HR Three Pillars vs. Six Modules: Not Replacement but Strategic Reallocation
This article explains the relationship between HR's six functional modules and the three-pillar model (COE, HRBP, SSC), clarifying that the pillars reorganize rather than replace the modules to enable strategic-business alignment, operational efficiency, and digital transformation, as adopted by companies like Alibaba and Huawei.
HR Six Modules: The Functional Foundation
The six modules of human resource management cover the end-to-end talent lifecycle: human resource planning, recruitment and allocation, training and development, compensation management, performance management, and employee relations management. Together they form the foundational content of HR work, spanning the selection, utilization, development, and retention of talent.
HR Three Pillars: A Role-Based Model for Business Alignment
Introduced by Dave Ulrich in 1997, the three-pillar model defines three distinct HR roles designed to shift HR from a function-oriented to a business-oriented approach:
COE (Center of Expertise)
COE serves as the domain expert center, responsible for designing and optimizing HR policies, processes, and solutions, and providing professional technical support and consulting services.
HRBP (Human Resource Business Partner)
HRBP acts as the business partner, communicating and coordinating with business units to understand their needs, delivering and executing business-driven HR solutions, and driving strategic change implementation.
SSC (Shared Service Center)
SSC functions as the standardized service provider, handling daily transactional and service-oriented HR tasks such as recruitment processing, payroll, and records management to improve service efficiency and quality.
Key Advantages of the Three-Pillar Model
Separation of strategic and transactional work: Allows HR professionals to focus on core functions, avoiding duplication and low-efficiency efforts.
Deep integration of HR with business: Brings HR closer to business needs, enabling flexible, customized services that enhance business orientation and value creation.
Support for HR digital transformation: Leverages advanced technology and data to improve service quality and outcomes, providing greater insights and innovation opportunities.
Industry Adoption
The three-pillar model is regarded as a major trend in HR and has been adopted or piloted by numerous leading enterprises, including Alibaba, Huawei, Tencent, Heineken, and GlaxoSmithKline.
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