Human Resources as a Shared Servicee
Human Resources as a shared service is an efficient model in an organization with multiple subsidiaries.
In today’s workplaces bottom line, gross margin and operating income have become the common buzz phrases around the water cooler. Organizations are trying very hard to meet their customer service needs and to cut costs and remain efficient, profitable entities. One of the ways companies are doing this is by sharing services, or creating shared service departments. Human Resources is a very common department to create the shared service approach, or model. The shared service approach can certainly save companies money and increase the bottom line. Companies can achieve cost savings through the shared service approach. Companies can more efficiently utilize their workforce with the shared services approach. Operating companies can put more emphasis on providing the service or product to their end customer by using the shared service model. The shared service model takes the burden away from small companies, or business units within a large corporation. Human Resources as a shared service is an efficient model in an organization with multiple subsidiaries.
An ever expanding number of large, small and medium sized businesses are making the decision to move to conducting their Human Resource business by utilizing the shared services approach to deliver. Many of these companies feel that there is a very distinct advantage in transitioning to this model. It’s been said in numerous articles that moving human resources to a shared service is a strategic move at the upper management level and a total cost savings or cost reduction at the base or operations level. (Cooke, 2006)
The shared services approach is somewhat of a new approach to running the support services of a company. Its growth has really exploded in companies that have several subsidiaries, or sister companies. It’s also very popular with companies that have many
In today’s workplaces bottom line, gross margin and operating income have become the common buzz phrases around the water cooler. Organizations are trying very hard to meet their customer service needs and to cut costs and remain efficient, profitable entities. One of the ways companies are doing this is by sharing services, or creating shared service departments. Human Resources is a very common department to create the shared service approach, or model. The shared service approach can certainly save companies money and increase the bottom line. Companies can achieve cost savings through the shared service approach. Companies can more efficiently utilize their workforce with the shared services approach. Operating companies can put more emphasis on providing the service or product to their end customer by using the shared service model. The shared service model takes the burden away from small companies, or business units within a large corporation. Human Resources as a shared service is an efficient model in an organization with multiple subsidiaries.
An ever expanding number of large, small and medium sized businesses are making the decision to move to conducting their Human Resource business by utilizing the shared services approach to deliver. Many of these companies feel that there is a very distinct advantage in transitioning to this model. It’s been said in numerous articles that moving human resources to a shared service is a strategic move at the upper management level and a total cost savings or cost reduction at the base or operations level. (Cooke, 2006)
The shared services approach is somewhat of a new approach to running the support services of a company. Its growth has really exploded in companies that have several subsidiaries, or sister companies. It’s also very popular with companies that have many
References: Certo, S., & Certo, T. (2012). Modern management. Chapter 13, Human Resource Management (12th ed., pg.294). Saddle River, NJ: Prentice Hall. Human resource management . (2011, 08). Retrieved from http://searchcio.techtarget.com/definition/human-resource-management-HRM Shared services. (2012, 03). Retrieved from http://searchcio.techtarget.com/definition/Shared-services Hr shared services:. (2006, 05). Retrieved from http://www.spa.ga.gov/pdfs/CLCHRSharedServicesDeterminingtheScopeScaleandStructure.pdf What does shared services mean, anyway?. (2011, 11). Retrieved from http://www.hrssi.net/2011/11/what-does-shared-services-mean-anyway Trends in global. (2013). Retrieved from http://www.aon.com/attachments/thought-leadership/Trends_Global_HR_Shared_Services.pdf The next generation. (2013, 05). Retrieved from http://www.eicexperts.com/docs/erpeic/nextgen.pdf Cooke, F. (2006, 06). Modeling an hr shared. Retrieved from http://www.shrm.org/education/hreducation/documents/45-2 cooke.pdf