Organizational Structures, Management, and Human Resources

Posted on Dec 2, 2024 in Other subjects

Organizational Structures and Management

  1. Definition of an Organization:

    • A group of people working formally together, sharing tasks with specific roles and rules.

  2. Organizational Models:

    • Bureaucratic Model: Structured with specialized jobs, precise rules, one manager per individual, impersonal relationships, and recruitment based on qualifications.
    • Organic Model: Flexible structure, emphasizes personal worth and supportive relationships, common in professional companies and academic institutions.
    • Matrix Management: Allows individuals to report to multiple managers, suited for project-based high-tech companies, but can lead to role conflicts.

  3. Structuring Principles:

    • By Function: Organized by primary activities (e.g., operations, administration, sales).
    • By Geography: Suitable for multinational companies, but may have cost disadvantages.
    • Product Line Structure: Organized by product types, common for companies with diverse products.
    • Market Sector: Divisions based on customer sectors, can lead to resource inefficiency or missed opportunities.
    • Technology-Based: Focused on specific technologies, may lack customer focus.

  4. Operational Structure:

    • Project-Based: Activities organized for a set time (e.g., R&D projects).
    • Production-Based: Ongoing operations with stable teams.

  5. Depth of Structure:

    • Number of layers (e.g., flat vs. tall structures) depending on the number of people reporting per manager (span of control).

  6. Centralization vs. Decentralization:

    • Centralized: Power held at the top; delegation is minimal.
    • Decentralized: Power delegated to lower levels.

  7. Combining Structures:

    • Organizations often blend multiple structures for efficiency, especially in complex or larger companies.


1. Human Resources Overview

  • Definition of Resource: An asset or source of support that can be drawn upon when needed.
  • Human Resource: Refers to the people who make up the workforce of an organization.
  • Importance of Human Resources: Essential for managing and developing employee skills to achieve organizational goals.

2. Legal Context

  • Historical Background:
    • 20th-century UK industrial relations emphasized collective bargaining between trade unions and employers.
    • Trade unions had more prominent rights compared to individual employees.
    • Strikes were commonly used as a bargaining tool.
  • Shift in Focus:
    • Increased emphasis on individual employee rights and compliance with anti-discrimination legislation.
    • Resulted in a heavier workload for HR departments to ensure legal compliance.

3. Key HR Activities

  • Recruitment and Selection:
    • Recruitment: The process of soliciting applications.
    • Selection: The process of choosing candidates through various methods.
      • Selection Tools:
        • Interviews: One-on-one or panel interviews; reliability may vary.
        • References: Important for validating candidate qualifications.
        • Psychometric Tests: Assess abilities (verbal/numerical), aptitude, and personality traits.
        • Situational and Task Assessments: Evaluating candidates on real-time scenarios or job-related tasks.
  • Staff Training and Development:
    • Involves training, education, and development to improve individual and organizational performance.
    • Critical in high-tech industries to prevent performance declines.
  • Remuneration Policies:
    • Definition: Compensation received in exchange for work, typically includes salary and additional benefits.
    • Job Evaluation: Assessing the worth of jobs to determine fair compensation.
  • Appraisal Schemes:
    • Purpose: Documenting and evaluating employee performance.
    • Involves regular meetings (e.g., bi-annually) to discuss performance, career development, and sign-off on reports.
  • Dismissal and Redundancy:
    • Procedures must be compliant with legal standards.
    • Grounds for Dismissal: Lack of capability, misconduct, or breach of law.
    • Types of Dismissal:
      • Unfair Dismissal: Termination without valid reason.
      • Wrongful Dismissal: Termination violating the employment contract.
      • Redundancy: Termination due to job elimination.
      • Constructive Dismissal: Employee resigns due to employer’s behavior.

4. Transfer of Employment

  • Employees automatically transfer to new employers when an undertaking changes hands, preserving continuity and terms of employment (excluding specific pension rights).
  • Affected employees must be informed and consulted regarding potential changes.

5. Public Interest Disclosures

  • Whistleblower Protection: The Public Interest Disclosure Act 1998 protects employees who report concerns about illegal activities, safety hazards, or attempts to conceal malpractice.

6. Contracts of Employment

  • Definition: A written agreement between employee and employer, enforceable in court.
  • Key Characteristics: Should be clear, easily understood, and avoid legal conflicts.

7. Human Resource Planning

  • Ensures availability of staff by forecasting future needs based on:
    • Human resource plans from existing projects.
    • Sales forecasts.
    • Anticipated staff losses.