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Centralized Staffing Function

What are the advantage of having a centralized staffing function, as opposed to letting each manage be totally responsible for all staffing activities in his or her unit?

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Research shows that the centralization of a staffing model (centralized staffing) is defined as the extent to which management has direct control over the staffing function. There are many advantages to having this function instead of letting letting each be responsible for their own unit. In a highly centralized staffing function, management may exercise control over strategy, resources, budget, and process. In a decentralized staffing function, responsibility for the recruiting process is managed locally, with strategies and processes that are tailored to local circumstances.

The corporate world heavily favors centralization: 59% of companies structure the staffing function on the centralized model, according to "2003 Recruiting Metrics and Performance Benchmark Report, by Only nine percent of companies deploy a fully decentralized structure. The remaining companies (32%) place the staffing function somewhere between fully centralized and fully decentralized model, wherein some aspects of the recruiting process may be managed centrally and others locally. For instance, 65% of companies characterize the sourcing function as centralized.

A centralized staffing model allows a company to pursue a coherent strategy, set out a consistent process, and take advantage of certain economies of scale. On the other hand, a decentralized staffing model may be more focused on the hiring manager's needs and is more flexible in nature.

The challenge for any company is to maintain a level of service for the local hiring manager while setting corporate strategies and standards, and measuring progress towards those goals. It is important for corporate executives to know how staffing is performing, regardless ...

Solution Summary

This solution of 1,060 words looks at the advantages, disadvantages and challenges of a implementing a centralized staffing function and looks at the alternative models of management. References used are included.