HR and the Organization's Core Functions

All organizations include certain core functions to a greater or lesser extent, depending on the size and nature of the organization.

Organizations today realize that the most effective strategies are not driven by a single function, such as marketing/sales or operations, but are produced by cross-functional collaboration. Because it participates in the strategic planning process for the organization, HR understands the value the organization is trying to generate and the role each function plays in producing that value.

Because its mission as a core function is to deliver the talent and services required by the other functions, HR also understands the specific challenges each function faces. As a result, HR is well-positioned to serve as a cross-functional bridge. It can:

·          Facilitate the high degree of cross-functional understanding and collaboration required to deliver results.

·          Use its mission to advise core functions on how to align with the organization's strategy and the best ways to elevate organizational performance.

·          Identify and support the need for additional resources or training.

·          Deliver necessary talent throughout the organization.

Exhibit: summarizes the information about HR and its core business partners

	Cross-Functional Relationships with HR
Executive management and board of directors		Recruiting executive candidates in highly competitive markets   Negotiating attractive compensation packages that are responsible and comply with regulatory restrictions Recruiting and training members for board of directors Consulting on strategic issues such as talent management, organizational effectiveness, or culture
Finance and accounting		Coordinating requirements of different markets in terms of currency, taxation, benefits, reporting Collaborating on start-up operations (examples include setting up accounts, filing necessary documents) Collaborating on ways to manage costs of benefit programs and reduce tax burdens for global assignees providing training related to good governance to board members or on compliance requirements with internal auditing Selecting an external auditor Promoting inclusion of ethical dimensions in enterprise value system and fostering ethical environment throughout the organization, providing training related to good governance to board members, or on compliance requirements with internal auditing Selecting an external auditor, Promoting inclusion of ethical dimensions in enterprise value system, and fostering ethical environment throughout the organization
Marketing and sales		Aligning incentive/compensation programs with strategies and local cultures and practices Managing staffing Coordinating knowledge management in different markets (for example, ensuring that product training is available in different languages) Promoting sharing of learning through Internet or intranet technology Supporting teams in which marketing plays a key role
Research and development		Developing talent pool with requisite expertise (including employees with up-to-date knowledge and skills) Identifying employees with needed skills throughout the organization Selecting members for global teams and building highly functioning teams Promoting a climate that values innovation and continuous improvement Promoting processes that allow R&D personnel to devote more time to the task of innovation Identifying alliance or joint venture partners, acquisitions, or vendors to supply critical elements, Ensuring security of patents and intellectual property
Operations		Developing staffing plans Managing labor relations in different markets Dealing with intellectual property rights Ensuring physical security of Operations Coordinating with local legal, regulatory, and cultural requirements
Information technology		Selecting the HR information system and implementing it using database analysis to support decision making and strategic initiatives Using Internet and extranet to foster better communication, knowledge sharing, and coordination among internal and external stakeholders