The Future of HR: Slaying Your Company’s Org Debt Monster
At Work with The Ready
Centralizing v.s. Decentralized Org Policies
Creating effective organizational policies can become complicated when striving to satisfy diverse needs within HR, leading to a structure that is overly complex and ultimately ineffective. A centralized approach can provide a well-informed and tested framework, but as individual groups request exceptions or alternatives, the policy evolves into a convoluted affair that rarely meets anyone’s needs. The burden of centralization often manifests in the form of organizational debt, particularly in hiring, compliance, and performance processes. Decentralization allows for contextual adaptation, empowering teams to tailor policies to fit their specific circumstances, thereby alleviating the complications of a one-size-fits-all strategy. Emphasizing experimentation and flexibility at the edge of the organization can mitigate the administrative burden and restore the policies' significance and usability.
