Human Resources Shared Service Centers

Human Resources Shared Service Centers (SSC): SSC is also known as the center of expertise, consolidates routine transaction-based activities distributed throughout the organization in one place. One of the main objectives and strategies of the Shared Service Center (SSC) is to establish an optimized cost structure of an organization. SSC performs most common HR functions such as: benefits and pension management, payroll calculation, relocation assistance and recruitment support, global training and development, succession planning and talent retention.
Professional Employer Organization (PEO): PEO is a company that provides services where employers can outsource employee management tasks such as employee benefits, payroll accounting and worker accident compensation, recruitment, risk / safety management, training and development. In these days, most of the companies using a PEO because PEO provides time for business owner to concentrate on core business, time to achieve more efficient work, and business opportunity to save money.
Presently, HR professionals take a bigger participatory role of being a strategic partner and work closely with an organization’s senior managers, in order to develop an HR agenda that closely supports the overall aims of the organization. In this role, HR helps to analyze and develop employees necessary for skillful performance, builds recruitment systems, training programs for product distribution and interactions with customers, and organize performance management. Furthermore, there are also main strategic tasks for HR: increasing productivity of the labor force and thus, profitability of the organizations, helping line managers achieve their goals (for example, hiring highly dedicated and motivated employees for each department). Human capital is also one of the important in human resource as a business strategy because recruiting the right employee can apply to create economic value for their employers. Although human resource is one of the major parts in an organization, small business often does not have a formal HR unit or an HRM specialist. Line managers often handle the HR functions and focus on hiring and retaining capable employees. However, in small business people are the most important resource and need to use effective HR strategic planning techniques and strategies to manage organization resources.
HR does have an important role of play in Organizational Culture, as it is the people who work for the organization, who embrace and develop a particular culture within the organization; any desired change to the culture of the organization has been made through the people and by the people. HR practices shall focus on employee development through creation of organizational culture where there is ease of sharing information; trust in knowledge sharing, learning opportunities. Therefore, HR could have a tremendous impact on shaping teamwork and collaboration based corporate culture.
In this era of good corporate governance, the emerging role of human resource is delivering effective governance and social responsibility. In order to achieve this, ’employer branding’ is one of the important strategy. For effective governance, employer branding is a strategic and marketing effort designed to make an organization appealing as a place to work. The targeted marketing effort attempts to shape the perceptions of potential employees, current employees and the public. Successful employer branding reduces hiring costs and ease the hiring process. For social responsibility, employer branding attracts people and makes them want to stay, and maintains a positive work culture that emphasizes a culture of social responsibility, personal responsibility, flexibility and development.
Nowadays, the growing significance of developing economics in the global environment, HRM is facing increased difficulty in managing cross-border cultural relationships. However, organizational leaders and policy makers are required to know how human resource are managed in different parts of the world and how they should perceive and react to different cultural beliefs and practices.
To conclude, the prescription for managing people may take various formulations such as the flexible organization, corporate culture, the empowered organization, the learning organization, the open company as well as human resources management, but most of the key features are commonly aimed at the development of a highly committed and adaptable work force. Organizations should aim to build the ‘HRM organization’ by harnessing the co-operation and commitment of others through flexibility of function, time, task and reward. However, the Human Resource Management has to be treated with utmost caution.


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