Chapter 4: Virtual HR Departments: Getting Out of the Middle

In this chapter, we explore the notion of virtual HR departments: a networkbased organization built on partnerships and mediated by information technologies in order to be simultaneously strategic, flexible, cost-efficient, and service-oriented. We draw on experiences and initiatives at Merck and Co. Inc., a leading global pharmaceutical company in order to show how information technology is establishing an infrastructure for virtual HR. Then, we present a model for mapping the architecture of HR activities that includes both internal and external sourcing options. We conclude by offering some recommendations for management practice as well as future research.