How to set up HR Organizational Structure?

This is a simple question with a very difficult answer. The HR Organizational Structure has to fit the needs of the organization, the business strategy and the HR Strategy. The HR Structure has to support the HRM Function and it does not have to fit all the new HRM trends.

The HR Structure has to support the business strategy and the cost of the HRM Function has to be accepted by the business. Many times, the HRM Function offers a lot of HRM Services to the organization, but the cost is not accepted.

HR Organizational Structure

When the HR Director has to set up a new HR Organizational Structure, the questions to be answered are the following:

1. What are the real needs of the internal customers?
2. What are the costs the organization wants to carry?
3. What kind of the HRM Intervention the organization wants?
4. What future development can be expected?

The HR Director has to know the answers to these questions as they set the boundaries for the set up of the HR Organizational Structure. The HR Structure has to meet the requests of the top management, as they can feel comfortable in their discussions with the direct managers.

The HR Directors are usually not that good in setting the HR Organizational Structure, but they usually do not ask those simple questions. The organization is the most important client of the HR Organizational Structure.