Creating an HR Operating Model which is fit for the future

Over the last ten years I have been researching HR Operating Models, I graduated from Cranfield University this year with my doctorate. As I work to get my research published in academic journals which is a long process and can take several years, I want to get my findings out there and to share them with HR organisations.

Thesis title: From HR model to contextual system: An exploration of how the HR function is organised and the factors that influence the organising of HR

Findings:

·       The organisation of HR is best seen as a system rather than a model, made up of a number of parts which are constantly adapting, impacted by their context and oneanother

·       There are a number of factors that influence the organisation of HR these come from outside the organisation (institutional factors), organisational factors and factors from within in HR, and the choices and behaviour of individuals within HR and the organisation

·       Theoretically the organisation of HR can be best explained by drawing upon systems theory and institutional theory

What are the implications for organisations designing their HR function:

·       ‘Ideal type blueprints’ such as the Ulrich model, should best be seen as ‘inspiration’ but the reality is that the design has to be context specific and is also not a static end state, it needs to be supported to constantly evolve

·       Processes and ways of working should exist with the People Function to enable the organisation of HR (in the broadest sense i.e. not just structure) to be evaluated and adjusted on an ongoing basis as context evolves and different outcomes are required (behavioural or key performance measures).  HR Transformation as a big programme focused on a desired end state is a thing of the past.

·       There is agency in the organisation design; particularly HR leader’s strategic choices and the agency of members of HR, employees and People Manager’s which means that despite best intentions there will always be an 'uncontrollable' element of organisation that needs recognised and accommodated (note not ‘change managed’), the challenge is lots of different stakeholders with different needs & wants

Research methods:

·       Semi-structure interviews with 33 interviews that were CPOs/HRDs / senior HR leaders, focusing on understanding how their HR function was organised, how it had evolved and what had influenced change

·       Organisations were of various sizes, different industries, predominately private sector

·       Interviews were undertaken during COVID between Oct 2019 – Jan 2020

What motivated me to undertake this research:

I had worked as a consultant for one of the largest professional services organisations and regardless of the client (although mainly large organisations) we were going into them and implementing the “Ulrich model”, I didn’t feel comfortable with this, I was curious about how it was appropriate regardless of context.  When I started to research for my PhD I found out a few things:

1.    That Ulrich didn’t really invent the Ulrich model, when he was undertaking his research on HR competencies, he asked one question in the HR Competency Survey that he ran every four years on the perceived importance of structure and respondents highlighted the importance of it. The result of this question in one survey led to the publication of a paper (Ulrich, D., Younger, J., & Brockbank, W. (2008). The Twenty-first century HR Organisation. Human Resource Management, 47(4).

2.     This paper presented four different ways of structuring HR, one of which was a model for “Allied/Diversified” organisations, which shared similarities with the Ulrich model (as we know it) but had five parts rather than three (as in the three legged stool).  He argued that the structure was determined by the wider organisational structure.

3.    He professes that the ‘three legged stool’ model that was attributed to him was not invented to him and its origins are actually likely to be the consulting firm Mercer.

This and other previous research which was limited in academia and more prolific in ‘grey’ practitioner literature, led me to want to understand more about how HR functions were organising in practice and what was influencing this.  Recently there has been a flux of this grey literature and the philosophy and narrative has evolved. There are others that recognise HR as a system or as a number of principles that drive choices

How am I using my research?:

·       I am developing a ‘proposition’ for organisations who want to transform their HR function particularly focussing upon the behaviours and mindset of the HR team.  The outcome of this program will enable the HR team to have clarity about their role and purpose, feel more confident to support the organisation, improve relationships within the team and improve their wellbeing.

·       I work with HR teams as a coach, partnering with them to develop the capability internally to constantly adapt and empowering them to change their HR organisation to their context and environment. 

·       Alongside the more dominant elements of an operating model: structure, process, data and technology, I focus on the ‘mortar’, the bits that hold this together and help it to be effective, supporting HR functions to build capability, behaviours and ways of working to develop a culture that enables them to sustainably support their organisation to deliver its strategy and protect HRs wellbeing at the same time!

·       If you would be interested in support to adapt your HR operating system to enable you to be more effective at supporting your organisation, please contact me on jessica@jessicacooperwellbeing.com

The contextually influenced HR system