Learn which HR activities, like strategic planning and workforce alignment, are best placed at corporate headquarters according to the upstream/downstream strategic HR model.
Table of Contents
Question
According to the upstream/downstream strategic model what HR activities are most likely to be placed at headquarters?
Answer
Workforce alignment. The upstream/downstream model considers it useful to localize downstream HR activities (compensation, benefits, labor relations), placing them closer to HR customers. Upstream functions (strategic planning, workforce alignment) should be closer to corporate headquarters.
Explanation
According to the upstream/downstream strategic HR model, upstream HR functions that are more strategic in nature are best placed at corporate headquarters rather than being localized. The key upstream HR activities most likely to be centralized at headquarters include:
– Strategic workforce planning: Analyzing future talent needs and developing plans to ensure the organization has the right people with the right skills.
– Workforce alignment: Ensuring that the company’s workforce and talent strategies are aligned with the overall business strategy and objectives.
– HR strategy and policy development: Crafting the high-level human capital management strategies and philosophies that govern the organization’s approach to people management.
In contrast, the model recommends localizing downstream transactional HR activities that directly impact employees, such as compensation, benefits, and employee relations. Placing these downstream functions closer to the end users they serve allows for greater flexibility and customization to meet the needs of different employee populations.
So in summary, the upstream/downstream model centralizes strategic big-picture HR responsibilities at headquarters while delegating day-to-day HR operations and services to local HR teams embedded within the business units they support. This allows HR to balance enterprise-wide consistency and standards with responsiveness to local needs.
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