How To Get Best Value From HR: The Shared Services Option

by Reilly,Peter

• ISBN13: 9780566084959
• ISBN10: 0566084953
• Edition: 1st
• Format: Hardcover
• Copyright: 2003-02-28
• Publisher: Routledge

Summary

An efficient and cost-effective HR function is essential to the successful running of any organization. And yet for many businesses it is impossible or costly to have HR staff in every office. This is particularly true for companies who have many branches, such as banks and building societies. So what are they to do? Increasingly they are turning to shared services by creating a unit within the organization that typically undertakes personnel administration and basic operational support. This may be delivered to managers and employees through some combination of call centre, personal contact or intranet.Creating a shared services centre enables the HR function to redefine its relationship with its stakeholders. It can become more of a strategic player and make a more business-focused contribution. This book explains what shared services are and what they look like for the HR function. It describes why organizations opt for shared services and what activities are included. It sets out the relationship between shared services and the other HR activities, and between HR and line management. How To Get Best Value From HR outlines the process of introducing shared services, from identifying customer needs through designing the structure to implementation and monitoring. It also outlines the likely pitfalls and, importantly, offers possible solutions. In particular the book highlights the big design issues, including whether to outsource services, where a shared services centre should be located, how services should be delivered and organized, including through the option of e-HR. Crucially it features an extended case study of the Royal Bank of Scotland's experience of introducing HR shared services, providing a unique insight into the reality of this new way of working.

Author Biography

Peter Reilly is Associate Director at the Institute for Employment Studies.

Table of Contents

List of figures and tables	vii
List of abbreviations	viii
What Are HR Shared Services?	1	(10)
The changing context	1	(1)
The concept of shared services	2	(1)
What parts of HR go into shared services?	2	(9)
Why Introduce HR Shared Services?	11	(16)
Cost reasons	11	(3)
Quality reasons	14	(2)
Organizational reasons	16	(5)
Technological facilitation	21	(4)
Conclusion	25	(2)
The Big Design Decisions	27	(30)
Separate structures or common service provision?	27	(1)
To make or buy?	28	(6)
ASP solutions	34	(1)
Forms of insourcing	35	(2)
How is it managed?	37	(2)
Cross-organizational provision	39	(2)
Devolvement	41	(2)
Self-service and web-based services	43	(3)
Location of services	46	(2)
Setting the numbers	48	(4)
Issues in role design	52	(3)
Conclusion	55	(2)
How to Introduce Shared Services: The Process Steps to Take	57	(21)
Commitment to change	57	(2)
Establishing a project team and methodology	59	(2)
Finding out how good your HR service is	61	(3)
Establishing the current service quality and cost of HR services	64	(3)
Establishing the capability of current HR staff	67	(2)
Technology assessment and status	69	(1)
Design structure	70	(1)
Test with customers, colleagues and management	71	(2)
Detailed role design	73	(2)
Formal consultation with employee representatives	75	(1)
Conclusion	76	(2)
The Process of Outsourcing	78	(13)
How do you decide whether to outsource?	78	(4)
Determining the contract strategy	82	(1)
How best to manage the outsourcing process	83	(7)
Conclusion	90	(1)
Implementation	91	(14)
Testing and phasing	91	(3)
Timescale	94	(1)
Communication	95	(2)
Appoint staff	97	(3)
Train staff	100	(2)
Educate users	102	(1)
Conclusion	103	(2)
Monitoring Performance and Evaluation	105	(9)
Monitoring performance	105	(5)
Evaluation	110	(4)
Case Study: The Royal Bank of Scotland Group	114	(20)
Historical context	114	(20)
Building the change programme	116	(2)
Current-state assessment	118	(4)
High-level design	122	(5)
Implementation	127	(4)
Recent events	131	(2)
Conclusion	133	(1)
Pitfalls and Solutions	134	(14)
Potential problems	134	(11)
Getting it right	145	(3)
References	148	(1)
Index	149