Devolving HR management to the lowest level

I'm interested to know if, from a business perspective, the human resources of an organisation can be effectively and efficiently managed if responsibility for this task is devolved to line management?

The reason for this question is to understand if the model for management of personnel used in the Royal Navy (RN) would work in a business context. The RN uses a divisional system whereby HR management (training, discipline, reward, career development, welfare) is devolved to officers who look after small teams of people, junior in rank to them, within their own sphere of work. I'm simply curious to know if this would work in a commercial setting, or are any businesses already working like this?

Thanks,

Leigh.

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