Question

Describe a Decentralized HR Structure versus a Shared Services HR Structure:

A. Decentralized: HR staff within each function, business unit, or location carrying out required activities,
Shared Services: Each business unit can supplement its resources by selecting what it needs from a menu of shared HR services (usually transactional) that the units agree to share.

B. Shared Services: HR staff within each function, business unit, or location carrying out required activities,
Decentralized: Each business unit can supplement its resources by selecting what it needs from a menu of shared HR services (usually transactional) that the units agree to share.

Answer 1

A decentralized HR structure involves HR staff embedded within each function, business unit, or location, while a shared services HR structure involves a centralized HR team that handles common HR activities shared by the business units.

Step-by-step explanation:

A decentralized HR structure refers to a setup where HR staff is embedded within each function, business unit, or location, carrying out required HR activities. This means that HR activities are handled locally within each unit or function.

On the other hand, a shared services HR structure involves HR staff within each function, business unit, or location carrying out required activities, and business units can supplement their resources by selecting what they need from a menu of shared HR services.

For example, in a decentralized HR structure, each business unit or function may have their own HR staff responsible for recruitment, training, and performance management. In a shared services HR structure, there may be a centralized HR team that handles common HR activities such as payroll, benefits administration, and HR analytics, which are then shared by the business units or functions.