Conceptualising the capabilities and value creation of HRM shared service models

Organisations are increasingly establishing HRM Shared Service Models (SSMs) for the delivery of HRM. These SSMs are claimed to maximise usage of the advantages of centralised and decentralised delivery approaches while minimising the drawbacks of both. This article draws on concepts from the Resource-Based View, the Dynamic Capabilities Approach and from contingency models in order to advance the argument on HRM SSMs and their value for organisations. We propose a model that enables one to conceptualise the value created by an HRM SSM and that is contingent on the types of capabilities employed within it, the types of HRM services offered and the organisational model chosen.

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