External factors such as demographic changes require new HR strategies. Changes such as birth rates and labour has fallen drastically, while HR must also account for the nature of business changing into a "24/7 economy" ,which describes a market that is constantly active in sectors such as labour, trading and purchasing.
Internal factors such as rising labour costs, fluctuating demand, and the increasing use of cloud software has led employers to change hiring practices and move away from the 9-5 structure.
The force pushing towards improvement and goals is known as a driving force,while anything causing resistance is known as a restraining force.
When new strategy, which is a set of actions, ideals, and objectives, is implemented at the top, misunderstandings and fear of mistakes or change can cause issues in morale, ultimately effecting productivity.
Centralization is a structure where decisions are reserved to top execs, usually utilized in small-scale organizations. Bureaucracy is a complex structure emphasizing hierarchies, coordination, and protocols. It is widely utilized in large organizations. These are two popular organizational structures, but a Matrix structure (a combination of characteristics from other structures) has been commonly implemented.
Chain of Command is a structure which determines who answers to who, starting with the CEO and trickles down for each level of employment. Delegation of responsibility is the transferal of responsibility for a task to another individual, who is typically lower down the chain of command. Hierarchies are present in all organizational structures but are different in each one.
When outside forces change such as market competition and social/tech advancements are considered, different structures become more appropriate than others and organizations must analyze their situation and alter their strategy.
One of the biggest examples of this is Google in 2015, when analyzations showed the company was losing creativity and innovation. They restructured into Alphabet, allowing for a clearer and more effective hierarchy.
Scientific thinking: is a management process where decisions are made based on data collection, the use of tools and techniques, and quantitative analysis.
Intuitive thinking: relies on experience, prior knowledge and instinct.
Management in an organization can be separated into two roles: administrative and operational.
Administrative roles include finance, marketing, and production.
Operational roles include the implementation of plans, aims, and objectives.
Autocratic: The decesion-making process is determined soley by the leader or chief authority figure. There is little or no consultation.
Democratic: The decision on what is to be done and how it is to be carried out is taken after group discussion and consultation.
Laissez-faire: Effectively there is no leadership. Groups are unsupported and left to decide for themselves.
Paternalistic: The leader of the organization acts in a "fatherly manner" towards employees, in the same manner as if he were a parent or mentor.
Situational: The leader can change their leadership style according to the situation.
Taylor-scientific management theory believes that a unit of work carried out by factors of production should be measured and there should be a performance standard. McClelland-acquired needs theory revolves around the idea that motivation is driven by Achievement, Affiliation, and Power. Maslow's two-factor theory of motivation shows that there's dissatisfaction and satisfaction and factors determine it. Deci and Ryan's self determination theory is people crave the need of finding new things whether it's a skill or organization. Adams-Equity and Expectancy Theory is that if a worker feels like their work is appreciated then they'll be more motivated and vice versa. Herzberg-Two-Factor Theory of Motivationshows that there are two separate types of factors that are dissatisfaction and satisfaction.
External recruitment is hiring workers from outside the company through applications. Internal recruitment is hiring management and higher positions through the current employees. Internal recruitment can cost less and is a quicker route of employment, external can be good to get a new perspective but the training cost and potential of not working out is a big factor.
Nonfinancial rewards: Job Rotation, Purpose, Job enrichment, Job enlargement, Empowerment, and Teamwork. During production process, job rotation of small tasks can help motivate workers by lessening boredom or repetition. All of these are tactics implemented by managers that assign workers more work but in different aspects to get them to feel rewarded and be more productive.
Labor turnover is inevitable and healthy for the economy, however when it is too high at a company it can be a sign of bad work conditions and bad management. This is a concern for shareholders and CEOs. Appraisal is a common practice if there is a high turnover rate, this normally happens at the end of the year where the employee gets graded on performance and appraised for their good work and shown tips on stuff they can improve on.
The culture of an organization is defined as the attitudes, beliefs, experiences, norms, and values which determine working relationships between internal stakeholders and ways of interacting with external stakeholders.
Some examples of organizational cultures include open, free, contemporary, or inclusive.
All organizational cultures have strengths and weaknesses. No culture or mixture of cultures is inherently "bad" or "wrong".
Formal: Structured, hierarchical, written (e.g. emails, reports)
Informal: Free-flowing, relational, verbal exchanges
Non-verbal cues can be misinterpreted
Formal one-way communication can frustrate employee
In essence, formal communication follows official channels for efficient information transfer, while informal communication enables more flexible, creative exchanges. Recognizing these differences is crucial for effective workplace communication.
Emotional impact a number of companies send managers on training courses to guide them in the process of passing on sensitive information.
Conflict in organizations arises from various factors such as disputes over pay, duties, and conditions, exacerbated by external changes like the Covid-19 pandemic. Social media provides a platform for airing grievances, leading to potential reputation damage.
Given the inherent tensions that may exist between the employes and employer during an industrial dispute, numerous conflicts have been resolved instead by a third or outside party in the process of conciliation and then arbitration.
Strategies, where employees strictly adhere to contracts, and overtime bans, impacting industries reliant on extra hours. Conflict resolution methods like conciliation and arbitration, alongside tactics such as no-strike agreements, aim to mitigate tensions and prevent costly disruptions.