Assessment 1: Capability portfolio
ESSAY ONE
1. Introduction
According to the theory of Value Chain put forward by Michael Porter, the enterprise value creation is constituted by a series of activities. These activities can be divided into two categories:basic activities and supporting activities. The company forms various corresponding departments according to the activity types, and everyone has his/her role in different departments of the company. As a result, organization structure is established. As people is the basic element of an organization, the relationship between organizational structure and people management is of great importance and lots of scholars have done lots of research on this.
In a world increasingly characterized by globalization of product markets, the importance of human capital as a resource that can potentially provide competitive advantage has become more important (Patrick and Rebecca, 2008). In this paper, the author will try to clarify the internal logic between organization structure and people management and in which way can this two factors
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Conclusions and suggestions
Most modern enterprises consist of multiple business departments, and the human resources department is an important part of the enterprise organizational structure. In the process of human resource management, the human resource policy formulated by enterprises should adapt to the organizational structure of the company to ensure the realization of the strategic objectives.
Traditional human resource management focus on employee's work commitment and job performance (Patrick and Rebecca, 2008). With the continuous development of human resources theory, the company gradually understood the significance of establishing a series of policies to meet the various level of demand of staff. It determine whether the company's strategic goals can be achieved and effort can be made in the aspect of organizational structure and people management.
Organizational
All organizations have the common objective of being successful and nowadays due to competition that is not an easy achievement. The most important capital that companies have is the human capital and, to be successful, is essential for the organizations to focus on people.
‘Human Resource Management is a strategic approach to managing employment relations which emphasizes that leveraging people’s capabilities and commitment is critical to achieving sustainable competitive advantage or superior public services.’ (Bratton and Gold, 2012, p.7). Therefore, it is important to understand the concept of human resource management model and how does it work and influence organization. While many model of HRM emerged, soft and hard model are both most widely adopted (Truss, et al., 1997). Both soft and hard HRM model are emphasizing to integrate the HR policies with business strategic, but the main distinction is how organization sees individual, which is as resource in hard model or as human in soft
Human resource management refers to the process of dealing with people or controlling them. It plays an important role in effective utilization of human resources and bringing effective people in an organization (Attridge, 2009). With the following research at DaVita, one shall come to know about the standard model of HRM and how it is employed in the strategic planning of an organizational structure.
Human resources will be consider as important issue when there is a focus of achieving organizational goal and objectives or revising of company policy, employee issues or whether it’s an issues of delivering products and services to the user. Human resource management ensures that organization hold the desired skills required to perform the operations effectively and efficiently. HRM focus on two main factors which are appropriate approach and activities. It refers to the procedure of managing the staff like performing recruitment then selection and doing placement, promotions or termination. It consists of different aspects like planning, profession guidance, job design, training, reward scheme, diversity and protection.
This highlights that people abilities, behavior and personal energy make up the human capital they bring to an organisation. The knowledge, skills and abilities of individuals create the value and as such the emphasis should be attracting, retaining and developing that human capital. An individual’s ability to generate, retain and use knowledge further creates intellectual capital, then comes in social capital which generate longstanding knowledge which is now part of the organisation and creates organizational capital. This theory acknowledge people as assets and stresses that the investment in people by organizations will bring worthwhile
The term human resource is defined as a system of activities and strategies that focus on successfully managing employees at all levels of the organization to achieve organizational goal (Niles, 2013). Human resource management is the process of proper use of available limited skilled workforce. The main purpose of the human resource management is to make efficient use of existing human resource in the organization.
Human resources management (HRM) is concerned with the ‘people’ management. HRM is a term increasingly used to refer to the philosophy, policies procedures and practices relating to the management of people within organization. Since every organization is made up of people, acquiring their services developing their skills, motivating them to higher levels of performance, and ensuring that they continue to maintain their commitments to the organization are essentials in achieving organizational objectives. Organization is able to acquire, develop, stimulate and keep out standing workers we both effective and efficient. Organization that are inefficient risk the hazard of standing or going out of business.
Organizational theory studies the various variables that influence the behavior of an individual(s) working within an organization, but also, “prescribes how work and workers ought to be organized and attempts to explain the actual consequences of organizational behavior (including individual actions) on work being performed and on the organization itself.” (Milakovich & Gordon, 2013, p.145). Of the many approaches to organizational analysis, Classical Organizational theory has been, even to this day, extremely influential by focusing on more formal concepts such as bureaucracy, rationalization and scientific management. Although, over the decades organizational management has taken on a more human relations approach to getting more productivity out of employees, it is contributors like Max Webber, Fredrick Taylor, and Luther Gulick that laid down the basic foundation organizational theories by recognizing the need for control and procedures.
Today 's fast-paced, competitive business environment has resulted in "rediscovery" of the human resource management function as a group that may be able to enhance firm competitiveness and performance by being "strategic" (Dyer & Kochan, 1995; Ulrich, 1997). Strategic Human Resource Management is a term describing an integrated approach to the development of Human Resource Strategy that will enable the organization to achieve its goals (Armstrong, 2005). Whiles strategy is an action that managers take to attain one or more of the organization’s goals. Strategy presents a general direction set for the company and its various components to achieve a desired state in the future. This results from the detailed
Human resource management has gained atmost importance in the past few years. Studies have found that there is a relationship between human resources of an organization and performance. From an era of slaves to an era of knowledge resources, People have been regarded differently throughout the years. People are now considered to be energy resources which are directly responsible for the effective working of the organization. An organization with good human resources and its effective management forms an effective organization.
According to Legge (2009 pg77), human resource management is defined as the strategic and approach to the management of an organization's most valued assets which is the people or the staff members. There is a traditional definition or way of human resource management and a strategic way of human resource management. Traditional Human resources management is all about policies, systems and everyday practices that influence the employee’s attitudes,
Human Resource structure is administrative and common to all organizations, especially to the big company like Tianyang Food, a food production company in China. HR department act as the support for the organization in the likes of law, compensation, benefit, safety and health of the employees and the organization. However, the improper management from the HR structure can put the organization in a very difficult situation.
These to approaches indicate two factors in an organisational setting. The first one is the human factor, their performance and competency and the later is the business surplus. An approach of people concern is based on the belief that human resources are uniquely important in sustained business success. An organization gains competitive advantage by using its people effectively, drawing on their expertise and ingenuity to meet clearly defined objectives. Integration of the business surplus to the human competency and performance required adequate strategies. Here the role of strategy comes into picture. The way in which people are managed, motivated and deployed, and the availability of skills and knowledge will all shape the business strategy. The strategic orinetation of the business then requires the effective orinetation of human resource to competency and performance excellance.
They try to solve the problem by using a new framework, which named “ SMs’ career capital and their entry and integration into local organizations.” therefore people need to know more deeply about the relationship HR and SMs, in this paper they use two well-know theories as a basic theory. Also they try to provide a new and more comprehensive framework to consider how much important and lack for today's competitive in labor market (Zikic, J., 2015). Define the definition of strategic human resource management as "a model of planned human resource deployment and activities aimed at enabling the company to achieve its objectives". SHRM is a method of managing employees by implementing highly committed human capital to achieve a competitive advantage by using a range of cultural, structural, and personnel technologies (Gulati, J.K., 2016). Especially solve the problem by HR. Researchers study the various structures associated with human resources, especially the structure of human resources, which contributes to the company's positive research results. For the company, how to develop human resources and success use, is the key to success. And related to business strategy, many companies in the development
The economic environment in nowadays dynamic, it is fairly important for organisations and managers to recognise the curtail of Human Resource Management. It is clear that Human Resource Management (HRM) has become one of the most recommend management strategy in the modern business (Leopold and Harris, 2009). Human Resource Management is a technique process of managing people in the workplace to enable and enhance organization performance (Leopold and Harris, 2009). This theory involved the responsible to attracting, selecting, training and managing people which make employees become more valuable to the organisations. It invests effect in learning and development at work. Also to communicate with all employees at each level to reward successful employee relations (Wilton, 2011). Human Resource Management plays a very important role in the operation strategy and management concerns in work organisations of all kinds (Leopold and Harris, 2009). In aim to justify this statement by evaluate the benefit and importance of Human Resource Management in contemporary work organisations. This essay will focus on analysis the advantages of use Human Resource Management in business also underline by explain more detail about the different HRM strategy brings benefits and give competitive advantages impact to the organisation success. Then summarise by a general conclusion on the importance of HRM in contemporary work organisations.