The global HR delivery model

Josefowitz, Olivier ; Regamey, Gilles (Dir.)

Mémoire de bachelor : Haute école de gestion de Genève, 2008 ; TDEE 68.

The way companies manage their employees has changed a number of times in the past 100 years. The current trends such as technological innovations, globalization, cost containment, speed in market change, importance of knowledge capital and rate and magnitude of changes, promise future changes in what is today called Human Resource (HR) Management. These changes are even more significant in the... Plus

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    Summary
    The way companies manage their employees has changed a number of times in the past 100 years. The current trends such as technological innovations, globalization, cost containment, speed in market change, importance of knowledge capital and rate and magnitude of changes, promise future changes in what is today called Human Resource (HR) Management. These changes are even more significant in the competitive environment of globally operating companies. How should the HR function organize itself to be able to respond proactively to the demand of these trends? HR needs to find a cost efficient way to continue to attract, retain and develop talent to ensure the competitiveness of any company, while respecting the constantly shifting requirements of the global marketplace. The HR model of the Harvard Professor Dave Ulrich has inspired most of multinational companies in the reorganization of their HR function with the objective to add value to the business. The model consists of multiple roles through which responsibilities are shared with other individuals of the corporate world. By using different delivery channels, of which some may be outsourced, HR is enabled to add value to the business and can become more professional through a clear definition of the roles. A number of challenges in putting in place the Ulrich model can be named, such as: • customer relation • customization • customer dissatisfaction • process understanding • power of authority • offshoring • outsourcing • transformation • cost efficiency The model can also be compared across companies and industries through a clear definition of measurements. A case study analyzing the new HR model of DuPont brings insights from practice. After having identified two challenges, the company has decided in 2001 to go on the HR Transformation journey and moved in 2006, after having gone through a standardization of its IT platform and the implementation of Shared Services Centers (SSC), one step further to outsourcing of its HR services to Convergys. The above mentioned key challenges do not stop in front of DuPont and the $ 1.1 billion outsourcing contract over 13 years. They appear as a result of the company’s culture and the specificities of the transformation to the new model. Today, the challenges can be summarized in three key issues that can be tackled with a number of recommended actions. A brief look at the models implemented in three other multinationals, IBM, Procter & Gamble and UBS, show that beyond the differences and similarities of the transformations there are a number of common challenges. Finally, we conclude saying that the transformation of the HR function does not remain without a significant impact on the company culture and on individuals within the company as part of the society in which the company operates.