Restructuring HR opens strategic doors

The case for splitting the HR department into two or, even better, three distinct functions
By Monica Belcourt
|Canadian HR Reporter|Last Updated: 11/29/2007

Most HR executives, managers and professionals are struggling to shift their daily activities from transactional and traditional to transformational and strategic. But these individual attempts will not succeed because the urgent and necessary will always take priority over the important.

In the real world, meeting payroll demands and dealing with a violent employee will derail any thoughtful exercise on creating a new culture of performance management.

Adding to this pressure are the twin demands of chief executive officers: Cut costs and add value. The traditional response has been to cut costs by outsourcing HR, downsizing the HR department and using technology to replace HR administrators. Rarely is the response to invest more in HR practices and identify the value chain to demonstrate this investment does indeed affect organizational performance.