveness and efficiency.
- Define how HR services will be delivered to determine the roles needed within the department.
- Use generalists and specialists to create the right HR team for the organization.
It’s about bringing together the talent – generalists, specialists, coordinators, and managers – to create a high-performing organization.
Hear more from Sharlyn Lauby about how to structure an HR department.