Final answer:
The Shared Services model in HR refers to a centralized provision of transactional services to multiple business units, helping organizations to streamline processes, increase efficiency, and maintain competitiveness in a rapidly changing marketplace.
Step-by-step explanation:
In an alternative HR structure, where each business unit is able to supplement its resources from a menu of shared HR services, the organization is adopting a Shared Services model. This model is particularly focused on transactional HR activities that are common to all business units and can be centralized to achieve efficiency and reduce duplication of efforts. By having shared services, organizations can delegate core HR operations to specialized teams, which enables individual business units to focus on strategic initiatives and adapt more quickly to market changes and global competition.
In the shared services model, organizational structures lean towards teamwork and the elimination of traditional hierarchies, promoting a flat organizational structure. Managers and employees at all levels are expected to form collegial relationships, and divisions of tasks are clearly defined among various roles. During mergers and acquisitions, shared services can play a critical role in consolidating functions like HR, accounting, and sales, helping to streamline processes and reduce redundancy.