until now yeah we talked about all the things companies do as part of HRM yeah we talked about lawyer branding we talked about selection we talked about compensation benefit change management retention and play survey all this stuff all the circles in this picture represent the things you do in human resource management so and now at this point we have finished this part and in the remaining part of our lecture I would like to talk about more infrastructural things yeah who is doing all this yeah we talked about the HR organization how can we use IT to support all this information technology how can we use social media Facebook Twitter Linkedin for all these things and how can we measure the success of all these things as part of HR controlling so that’s a different level this is more about yeah let’s say the infrastructure and today I would like to talk about HR organization I mean some of you might have the rather naive idea that okay I mean there is a first personnel department yeah okay there’s a company and there is this plant Factory and there is the providing skip over all the administrative stuff takes place and here on the second floor and three rooms there is the HR department that’s the HR organization . yeah yes for some small companies that’s still true you have probably some nice ladies in HR department doing all the selection stuff compensation benefits payroll available but for bigger companies that does not apply when you think about companies like BMW shell Microsoft Google ASAP Price Waterhouse Cooper it looks totally different I mean that topic is also relevant especially for those of you who will have the idea to work in HR an HR is an exciting field I really can recommend to work there but it really depends on where you will work so I will show you how HR departments are organized what are the different roles what do they do and then you will see that there are totally different places inside an HR organization where you do totally different things yeah okay so some leading questions here are first of all what are central what are local responsibility in international HR organizations now I not only want to talk about these companies which I just have mentioned they are all global players and how doesn’t it’s all organized if you look like in those kind of companies and we talked about how responsibilities in the HR department change I mean really we have these old days the old days where maybe a naive understanding comes from and we have the future HR now and in the future it’s totally different with regards to its responsibilities compared to HR 20 30 50 hundred years ago yeah I will show you how things change in and where things go too and then view eventually we’ll talk about the roles in the areas inside a modern HR organization okay so at the end of this chapter you really have understanding how HR works from organizational standpoint and I’d like to start with some

international aspects okay so how does it look like very simple all companies huggy companies have a headquarter somewhere where is the headquarter of Adidas hat so Canova where the hell is hats on or somewhere in Pavia yeah why is it there huh why is there tussler Adi Dassler he lived there I need to start producing shoes together with his brother who knows this these brothers got into conflict because why because of a women okay so they got their separate ways and ordered us to run start running his own business Puma so it came from her tokonoma that’s the reason why they why is si P in Banda I mean Vidal sorry I mean they came from this region the founders and they wanted to they wanted to build their facilities in Mannheim where they came from but the city of Mannheim they said oh no we don’t need this company here was a big mistake sir okay let’s find another place okay let’s go to my dog there are historical reasons why companies are headquartered we are there where they are headquartered yeah so the headquarter is growing then they start building subsidiaries in different regions yeah so in global companies you typically have the headquarter they take care for all the global things and then you have some regions and you will hear terms like amia Europe Middle East Africa for some for some corporations Africa belongs to Europe it’s it’s this okay and then you have another region the Americas it’s this and then you have some companies needed Asia Pacific where Australia also belongs to typically so companies are divided into large regions in the world and within the regions you have subsidiaries needle Assam and the head of these subsidiaries they they typically report to the head in the regional headquarter and he or she reports to somebody in the headquarter this is how large-scale operations look like very simple I mean you knew this the point is we have HR people in the headquarter we have HR people in the subsidiary we have HR people recruiters trainers developers all this kind of stuff which you typically find in HR organizations you have these in the regional headquarter yeah so HR is everywhere now if the question is I mean who does what if you do an internship in H horror it’s a total difference whether you work in HR let’s say in Zhu Zhu somewhere near Shanghai or in Barcelona or whether you work at Busch in the headquarter which is where so Silla here in its name yeah you try through the wood and there is nothing wood wood wood wood and suddenly there is a hospital no it’s not a hospital it’s a hit there are HR people if you do an internship in each are on the hill every in the headquarters you will do totally different things than if you do your HR

internship in Barcelona let’s talk about it the first thing I want you to understand is how this kind of internalization internationalisation globalization takes place what are the different faces I mean you you know this term international multinational international and for some of you this might be all the same about this global company national company multinational it’s all the same no it’s not it’s not this great book which I really can recommend written by Bartlett across orders it’s a Bible International Management and they they show that there are different types of how companies can operate on an international level let’s have a more historical you let’s take a company like you know sick s vck the people out of this region they know this company it’s a very successful company in white coach by the Kirsch is near Freiburg why is sick there because the founder mr. sick crew up there I don’t know whether he grew up C but he lived there they they produce products in the optimization optimization technology whenever it comes to since Oracle technique optic techniques the automation process then they come into play very innovative so companies like this they start their business where the founder lives in the garage they start doing things more company and then the company grows at this face the company is purely national regional yeah but the more the company grows the more it succeeds the the high is the probability that sooner or later one customer is from abroad Switzerland Austria once you have one single tiny customer in Switzerland as a chairman company are you international then yes first your international you you do business across borders that’s international thank you yes and the first thing is that you have expect rates for instance you you assign people from the home country to the foreign it’s still a foreign country yeah who transfer knowledge there who do sales there yeah so once you have maybe subsidiaries also a prod in the so called foreign country yeah you are really international but you’re very headquarter minded that’s that’s always the case as a company like see they they are vitally focused you know I think Valkyr is the center of the world and from here we operate in to the foreign countries international that’s very first day mm-hmm then what happens next the company is growing and growing and they have subsidiaries not only in Switzerland in Austria but now they have a subsidiary and Czech Republic they have a subsidiary in in China in pricilla yeah and things are growing yeah there’s no better well in the subsidiaries they’re only only sales takes place or production or whatever you start building organizations in the still so-called foreign country and the bigger the company scepter it is growing the biggest gets the more HR people you will find there yeah if you have 100 people in a subsidiary probably have one or two people to take care about HR stuff yeah when you have 500 people you might have five six seven people you suddenly have an HR director

there yeah a typical thing which is happening is that these HR organizations in Priscilla in China they they work very autonomously they do their own things their own way of recruiting they probably have their own payroll they they have their own training development they have their own performance management this is something which you always find in most companies that they start that way still the term foreign country Outland exists in the mind of the people there’s the headquarter the center of the world and now we have the subsidiaries out there yeah if you do meetings global meetings the managers come to the headquarter yeah because that’s the center of the world and they speak charmander yeah try to speak German still very home country minded okay what happens then is that sooner or later the company will realize that we must change something yeah it can’t be that the way how we compensate our managers is different from country to country it can’t be that every company is creating their own styles with regards to the top ads yeah have you ever seen a chopped add of OD in China in earlier days it’s in my eyes it’s Utley yeah but they love it it’s not hoodie it’s not this cry stylist very colored fancy and for coming like OD it’s not acceptable that in every country they do their own things yeah so they try to consolidate things how can you question to you how can you tell whether recruiting in a company Microsoft BMW ASAP how can you tell by a look on the website whether the can thread the company is running a multinational recruiting organization or a globe how can you tell it by the website why why there are some local pages which are learning French ok different website like website layouts absolutely yeah what happens if you you you want to find a job as a controller let’s take this exam and you don’t care about where you will work you are flexible how will the suck chopped search look like in a global organization versus in a multinational organization for all the countries that and of all countries and over and whatever and for a multinational you have to visit like 25 pages a 25 that’s right so in a global organization you have one single website with one single database you type in controller the field where you have to type in country you just leave it empty and you get all the chops all the controller chops worldwide by one singer click that’s possible because there’s one database behind it yeah if it’s a multinational organization the first decision that you have to make is okay do you want to work in Asia do you want to work in UK you want do it in Spain do one work in the States and from there you have to start your search and it looks different okay so that’s a very simple indication of whether the recruiting organization is multinational

or global global means the entire world is seen as one one market in the minds of the people in the minds of the employees the term foreign country doesn’t exist anymore at si P we never used the term Oseland I mean what’s Auslan our slant depends on where you are yeah there is no foreign country there is no Oseland in a global organization and global not only means doing things the same all across the world it’s also something that relates to the mindset of the people do we think really in global terms right so multinational means you have a local differentiation that’s important term here local differentiation means every country does what its best for the country yeah and pursue your thing okay we impress ill we know the market better than the people in the headquarter and Chile so we do the things in a way how we like to do it we are closer to the people we are closer to the labor market we better know the local culture so everything we do fits to the local condition to the best possible decree when you act like this in every country then you you really achieve something which we named local differentiation things are different from country to country because they must be different because the countries are different yeah from a global perspective you think differently you think okay we are one country or one company we act in one global market we we want to achieve what we named global integration we want to achieve synergies yeah we also want to present ourselves as one single company yeah we are not so fragmented we are one single company so here is the conflict between local differentiation which makes sense yes and global integration sup question employer branding positioning and presenting a company as a strong employer employer branding is that something to company to do on a global basis or on a local base peace well I think you can position yourself as we go supporting water globally but it will mean something different every country so that’s how many companies actus a employer branding the way how we appear in the market on the top ads on the careers it must have one one message one look and feel yeah globally we don’t want that the ads and Shanghai look totally different than the ads in Italy you want whenever one one appearance one look and feel while the countries have their local flexibility maybe using different pictures different texts maybe to a certain extent yeah so employer branding typically something that you do globally many companies nowadays learn this and follow this approach how is it about candidate selection for production a production worker should should the employee for production be selected by the headquarter or by H R which operates in this particular plant so production worker for bush in Barcelona Barcelona should it be selected by HR staff in Barcelona or somebody in Bavaria in

Silla we look executive compensation the way you compensate define the salary of top executives should this be done locally or by the hit bottom hit quad so you already see that some things can be done globally some other things can be locally and this leads to an approach which is named the trends national it’s not whether you do everything global or everything local it’s the question of what should we do globally what should we do locally ok where does the need the need for local differentiation where is the need for local differences where is the needs of global integration hi and then you find very different things that you can do as part of HR training the people that’s very often something which can be done very locally because you have to train the people different from country to country that by the way does not apply for training executive that is something you would do globally yeah employer branding is we have a high need for global integration career website is somewhere in between so you you sort all the activities in HR according to the need for a local differentiation or for clothing decoration so in this picture local differentiation global integration is not seen as as contradiction it’s seen as something ok how can we combine these different things so transnational organization means to find a smart way to allocate different tasks in HR to the local organization or to the club organization do you know anybody friends peers relatives to work in a jar if you have a working nature if you think of somebody working in HR what do you think they they do the entire day all right we could do this exercise take a piece of paper and write down five things people in HR typically do what is on your paper you promptly will find some things which are kind of administrative relates to administrations preparing a work contract writing a chop at and post it on monster pre-select incoming applications organizing an interview these are all administrative things do HR people do this yes of course it’s daily work yeah much paper stuff or using a system some of you might say wow it’s not only administration I mean there are people who knock at your door at HR well mr. HRI I need to improve my my-my-my competencies in using Microsoft Office do we do you offer any courses on this you know is there any training do you have any recommendation somebody’s knocking at your door saying hey I’m now seven years with this Bini I’m a mitten manager do I get a company car yes oh is it the a4 a5 a6 a8 yes a rollup yeah this is or I managed to knocks at your door saying I have an employee he’s a trunk what to do comes late every morning trunk what to do this is not administration this is support to help people mainly

individuals managers employees on certain areas some of you might say no it’s not only administration it’s not only support I have a friend who is about building an employer brand yeah he’s running a big project I know somebody in HR she is managing a global employee survey and that’s huge I know somebody who is building and each an executive development program this is not administration this is not support this is consulting this is complex work high value complicated yeah sometimes huge difficult maybe you have a father or mother uncle Rizzo who is an HR director and the Lord from him or her that no he’s not doing projects he is not supporting people he’s not doing the administrative stuff he’s sitting at the table of the Executive Board and he’s thinking about the future strategy of the company and he always looks at current possible strategies of the company from an HR perspective should you should we really change the strategy and entering the Asian market while we see that labor markets are rather difficult and our people let the competencies doing so so this is this is strategy okay so whenever you think of different activities HR typically does you can always put these in one of these four boxes either administration support consulting structure now the point is when you look at very traditional HR if you look at it let’s say your conservative HR mid-sized company in the middle of Black Forest you will find that the people in HR primarily do administrative stuff hire somebody fire this man but load don’t let him please too long don’t make too much noise can you do this we have to change the company car policy which is always very concept administration pure administration be careful if you work in HR in a midsize small company you probably will do a lot of it’s not the case for all I know companies which are very modern very very typically you find much administration administration some support a little bit consulting and then a tiny piece of strategy and in the last few years I can say decades many HR people HR directors HR executives set of no we have to change this we have to change our own our responsibilities in a way that yes we do some administration but that’s the minor part yeah we only take care for the difficult stuff we do a lot of support to the people we do a lot of consulting work and much more strategy okay so you have found this slide in almost every presentation ten years ago yeah when companies started to think about how should we change our role we must readjust our responsibilities from being a primarily administrative organization to organization which does more high-value work that was really the vision and today you find a lot of companies which are went some steps further and really have changed their responsibilities yeah we are in the middle of it related to this I would

like to to show you an approach which I really like it’s from my old boss my former boss my former boss Lesley Heyman he was the HR executives at sa P for a while and he always proposed that there are the four p’s of a charge that don’t make them mix it up with the four peas in marketing which aren’t valid anymore anyhow the four PS that’s something different less always says that there are four different levels of a chart and that really makes sense pain if you look at companies you probably will find that the HR department is the department well you will find the PO lightest nicest people in the company damn nice okay taking care for all your stuff yeah all we need we need a change in the world contract yes I will do this fire this man nice people if people say I love to work in HR because I love to work with people yeah thats crabby don’t work in HR because you love to work with people ie you will work with people in any other department in the same way then you find a lot of companies where HR took over the role of and say a policeman taking care that all the regulations the policies the processes are really applied in the right way yeah mr. manager have you done your performance appraisal with your team yeah no you must do this huh send me the form later is by end of April oh you’ll have higher people didn’t you use our recruiting standard which we have developed in HR yeah didn’t we talk to you mr. manager that we in HR we have to find the way how we do things in that way and we did it differently half minutes police ensuring that things are done in the right and practice in the way how its are defined it way from there you find some companies saying more and more companies saying no we don’t want to be the polite people we don’t want to be the policeman inside the company we want to be partner to the business what does that mean partner partnering means that when you interact on the same high level yeah okay and there is a manager in a division that same and there is the partner we today we name it and we talk about the HR business partner that’s a role and time to time you sit together thinking about the future challenges of that particular division and as HR business partner you always think about okay what does that mean for HR okay so and we define certain activities measures which at the end and that’s the important thing which at the end support the business H R as a partner is there to support the business okay it’s not administration it’s not about taking care that things are done in the right way it’s I support you with all H are related P related challenges in order to achieve business success let’s always said now a charm must be more than this they must be a player and this is something which we hardly find an H our executive who makes a decision about future product

strategies have you seen this can you imagine this an H our executive who is heavily involved just like the CFO or any any any anyone else in all strategy related decisions and HR executives who thinks about the future not of H are but of future of the company the future of the business as such can tell you in Germany I know maybe five HR directors which act on this level yeah most of them are somewhere here some more okay I like this that that shows a little bit this this this entire spectrum of off possibilities I can also recommend less Haman’s block can read more about this now what does that mean one of the first thinkers in that field was a man his name is Dave Lu you you should have heard this name it’s like I mean there there is no lecture about strategy without thinking about Michael portal so the Michael Porter of HR is probably the early he’s fantastic really I met him a couple of times he’s the god of HR very lovely person very funny very truly inspiring spending a workshop with him a day it’s afterwards I it changed 20 of my slides in perfection it’s fantastic and what made him so so well-known was a book he has written in the late 90s human resource champions if you work in HR you must read this book yeah and he defined role models the HRD d-dave early age all role model now what does he say he says in each our as HR department we must be strong in both in strategic things and in administrative things it’s not that we need to move from administration to more strategic things it’s it’s the question of how do we do both things right if payroll which is typically a very operational thing if payroll does not work well if people don’t get the correct salary you will never be in a position to talk about strategy you first as HR have to do your administrative homework so to speak you have to be strong in this you have to be a professional in this and you must be strong in strategy I mean think about all these accounting finance sasaeng you have to be you have to think in strategic terms when it’s more controlling if you think in more what do we do with this invoice it’s probably more accounting at least from my naive understanding you know it better just a dump psychologist so it says coming from there there are four different roles as a strategic partner yeah you act with the executive board you think about the future of the business you look at business challenges from an HR perspective say okay we need people for supporting this strategy we have a talent shortage so we have to invest in employable and we have to position ourselves better let’s do this let’s focus our resources on positioning the company and strong employer ok the future of our company will be listen this in five to ten years so we have to grow some executives so we have to enhance our executive development

program in specific ways we have to make sure that certain capabilities there certain competencies are there with our managers so that we succeed with a given strategy that strategic thinking in HR we have to focus on certain key roles key functions yeah then companies always go through changes as we have spoke as I’ve shown you and as HR HR must act as a change agent here in a different sense than I have shown you earlier change agent here means not HR is heavily involved in shaping new organized Asians helping companies to succeed in any kind of change yes that’s about change management then of course administrative expert you have to be professional in preparing working contracts you have to be professionally running payroll you have to be professional all these kinds of things no doubt about it okay and then you have to be an employee champion what does that mean that’s about the commitment and capability of the people shaping an environment shaping processes shaping all the things which are relevant for the people that they love what they do and that they are strong in what they do it’s about motivation performance okay so there should be no HR lecture without having seen this model and you should be able to explain these building blocks you find a lot of sources about this even in the internet okay and that’s the the the crowd the basis for a lot of things which we now find in a charter ok so a new role based on this a new role in HR emerged in the last few years a road which have never heard of 10-15 years ago it’s the road of the age our business partner it’s the idea of there is an HR person dealing with the head of a division let’s say of a country a lots organizational new dealing with all people related things in earlier days you had terms like HR generalist personality forget yeah but these terms are dying yeah we still find these terms which are tremulous the HR person that takes care for everything and knows everything doesn’t matter friend yeah the one who takes care for all the HR stuff today we name it HR business partner and I mean there is no better way of showing you the responsibilities of a typical HR business partner and sharing chopped add this is it just really I just went to monster calm monster calm is chopped port and I typed in HR business partner you will find a lot of positions yeah I just took I don’t even know this company I don’t know yeah okay so I’m the professor training I don’t know okay are they good good prank okay okay Oh fine so uh what’s written here is exactly what you find on the right side it’s amazing how much to provide HR a consultation policy interpretation strategic planning to all levels of client organization Wow managing HR projects and program implementation employer branding employee surveys executive development for public policy

law and security strategy development and planning organizations responsible for providing Human Resources support it’s the support level in the areas of ethics compliance equal employment opportunities equal employment opportunities compensation planning performance management elementary ed comment and leadership development staffing absence american employee relations labor relations ability to influence without direct or authority leading through competence tourism empathy diplomacy provide an analysis of data and monitoring or resolved through key metrics develop and communicate status of key internet with HR report that’s huge no yeah it shown you this because this is not an HR administration guide this is much more than this take some years of experience to fill up this role successfully okay now there is the admission administrative part yeah phyto also there a lot of things changed yeah and nowadays if you look at the administrative part in large scales large-scale organizations such as Microsoft ABB s ap BMW shall all these companies then how does this work imagine you have a question you’re an employee in one of these companies and you have a question do I get a company corner if yes when which one you have a question here the question about your payslip you don’t understand something you want to do a training on let’s say time management project management so you have a question and you think ok there is an HR department where I can address this question and are you your understanding properly is that ok there is an HR department somewhere second floor or I go to these nice ladies can you help me and that is not the way how it works in big corporations corporations works like this um the first step you have to undertake as an employee whenever you have a question is that you enter the internet ok you have a portal employee portal in the internet there might be a Q&A question and answers looking for ok company car and then you get something it’s easy oh there is something like a virtual assistant do you know what that is a virtual assistant I could show you back running out of time go to Ikea calm okay yeah dr. Yeoh and you will find Ana have you seen her I know yeah I know it’s a little window and there you can ask questions do you have chairs yes here’s the link huh how much is a bit different if you want to learn more about bits click here did that help yeah so it’s it’s a virtual of Virtual Assistants it’s it’s a it’s not a real person behind it’s a automated assistant with a huge database possible questions and right answers okay oh you have something like an internal yellow page oh I need an expert on something on labor law where do I find information about working contractor I don’t know about our celery schemes so you find the yellow page and you find some experts which you can contact so they’re here is that in the first step you you are enable to answer your question by your own okay and there is one thing else something more is no that is employee self-service employee self-service what is the

self-service when you do a transaction you want to transfer money from your account to another account you do it by your own you enter a portal or you have an app and you do it in earlier days you entered the bank you had to fill in a form and you hang it over there was an employee involved today there is no employee involved on the side of the bank you do it by your own yeah it’s a self-service if you want to get approval for for some vacancies okay in the portal there’s the service you can you can you can submit when you want to have you holiday and you submit that and you get an approval yeah these are self services okay things that you can do by your own you want to change your banking account okay you do it by you on there is no employee involved okay so the idea is that in the first step as much things as possible are somehow automated maybe 70% of all the queries all the questions which come in if this is not enough you have call centers you know big corporations have call centers you have a number and you can call you have you have a question about your pay slip press one you have a question about pension breath do you have a question about health press 3 you have a question about training for s4 goes on and if you’re lucky you get a person you can talk okay and this call center is where are they located that’s the person you talk to a located in India in Ireland is that person you are talking to part of the HR department not necessarily now this person answers a question for an employee at Accenture and an hour later he or she is answering question of an employee at BMW they are trained for doing things like this okay we will talk about HR service center in a minute okay now if that does not help you might have an HR expert which you can directly contact or you ultimately talk to an HR business partner to real it to a to an expert but these are only the five percent but ten to five percent of the queries which come in these are very special okay and if this does not help the HR director comes into play so the idea is really and I want you to understand is to to have a very standardized very efficient process to manage all the queries that come in and this does not only apply to HR this does apply to every circumstance where people have questions okay this is one thing a very simple idea okay now let’s talk about chef services that’s a very important concept not only in HR but also in in accounting wherever you have administrative work HR or service centers come into play like to show you this on a very concrete example okay so what you see here is the way how a company is recruiting in earlier days and so this is a company and this company has two locations let’s say one location unit a is in Germany yeah and the other unit is in UK and in earlier days both units did the entire recruiting process by their own so in Germany they define the target profile they dictate or market job posting and all this stuff they managed all the incoming applications the Dupree selection made an assessment interviews and sermons that made top offer negotiation prepared the job offer and then introduced the new employees so this was the entire recruiting process done by the Germans and done in UK independently and if somebody like you wanted to apply it for both locations you working your company I don’t care

whether I prefer Germany or UK and here is one single application that did not work we had to apply independently at both units one application is sent to Germany and one application is sent to UK and you get different responses okay so maybe the most important thing on this slide is the line in the middle these are totally different worlds right is that efficient probably not as you can see here they work with totally different independent systems application databases maybe there is no coordination between these two now a synergy no potential for synergy effects is used so if they would do things together maybe they can be faster maybe they can be more professional maybe they can save cost now get rid of one of these systems use only one system yeah have one unit that is taking care for some steps commonly okay that’s the idea of shared service and sharing the same services okay if you apply an s AP what do you guess what happens to your application where is the person which has a look at your application in the very first step whereas this person located in prop doesn’t matter whether you apply Germany on UK under Netherlands or in to be your application the first step always be reviewed by a person in rock they do all this recruiting stuff for all countries that’s that’s that’s the idea how does that work okay now we have this different steps another coating process right and now we do with the following exercise okay very simple we ask ourselves okay there are some steps in a recruiting process which are really standardized they are always the same yeah managing incoming applications walking is the application complete is the application serious or did somebody apply yes Barack Obama yeah I mean all these things happen in the daily basis so there must be somebody who has first look at every incoming application you kind of mention what you get good you get poor and everything I mean really sir there must be somebody who has a first look the first filter is the application complete is it serious yeah and and this is always the same it’s always the same toxic and it’s always the same doesn’t matter whether it’s it’s an application in the Netherlands and UK and Germany or France doesn’t it sounds the same sounds insane Brussels Post Lima chop add at monster stand up it’s always administrative process it always looks asleep preparing a job offer contract might be different depending on different legal conditions at different countries but overall that’s more or less the same I mean also the pre selection to a certain extent very much and the other dimension is not understand a little bit but but how close you want to be to the applicants we have to talk to the applicant do you have to have any kind of conversation with the applicant or is it something that really happens really far from the applicant so there are also some steps which can’t be standardized now and where you really have to be very close to the applicant you have to talk to the applicant on the individual basis you have to see the applicant you have to deal with this person something like the assessment Assessment Center doing interviews giving feedback to the interview making making a decision based on the interviews and all these things this can’t be standardized these are very individual so the idea is well we sort all these different activities which are all part of the entire

recruiting process we can take all those where you are not close to the applicant and which are very steady they take those and move all these transfer all these activities to a common service center in India in Ireland Czech Republic okay if you do this yeah then the new world looks like this now you still have Germany you still have UK but in these countries you only do some of the tasks in a recruiting process okay you still do the definition of the target profile but then making the chopped posting on monster or these typical chalkboards managing the application incoming application during the pre selection that is done for both countries in one single shared service or here in that case shared recruiting centers and then once the candidate is pre-selected the process gets back to the country they do the interview they make the negotiation with the candidate but then the chopped offer is done by the shared service center and then if the person is hired the introduction of the new employee the onboarding as we used to say is done in the country and and they all the units Germany UK and the shared service and they use one single recruiting system in a model world a recruiting system which is based on internet technology okay you got this why do companies do this let me ask this question why do companies move from such a world to such a world there’s no double word yeah you’re more effective you need less people yeah all these things yeah what else you can save cost because you move actions activities tasks to low-cost country right you can save cost with this right okay perfect okay again that also applies in accounting yeah a company gets an invoice the invoice is always transferred in the first step to a shared service center and they look at the invoice is it is it is it complete does it fit to the formal requirements yeah and then goes to the local units okay it’s always the same idea so let me summarize there is one model it’s a three pillar model of modern human resource management organizations that’s right oil and motel oh yeah you really should know this if you work in HR you will hear this term all the time try Soylent with a free pillow model of modern HR organizations so let let me explain this or to summarize this stepwise it’s a summary now nothing new I just want to show you an overview how HR business partner shared service center technology how all these things are integrated to serve the customers who are the customers of HR managers employees and to a certain extent also applicants these are the customers of HR to put it simply I mean some would say it’s an off let’s stop fully correct but let’s take that way okay now the managers they are supported by the HR business partners yeah you remember these are those people really support the managers the unit on all HR related topics example there’s a unit 1,000 employees and they run through a reorg and I say hey man you deal with change management yeah or there is a major strategic shift in a unit and you need to qualify the people you as an HR business partner you make sure that all these things happen

yeah really manage the strategic topics which are people related yeah okay so ah we have seen this top ad about HR business pocket that gives you a very good indication of what these guys really do now if an HR business partner does not have the expertise for some things like I give you an example there is there is a unit okay there is a unit an armed HR business partner and this unit has to lay off 20% of its people you are you as an HR business partner you take care for this yeah you have to lay off 20% of the people now that’s also a legal aspect okay now in it as an HR business but you don’t have the understanding the full understanding about law to do this thing right so you have to have an expert and these experts are the so called experts in center of expertise yeah center of expertise are teams with with experts you have experts on labor law you have experts on executive search you have experts on employer branding you have experts on compensation benefits they are really deep in something yeah that might be very interesting truck for you if you are interested in HR if you say I love HR I would like to work in a car but that’s not the full range what I love in HR is talent management or and I love employer branding that’s really great you better work in the center of expertise and um you deal with very specific topics and you go very deep into this and you support the HR business partners those which directly deal with the customer the center of expertise they never deal directly with managers they support the HR business partners okay now what’s with the employees they use IT SSN hotline employee self services manager self services but employee self-service what’s important and the shared service center as I’ve shown you so when you talk about the three pillar when you talk about it try Soylent and what are these HR business partner center of expertise jets represent in modern organizations you always find these three roles now if you are interested in HR it’s a total difference whether you work in a shared service center you probably will not do this because you only do highly standardized administrative stuff but maybe you work in an SN HR business partner there you learn a lot because you learn the whole range of HR fantastic job or you become an expert in something in within HR and you might in the center of expertise centers of expertise are in most cases located in the headquarter yeah so to add one thing we have a fourth role sometimes and the fourth role is you work with partners suppliers and you outsource something so beyond the HR business partner center of expertise then the shared service center you might also have external partners you work with agencies executive search companies companies that take care for for payroll things like this now is that clear or are there any questions around this and you as a preparation for the exam I mean really think about why must this be this way why is that such a smart model why do companies do this yeah I want you to see the reasons behind it yeah to summarize this again and these people directly support the managers they have a very proud understanding yeah why the experts they have a very deep understanding you have to have both you can’t be a generalist in everything and the expert in everything you can’t be that so you need both and this combination helps

organization to deal with with all relate with all relevant topics and with the required expertise and all these things here the shared service center are there to really manage all the admin stuff in a very efficient professional way okay so with that such a model you cover all the different roles which are required in HR okay now let’s talk a little bit about outsourcing you you know this term outsourcing right outsourcing yeah there’s a question very good question as an applicant how can you tell whether there is a decentralized organization or a centralized organization either you see it on the web yeah you’d find different online forms yeah different parts of the career website one is maybe okay the others terminan they they look different they have different application modes or as you say they will tell you okay I want to apply it both in UK any German they will tell you okay you have to send two applications you you will learn this okay okay outsourcing what is that dumb question what is the difference between outsourcing and offshoring well I guess you can outsource about offshore outsourcing is if you just give it to another business you give some services some activities and pass to an external provider which is not part of your organization how it sauce you let some body else do the job okay so once you have outsourced something it’s no more a task that is done by your organization it’s done by somebody else outside the organization outsourcing what is offshoring have you heard this term you do it by yourself but you do it’s too you do it’s baby in a low-cost country or somewhere else in the world there there are ways to structure all these things yeah I don’t want to go too deep into this but but I just want you to see that there is a difference between how it soars and where really transfer activities to an external partner and offshoring you do it by your own in your organization maybe in a shared service center but the shared service center is an island India or somewhere else that’s offshoring okay now the important question and I want you to see this that’s its that’s the most important part here first which tasks can be outsourced and the second question which I want you to understand is why do companies do this yeah now here is a way how companies can really prioritize different tasks and then make a decision upon which tasks can be outsourced and which not okay it depends on our core competence what is that a core competence I ask you this question why is that core competence something where you’re really strong bases where you can distinguish it from the market core competence something where you’re really strong is payroll is recruiting part of your core competence could be at least for recruiting but for payroll I mean look at a company like Microsoft look at a company like Google look at a company like like Daimler it’s it’s doing payroll is that core competence of this piece these corporations probably not their core competencies developing

producing and selling cars so the question is what is our competence where are we strong and where are we weak when Bill Gates was asked Bill Gates in earlier days when Bill Gates was asked what is the biggest strength of Microsoft what is the biggest strength of Microsoft now what he said he said the biggest strength of Microsoft is recruiting the smartest and brilliant people that’s what he said that’s our biggest strength recruiting the best it’s interesting it was not that he said I’ll be a strength is protruding the best software so he really said that’s one of our biggest friend we are very strong this and we will we will do this by our own and it’s a task of our managers and of the executives to make sure that the best people in the world work at Microsoft they have this philosophy okay while other companies might say how big a strands is building cards but hiring people we have really weakened this and and that’s fine let’s somebody else do the job okay so the question is really where are we strong and where are we weak and those tasks where we feel we are weak you can think about whether somebody else to do the job yeah so this is the internal competence compared to the external service provider and then how specific are the requirements for these different tolerances how specific I mean things like employer branding they are really they are really specific they differ from company to company really performance management that’s so specific yeah you’re hardly can standardize this top management placements highly specific to a certain extent yeah but things like pension and it’s office trainings maybe this is not specific you do the same external providers can do the same MS office training in totally different corporations that’s always the same it’s not specific yeah the same it is payroll yeah exit interviews once somebody has quit the job doing an exit interview asking the person why did you leave why did you decide to leave this company we have specific requirements on doing something like this probably not yeah is it a strength of a company to do something like this probably not so all these things on the on the bottom left-hand side could be outsourced okay so that’s a very typical idea especially if you have tasked with a high volume there are tasks that you do on Mary oh yeah then you also can outsource this that you would not outs or something if it has high strategic relevance if something’s really strategic something like top management placement I mean deciding who gonna be our next CEO CFO that’s strategic you might take some help from external partners but we’re in the middle right okay so that’s a very good task to sort these different tasks you don’t do to find out which things might be can be outsourced and which not the next question is why do companies outsource and again this does not apply only to HR it also applies to to accounting other areas parts of purchase what is the answer and let’s talk about these points for some minutes one point you also already talked about its focus that’s clear yeah focus I’m Daimler my strength is building cars producing cars my strength is not running a payroll organization so I would like to focus on on on the ultimate purpose of our company which is producing cars so let’s get rid of all the rest yeah you get rid of all the

rest you can focus on your ultimate purpose yes why not yeah I mean that’s that’s quite simple let’s talk about the second point some would say once you have outsourced a task you get higher quality yeah if I let an external partner do all the payroll gossip with you I get better quality why exactly so but you said if you work with an external partner properly this external partners is doing nothing else than this all right they do nothing else than payroll they do nothing else in a recruiting they do nothing else then Microsoft’s Office training so they must be strong on this and they are stronger than we are and so let’s do them do the job that’s one point another point is I mentioned this on the slide this has to do with competition I give you a very concrete example of your daily life if you have a question and you visit the examination office briefings and student approval students office International Centre yeah now imagine you are totally pissed I don’t get the right answer in time I don’t get any response and the response is bad what can you do huh what can you do drink wine right you can trick let’s see if kiss me what can you do nothing there is only this one students office you have no choice they are in a monopolistic position okay and it’s I find myself in a monopolistic position if I know I’m the only one you can only ask me yeah I must not care about my job because I mean there is no competition Hey what B maybe put idea to have two students office and they get paid for every request of a student for every request they get five euro that would change the world these two students office and you can choose between the one or the other and there are money whenever you visit them yeah you would immediately feel that now they they compete and they will do their best to get the most requests sir and they do the best that you come again to this office not to this office so once you have a competition the different offices will do their best and that’s that’s one issue with HR I tell you honestly that’s an issue with HR if you work in a corporation and you have a question about whatever company carpe slip vacation pension training you don’t have a choice you have only this HR department so since they are not competing against another HR department they are allowed to do a lousy job to put it that way I don’t say that they do this yeah okay but if they do allow the job probably does not matter in a way how it would matter to an external partner so external partners external service providers they compete against each other and they try to do the best yeah to compete now how about costs yeah we say through outsourcing we can save costs and the answer is written on the slide economy of scale what is that yeah economics first session the cost per pay slip what is the cost of producing one thing you had its operational on a monthly basis a cost per pay slip if you do if you do this 1,000 times a month we produce 1,000 pastes it’s a month the cost per pay slip is probably higher than when you do 10,000 per month okay

like if you produce 100 pretzel today cost per pretzel is higher than when you produce 1,000 rest of the day why economics yeah you used your capacity yeah okay what else capacity what what is their capacity machines yeah systems yeah okay a chance to learn yeah all this stuff what else why kind of mascara does it work that’s a fundamental idea I do 200 pay slips a month do I consider investing in a huge sophisticated software probably not but if I do ten thousand times a month yes I will do this and then it pays off right okay flexibility I mean that’s easy think about a recruiting department what do you do with your recruiters in times where you don’t hire fire them if you can so if you with you if you if you outsource some services it just take these services when you need them and if you don’t need them in times where you don’t hire it’s fine no problem okay so these are the four things which I want you to understand focus quality costs flexibility yeah and this is nothing to learn by heart but something which you need to be able to explain maybe with an old example that would be fine okay okay so HR organization these were all these different things we talked about you know tried a lot local integration local differentiation glo-blades are up to a propeller model of modern organization outsourcing offshoring target rolled one second you