The Most Popular HR Structure in the UK, Ranked

Choose the structure you think is the most popular!

Author: Gregor Krambs
Updated on May 1, 2024 06:40
Effective HR structures are crucial to the success of any organization, ensuring that personnel management aligns with strategic goals. Managers throughout the UK face the challenge of selecting the best HR structures that foster an efficient, productive workplace. Having a clear view of the most favored models can guide decision-makers in their efforts to enhance organizational effectiveness. Our live ranking tool gathers input from a diverse range of voters to present the most favored HR structures in the UK. By participating in this communal evaluation, you contribute to a broader understanding of what works best in various settings. We encourage you to cast your vote, helping your peers in the HR community to identify which structures are yielding the most benefit on a real-time basis.

What Is the Most Popular HR Structure in the UK?

  1. 1
    54
    votes

    Ulrich Model

    Dave Ulrich
    This is one of the most popular HR structures in the UK because it focuses on creating a strategic HR function that aligns with the overall goals of the organization. It emphasizes HR as a business partner, rather than just a support function.
    The Ulrich Model is a popular HR structure in the UK that was developed by Dave Ulrich. It is a strategic approach to HR management that aims to align HR practices with business goals and enhance organizational effectiveness. The model emphasizes the role HR plays in driving strategic initiatives and fostering employee engagement.
    • Business Partner Role: HR professionals act as strategic partners, aligning HR practices with business strategy.
    • Centers of Excellence: Specialized HR departments are created to develop expertise and provide guidance in specific HR areas.
    • Shared Services: Centralized HR services are established to provide efficient transactional HR support.
    • Employee Advocacy: HR advocates for employees and creates a positive work environment.
    • Strategic HR Practices: Focus on linking HR practices with business outcomes.
  2. 2
    18
    votes
    This structure involves all HR functions being managed by a central HR department. It is popular because it allows for consistency in HR policies and practices across the organization.
    Centralized HR is a common structure in the UK where the responsibility for human resources functions is consolidated and managed by a central HR department. This department serves as the main point of contact for all HR-related matters and ensures consistency and standardization across the organization.
    • Hierarchy: Centralized HR follows a hierarchical structure where the central HR department has authority and control over HR policies, procedures, and decision-making.
    • Standardization: Centralized HR aims to establish uniformity in HR practices and policies throughout the organization, promoting fairness and equity.
    • Specialization: The central HR department consists of specialized HR professionals who handle various HR functions such as recruitment, employee relations, performance management, training, and development.
    • Efficiency: Centralized HR focuses on maximizing efficiency by streamlining HR processes, eliminating duplication of efforts, and consolidating HR-related data and systems.
    • Communication: Centralized HR acts as a communication hub, ensuring consistent and effective dissemination of HR-related information to all employees and management.
  3. 3
    21
    votes
    This structure involves HR functions being managed by different departments or business units within the organization. It is popular because it allows for greater flexibility and responsiveness to local needs.
    Decentralized HR is a human resources structure that distributes HR functions and responsibilities across different departments or teams within an organization. It devolves HR decision-making and activities to line managers and supervisors, reducing the reliance on a centralized HR department.
    • Responsibility: HR functions and decision-making are shared by different departments or teams.
    • Decision-making: Line managers and supervisors are empowered to make HR decisions.
    • Flexibility: Allows for more flexibility in HR processes and adaptability to different departmental needs.
    • Efficiency: Decentralization can lead to quicker HR processes and resolutions.
    • Accountability: Increases accountability as line managers directly handle HR matters.
  4. 4
    17
    votes
    This structure involves the creation of a shared HR services center that serves multiple business units within the organization. It is popular because it allows for cost savings and greater efficiency in HR processes.
    Shared Service HR is a widely adopted model in the UK, where human resources functions are centralized and provided to multiple business units or organizations. It aims to streamline HR processes, optimize efficiency, and improve service delivery through a consolidated service center.
    • Centralization: HR functions are centralized in a single location to provide services to multiple business units or organizations.
    • Efficiency: Shared Service HR aims to optimize HR processes and eliminate redundancies, resulting in greater efficiency.
    • Cost savings: By consolidating HR services, organizations can achieve cost savings through economies of scale.
    • Standardization: Shared Service HR promotes standardization of HR policies, practices, and procedures across the organization.
    • Process automation: Many shared service centers utilize technology and automation to streamline HR processes and enhance accuracy.
  5. 5
    11
    votes
    This structure involves HR professionals working closely with business leaders to understand and address HR needs within a particular business unit. It is popular because it helps to ensure that HR initiatives are aligned with business goals.
    The HR Business Partner model is a widely adopted HR structure in the UK that aims to align HR with the business strategy and objectives. It is designed to enable HR professionals to act as strategic advisors and partners to business leaders, integrating HR expertise into daily operations and decision-making processes.
    • Alignment: HR Business Partners work closely with business leaders to understand the goals, challenges, and needs of the organization and align HR initiatives accordingly.
    • Strategic focus: HR Business Partners actively contribute to the development and execution of business strategies, ensuring HR practices support the organization's long-term goals.
    • Relationship building: They build strong relationships with key stakeholders, department heads, and employees, fostering collaboration and acting as a trusted advisor on HR matters.
    • Change management: HR Business Partners play a crucial role in organizational change initiatives, providing guidance on change management strategies, communication, and employee engagement.
    • Talent management: They are responsible for attracting, developing, and retaining top talent. They implement talent management strategies, including recruitment, training, performance management, and succession planning.
  6. 6
    16
    votes

    Matrix HR

    Charles Perrow
    This structure involves HR professionals working on HR initiatives that span multiple business units or functions within the organization. It is popular because it allows for greater collaboration and sharing of resources across the organization.
    Matrix HR is a popular HR structure in the UK that was initially developed in the 1970s. It is a flexible organizational model that aims to balance functional specialization with product or service-focused teams. It is designed to enhance collaboration, cross-functional communication, and flexibility within an organization.
    • Focus: Balances functional specialization with product or service-focused teams
    • Collaboration: Promotes collaboration across departments
    • Communication: Enhances cross-functional communication
    • Flexibility: Allows adaptability and flexibility within the organization
    • Team structure: Teams are formed to meet specific project or product demands
  7. 7
    11
    votes
    This structure involves HR professionals specializing in specific HR functions, such as recruitment, compensation, or employee relations. It is popular because it allows for greater depth of expertise in each area of HR.
    Functional HR is a popular HR structure in the UK that organizes HR functions based on specialized areas of expertise or specific functions within the HR department. It is a hierarchical model where different HR functions are grouped together under one functional area, with each area having its own dedicated team.
    • Clear Functional Structure: Functional HR provides a clear structure and reporting lines within the HR department.
    • Hierarchical Model: In Functional HR, HR functions are organized in a hierarchical manner.
    • Specialized Areas: HR functions are grouped based on specialized areas of expertise or specific functions.
    • Dedicated Teams: Each specialized area has its own dedicated team.
    • Better Expertise: The focus on specialized areas allows HR professionals to develop deep expertise in their domain.
  8. 8
    3
    votes
    This structure involves outsourcing some or all HR functions to external providers. It is popular because it allows for cost savings and greater expertise in certain areas of HR.
    Outsourced HR refers to the practice of hiring an external company or professional to manage various HR functions and tasks on behalf of an organization. Instead of having an in-house HR department, companies opt to outsource their HR needs to specialized firms or consultants. This allows businesses to focus on their core operations while leaving HR responsibilities to experts in the field.
    • Cost Efficiency: Outsourcing HR can often be more cost-effective for businesses, as it eliminates the need to hire a full-time HR staff and invest in HR infrastructure.
    • Expertise and Experience: Outsourced HR providers are typically experienced professionals with in-depth knowledge of human resources and employment regulations.
    • Scalability: Outsourced HR services can scale up or down based on the needs of the organization, providing flexibility in managing workforce fluctuations.
    • Time-saving: By outsourcing HR functions, companies can save valuable time and resources that would otherwise be spent on administrative HR tasks.
    • Compliance: Outsourced HR providers stay up to date with employment laws and regulations, ensuring businesses remain compliant.
  9. 9
    3
    votes
    Co-Sourced HR
    Google Translate · Public domain
    This structure involves a combination of in-house and outsourced HR services. It is popular because it allows for greater flexibility and control over HR functions.
    Co-Sourced HR is a popular HR structure in the UK that involves outsourcing certain HR responsibilities to a third-party provider, while retaining some functions in-house. It is designed to create an optimal blend of external expertise and internal control over HR operations.
    • Flexibility: Co-Sourced HR allows organizations to scale their HR resources and services based on their needs, without committing fully to outsourcing or maintaining a large in-house HR team.
    • Expertise: By collaborating with specialized HR providers, organizations gain access to a wide range of HR expertise, including recruitment, employee relations, payroll, and compliance.
    • Cost-effectiveness: Co-Sourced HR offers a cost-effective solution for organizations that require occasional HR support but do not want to bear the full cost of maintaining a dedicated HR team.
    • Customization: This structure allows organizations to tailor their HR services based on their unique requirements, aligning with the specific needs of the business.
    • Risk management: Co-Sourced HR providers help organizations mitigate HR risks by ensuring compliance with employment laws and regulations, reducing the likelihood of costly errors or legal issues.
  10. 10
    6
    votes
    Hybrid HR
    Alexander Migl · CC BY-SA 4.0

    Hybrid HR

    XYZ Solutions
    This structure involves a combination of two or more of the above HR structures. It is popular because it allows for a customized HR function that meets the unique needs of the organization.
    Hybrid HR is a human resources structure that combines elements of both centralized and decentralized HR models. It aims to strike a balance between standardization and autonomy within an organization. The creator of Hybrid HR is HR consultancy firm XYZ Solutions.
    • Integration: Seamless integration of centralized and decentralized HR functions
    • Standardization: Establishment of consistent HR policies and practices
    • Autonomy: Allows HR functions to be managed at different levels of the organization
    • Efficiency: Optimizes HR processes by leveraging technology
    • Collaboration: Encourages collaboration between central HR teams and business units

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Ranking factors for popular structure

  1. Organisational size and complexity
    The size and complexity of an organisation play a crucial role in determining its HR structure. Larger organisations usually require more elaborate and hierarchical HR structures to manage different departments and divisions.
  2. Business strategy
    The overall business strategy of an organisation can influence its HR structure. For example, companies with a focus on growth and innovation may require a more proactive and agile HR structure, while those focusing on cost reduction might utilise a centralised HR function for increased efficiency.
  3. Regulatory environment
    The regulatory environment in the UK can also impact the HR structure of an organisation. Compliance with employment laws, health and safety regulations, and data protection requirements can dictate the need for certain HR roles, processes, and structures.
  4. Technological capabilities
    The extent to which an organisation has embraced technology in its HR function can affect the HR structure. Companies that have implemented HR software systems and digital tools may require a different HR structure than those that still rely on traditional methods.
  5. Workforce composition
    The composition of an organisation's workforce, including the proportion of full-time, part-time, temporary, and remote employees, can impact the best-suited HR structure.
  6. Geographical spread
    The geographical spread of an organisation's operations can influence the preferred HR structure. Companies with multiple locations or international operations may require regional HR teams to handle local issues and ensure compliance with different laws and regulations.
  7. Employee engagement and satisfaction
    The level of employee engagement and satisfaction should be considered when determining the best HR structure. A structure that fosters open communication, career development, and work-life balance is likely to result in higher employee satisfaction and improved performance.
  8. Cost efficiency
    The cost efficiency of the HR function is another key factor to consider. Organisations must strike a balance between having a comprehensive HR structure that supports employees and optimises performance levels and keeping HR costs under control.

About this ranking

This is a community-based ranking of the most popular HR structure in the UK. We do our best to provide fair voting, but it is not intended to be exhaustive. So if you notice something or structure is missing, feel free to help improve the ranking!

Statistics

  • 1533 views
  • 160 votes
  • 10 ranked items

Voting Rules

A participant may cast an up or down vote for each structure once every 24 hours. The rank of each structure is then calculated from the weighted sum of all up and down votes.

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More information on most popular hr structure in the uk

In the United Kingdom, many businesses follow a hierarchical HR structure, which typically includes employees, managers, and senior executives. This structure is designed to facilitate effective communication and decision-making across all levels of the organization. However, in recent years, there has been a shift towards flatter organizational structures, where decision-making is decentralized, and there is a greater emphasis on collaboration and teamwork. This has led to a growing demand for more flexible and agile HR structures that can adapt to changing business needs and support the growth and development of employees. In this article, we'll explore the most popular HR structures in the UK and their benefits and drawbacks.

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