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HR Departments: Making Structure Make Sense

Guest post by: Donna Flagg

Article Overview: Human Resource departments are not being optimized because of the way they tend to be structured. Usually “HR” refers to things like benefits, payroll, hiring, firing, training, reviews, compensation and the like. But we in corporate America missed the opportunity to better organize Human Resources when it moved away from its roots in “Personnel.” But not to worry. It's not too late.

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HR Departments: Making Structure Make Sense

So far, my career has seen both sides of the “front office/back office" equation. Between having walked in the shoes of sales, training, recruiting and now running my own business, I’ve come to believe that HR departments are not being optimized because of the way they tend to be structured.

Usually “HR” refers to things like benefits, payroll, hiring, firing, training, reviews, compensation and the like. But I think that we missed an opportunity to better organize Human Resources as it moved away from its roots in “Personnel.” Back in the day, employees were considered an expense above all. Over time though, attitudes changed as employers began to appreciate that the humans who worked for them were a resource. Suddenly Human Resources Departments were born (or Personnel Departments were renamed) and the views attached were that employees were investments and should be treated and valued like any other asset. But therein lies the rub, because remnants of the old school remain and employees are therefore still considered a liability to the extent that they are, and always will be, a major cost to the company. The problem for HR departments is that both are true. Employees are an asset and liability at the same time. So, while the understanding and appreciating of human resources has evolved into a sophisticated and strategic practice over time, its structural underpinnings have not kept up.

The best way to think about the right structure for your business is to think about the “type” of work coming out of HR and the people best suited for carry out the tasks. For the most part, the skills that individuals need to bring to the money side are not the same (in fact they are often the opposite) as those needed to do well on the warmer-fuzzier side of things where it’s all about human interaction and interpersonal skills.

The good news is that it’s an easy fix. All you have to do is take functions like benefits administration and payroll and align them with accounting because their primary implication to the company is financial and they require transactional minds to handle them best. Then, on the other hand, the people-development initiatives can make up your Human Resources Department where you can have people who excel at building relationships, creating innovative employee programs and developing talent to support your business’s goals.

Then, when it’s time to evaluate performance and make compensation decisions, the two worlds meet where the expertise is appropriately aligned to be mutually complementary and produce the best possible results for your company.

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Home > Human-Resources > Donna Flagg > HR Departments Making Structure Make Sense
Article Tags: accounting, attitudes, benefits administration, extent, front office back office, hr departments, human interaction, human resources departments, interpersonal skills, investments, money side, old school, own business, payroll, personnel departments, remnants, roots, shoes, underpinnings

About the Author: Donna Flagg
RSS for Donna's articles - Visit Donna's website

Donna Flagg spent over 15 years in business before founding The Krysalis Group, a consulting firm specializing in management, marketing, training and sales and their respective relationships to business results. Her management career began in sales at CHANEL, and before branching out on her own, she spearheaded a new training function within the Investment Banking Division at Goldman Sachs.

After earning a BA from Rutgers University and gaining experience on the front lines of Corporate America, Donna went on to attend New York University's Graduate School of Education where she obtained a master's degree in Organizational Development and Human Resource Management, and a post graduate degree in Business Education. She has also been a speaker at City University of New York (CUNY) and New York University through Stern Business School and Delta Pi Epsilon, a national honorary professional graduate society in business education and training. In addition, she speaks at various conferences including those conducted by The Business Leadership Network and The Conference Board, where she was also on the advisory committee for the Enterprise Learning Strategies Conference. For her communications expertise, Donna was invited to be a host at the Liz Claiborne Leadership Offsite to discuss branding during their "Progressive Dinner" event and more recently, a speaker at the Inc. Leadership Conference in Dallas, TX.

Donna is the author of Surviving Dreaded Conversations and is blogger on Pyschology Today and The Huffington Post. She is frequently featured in the press for her workplace expertise in outlets including CNBC, the New York Times, WOR, and XM Satellite Radio.

Donna currently sits on the Board of Directors of the Randy Foye Foundation where she actively participates in its mission to assist children and families in Newark, NJ.



Click here to visit Donna's website
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