Marco Maatman

Exploring and comparing HR shared services in subsidiaries of multinational corporations and indigenous organisations in the Netherlands: a strategic response analysis

Human resource shared service centres (HR SSCs) are said to make optimal use of information technologies. Especially for MNCs, utilising HR SSCs supported by information technology increases the pressure to standardise or localise the HR SSC operations within their subsidiaries. In this paper, we explore whether what we call the content of HR SSCs (i.e. their HR activities and governance structures) is different in MNC subsidiaries to that of indigenous organisations. In so doing, we build on neo-institutional theory and the strategic response concept for uncovering how HR SSCs respond to local institutional pressures to become different or similar. As such, we contribute to the standardisation-localisation debate by responding to the call for more research into the response mechanisms that explain why MNC subsidiaries and indigenous organisations are similar or different. Further, by exploring eighteen Dutch HR SSCs in terms of their activities and governance structures, we contribute to the HR shared services literature by empirically illuminating the key characteristics of shared services: the centralisation of activities and the decentralisation of control

Why Sharing Is Synergy : The Role of Decentralized Control Mechanisms and Centralized HR Capabilities in Creating HR Shared Service Value.

Purpose HR shared service centers (SSCs) have been claimed to innovate human resource management service delivery by centralizing resources and decentralizing control and, in doing so, create value for other business units. In response, to explain the value of HR shared services for the business units served, the purpose of this paper is to test hypotheses on the joint influence of HR SSC operational and dynamic capabilities and of control mechanism usage by the business units. Design/methodology/approach A survey methodology was applied to collect data among business unit representatives from 91 business units in 19 Dutch organizations. The data were analyzed using structural equation modeling in AMOS. Findings This study found that the use of formal control mechanisms (e.g. contracts, service-level agreements) relates negatively with HR shared service value, but that this relationship becomes positive once mediated by informal control mechanisms (e.g. trust and shared language) and operational HR capabilities. Furthermore, it shows that the dynamic capabilities of HR SSCs relate positively to HR shared service value for the business units, but only because of their effect on operational capabilities. Originality/value Whereas previous studies into HR SSCs have examined the two antecedents independently, this study shows how organizational control and capabilities interrelate in explaining the value of HR shared services.

Value creation by transactional shared service centers: mapping capabilities

Abstract Purpose The purpose of this chapter is to introduce the capability map that addresses the potential of transactional Shared Service Centers (SSCs). The mapping approach represents a heuristic logic that provides means for analyzing SSC operation, connects SSCs capabilities with their value, and supports academics and practitioners in developing a transactional SSC that is of strategic importance. Design/methodology/approach This chapter reports on findings from a longitudinal case study within an organization that has implemented a transactional Human Resource (HR) SSC. Over a period of three years, several formal and informal meetings were attended, more than 20 interviews were conducted with SSC MT and customers, over 500 pages of project documentation and memos were studied, which allowed after integration for an in-depth analysis of how resources are bundled to build different types of capabilities. Findings We uncovered and mapped the operational and dynamic capabilities of a transactional SSC, their role in value creation, and their interdependencies. While the operational capabilities enable the HR SSC to provide day-to-day services to take care of individual end-users and support the business, the dynamic capabilities enable transformation of HR delivery throughout the organization and increase HR’s strategic contribution. Research limitations/implications One limitation of this study is the extent to which the capabilities and their role in value creation are generalizable to transactional non-HR SSCs. SSCs providing services that cover other business functions might develop and deploy different capabilities. The use of a capability map is not limited to the capabilities uncovered in this study, however. Originality/value In the literature, the primary focus regarding transactional services is limited to cost savings and efficiency. This chapter addresses the potential of the transactional SSC and introduces the capability map as a tool to leverage its potential.