In the research I investigate why HRM important in thats why on the development of organisational abilities and performance of HRM. As per the case scenario ABC need to special services of HRM to meet the future needs. I try to explore the potential of the HR to facilitate the development and employments capabilities of the organisation. With this report should evaluate and describe why HRM decisions, surrounded in an HR system, and have an important so on the performance.
Within this report I explore all the major areas of development for an existing and new organization within the (Ulrich, 2005) PM basics. So the investigation is clearly indicating the area which is based on operations and strategic HR practices and will useful for the development for the ABC's future prospective.
Task 1. Analyse the most appropriate organisational structure and processes for the company, taking into account the current external environment. Reference should be made to the theories of management and organisational behaviour to support your analysis.
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An organizational structure consists of activities such as task distribution, skill and supervision, which are concentrating to the success of managerial plan. It can also be measured as performance glass or view during which individuals see their business and its environment.
Organizations are an alternative of groups.
An association is able to structure in many other ways, depending on their goals and targets. The structure will establish the manner in which it control and complete.
Organizational structure allows the articulated distribution of responsibilities for different purpose and procedure to different bodies such as division, responsibility, workgroup and entity. Organisational structure effects many ways, we are just looking on these twos, first provides foundation on or through benchmark operating process and regular rest. 2nd it is also agreed on which person or individual get to participate in decision making process. It will be beneficial to the growth of the organisation.
Organisational structure means the way of performing of organisations. It determines the manner in which it operates and performs. A structure allows the responsibilities for different departments for their work. It provides the better environment relationship between various sections of organisation. An organisational structure is often provide chart which will show how management working. This chart makes clear who work is for that. And who is responsible for what and who responsible for whom and who handle with this/that situation.
There are three types of organisational structure:
Hierarchical organisation: Hierarchical organisations are working as downward, there are many layers are below one by one, one manger has for their team and they are responsible to them. The resulting chart is showing as pyramid. A senior manager has their subordinates, they are responsible to them. Every body knows their place in the hierarchy. This system is enabling to tight control.
But communication is a problem with this system. Without effective management it can take longer time to pass the information to upper management. Staff are not fully empowered, every decision they need to approval of their seniors. This is effect on the morale of the employee; it is reduce the working capacity of the employee at work.
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Flat hierarchical organisation: in this system chain of command is much shorter than hierarchical organisation, and span of control is much wider. It means a manager has responsibilities of many employees. This structure provides more freedom and responsibility for their work. Communication is good between manager and their employees; it is effective in decision making.
This system gives employees more responsibilities for their work. Communication system with each other is good. It has producing good results and strong commitment and team spirit. Public banks are the original example of that.
Matrix organisation structure: this structure is most complex organisational structure. This kind of the organisation is often creating for special/specific projects. It is for developing a new product. This system managed by manager. Decision making is quick and team is responsible for project complete in and on time. Example of that is: advertisement agency. They are work for a creative developing program.
External environmental issue or PEST analysis;
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Political factor: political factor can affect the every organisations, it means government law and policies could be change any time, but any organisation or ABC is protected by the regulations and policies create by different government in the countries where they are operating. So they are making their strategy according to consideration of government's next change in policies and them able to run their business effectively. They arte make their own policies to protect against the further changes in law.
Foe example of an education institute 'Political policies are affecting like as education, employment, business & industry, science, environmental and economic policies set sector trends that impact upon the types of student institutions target, the modes of curriculum design and delivery and the research activities they adopt'.
Economical factors: economical factor can affect on an organisations financial position, it could be change of interest rate, inflation, taxation policy etc. It could be hardly hit the economic position, it means in changes of interest rate have to change more on it, changes in tax means recently change in UK vat policy and increase in vat. It could be very hard to digest for a small firm. So ABC is a small firm and looking for expansion their business, they need to consider these factors.
Social factors: social factor are is most important and highly impact able to every organisations image, it could be changes in demand, new fashion, change of trends, and all organisation affected by the social changes, it can change the environment of the firm. It could be better for a company have good reputation and relation with society and local community. For example most of the UK population has been ageing this will increase the cost of the firm because who are committed to pension payments to their employees.
Technological factors: technology is important aspect in the success of the organisation, and it has been replaced by new products every day. So these changes can make you better than others. So techniques can make you better than others. That why this factor is very important and can change the way of business.
It means technology is vital part of a growing business and will very useful for the ABC and getting success in their future and growing development.
Task 2. Examine how the approaches of personnel management, human resource management and strategic human resource management would help the company to implement change and overcome resistance to change.
PM; 'Personnel Management is an independent function of an organization whereas HRM is considered to be an intrinsic part of an organization's workings. HRM has a much broader scope as it involves personnel and management tasks while developing teams of workers for the benefit of the organization by working to their maximum level of efficiency (Ulrich, 2005)'.Â
Personnel management have a tendency or have idea to motivate employees using external factors such as rewards and praises. By this way employee satisfaction is use as improve performances. And HRM believes how to implement and effective uses of the strategy make better performance and thus results in employee satisfaction. (Truss & Gratton, 2004).
PM is as describe a reaction based style of management, it is providing feedback to concerns and response when demanded. But HRM is more practical and provides ongoing strategy to improve the organisations workforce (Ulrich, 2005).
HRM; HRM's main process is to recruit employees, select and develop them through specific training system. Throughout the process they find the right and capable peoples to fulfil the place, training them. So they can achieve their potential and creating systems which is leading to success of the organisation through high levels of morale and motivation (Mockler, 2002).Â Â
So "ABC" needs a HRM manager to make all department up-to-date means HRM department use training methods such like as ongoing, about health and safety needs, skills, multi-talents, and legalise. So this will understand that motivated employees are essential for the continued growth of the "ABC" company. HRM personals provide its staff with an ongoing and continuous training and development programme with appropriate and timely reward and recognition. The various levels of the company are well supported with work groups, strategies to meet new challenges and a chance to move higher up the order.
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Appraisal is a very important part of Human Resource Management (Fombrun et al, 1994). And it can help ABC to get the desired result and get success.
Strategic HRM: strategic human resource planning is based on establish architecture of competency and competency dictionary. Clearly define and identify current and future needs of HRP. It is a further forecasting model to find the need of the future human resources planning process and system (Grant, 2005)
SHRM can consider as an approach to the management of HR that present a tactical structure to sustain long-term goals of the company. Also the approach is concerned with long-term issues and concerns with various structures like values, quality, and commitment and culture resources for the ABC's future prospective.
Task 3. Evaluate the company's human resource planning and recruitment and selection processes, to see if/how they could be enhanced and how capable they currently are to cope with the planned expansion.
HRM planning is process to make sure the organisation already have some selected candidate to fulfil the available post within the time. Motive of that process is not to affect the productivity at any cost. If the selection process takes more or long time to hire a new candidate it can be more costly and ineffective for the company.
Forecasting is an important factor of the process that can tell how long the process to hire new employee, and make speedy the process. In case of when the large number of employee needed and required number of skilled employees are short then company or HRM will need to secure the short listed workers. At the mean time it will be more difficult to find when your competitor or rival also seeking for same level of skilled people. And this type of situation company need to secure the new talents through step up the requirement process and provide more beneficial compensation packages (Grant, 2005).
If company didn't involve in HR Planning then it is very difficult to find the right skill person, they can lose the potential employees to competitor. And company unable to build required team. So HRP helps the HR department to stay in pace with the needs of staff and employees.
Stage 1; strategic human resource planning is based on establish architecture of competency and competency dictionary. Clearly define and identify current and future needs of HRP. It is a further forecasting model to find the need of the future human resources planning process and system (Grant, 2005)
Stage 2: Build or revamp HR Planning tools, process and guideline to integrate fundamentals as resolute in Stage 1.Train managers and / or facilitate corporate HR Planning process. Continuously monitor and improve processes, tools and systems to support HR Planning (Grant, 2005).
Task 4. An investigation into the contribution that human resource development and knowledge management could make to enhancing individual and organisational performance and help alleviate the issues highlighted above.
HRD: HRD is a process of developing human expertise through organizational development and personal training for the purpose of improving performance (Swanson & Arnold (1996). This is broadening field than adult education or training. In the HRD contribution have much more than training and some places no training at all. HRD focusing on systems and processes that make sure the individual has the ability, knowledge and attitude to improve quality which is good for the purpose of the organisational goals. HRD is not focusing only on performance improvement or meeting organisational goal, but this a balance between individual and organisational goal. So human values are the beginning point while workplace learning. Within the development of HR not lose human for the sake of development and improved organisation performance (Bierema 2000. P279).
Knowledge management: Knowledge is a very important organizational source to offer a sustainable competitive advantage. It is very necessary to gain competitive advantages but not enough to rely on staffing and training approach. This is clearly focus on recruit employees those have specific skills, knowledge and abilities to helps employees to adopt them (e.g., Brown & Duguid, 1991). Organization also considers on to how transferring this special knowledge to those who are new and need or beginner (Hinds, Patterson, & Pfeffer, 2001). And also organization need to understand and develop effectively knowledge based sources that already exist.
Fundamental meaning of the knowledge sharing is that how the employees can use the knowledge as purposely, ultimately and inventive way to achieve the competitive advantage of the organization. This (KM) prospect gives develop and exploit the knowledge between employees and team. KM is not offer only an ancestor to organization innovation, but this is a way bridge between individual factor and organizational improvement and identify how individual communication with KM to increase organizational performance.
Task 5. A recommended performance and reward strategy, which would contribute to the overall performance of employees and helps to reduce the high level of turnover within the company.
The reward system is good method to keep the employees motivated. Reward will be given thorough annual, weekly, or monthly bases or hourly rate of pay for a capable worker to perform a job (Armstrong, 1992).
Reward power will be involve on two factors; First, indirect pay which is coming through giving a lifestyle break, discount membership in Gym, staff discount, some health benefits and options. Secondly, non-financial rewards which are the intrinsic rewards related to people's needs and expectations such as those provided by any organisation which include career development and opportunities for personal development by providing a career break. Achievement, recognition and responsibility are some of the other intrinsic rewards.
Â Â Â Â Â Â Â The main aim of the rewards system is to
Attract enough recruits with the right qualities and qualifications to satisfy organisational requirements.
Retain employees with the core skills and competencies needed by the organisation.
Motivate employees with a view to improving their on-the-job performance and commitment to the organisation. (Grant, 2005)
The HRM is a department which puts a lot of stress on their reward system in order to apply its effectiveness. The idea that it might be possible to match a payment system and a set of circumstances in such a way as to achieve stated objectives deserves consideration. It is like motivation through the rewards as money. It is very helpful strategy to improve performance of the employee. And increase and appreciate the employee's performance. For the development and improve performance ABC can adopt the reward strategy to meet the objectives.
Task 6. Suggestions on initiatives that will help to develop a harmonious and trusting employment relationship within the existing and 'new' expanding company.
For the success of the business mantra, it's very important to keep them happy and creative; it will be easy to run your business like ABC company need to adopt this strategy to keep their employees happy. This is a key to success a business having a good relation between employer and employees. Employees are human being and they want self respect, and deserve form others and you as well. Appraisal is very important when they done excellent work, so praise them. If somebody's work is not up-to the mark you have to give him/her suggestion about to improvement area where they needed but in privately. Recognize their way of living, hard work and delight them by consideration.
You can easily get that if you adopt the above strategy or guideline; show or do your work set as an example so do your best to make these positive results.
Ask, relatively than tell, others to do things.
Remind or the names of employee and then use.
Don't interfere in life out side the work.
Demonstrate understanding, be helpful, and don't snoop.
Let your staff know how you prefer to be addressed. Say your name slowly and clearly when you meet new employees so that others will understand the proper pronunciation. Spell your name if you think it will help.
These guidelines for harmonious working relations with your staff:
Keeping an even manner in your voice helps everyone work well. Correction in errors is best way to able confidentially, respectfully, and correctly. Don't cry on people even they do something wrong. So give them clear and valued instructions. Unclear and vague instructions are worrying for someone who's trying to do them. No one is born with perfection, so if you make any mistake then admit it. It could be an example for others to do that.
These instructions are very useful for ABC company because they did lots of mistake in past and lose the employees because of the hire employees with informal way and it was the cause of high turnover and absenteeism.
This report shows the current needs of ABC's HRM and its development potential in the near future. Adopt human resource management, driven by a number of different interests of stakeholders and expectations. It is interpreted differently in the world, but globalization has encouraged a growing line. In recent years, improvements in HR measurement have led to clear evidence of the effectiveness, HR initiatives, especially when given to "groups" strategy.
HRM overlap with other management approaches, such as management talent, capital and knowledge management, and this trend probably should be continued. HR professionals, can no longer focus exclusively in their local market to work as global competition and outsourcing have become dominant factors in the distribution of human resources.