Organizational Design Focus Paper
Organizations are considered to be the most incentive, social arrangement of today. It’s considered a marvel to know that thousands of people with individual backgrounds, skills and interests are coordinated into various organizations, so that they can pursue their common institutionalized goals and objectives. The historians of the future see today’s organizations as the greatest achievement of our time and era. For example, on day to day basis organizations play an important role in our lives.
The water we drink to the food we eat or the clothes we wear all comes from different kinds of organizations. Another example biogenetic engineering has had some breakthroughs. The Apollo mission to the moon was made possible by the organization called NASA (Werther & Davis, 1996). Human resource is defined by many companies as a combination of the administrative functions with the performance of the company’s employees and their relations along with the company’s planning. Human resource basically develops mostly from industrial and organizational behavior.
The major functions that are included in human resource management are recruitment, selection, training and development, orientation, placement, separation, career planning, performance appraisal, salaries and wages, incentives and gain-sharing, benefits, services and security and employee relations and assessment. The term
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It basically helps the company to achieve the goals and the objectives that are set for them by the management. As you all know that human resource activities also make a large contribution to the company’s success in many ways but the HR activities mostly support the strategies of the organization. The HR department basically exists to support the managers and the employees of the company and to pursue the company’s goal or objectives(Werther & Davis, 1996). HR Issues The major human resource challenges that would be faced by the organization at the time of merger are as follows: –
• Unemployment Challenges • Organizational Structure Challenges • Cultural Challenges • Workforce Diversity Challenges Workforce Diversity Challenges The first HR issue that would be faced by the company at the time of merger would be workforce diversity. The costs of ignoring diversity for a company and its HR department is that the company’s image is tarnished, there is a lot of financial lost for the company, there is very creativity from the employees and there are no new ideas and the productivity of the employees is very low.
As it is a known fact that as globalization increases diversity would also increase, as the growing number of immigrants’ increases it presents mangers with more complex communication issues with dealing with people whose native language is not the same as that of the vast majority of their coworker(Greenberg, 2008). Acceptance of diversity has become very important because of socio-cultural changes and the changing of workforce in a merging company. Creating a productive and enjoyable work environment is the dual responsibility of HR managers and HR experts.
HR managers are responsible for marshaling the organization’s human and nonhuman resources to achieve the company’s business objectives. For example, in a study it was found that workforce diversity lowered the psychological attachment of group members to the organization, calling for more proactive efforts by the human resource department in the face of increased diversity. When a merger is taking place there are some challenges that are being faced by the HR managers in the working environment. These challenges are as follows:-
• Communication differences: people from some cultures tend to pay more attention to the social context like, social settings, nonverbal behavior etc. of their verbal communications. Communication barriers arise perceptual, cultural and language problems are created(Greenberg, 2008). • Resistance to change: sometimes it so happens that the employees are not willing to change themselves or are not willing to accept the social and the cultural changing environment of the company therefore they resist it and this resistance creates a diversity barrier for the HR managers.
• Implementation of diversity in the workplace: implementation of diversity in a workplace policy can create diversity barriers for the HR managers. What happens is that the management has to build a customized strategy; this strategy in return creates more problems regarding diversity. • Financial costs: a company loses all the money they have invested in an employee. When he or she leaves the company. • Productivity: the productivity of an employee decreases when the employees are faced by diversity.
For example, women and minorities experience prejudice and non-acceptance in the working environment, therefore their productivity decreases and it costs the company it valuable time and money (Greenberg, 2008). Unemployment Challenges Unemployment is one of the biggest challenges that will be faced by the human resource department at the time of a merger. Unemployment can be defined in layman terms as a person without work.
When a merger happens between two companies a great deal of people loses their job for no reason at all, there are masses of layoff for staff from both the sides because most companies only require a small amount of employees(Werther & Davis, 1996). Cultural Challenges Another challenge the human resource department is faced with cultural and ethical challenges. The biggest problem that will be faced by the HR is the blending of corporate culture. As it is a known fact that an organization can also be defined as a social entity which is goal oriented and deliberately structured.
And culture is actually one of those terms’ that is not easy to define but it is something that everyone can sense or feel it. One thing is to be remembered that cultures vary in terms of beliefs about their ability to control their environment. Organizational culture can also be defined as a common perception which is held by the company’s members, it is basically a system of shared meaning. Organizational culture is one of those things that can be sensed and the members of the company soon come to realize the culture of the company.
For example the culture of a large profit making company is quite different from that organization that is a non-profit making organization and one from an educational institution. A person can tell about the culture of a company by looking at the furniture or the way people dress etc (Daft, 1997) . The system of shared meaning is a set of key characteristics that the organization values. There are seven characteristics that collect the essence of the organization’s culture. The characteristics are as follows:-
• Innovation and risk taking: which can be defined as the degree to which the employees of the company are encouraged to be innovative and they should take a certain amount of risks. • Attention to detail: where the employees of the company are expected to pay attention even on the smallest of activities. • People orientation: can be defined as the management of the company takes decision into consideration that affects the outcomes of the employees within the company. • Outcome orientation: can be defined as the management focuses on the end results and objectives rather than on the processes of the company.
• Team orientation: means where the organization basically relies upon teamwork to get the work activities completed in time. • Aggressiveness: is based upon the competitiveness of the employees • Stability: means the degree to which the company’s activities show in maintaining the status quo in contrast with the growth of the company. And in case of a merger it becomes extremely hard for the management and the HR department of the company to blend in both the companies’ cultures together to create a new because the organizational culture basically represents a common perception that all the organizations have a uniform culture.
Therefore the management of the company should always expect that the individuals with different backgrounds will always define the organization’s culture in similar terms What happens is that the employees are already used to a particular culture and it becomes hard for them to adapt to the new culture and as a result the employees start to resist the culture(Werther & Davis, 1996). Organizational Structure Challenges Another problem that will be faced by the HR department and the management of the company after the merger would be the change in the organizational structure of the company.
Organizing is the deployment of organizational resources to achieve the strategic goals and objectives of the company. The distributions of resources are reflected in the company’s division of labor, means that the resources are fairly distributed to the departments and jobs, formal lines of authority and to the coordinating of organizational tasks and activities. Organizing is considered very important in the company because it follows from strategy.
And strategy defines what the company should do and organizing defines how the company should achieve its goals and objectives. And after a merger all the lines of authority, strategy of the companies and the distribution of resources get mixed up. And once the organization structure that was used as tool by the managers of the organization to harness the recourses of the company for getting things done are not able to do so. The organization structure which was considered a framework becomes disrupted, and is divided due to two different types of management styles.
The set of formal tasks and reporting based relationships provide a framework for vertical control of the company falls apart (Werther & Davis, 1996) . It’s important that the employees of the company are motivated and empowered. The employees of the company should be motivated so that the company’s productivity can increase. Managers when delegate jobs, the employees of the company feel empowered, but empowerment it more than simplee delegation of work activities, it helps the employees by giving them authority, training and resources to make their own decisions but within limited boundaries.
But after a merger between different companies it becomes difficult to empower the employees and keep them motivated. References Daft, R. L. (1997). ‘Management’. The Dryden Press Greenberg, J. (2008). ‘Diversity in the Workplace: Benefits, Challenges and Solutions’. Retrieved on, 9th January’09 from <http://ezinearticles. com/? Diversity-in-the-Workplace:-Benefits,-Challenges-and-Solutions&id=11053> Werther, W. B. & Davis, K. (1996), ‘Human Resource & Personnel Management’. McGraw-Hill