Structure of the HR Function

Cosourcing

Arrangement in which an enterprise and a vendor share different tasks within a larger complex, often strategic responsibility.

HR audit

Systematic and comprehensive evaluation of an organization’s HR policies, practices, procedures, and strategies.

Outsourcing

Process by which an organization contracts with third-party vendors to provide selected services/activities instead of hiring new employees.

Center of excellence (COE)

An organizational structure that leverages staff expertise in certain areas to improve the entire organization’s strategic performance.

Dedicated HR

HR structural alternative that allows organizations with different strategies in multiple units to apply HR expertise to each unit’s specific strategic needs.

Shared services HR model

HR structural alternative in which centers with specific areas of expertise develop HR policies in those areas; each unit can then select what it needs from a menu of these services.

Functional HR

HR structural alternative in which headquarters HR specialists craft policies and HR generalists located within divisions or other locales implement the policies, adapt them as needed, and interact with employees.