OB assignment essay on: Contemporary Organizational & HRM Studies

Organizational design can be categorized into traditional and the contemporary design. Contemporary design explains the present organizational theories. These designs are flatter   than those old traditional structure, and helps in flowing information in every department by reducing response time of the customer demands (May Lilly   2005). At Airstar there was an unsystematic process of activities going on because the employees were unable to understand their roles and the responsibilities. They were slowly losing their market share because of the inefficient style of management. The top management did not implement the lateral thinking process and also did not have any sort of control, supervision over their employees. Employees at Airstar could not deliver what management wanted from them. They lacked appropriate behaviouraial skills and integrity within them. The company did not apply the fourteen principle of an Effective organization developed by Henry Fayol. Employees were only accountable to themselves and the changes were implemented as per their own requirements. Airstar did not have any alternate plan to manage their business in critical situations. There are many contemporary designs & structure followed by the organizations explained below.

Team Structure

Team Structure consists of many teams who work for a common objective. Teams need to perform well because they are accountable for their performance to the management. In this structure there is no Hierarchy and chain of command. Teams can work in the way they like to perform the task efficiently and effectively. Teams can raise the power and can also select the group leader who can handle the charge.

Matrix Structure

Matrix structure is one which has specialists from various functional departments to work in more than one project. The organization wants to grow by taking up multiple projects. Each project is given by the management to the manager who will supervise others in the completion of the project. In matrix structure the manager needs to coordinate with the various department managers like finance, Human Resource, Marketing & Operation to successfully complete the project.

Project Structure

In project structure based organization employees continuously work on projects. However in such projects the projects ends but the employees don not go back to their respective department. Each project requires a skill based team to accomplish it successfully. Once the project is completed the team move to the next assigned project (Anti Essays    2012).

Autonomous Structure

Autonomous structure is being followed by the large organizations where there are many independent decentralized departments which do not have the centralized control .Same was with the case of Airstar because the employees didn’t have any sort of control over them ,they did not have any responsibility to inform before deciding anything. At air star they had the autonomous structure where everything was unsystematic. Thus Autonomous structure based organizations acts independently.

Boundary less structure

Boundary less Organization can be explained as those which are unstructured in the design. They are very flexible to deal with chain of commands, departmentalization, and etc. To eliminate such boundaries the organization needs to frame a proper structure.

Poor Organizational structure can lead to multiple confusion in roles ,contradictions, breakdown of communication channels, lack of coordination, poor decision making process, conflicts, and frustrations. So in such situation the HRM studies will help in delivering the necessary strategies. Many suggestions were taken from the other industry experts at Airstar to cope up with such situation. Organizations should realize the people are their main assets because they are the one who will help in growing the business. Organizations cannot duplicate the human assets. A proper HRM studies can help Airstar in having competitive edge over other (International Bulletin of Business Administration    2010). HRM Studies will help Airstar to frame the below strategies.

Integrate HRM with Corporate Strategies and Management

At Airstar Top management should spend time conducting the meetings regarding formulation of the organizational strategies according to their organizational structure so that the company does not face any problem. Mr. Roy Morgan should conduct the meeting with the top managers from all the departments and explain them about what should be done for the benefit of their organization. HR Managers should give suggestions regarding how the departmental goals, philosophies, should align with Airstar Mission, Vision and the core values. Team with the efficient team leaders must be decided to implement those strategies. Mr. Roy should reflect some of the leadership qualities so that the employees get inspiration and motivation to perform their best. The strategy framed should be from stakeholder’s point of view. Before implementing the strategies certain corporate analysis should be done like SWOT Analysis, Porters Five Force Model, and Product Lifecycle curve. A proper medium of communication channel must be selected for the appropriate flow of the information’s (IUP Publications Online   2012).

Delegation of HR Practices to the line Managers

To make the system run effectively there must be daily execution of commands and responsibilities. The front line managers need to be developed because they are involved in the production process of the organization (OCED   2009). The Hr Managers should coach the line managers for following the company standards during their production of the products. They should also teach the various hard and soft skills to their employees. There was lots of Backlogs in the order of Airstar and that could be handled by teaching the soft skills to the employees who were involved in the marketing process and generating the revenue for the company. The employees or the marketing team should be taught how to acquire the customers and how to retain them in this competitive business environment. There should be some sort of motivation factor given to the line managers to push up their performance level to get the desired output at Airstar. There should be a proper flow of the communication.

Selecting an Appropriate system Model

System is a combination of interrelated and the interdependent parts which when combine together produces a unified as whole. There are two types of system like closed system and the open system. Open system is one which interacts with the environment. A close system is one which does not interact with the other systems. At Airstar there was a close system followed because they never changed seeing what is going around, due to this thing they had to face a lot of problem. Airstar should implement the open system process where certain things need to be carried on systematically (University of    20120).

• Identify the number of the Departments and the total number of manpower in each department.
• Frame a proper Job description Matrix required for particular department keeping in mind the Organizational Structure and its Hierarchy.
• The Job Description framed should explain about the employee’s roles, responsibilities, Reporting, Key Result Areas (KRAs), Key Performance Indicator (KPI), Qualifications, Experience, and the Competencies required for the particular Job.
• Analyze the market conditions and situations for hiring the employees who can be fruitful for the organization.
• Get approval from the management for the budget to be sanctioned for various departments.
• Framing an appropriate Recruitment Cycle for hiring the talented employees for the dynamic organization like Airstar.
• Identify the vacant positions and post in the various portals so that applicants can apply to for those vacant positions.
• Fix an interview date and screen out the right Talented and required candidates for the various departments.
• Candidates required skills such as primary and secondary skills should be judged by the direct interview, written or the technical test or by other selection tests.
• The person who is being hired should fit within the culture of the organization with the given Job role.
• The mismatch between the Job and person can hamper the performance of the organization.
• The selection should be positively related with the Airstar Expectations.

Training and Development

Airstar should also have a proper model of training and development process. Employee’s performance can only be developed with the help of effective training module. Before stating the training process a proper training loop has to be performed. Training and development process will help the employees to work in a team, provide superior performance at work and achieve the goals (The Rothschild Corporation    2002). To manage the all resources like finance, Technology, People and information training is required in all organization. Training and development programs at Airstar will help to return the investment in the form of productivity and growth. There was a conflict between vice president of marketing and the controller at Airstar because they both lacked the behaviouraial skills. Employees started to duplicate the work and also blamed each other for those false activities. A proper training and development model will help to polish the hard as well as the soft skills which will help in decision making process, paper working, exchanging routine information, monitoring and controlling performance, motivating and reinforcing, managing conflict, and properly interacting with the other department employees (Kirby A    2003). There should be training need identification, training calendar should be planned in the beginning of the year, selection of the training methods like (case study method, role plays, In Tray exercise, business game, and etc) should be there. Proper evaluation of the training sessions should be done by the trainer as well as by the employees. Methodology should be there to check and monitor the performance of the employees. Last is the evaluation phase where the trainer will evaluate either immediately after training or at job. The sessions should be conducted by the internal HR Trainer or the company should  invite the external trainer to train the employees.

Performance Management System

The employee’s performance must be linked with the rewards and the recognition system. The management must decide which factor should be given to the employees. To implement a proper performance management system at Airstar there should be performance planning, execution, Assessment, Review, and Renewal & Re-contacting process. Fredrick Herzberg had explained the two factor theory. This theory explains the Hygiene and the motivating factors. Hygiene factors are related to external factors like company policies, salaries, supervision, interpersonal relations, and etc. Motivating factors are related to the internal satisfaction of an individual. Examples are Recognition, Achievement, Rewards and responsibility. At Airstar the employees were not responsible to management. The lack of appropriate information at proper time gave management a negative performance feedback about their employees. Performance management system will help in setting the platform in rewarding the excellence by aligning individual goals with the organizational goals. It needs support and approval from the top management to implement it systematically on a continuous manner. Airstar can also identify the employees who need to be terminated, promoted and transferred from one department to the other department. The management can also decide for the exit interviews and for succession planning (Pave Your Way to Success      2008).

Compensation &   Benefits

Employees should be paid fairly and at proper time to motivate them towards the work. The salary structure should be designed properly and should be justified. The profits from the business should be distributed for the welfare purpose of the employees at Organization. It should include the incentives bonus and the fringe benefits. Compensation is the reward that an employee’s gets in exchange of their contribution. The benefits given to the employees at work can be in form of canteen facilities, housing, credit, legal aid and disablement Benefits (Employ Wise   2012).

Career Planning System

A proper career planning will help to take up responsibilities by the employees for their own development. Career of employees should match with the requirement of the organizations. It will help in uplifting the employee’s development process. Proper career planning by the organization will help to improve the employees skill sets, experience, and deal with the barriers. It will also help to researching the opportunities, networking, self promotion, decision making process. Employees with proper career plan can easily move from one career stage to the other stage. Career should also match with individual interest, values, and style (In Tecco  Services    n.d).

Employee Participation & Involvement

Employee’s participation is a process where employees help the management in decision making process by simply following the responsibilities. At Airstar employees were unable to work in the team due to which there was a lack of coordination. Employees in Airstar were unable to know their own responsibilities and changes were implemented after the mistakes. The leader was unable to participate as an autocratic leader. He did not have a command over the employees. Employees participation is required to share the business activities which as missing at Airstar. There was no such forum where employees could discuss their problems together, seek suggestions and advice.At Airstar Employees were not involved on a one-on-one approach. There was a gap between employees & top management. If the employees at Airstar are involved and engaged then the workforce would have been more efficient and motivated to perform their best (Hearst Communications Inc.    2012).

Organizations can only sustain if the employees are with them. Employees need to change their style of working with the teams and also should try to understand the objective of the organization. Airstar faced problems because of their lots of loopholes in their structure, style, design, and with the various hr strategies which was not implemented at proper time. Employees should have the belongingness to grow well with the organization. Separate strategic Business Units must be there where the managers of such units decide about the top level strategies during the time of crisis. There must be division of work and the authority in the organization should be given to the responsible person to handle various difficulties. Management of Airstar wants to stay as a leader in the market, for this management needs to plan the MDP (Management Development Programs) for their senior level employees to increase their lateral thinking. There should be always a backup plan with the organization for their sustainability. A proper job description matrix must be framed to identify the number of positions in the organization. Flow of communication should be from top to bottom. If top bottom both communication process is combined then there occurs a disturbance within the organization. If employees are empowered at lower level then the organization needs to face the problems in future. There are many organizational change drivers which can be identified and improved for the better performance of the employees at their work. If everyone is implementing the change process at his/her level at organization then it creates a chaos in the organization. The culture of organization should not be hampered by any misconduct of the employees.

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