Transforming HR into a Platform-Service (HaaS) in the Rendanheyi Model (Part 2)

tHRive is my newsletter, with ideas and perspectives from outside the typical and traditional HR domain that are highly relevant and support expanding the boundaries of knowledge and application within HR.

In our previous discussion , we explored the limitations of traditional HR models and introduced Haier's Rendanheyi model as a radical approach to organizational transformation. We examined how Rendanheyi empowers employees, fosters entrepreneurship, and creates a customer-centric organization by restructuring into micro-enterprises (MEs). Now, in Part 2, we will focus on how HR can transform itself into a platform service within this model, supporting decentralized teams while maintaining alignment with the organization’s broader vision and values.

The Shift from Traditional HR to HR as a (platform) Service - HaaS

In typical organizations, HR has traditionally functioned as a centralized authority responsible for managing various people/employee life-cycle processes such as recruitment, training, performance evaluations, promotions, compensation and benefits along with legal and compliance. These operations are governed by standardized policies and procedures, which leads to creation of rigid structures and bureaucracy that hinder innovation and flexibility. However, under decentralized environments such as the Rendanheyi model, HR must shift from being a controlling entity to an enabler. Its new role should focus on providing tools, services, and frameworks that allow MEs to operate autonomously.

HR’s transformation into a platform-service provider means that it must move from managing processes to facilitating them. This requires a very different mindset that would start with embracing technology, offering flexible guidelines, and promoting a culture that aligns with the entrepreneurial decentralized spirit. In this capacity, HR serves as the backbone of the decentralized organization by providing the necessary support while enabling MEs to manage their own HR functions effectively.

Enabling Micro-Enterprises through HR Platforms

For HR to function as a platform service provider, it must develop modular products/services that MEs can access based on their needs. For instance, recruitment can no longer be centralized. Instead, HR should offer recruitment products that enable MEs to handle talent acquisition independently. This allows MEs to make hiring decisions based on their unique needs, ensuring that new employees are a better cultural and strategic fit for the team.

In addition, HR can provide the learning and development resources in the form of online learning platforms, self serve portals, core & common content/modules, and essential & compliance related certifications that employees can access at their discretion/requirement. This shifts the responsibility for professional growth from the HR department to individual MEs, empowering teams to ensure that their members are equipped with the necessary skills.

Performance management also undergoes a transformation. Instead of annual reviews, HR provides performance management products and tools that allow for real-time feedback, goal setting, and peer evaluations. This not only aligns with the customer-focused and entrepreneurial goals of the MEs but also enhances the agility and responsiveness of teams.

Implementing Flexible Policies and Guidelines

To support the autonomy of MEs, HR must move away from rigid policies. Instead, HR can offer flexible frameworks that set minimum standards while giving MEs the freedom to adapt them to their specific contexts. For example, policies around compensation, benefits, or performance evaluations should offer enough flexibility to accommodate the unique needs of different MEs while still ensuring fairness and alignment with the company’s values.

Additionally, HR should provide compliance support, offering resources and expertise that help MEs navigate legal and regulatory requirements. This ensures that, even within a decentralized structure, MEs remain compliant with local laws and global organizational standards.

Leveraging Technology for Accessibility and Scalability

Technology is a key enabler of HR’s transformation into a platform service provider. By investing in cloud-based platforms and self-service portals, HR can make its services accessible to all MEs, regardless of location or size. These tools reduce the administrative burden on HR, as MEs can manage their HR needs independently. Data analytics and reporting tools are also essential, as they allow MEs to make data-driven decisions that improve performance and operational efficiency.

Shifting HR Activities to Decentralized Micro-Enterprises

In the Rendanheyi model, many traditional HR activities, such as recruitment and promotion, are decentralized to the MEs themselves. Recruitment, for instance, becomes the responsibility of the MEs, which have the autonomy to identify their talent needs and make hiring decisions accordingly. HR supports this process by offering access to talent pools and providing a standardized, but customizable, onboarding framework.

Promotion and career development similarly shift to the MEs. Each team establishes its criteria for promotion based on its unique goals and performance metrics, often incorporating peer and customer feedback. This decentralized approach ensures that promotions are closely aligned with the needs and performance of the MEs, fostering a culture of accountability and entrepreneurial initiative.

The benefits of these shifts are clear: MEs become more responsive to their specific talent needs, cultural fit improves, and employees are motivated to contribute directly to the success of their teams. In this way, the HR function transitions from being an administrative bottleneck to a facilitator of agility and innovation.

Redefining HR’s Operating Model and Structure

To support the decentralized organization effectively, HR itself must undergo structural changes. Rather than functioning in isolated silos, HR professionals must work in agile, cross-functional teams that focus on developing and maintaining platform services for the MEs. This may involve reducing layers of management to improve decision-making speed and responsiveness.

Moreover, HR must emphasize strategic capabilities, particularly in data analytics and change management. Data and analytics teams can provide the insights necessary for MEs to make informed decisions, while change management experts can guide teams through periods of transformation and growth.

The traditional roles within HR will also evolve. HR business partners will act more as consultants and advisors to MEs, helping them navigate challenges without imposing strict controls. Centers of Excellence (CoEs) will specialize in areas such as talent acquisition, leadership development, and culture-building, providing expertise that benefits the entire organization.

Cultural Stewardship and Alignment

HR’s role in fostering a unified organizational culture becomes more important than ever in a decentralized structure. Even as MEs operate with significant autonomy, HR must ensure that the company’s core values and vision are shared across all teams. This requires clear communication and the development of platforms for knowledge-sharing and collaboration between MEs. Recognition programs that highlight innovation and performance within the MEs will also play a key role in reinforcing the desired behaviors and outcomes.

Challenges and Considerations

While transforming HR into a platform service offers numerous advantages, it also presents challenges. One significant risk is maintaining consistency and compliance across decentralized MEs. HR must provide adequate oversight and support to ensure that MEs follow legal and organizational standards. Another challenge is balancing autonomy with alignment. HR will need to find the right balance between allowing MEs to operate independently and maintaining coherence within the larger organization. HR will alos need to keep certain aspects of human-touch/white glove approach depending of the 'customer/business' contexts and needs.

Finally, HR professionals will need to develop new competencies to thrive in this new model. Skills in technology, data analytics, and consultative approaches will become increasingly important as HR moves away from its traditional administrative functions.

Endnote:

By transforming into HR as a Service, HR can play a crucial role in supporting the decentralized, entrepreneurial structure of the Rendanheyi model. This shift empowers MEs to manage their own HR functions, fostering a more responsive, innovative, and customer-centric organization. HR’s focus on providing enabling tools, resources, and frameworks ensures that while autonomy is granted, the organization’s core values and strategic objectives remain intact.

As HR leaders embrace their new roles, they become key enablers of organizational success, helping to create a resilient, agile, and future-ready enterprise. The transition from a traditional HR model to an HR platform provider marks a fundamental evolution in how organizations approach talent management, one that is essential for thriving in the dynamic, decentralized world.