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How to organize HR department in your company: 3 most common models

It is a common knowledge that the main concern of the HR department is – people. It is focused on hiring, sacking, education, etc.  But in order for all that to function in a proper way, HR needs a proper structure, one that will give the best results when it comes to the return of investments. Here, we’ll give you some tips and tricks on how to properly organize your HR team in order to get most out of it. Take a look at an overview of the three most common models and then you can decide which one is the best choice for your company.

Matrix Model

If you have an organization where employees report through more than one channel, or to more than one leader, the best way to go is the matrix model. It is used in situations that call for everyday cooperation between mid-level management and employees on different teams. It also allows different team members to work on their own progress and growth, and work on different objectives set by different managers.

This model gives all the members of organization more autonomy, but it isn’t a good choice for every business. While it can provide transparency in big and busy companies, it is necessary for it to be managed by a very dedicated team that will keep everything in order.

This kind of organizational structure has several advantages, including:

  • Coordination of resources
  • Development of specialists
  • Better communication among different teams
  • A more flexible use of the HR department

Shared Service Model

The Shared Service model is based on the principle that activities are available to several parties – making them common, or shared services. Another key dimension is the customer that defines the level of service they need and which ones to take up.

Different activities can be covered in this model, but they mainly include administrative tasks, providing advice or information, and a professional support. There are three main reasons that organizations introduce this model. They are:

  1. Reducing cost (by cutting staff numbers, reducing accommodation charges, and grater efficiency)
  2. Improving quality (by being more professional, consistent and accurate, providing a timely delivery, and thinking of the customer’s wants instead of service suppliers, as well as improving the customer service)
  3. Organizational change (as a part of a larger business change based on the concept of professionalism and functionality, in order to achieve more structural flexibility, improve organizational learning and allow the HR to become more strategic and less administrative)

After applying the shared service model, organizations will see different benefits, including lower costs, higher quality service, increase customer satisfaction, maximized technology investment and better group learning.

HR Business Partner Model

Strategic delivery is the primary goal of HR Business Partner (HR BP) model, but its effectiveness depends upon implementation, the people involved, and supported infrastructure.

This model focuses on four challenges:

  1. Financial performance
  2. Strategy
  3. Change management
  4. Business performance improvement

When HR BP model is observed from a broader perspective, it widens the number of its functions and characteristics, and they include:

  • Cost effectiveness that is delivered through quality solutions and constant innovations
  • HR department that is concentrated on problem solving and shows initiative to act in accordance with the strategy
  • An approach based on good internal relationships
  • A proactive strategic approach that is based on setting goals, responding to challenges and continuous increase of overall value

This has proven to be the most acceptable model to handle full scale problem solving. Its center of attraction is an HR distribution that encourages expert knowledge and its use on handling the complications and challenges that are regularly brought upon HR teams.


While each one of the models presented in this article has its advantages, it is very important to choose one that will be the most applicable in your own organization. It’s not an easy task and it will require a lot of effort to make it work, but if you make the right choice, you will soon see the many benefits that come with it.

About the author

Finanz4u Team is a group of dedicated to the financial topics writers, editors and guest writers.

Jack White

Jack White is an excellent writer who enjoys his job. You can see that by how much work he puts into his articles. He believes you should do what you love, and he loves writing. He worked more than 8 years in different positions in seo industry and now is focusing on helping people by sharing his experience in internet marketing. Contact him if you need help with content or marketing.

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