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Are Your HR and Business Structures Aligned?

For HR to be a success it must start with a clear strategy that delivers value and a structure that reflects the organization of the company. To align HR with its business organizations, HR leaders must first understand the model of business they serve and implications for HR design.

In a recently published article we looked at companies along a grid of centralization - decentralization, which leads to three basic ways in which a company operates: holding company, functional organization, or allied/diversified organization (Lawler and Galbraith, 1995). We then look at the role of HR and appropriate HR structures for each of those organizational models.