Report on Organizational Management

  HR manager’s deals with the management of human resources of an organization. In other words, we can say that they deal with all the employees, workers, and managerial staff of an organization. HR managers develop policies and strategies to bring efficiency in the performance outcomes of the employees and workers (Bondarouk, Ruël, & Looise, 2011). Basically, HR managerial staff is concerned with employee’s training and development, safety, performance management, workplace culture, compensation plans, employee’s motivation, incentives and benefits, fair performance appraisal system, and organization development. In a summarized and comprehensive we can say that six main functions of HR managerial staff are hiring, firing, training, employee’s relations, employee’s benefits, and handling compensation (Stone & Dulebohn, 2016).

               HR managerial system is not as easy as it is considered. There are a number of challenges and issues that draw influence on the managerial decisions, functions, and performance of the human resources department. With market growth and the entrance of more companies in the main market, competition is going to increase (Harris, Brewster, & Sparrow, 2003). As a result of this, organizations are required to show outstanding performance in the market to remain sustainable and competitive. Success related goals can be only accomplished through strong manpower in an organization, that is only possible with better human resources managerial strategies and policies (Bratton & Gold, 2012). Without these conflicts and poor employees performance can change the fortune of a company.

           One of the biggest challenges for organizational management is that it is not all the same in all communities. Even goals and mission can influence whole organizational management system. For instance, in some organizations, the main goal is to maximize profit (Stone & Dulebohn, 2016). While in some other organizations the main goal is to ensure wealth maximization and a better reputation. Somehow, all these goals can be only accomplished, if employees and workers are committed to the success and organizational goals achievement.

             Employee’s satisfaction, employee motivation, and overall performance are the key influencing factors that need to be taken into consideration while developing HR strategies and policies (Bratton & Gold, 2012). Considering the importance of HR managerial staff we can conclude that organizational success depends upon HR managers, and they can only ensure goals accomplishment when they understand requirements of the people, world and events in the world.

            Nowadays, key challenges of HR managers relates to adopting the innovation, dealing with trade union, diversity, and globalization (Bondarouk, Ruël, & Looise, 2011). Particularly, in multinational organizations where production sector (or other specific tasks) are outsourced, HR managers face challenges in managing a diverse workforce. Cross-cultural barriers cause difficulties for Human resource management.      

           However, HR managers can get support from social theories and HR practice to deal with these HR challenges and contemporary issues (Bondarouk, Ruël, & Looise, 2011). To overcome these managerial challenges and issues there is a need to understand employees and people (for whom strategies and policies are developed). According to Maslow’s needs theory, there are some needs that have different values for the human being. Basic needs include deficiency needs, physiological needs, safety needs, social needs, self-esteem, and Aesthetic needs. Aesthetic needs include self-motivation and self-actualization (Kirkman, Shapiro, Rosen, & Tesluk, 2001). While social needs include the needs related to social relations, such as friendship needs, communicative and supportive family, and intimacy needs. All these needs relate to employees performance. For instance, if the employee is not given opportunity to communicate and discuss work with other employees at the same workplace then isolation will definitely influence their satisfaction and motivation level as a result of this HR department will face challenging situations. HR managers should understand these needs and their role in one’s life (Harris, Brewster, & Sparrow, 2003). Thus they can better understand how motivation and employees commitment towards organization can be enhanced to bring improvement in the employee’s performance.HR managers also need to understand the cultural difference that plays a significant role in changing employee's behavior.

              According to the research study conducted by (Kirkman, Shapiro, Rosen, & Tesluk, 2001), employees belonging from different cultures get motivation and satisfaction from different reasons. For instance, in some areas, monitory benefits are the best option to develop employee's interest and engagement. While in some cultural respect and ethics are the prime concerns of the people, therefore, employees belonging from these cultures usually require ethical environment at the workplace for the increase in their job satisfaction and motivation (Kirkman, Shapiro, Rosen, & Tesluk, 2001).

               According to the Hofstede, five cultural dimensions are time orientation, individualism and collectivism, uncertainty and avoidance, masculinity and femininity, and power distance  (Kirkman, Shapiro, Rosen, & Tesluk, 2001). HR managers working in the successful Multinational organizations understand these cultural dimensions in the organizations. Even because of cultural differences and diversity it is difficult for the HR managers to develop a better organizational culture or workplace environment, but in these organizations, HR managers are promoting the right organizational culture, therefore, they are capable to deal with HR challenges and contemporary issues (Harris, Brewster, & Sparrow, 2003).  A fine example is the Toyota Motors Company. 

             Toyota Motors Company was established in 1937 in Japan  (Sosnovskikh, 2016). Right from that day to now continuous increase in sales and better market image are the evidence of organizational success. Because of continued success now Toyota Motors Corporation is working in more than 100 countries. While HR managers are successfully managing a diverse workforce with the best HR practices and policies. (Sosnovskikh, 2016). Organizational environment is fully supported for employees. Decentralized and flexible organizational hierarchy help out HR managers to directly communicate with the employees and get their suggestions regarding improvement in strategies (Bondarouk, Ruël, & Looise, 2011). Basically, the HR staff is following McClelland's theory of needs to motivate and satisfy employee. According to this HR theory, power is the basic need for employees. Authority and power motive employees and influence their performance outcome. Thus, in the light of Social HR theories and previous work experience, they develop appropriate managerial policies (Kirkman, Shapiro, Rosen, & Tesluk, 2001). Benchmarking technique, Kaizen human resources, and performance appraisal system are the reason for success.  

            Furthermore, other than understanding employees or people another important challenge for HR managers is to understand the organization. (Bratton & Gold, 2012) Theories about Organizational structure help out managerial staff to understand organizational requirement regarding span of control, the delegation of authority, decentralization and centralization, communication network, and hierarchical positions (Kirkman, Shapiro, Rosen, & Tesluk, 2001). Through understanding organizational mission and vision HR managers can understand what kind of organizational structure is appropriate for the organization. Managers can get understanding about these organizational structures through social HR theories and thus they can make better plans.     

      Moreover, HR managers are also required to understand the prime goals and mission of the organization. For instance, they need to understand what is the mission of their organization?. What are the goals of the organization? Are these related to the profit maximization or wealth maximization? If these are related to the wealth maximization then they will have different strategies or policies for their employees (Kirkman, Shapiro, Rosen, & Tesluk, 2001).

              For instance, IKEA Company the world leading furniture selling company is working as a non-profit organization. IKEA directors are not concerned with profit maximization but in fact, they are highly concerned with market image and better reputation (Kirkman, Shapiro, Rosen, & Tesluk, 2001). Therefore, the HR staff of IKEA Company is developing HR policies that promote better organizational reputation in the market. On-time salary payments, incentives, and employee’s benefits are the HR policies that support IKEA to accomplish their goals.

           Thus, in short, we can conclude that organizations get success in the market because of their employee’s performance and behavior (Tsui, Nifadkar, & Ou, 2007). How employees perform at the workplace highly depends upon the managerial staff and particularly HR managerial staff. HR policies and strategies are the key factors that ensure success or failure through an increase or decrease in the employee's performance outcomes (Sosnovskikh, 2016). Even there are many challenges but HR staff overcomes these challenges through following social HR policies and practices.