Ram Charan created waves when he said “It’s time to say goodbye to the Department of Human Resources”. According to him, HR professionals are too internally focused and don’t understand the bigger picture of the business. To overcome this challenge he feels that HR should be divided – one for Administration and the other for Leadership and Organization.
Dave Ulrich says on HBR, dividing HR into two groups is not a holistic solution. One needs to look at strategy, outcomes, organization design, competencies and analytics.
Yes in far too many organisations, the HR Department is known more for its Administrative & Controlling function and less of the Enabling function. Also many of the administrative activities can be outsourced & even automated. Hence the concept of Shared Services has evolved. Many a progressive organisations are dividing the Administrative function & the Business Partnering function. But as some thought leaders are saying move the Administrative function to the Finance Guys to drive efficiency, cost optimisation and keep the enabling, Business Partnering & Leadership side with HR.
These are still in conceptual stage and needs a lot of debating.
So what’s your take? Would you implement any of these pretty drastic changes? I am not sure how many of us are ready to embrace this change….