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How does organizational structure and culture impact on business performance
Summarise the organisational objectives that the HR function is responsible for delivering and how these are evolving in contemporary organisations
Corporate culture and structure affect performance
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Omega being a supermarket chain operating in UK emphasizes on quality more than anything else. Four quadrants have been identified for maintaining a scorecard of success of the organizations (Kaplan and Norton, 1992). These quadrants are the people, finance, customers and operations. Each stores and its performances are characterized for measuring the performance of the organisation in that particular segment. Omega is focused highly on the people quadrant. This quadrant targets on recruitment, development, retention of labour and motivating the staff by defining the benchmark performance required from the workforce. It is considered as one of the most important quadrants for the management. Effective employees are hard to retain and this helps in developing the staff, which is more groomed for managing the operations. These measures help the organisation in defining their strategic goals. This approach of the organisation proved to reform historical financial and operations results.
Omega supermarket is operating on the basis of four structural levels. These are the store managers, senior managers responsible for the operations, section managers and the general assistants. All the managers of the store take full responsibility for providing coaching and guidance to the workers. This supports the organisation in accomplishing the goals and this mobilized the teams with specific goals to be accomplished. Different forms of development, resourcing and succession planning methods are used for defining the goals. The planning flexibility is essential for centralizing and controlling. Different section managers occupy the position within the stores as front line managers and they control the staff accordingly. All these aspects are es...
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...ment discretion. The structure and design of the HR policies vary from organization to organization. This improves the satisfaction motivation and commitment of the employees working in the organization. The complete analysis of the organisation is based on the operational performance measures of the stores and this determines the performance data and percentage variation from the regional average.
Finally this report has presented a discussion of the key issues, which have been critically evaluated. Application of different models has explained how theories can help managers in different approaches. The policies of the organisation and its significant application in motivating the workforce show the role of HR on the organisational success. The understanding of motivating the employees through forming psychological contracts has also been discussed in this report.
The retail stores of JC Penney and Sears have face headlines of “Which is Worst: JCP or Sears?” The end maybe near for both companies (Andersen2014). The customers look at the employees like their idiots. The public believes that poor management is the reason for the down fall of these companies. Eddie Lambert and Ron Johnson are the CEO’s of being credited to running these companies with wrong management strategies (Andersen 2014). Ron Johnson who is now the former CEO was highly qualified with his retail instincts tried to run the store like a retail boutique. He never took the time to consult a survey on what the consumer’s thought were and after two years he jeopardized the company (Andersen 2014). Whereas the CEO Eddie Lambert of Sears
In this article, Journalist Christopher Tkaczyk takes the reader through five days of working at Publix Super Markets. In his day by day account, his main focus is to find the secret as to why Publix's has the "happiest, most motivated workforce in America". He takes a turn at each department in the super market and will see first-hand how the associates interact with the customers He discusses not only the employee satisfaction but he will show a glimpse in customer satisfaction. He explained that Publix's goal is to have their new associates achieve full-time status. The article touched on the loyalty of its workers and how the “annual turnover rate is a miniscule 5% - which makes a mockery of the retail industry average of 65%”.
Human Resource Management (HRM) is the administration and control of employees. Its purpose is to ensure that the workers and the employer cultivate a valuable relationship. As a result, the company will record an exceptional performance particularly with regard to employee productivity (Paauwe, 2004). Further, the workers will benefit in terms of job satisfaction and self-development (Paauwe, 2004). Some of the activities involved in managing workers include selection and recruitment, training, development, motivation, and appraisal (Sharma, 2009). This paper aims to analyse the role of human resource management in organisations and its linkage to the wider organizational strategy using Tesco and Harrods as illustrations.
In this paper some of the sound management practices that Trader Joe’s utilizes in the daily operations have been highlighted. Through the effective application of these management practices, Trader Joe’s has morphed into the great company that it is
The food and staples retailing is an increasingly competitive industry. The market giants (competitors) are Coles (owned by Wesfarmers) which has 741 stores across Australia and plans to add 70 m...
Tesco is one of the biggest grocery retailors in the world, it is one of the top five stores, it was founded in early nineties in UK, and now it is well known company around the global and very famous because of their successful strategies in marketing and how they manage any problem that they are facing. However, in recent day Tesco are facing some problems that may threat their career life, and make them loose their market position. This report will cover these problems, how the competitors are doing to take Tesco’s place, and what Tesco are doing to overcome these problems.
Introduction The purpose of this report is to undertake financial analysis of the position of the three major supermarket chains (Tesco plc, Morrison plc and Sainsbury plc) in the UK, using the financial tools such as Horizontal and Vertical Analysis and Ratio Analysis. The calculations done are considering the figures from the income statement and balance sheet of these three companies for the last 2 years (2008 & 2007). Doing these calculations is an effort to find out the current position and if any forecast on their performance. Tesco Plc *Interpreting the Horizontal and Vertical *Analysis The balance sheet’s horizontal analysis reveals the first worrying statistics about the company- the fact that stock level has increased by 25.84% in the year, even though net assets have increased by only 12.59%. The vertical analysis of the balance sheet again highlights the increase in amount of stock held by the company at the end of 2008 and increase in current assets. Interpreting the Ratio Analysis By looking at the ROCE* ratio it is clear that the business has not generated any higher return in the period 2007-2008. Though there is a marginal decrease in the returns (0.14% from 0.16%), however when compared with returns of other competitors Tesco plc has performed much better. Drop in asset utilisation ratio in the year 2008 indicates that the company did not use its assets efficiently to generate sales. As a result profit margin dropped down to 5.91% in 2008 from 6.21% in the year 2007. The Acid test ratio also doesn’t meet the ‘ideal’ ratio of 1:1. In other words Tesco had only 38p of quickly realisable assets to meet each £1 of current liabilities. Stock turn shows the effect of increased stock at the end of 2008 as it s...
Employee Motivation: A Powerful New Model? Harvard Business Review. Latham G.P. and Pinder C.C. (2005). The 'Secondary' of the 'Secondary'. Work Motivation Theory and Research at the Dawn of the Twenty-First Century.
To achieve equilibrium, H&M encourages open communication and employee engagement within the company to satisfy both goal and needs. They came up with an “open book principle” granting every employee the right to express their thoughts on work related issues directly with management. They, too, reinforce the Human Resource Management system by having performance appraisal, a method to evaluate job performance. H&M has done it by using the method of providing feedback as they believe in learning through their own mistakes. Besides, to ensure workers’ work-life balance, the company strongly discourage overtime work and endorse flexible working hours. Everyone in the company is given the opportunity to schedule around their personal and working responsibility. The company also provide comprehensive fringe benefits for their worker which includes staff discounts, incentive bonuses, maternity leave and many more. This is because the Human Resources in H&M emphasise more on job satisfaction rather than title or pay structure. Analysis indicates that H&M has incorporated job enlargement into their business whereby they increase task variety by combining two or more task for more experience working. However, the volume of task to be done is too gruelling for employees causing their company to be listed as one of the highest employee turnover and lowest labour morale in 2008. This shows they have poor job
For many important and well known companies its people are most important asset. For McDonald’s this applies as well. Employees who demonstrate positive attitudes and ability of commitment strive to be number one in customer satisfaction. For this same reason, McDonalds’s restaurants focus on attracting and hiring the best and at the same time provide the best place to work. Unfortunately McDonald’as well as other companies have to experience staff turnover. Many of these reasons consist of changing careers, going back to school, leaving the area, and even new opportunities they are offered. Although, it can be very expensive to recruit and train staff to reduce turnover, McDonald’ reinforces these steps and makes sure they choose wisely and also treat their staff well. McDonald’ needs and looks for people who want to exceed and deliver great customer satisfaction service. In order for them to make sure they select the best, they must identify quality skills, and or behaviors that applicants must demonstrate in order to be hired and be part of McDonald’s family. Every position or job description has an outline of the regular duties and or responsibilities McDonald’ want their employees to follow. McDonald’ also has a person specification where personal skills and competences can be defined of each applicant.
This report provides an analysis and evaluation of strategy implementation used by California Pizza Kitchen (CPK) and discusses the effectiveness of their strategy through organization design, control systems, people and culture. My research concluded that CPK relies on control systems to undertake a majority of the company’s operational activities and that human resources and organizational culture must support the strategy implemented, which it does in in the case of CPK.
It is a well-established reality that organisations in the world today can no longer survive without focusing on their employees. If they have to be at the competitive edge, they have to invest in human resources, and placing their employees on top priority. This notion has led to the strategies that, most organisations are pursuing through employee management. To achieve the optimum performance of employees, organisations must motivate their employees, and engage them in activities that will benefit and help employees in achieving their predetermined goals and objectives. In order to achieve this, it is imperative for managers to set in motion work conditions that will help employees to achieve satisfaction of their job, low turnover and absenteeism rate and promote the environment that promotes the organizational commitments and organizational citizenship behavior.
An organizational human resources department utilizes the hiring and firing process to meet the organization’s personnel needs. Organizational human resource departments are charged with the oversight of an organizations administration department. The practice of hiring and firing people is a process employer’s conducts on a daily basis. This process has to be done in a proper manner and not in haste. The implication that can occur from the improper hiring and firing process could and can have a positive or negative impact on an organization. Therefore, employers must carefully evaluate their decision to hire/fire individuals and its impact on the organizations’ workplace environment and others employees. Human Resource Management is important for an effective organization. In today’s organization, HRM is valuable to the organization because of increase legal complexities and its known for improvement in productivity. However, management should realize that poor human resource management could result in an outburst of hiring process followed by firing or layoffs. According to (Satterlee 2013, p. 194), “Hiring the best candidate who is also a good fit for the organization is crucial for the success of an organization, because a poor hiring decision will have repercussions across the entire organization”. Satterlee made a valid point because poor hiring could have an impact on the bottom line performance of the firm. In other words, HRM is the contributing factor to the success of the organization including motivating and maintain the staffs. The purpose to the motivation is to ensure that all employees grow to a full potential. According to (Sims 2006, p. 5), “HRM efforts are planned, systematic approaches to increasing organizati...
The work of HR specialist is not only affected by the internal factors, there are also external environmental factors that influence how HR specialist operates. In this section, I am going to discuss factors that influence the Practice of HR in organizations, from outside the scope of the organization. The factors include Political, Legislation and Regulations, Actions of Competitors and Economy of the country
Motivation is an important function in organizations to motivate their employees for their ability to perform well, improving their skills, increasing productivity, job satisfaction and employee extension. Employees also are not a machines that we could just program their task in their brain and they will do it automatically, they require motivation to actually do their job properly. And so, after discussing the process models of the Maslow’s “Hierarchy of needs”, Douglas McGregor theory X and Y, and also the Herzberg’s “two factor motivation hygiene theory.” understanding the ways of motivating people, the human nature, and the substance of nature. I believe that the true motivation can only come from within and also managers can actually motivate all of their employees.