CEO AdvisoHR | What’s the Best HR Organization Model for Success?
Helder Figueiredo
Linkedin Top Voice ? Head of People ? HR Consultant ? PhD Candidate ?? Follow Me 38K+ followers ?? Intl Exp
Dear CEO
In an era of constant change and technological evolution, how HR functions are structured plays a critical role in driving business outcomes.
With many models to choose from, understanding their strengths and challenges can help HR leaders align their strategies with their organization's goals.
Drawing insights from the article Human Resources Models by AIHR, this week’s edition will explore the most popular HR organizational models and how to choose the best one for your organization.
Popular HR Models: The Foundations
1. The Ulrich Model (Three-Pillar Model)
Introduced by Dave Ulrich , this model is one of the most widely used and focuses on dividing HR into three main areas:
Strengths:
Challenges:
2. The Agile HR Model
This approach borrows from Agile project management principles and focuses on adaptability, teamwork, and continuous improvement.
Features:
Strengths:
Challenges:
3. Centralized HR Model
All HR functions operate under a single team that serves the entire organization.
Strengths:
Challenges:
4. Decentralized HR Model
HR is embedded within individual business units, allowing each unit to manage its HR needs independently.
领英推荐
Strengths:
Challenges:
5. Hybrid HR Model
Combines centralized control with decentralized execution. Strategic decisions and core policies are managed centrally, while tactical HR functions are handled at the business unit level.
Strengths:
Challenges:
Choosing the Right Model
There’s no one-size-fits-all solution. The ideal HR model depends on several factors, including:
The Role of HR in Shaping the Model
HR leaders must:
Final Thoughts
As we navigate 2025, the HR function must evolve to remain relevant and impactful. The right model can unlock efficiency, engagement, and innovation—but it requires careful planning and regular evaluation.
For a deeper dive, explore the full AIHR article.
Which HR model do you think is best for your organization?
Let’s discuss in the comments!
Regards,
Helder Figueiredo
Disclosure: This newsletter, CEO AdvisoHR, is written with the assistance of artificial intelligence (AI) to ensure timely and insightful content on HR and leadership topics. While AI is used to generate ideas, structure, and enhance the clarity of each article, all content is reviewed and refined by me to ensure it aligns with my values, and the specific needs of our readers.
I believe that AI is a valuable tool that allows us to bring you thoughtful and relevant information efficiently, yet I remain committed to maintaining the human perspective and expertise that defines this publication.
In addition to this newsletter, I am also an author, with a few books published on Amazon, where I try to delve deeper into various aspects of HR and leadership.
Strengthening Trust in Organizational Contexts I CEO and Founder of &ras I Researcher at GOVTRUST I Former Professor at LMU Munich
1 周Thank you, Helder Figueiredo! If I may add, trust within the organization has proven to be one of the key driving forces behind organizational agility, innovation, and employee experience. It enables employees to become both (1) active and engaged agents of change and (2) self-regulators who safeguard corporate (common) objectives and policies. This, in turn, makes organizations more effective, leaner, and ultimately less costly. This is neglected too often.
Fractional CHRO | HR Consultant | People & Culture | Change Management |Talent Management
2 周Helder Figueiredo Thanks for sharing different HR model. As per my experience as CHRO, Director HR and CPO, HR acts as enabler, strategic business partner, facilitator, custodian of culture and people and ensuring that all business units have the right and relevant talent to produce desired business results. Agile HR model seems to be the best serving these needs. In one organization I have seen decentralized HR model, it gave complete autonomy to the other business units almost run parallel HR unit in each functional area, thus weaking HR process and policy control, and at the same time compromising the oversight role of HR. In such environment, HR as business partners becomes weak as its say and overall management of the HR functions does not carry any weight or importance. I believe each functional area has its own expertise, collaborating with other units is important but not giving and dishing out own responsibilities to other business units is the right approach. Hence, HR should act as an important conduit to strengthen the collaboration and cooperation amongst all units without compromising its own independence and its due professional role.
Speaker, Author, Professor, Thought Partner on Human Capability (talent, leadership, organization, HR)
3 周Helder Figueiredo Thank you very much for sharing the models of HR governance. In our research over the last 25 years, we have identified 10 dimensions of an effective HR function. One of those dimensions is how to govern (organize) the function. We tested those 10 dimensions on stakeholder value to determine which should get the most attention with over 500 organizations (see chart). The ability to build relationships, and have a clear value added purpose have the most impact. In terms of governance (element 4), how one organizes has less impact, partly because the basics of organizing the HR function are the same: align with business organization and make sure that specialists and generalists work together to deliver value. It is exciting to see the logic of HR delivering value to stakeholders through human capability as the evolving agenda. https://www.dhirubhai.net/pulse/next-agenda-human-resources-whats-so-what-now-dave-ulrich-1xnfc/ As you point out, the HR agenda is more important than ever and progress is being made.