Structure of the HR Function

Vocabulary flashcards covering the core business functions, HR structural models, outsourcing procedures, performance measurement tools, and audit types based on the SHRM Structure of the HR Function lecture.

HR's Strategic Role

The role of human resources focused on participating in creating the organization's strategy, aligning HR strategy with the organization's strategy, and supporting other business functions in their strategic roles.

HR's Administrative Role

The role of human resources focused on using technology to capture and analyze data, reducing transactional time, and focusing on core capabilities.

HR's Operational Role

The day-to-day tactical role of human resources that includes knowledge management, talent acquisition and development, incentive systems, and employee engagement programs.

Executive Management (C-suite)

The leadership group ultimately responsible for all core business functions and their effect on organizational performance, charged with developing and communicating strategy, controlling financial resources, serving as the primary stakeholder interface, and leading through a shared vision.

Finance Function

The core business function that supports operations and strategic initiatives by creating and monitoring operating and capital expenditure budgets, providing financial analysis for strategic planning, and managing the organization's treasury.

Accounting Function

The core business function focused on tracking financial transactions and reporting financial information internally to finance and externally to stakeholders.

"Push" Marketing Strategy

A marketing and sales approach focused on getting products or services directly in front of customers.

"Pull" Marketing Strategy

A marketing and sales approach focused on attracting customers toward the product or service.

Research and Development (R&D)

The core business function that generates future revenue through new product design and development, operated either centrally or within decentralized business units.

Operations Function

The core business function that develops, produces, and distributes products or services while managing complex logistics, sophisticated planning, resource efficiency, quality, environmental impact, and worker health and safety.

Information Technology (IT) Function

The core business function that manages data storage, access, exchange, and analysis via hardware and software systems, supports enterprise integration through ERPs, and maintains data security and reliability.

HR Delivery Team Roles

The structural roles that deliver HR services across an organization, comprising Leaders, Managers, Specialists, Generalists, and HR business partners.

Centralized HR Structure

An HR structure where all HR personnel are located within the HR department; headquarters makes all HR policy and strategy decisions and coordinates all programs, ensuring standardization and service delivery efficiencies.

Decentralized HR Structure

An HR structure where each part of the organization controls its own HR issues, and local HR staff within each function, business unit, or location carries out required activities, even if overarching strategy is established at headquarters.

Functional HR Structure

An HR structural alternative where headquarters HR specialists craft policies, and HR generalists located within divisions or locales implement and adapt those policies while interacting directly with employees.

Dedicated HR Structure

An HR structural alternative where corporate HR establishes basic values, tools, and enterprise programs, while separate embedded HR functions located within business units develop localized policies and practices.

Shared Services Model

An HR structure frequently used in multi-business-unit organizations where centers with specific expertise develop policies and deliver transactional services to all units from an established menu of services.

Center of Excellence (COE)

A dedicated HR unit—located either in a physical facility or virtually—aimed at leveraging strategic expertise to foster organizational growth and continuous improvement.

HR Business Partners (HRBPs)

HR professionals embedded directly in different operational areas of the business who report directly to area managers with dotted-line reporting to HR leadership.

Matrix HR Structure

A flexible HR structural alternative featuring specialized working relationships where HR staff members report directly through HR senior management positions.

Global Resources Structure

An HR structural approach providing the ability to attain support and resources from around the world, often via outsourcing, helping avoid local bias but requiring management of communication and cultural norm risks.

Outsourcing Process

A structured nine-step sequence: Analyze needs and define goals -> Define budget -> Create RFP -> Send RFPs to chosen contractors -> Evaluate proposals -> Choose contractor -> Negotiate contract -> Implement project and monitor schedule -> Evaluate project.

Balanced Scorecard

A strategic management tool supporting a clear line of sight from strategic goals to performance by establishing valid, actionable, and accountable measures aligned directly with organizational objectives.

Compliance HR Audit

A type of HR audit designed to ensure that HR practices, policies, and activities adhere to all legal and regulatory requirements.

Best Practices HR Audit

A type of HR audit that evaluates organizational policies and practices against leading external industry benchmarks to help maintain or improve competitive advantage.

Strategic HR Audit

A type of HR audit that assesses how effectively HR strategies, programs, and resource allocations align with and support the organization's overarching strategic plan.

Function-Specific HR Audit

A targeted HR audit examining a specific specialized area or process within human resources, such as payroll, compensation, or talent acquisition.

HR Audit Process

A systematic seven-step review sequence: Determine scope and audit type -> Develop audit questionnaire -> Collect data -> Benchmark findings -> Provide results feedback -> Develop action plans -> Foster continuous improvement.