Refine the HR Organizational Structure and Optimize Department Efficiency Whether your organization is requiring you to grow or asking you to cut down on costs, make sure that your department is structurally efficient. McLean & Company is a research and advisory firm providing practical solutions to human resources challenges via executable research, tools and advice that have a clear and measurable impact on your business. © 1997-2016 McLean & Company. McLean & Company is a division of Info-Tech Research Group SAMPLE Learn about becoming a member

Introduction HR leaders tend to let their department structures “happen” instead of actively shaping their departments for efficiency and usefulness. This Research Is Designed For: This Research Will Help You: HR leaders who need to change their department structures due to: Growth Cost and/or inefficiency Internal HR team conflict Plan a redesign project that ensures alignment to business goals. Assess different options for structuring your HR department. Learn about the organizational design principles that shape your structure. Determine the movement or role change of employees in the new structure. Redesigning HR structure is not a fix-all project; look at other areas of potential change, like programs and processes, before engaging in a project this extensive. SAMPLE

Executive Summary SAMPLE The Situation: Many HR departments let their structures evolve, focusing on current need without considering business strategy or future needs. This means that their structures are not meeting the needs of the business or are compromising their chances of future success. If your HR structure isn’t optimal, this leads to excess costs, low efficiency, and low employee engagement. The Challenge: HR leaders are hesitant to undertake HR structure changes because they seem too daunting. HR leaders get lost in convoluted redesign processes, and end up with structures that don’t meet their unique needs. HR leaders implement HR structures believing that what worked for other organizations will work for them, and then wonder why they fail. The Solution: Use this toolkit to guide your redesign process and ensure that your new structure will deliver on business needs and goals. Use organizational design principles to make smart structural choices that address your pain points or areas of opportunity. Select a new structure and communicate to HR and the rest of the business to ensure clarity and buy-in. McLean & Company Recommends: Using a RACI (Responsible, Accountable, Informed, Consulted) chart to ensure role clarity, both at a leadership level and with functional teams. Setting objectives based on business inputs to ensure that the HR department redesign promotes business alignment. SAMPLE

Guided Implementation McLean & Company offers various levels of support to best suit your needs Guided Implementation “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.” DIY Toolkit “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.” Workshop “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.” Consulting “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.” Diagnostics and consistent frameworks used throughout all four options SAMPLE

Follow these steps to lead you to an ultimate redesign decision Identify Key Stakeholders Business Inputs HR Leadership Team Consultation Gap Analysis Structure Decision Fit Test Conduct business interviews Document information Use HR Department Redesign Tool to assess organization-al design principles alignment Use inputs to make structure decision Document Use Fit Test to determine suitability of new structure This portion is done with HR leadership team Interpret business inputs Set objectives Outline parameters Document information Next Sections: Arrange Your Team Implementation SAMPLE

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Organizational Strategy There are three key factors that go into organizational design decisions Organizational Strategy Environmental Forces Current HR Department Structure The business makes decisions (hiring, expanding into new geographies, etc.) and HR must support and enable these decisions. Cost cutting, periods of high growth, and organizational culture are all outside factors that affect how HR structures itself. The current HR structure will be impacted by any new proposed or refreshed structure. In many cases, problems with current structure are easy to identify. Additional factors to consider in your HR organizational design include the following: Whether or not your organization is multinational The size of your organization and HR department Whether or not your organization is unionized or non-unionized Operational effectiveness at a global level The most appropriate structure that will best fit with your organizational culture A good structure will be designed with all of these factors in mind. When these factors are disjoined or misaligned, it leads to structural problems. SAMPLE

Business and HR leaders agree: HR structure is important. HR organizational changes are based on the need for greater efficiency and quality Recent industry trends have demonstrated that a review of HR organizational structures is being prompted by the following reasons: Source: Towers Watson According to a recent McLean & Company survey, 52% of respondents in Human Resources fields said that “having an HR structure that supports the business” was a top priority, while 49% of business respondents said the same.  Business and HR leaders agree: HR structure is important. You know you should consider redesigning your structure if: You haven’t actively planned your structure – it just “happened.” You are aware that your department is not providing needed support. Your structure is outdated and the business strategy or goals have changed since the last time a redesign initiative occurred. You have to cut costs. Your organization is growing and HR cannot keep up. You’re experiencing: work duplication, role conflict between members of the HR team, and/or inefficiencies. SAMPLE

McLean & Company Helps HR Professionals To: Empower management to apply HR best practices Develop effective talent acquisition & retention strategies Build a high performance culture Maintain a progressive set of HR policies & procedures Demonstrate the business impact of HR Stay abreast of HR trends & technologies  Sign up to have access to our extensive selection of practical solutions for your HR challenges Learn About Becoming a Member "Now, more than ever, HR leaders need to help their organizations maximize the value of their people. McLean & Company offers the tools, diagnostics and programs to drive measurable results." – Jennifer Rozon, Vice President, McLean & Company Toll Free: 1-877-281-0480 hr.mcleanco.com SAMPLE