Human Resource Organisation Assignment Help
For understanding this attribution of human resource Management, the organisation Amazon will be evaluated under this report. The organisation is hiring worldwide and more than 245200 employees all over the world. By analysing Amazon under this report, the proper knowledge about the management of human resource for improving the performance and profitability of this organisation can be understood. The major focus will be given at organisational design, the motivational process for employees, use of contemporary knowledge and Technology and change in management structure.
P1 The importance of organizational design theory in the context of organizational structure and fulfilling organizational strategy
For structuring and operating the members of the company, Amazon uses the way of organisational design. The organisational design is considered as both a plan and a process.
There is an interrelationship between organisational structure and strategic aim with the organisational design. Like every organisation, Amazon has its own strategic aims, which include the large objectives of this E-Commerce organisation for increasing its market share and productivity rate. The organisational design is being restructured depending on the changes of strategic aim. The organisation structure represents the hierarchy of Management where the organisation subdivided the major area depending on various responsibilities and functions.
The organisational design model- The model developed by Weber is an example of the classic organisational design model. Still, now famous organisations like Amazon are using this model for preparing the organisational design. This model mainly focuses on formal rules and procedures for structuring the organisational hierarchy. This hierarchy mainly attached to the organisation and its different members (Bolman and Deal, 2017).
Designing organisations to meet strategic aims-There is a very important connection between the organisational structures in the development of the Sustainable performance of the company. This is because the organisation structure focuses on various activities like supervision, task allocation, and coordination for the achievement of organisational aims. The organisation structure also develops by concentrating on providing care, efficient, innovative and flexible process for the employees which will help them in creating a sustainable competitive advantage (Carayannis et al. 2015). The formalized pattern of the organisational structure shows an introduction between the company’s task, people and Technology.
Contemporary OD-There is three different type of organisational structure mainly used by large organisations for achieving strategic objectives. Those are functional structure, divisional structure and matrix structure (Bratton and Gold, 2017).
As per the four basic principles of Amazon, it is using the matrix structure for focusing on both the functions and product simultaneously. The use of matrix structure does not only help in accomplishing the work by using the employees but also increases the advantages by focusing on the functions. The advantage of using the Matrix structure is the effective use of resources (Leih et al. 2014). It is also beneficial for both horizontal and vertical communication process.
Besides that, there are both types of focus in the organisational operations and employees which help in reducing the difficulties of the new organisational environment. Managing the resources is easier and the cost can be easily measured by focusing on every single project objectives. The utilisation of resources can be handled more flexible in this process (Burton et al. 2015). There are also disadvantages using Matrix structure because it is difficult to manage out of its complexity.
The impact of the external business environment- The external business environment of the business of Amazon is mainly affected by the competitors in the market and the legal and political situation. Besides that, as an E-Commerce business with technological changes can also create a huge impact on the organisational design of Amazon. Therefore, the organisational hierarchy design is redesigned by the Human Resource Department depending on external business environment factors.
An agile organisation has some specific characteristics for developing a strong human resource. These characteristics include work-life balance and consistent delivery which is directly related to the organisational goals (Camaj, 2018). The sustainable and successful business process for developing customer value is possible in this type of business, where the flexibility of work is possible for the employees. It is directly connected with collaborative and smart decisions of the human resource manager.
- Galbraith Star Model – Jay Galbraith has developed the star model process for analysing the companies in the year 1960 (Leih et al. 2014). Depending on this model, Amazon can improve the organisational design depending on its choice. In this model different design policies are available, and it is helpful for influencing employee behaviour.
Figure 1: Galbraith Star Model
(Source: Armstrong and Taylor, 2014)
The design policy of the star model has divided into five categories. Those are:
Strategy- The strategy of the organisation refers to the process of determining the direction for the organisation and its employees (Armstrong and Taylor, 2014).
Structure- The second category is the structure of the organisation which is associated with determining the specific position all location of decision making power.
Processes- the processes include the various function of the organisation which includes the flow of information. In addition to that, the process of responding to information technology is also part of it (Pereira-Moliner et al. 2016).
Reward- Reward is the fourth category which is useful for providing intensive and motivation for the human resource for the desired behaviour from them (Bolman and Deal, 2017).
Selection and development- Finally the selection and development of the right people is also part of this module which is useful for the organisational growth and can easily maintain the corporate policies. This category of star model allows the company in the process of operating at the maximum efficiency.
- McKinsey 7s framework – McKinsey 7s framework is developed in the year 1980 for the process of developing organisational design depending on the necessary of the organisation (Carayannis et al. 2015). The primary purpose of using this 7s model is to improve the performance of the organisation. Besides that, examining the future effect of changes in the organisation, at that time of acquisition or merger aligning the processes and departments, determining the best strategy to implement are the part of this model implementation (Bratton
The seven elements of 7S model are differentiated into two different types. The hard elements are associated with Organisational Management and structure fun influencing the human resource. For example, the reporting lines, IT system, formal processes, strategy statement and organisational charts can be included (Burton et al. 2015).
The soft elements are similarly important and difficult to describe because it is influenced by culture and less tangible than hard elements. The organizational policies and ethics, interpersonal and communication skill of the employees, different type of leadership style like democratic leadership style, etc.
- Congruence model- Organisations use the congruence model for developing better productivity and profitability by using different components within the organisation.
Figure 3: Congruence model
(Source: Bratton and Gold, 2017)
Step2: Relationships between the elements
Work and structure- There is a very important relationship between the work and structure of the organisation. Depending on the activities of functions of the work the organisation has to select a specific structure. A compatible relationship within the work and structure develop the performance of the organisation.
People and structure- The structure of the organisation is related to the performance of the employee. Depending on the structure the work distribution within the employees has been done.
People and culture– The people or employees of the organisation and the organisational culture are associated with each other. For maintaining minimum ethics and discipline within the organisation, culture has been developed by the company. By maintaining the policies and ethics, the people are employees improve the organisational culture for better performance (Bolman and Deal, 2017).
Culture and work- The organisational work and culture are associated with each other. The corporate culture has developed by the management depending on the job or functions of the organisation. The work also impacts on the culture development process.
Culture and structure– The interrelation between organisational structure and culture is also significant because depending on the external factors, the structure of the organisation improves. And with the improvement of the corporate structure, the organisational culture changes (Carayannis et al. 2015).
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