When less is more: The effect of devolution on HR's strategic role and construed image

Abstract This research explores the possibility that devolving people‐management activities to line managers might transform an HR unit and improve its reputation within its organization. We examined the effect of devolving people‐management responsibilities to line managers on HR managers' construed image—their perceptions of the internal reputation of the HR unit. Results revealed that a devolution strategy had a positive effect on HR managers' perceptions of their unit's reputation among line managers and that this effect was partially mediated by changes in the HR function. Specifically, devolution increased HR's involvement in the operation of business units and in the organization's strategic planning. In turn, this change in HR's strategic role resulted in a more positive construed image for members of the HR unit. © 2008 Wiley Periodicals, Inc.