Distributed HR: Elrona Dsouza Explains the Pitfalls of Unowned Functions

In a recent LinkedIn post, Elrona Dsouza highlights a common organizational challenge: the “distributed” nature of Human Resources functions, arguing that this distribution often leads to a lack of ownership and inconsistency. Dsouza, who specializes in helping businesses in the UAE establish fully managed HR functions without building them in-house, points out that while HR tasks may be performed, the absence of a single point of accountability can undermine the effectiveness of the entire system.

The Illusion of HR Presence

Dsouza challenges the notion that HR is absent in organizations where a dedicated department isn’t immediately apparent. Instead, she posits that its responsibilities are frequently spread across various departments. Payroll might fall under finance, contract management could be handled by administrative staff or even founders, and employee relations might be managed on an ad-hoc basis.

This diffusion of responsibility, while ensuring tasks are completed, creates a significant underlying issue. As Elrona Dsouza explains:

On the surface, everything is being done. But underneath, there is no single owner of the system. Which means there is no consistent standard.

This lack of a central owner, according to Dsouza, means that decisions are often made based on the immediate availability or understanding of the person handling the task, rather than on a predefined, consistent HR strategy.

The Ripple Effect of Unclear Ownership

The consequences of this distributed, unowned HR model can manifest in several critical areas of the employee lifecycle. Elrona Dsouza argues that this inconsistency, not a lack of individual effectiveness, is the root cause of many HR-related problems.

She outlines the specific areas where variations can emerge:

• Contracts
• Payroll handling
• Employee communication
• Basic HR decisions

According to Dsouza, the issue is not with the people performing the tasks, but with the structure (or lack thereof) governing the function itself. When ownership is ambiguous, sustaining consistent standards becomes an uphill battle.

And when ownership is unclear, consistency becomes difficult to sustain.

Introducing HR as a Service as a Solution

To address these systemic challenges, Dsouza proposes the adoption of an “HR Department as a Service” (HRDaaS) model. This approach centralizes HR operations, ensuring a unified and consistent management of critical functions.

Elrona Dsouza emphasizes that this model transforms the fragmented approach into a cohesive system. By creating a dedicated HR function, organizations can ensure ownership over:

• Operational HR
• Payroll coordination
• Compliance
• Employee lifecycle management

In Dsouza’s view, this dedicated ownership provides the necessary structure to maintain standards and mitigate the risks associated with distributed responsibilities.

This is where HR Department as a Service (HRDaaS) changes the model. By creating a dedicated HR function that owns operations, payroll coordination, compliance, and employee lifecycle management as one system, not scattered responsibilities.

Dsouza concludes by inviting further discussion, offering her expertise to organizations seeking to professionalize their HR functions and ensure consistent, effective management of their most valuable asset: their people.