Creating A Strategic Human Resources Organization presents the results from phase two of an important study of the human resources functions in large corporations. It shows how changes in the business environment and strategy of corporations are leading to changes in the human resources function and what practices lead to an effective HR organization.

The study focuses on company practices and the design of the human resource function. Outsourcing, the use of information technology, and shared services are among the many approaches studied. When practice is examined, there is clear evidence that change is happening; the design and activities of human resources departments are changing in order to become business partners and to add increased value. A comparison between data gathered in 1995 and 1998 shows a significant increase in the use of outsourcing and new organization designs by the HR function.

This report on the future direction and role of the human resources function:

  • shows how the human resources function in leading companies is being altered in order to allow it to be more of a strategic business partner.
  • shows the extent to which human resources practice and organization design are actually changing
  • examines how well the new designs for the human resources function fit the strategic changes that are occurring
  • explores the extent to which specific practice leads to an effective HR organization
  • provides suggestions and direction to companies interested in increasing the effectiveness of the human resources organization.


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Edward E. Lawler III and Susan Albers Mohrman
Creating a Strategic Human Resources Organization
Center for Effective Organizations, 2000







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