Is a Shared Services Model of Human Resources an Effective Way to Deliver HR Services

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Recent years, "a shared services model" becomes a very popular concept in a management practice. Many organizations try to implement this model, but most of them do not take into account possible "cons" of this approach. The studies on this topic pay much attention to advantages of "a shared services model", but do not explain its disadvantages and the reasons of failure.


For many organizations, it takes much time and efforts to overcome resistance to change and than, start to implement "a shared services model". Another "con" of the approach is that some organizations do not need centralization of their activities. Very often employees are neglected during the development of "a shared services model", so they feel lack of motivation and lack of training which resulted in failure. "A shared services model" is not only a cost reduction method, but a new system of administration.
In changing economic environment, "a shared services model" becomes one of the most widely spread business strategies. The main problem faced by the companies today is that, in some cases, implementation of '"a shared services model" fails. And instead of benefits and cost saving companies have to make additional spending to restore their strong position. The concept of shared services is not new. It was introduced by Ulrich in 1995, but recent years, this concept becomes "a buzz word" (Shared Services, 2005). The main mistake made by some companies is that "a shared services model" is treated as universal "panacea" for managing people and organisations as it is intimately involved with the environment in general.
The issue of a "shared services model" is controversial, because it is impossible to develop a single problem solving app ...
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