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Human Resource’s Value and Contribution

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The Role of Human Resources Management and change management in organization

Introduction

All over the world, human resource management has become one of the most important issues for its practical values. Nowadays, organizations are prioritising on HRM because of ensuring maximum productions, on-time supply and proper customer satisfaction (Thacker, 2012). Several types of organizational designs are helping organizations to ensure the best efficiency. Motivational processes among employees are also increasing the proficiency of performance. Research related to human resource management is increasing productivities of organizations.

Importance of organizational design theory in the context of organizational structure

To define the term organisational design, we can mention the definition of Business (2016) here it has been noted, “An organisational design is a method of identifying dysfunctional working procedure, system, structure and workflow for a specific organisation to ensure the maximum productivity and changes.”

 in this regards Burton and Obel (2016) has noted, “in an organisation of context the process of resource allocation supervision and coordination is collectively considered as organisational design.”

 the process of organisational design has been reached today’s structure after facing several types of changes which have been discussed in the following based on its history-

Centralization

At the beginning of the 19th and early 20th century, because of the industrial revolution, the world has seen centralisation and control over activities of an organisation (Clegg, 2012). At that time, it was believed that centralised and regulatory organisations can be very much beneficial to owners and governments.

Decentralization

 In the middle of the 20th century, decentralization of organisations has been started. Because of expanding the business, it was difficult to ensure proper regulation through a central controlling or regulatory process. That’s why organisational designs were changed.

Globalism

In this age of globalisation, organisations have been spread all over the world. They are operating their activities by following several types of organisational structures and designs. Scenes and organisation are creating several types of branches in many other parts of the world their working according to contexts. Improved technology and widespread use of internet largest contribution on the organisational structures.

Laws

 Now a day is organisations are forced to be designed according to rules and regulations of a country. As a result, one specific organisation is getting changed in its design because of local rules and regulations. Several international organisations like ILO, WHO, UN, etc. Are also contributing to design organisations all over the world?

Here in the following, some most important organizational designs have been discussed.

Weber’s bureaucratic model

In this model several types of formal rules and procedures, an organisation is operated with its members. According to this model, an organisation is inspired to design hierarchically for achieving goals and objectives.

M-form, u-form, and matrix form

For structuring a there are three important forms which can be followed and those are m-from, u-form, and matrix form. In u-form, an organisation is divided according to functional units and operated centrally.

Figure 1: U-Form of organizations Source:  (Maguire, 2013)

A multi-divisional form of an organizational structure is considered as m-form. In this organisational structure, an organisation tries to create quasi-independent business weed in the larger organisation why inspiring several leaders for operating several parts of the organisation. 

Another important organisational structural design is a matrix form which attempts to use the advantages of both u-from and m-form design. In this form reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. It tries to ensure the double benefit of m-from and u-form.

The mechanistic and organic form

While an organisation is interested to ensure the easiest and simplest organising process that uses a mechanistic form of management. He is an organising process which has successfully combined the hierarchical and bureaucratic structure. Mechanistic structure design has successfully included a specialised function, formalized procedures and practices, and highly centralised authority.

An organic organization is remarkable because of its decentralization, less ideal and formal processing, and better communication and interaction between employees and officials. In this procedure, communication is widely spread among employees, executive and managers.

how organizational design has to respond and adapt to change management?

The Coca-Cola Company

All over the world, the Coca-Cola Company has a great reputation for dealing with beverage services. It is a reputed brand for manufacturing and retailing non-alcoholic drinks all over the world. The founder of the coca cola is john stitch Pemberton, was the pioneer of the drink who sold its formula to as a Candler. In more than 200 countries, Coca-Cola is offering more than 500 brands among 1.6 billion people on a daily basis.

Figure 2: Organizational Structure of Coca-Cola

Source:  (Waldemer, 2018)

With the process of globalisation, Coca-Cola has radical is changed its organisational design to adapt to the changed situation. Now it is a global organisation which is operating its business all over the world. For ensuring better services and profits, Coca-Cola has divided its organisational structure. Here in the above graph, the organisational design of Coca-Cola has been represented.

Nowadays Coca-Cola has been expanded it is business every corner of the surface. As a result, engagement with people and providing better services has become difficult. It has changed is the management process and prioritising to evaluate local organisations and going to contractual activities. It is maintaining the structural hierarchy to adapt to changing situations.

The Tesco PLC

Figure 3: Organisational Design of Tesco

All over the world, the Tesco PLC is a reputed British multinational groceries and general merchandise retailer with its 476,000+ employees and 6,553 shops (2017). Its headquarters is situated in Welwyn garden city, Hertfordshire, United Kingdom (Tesco :: Online Groceries, Banking & Mobile Phones, 2000). For operating the business activities of the Tesco PLC it is following the hierarchical organisational structure. By using this organisational design, the company is efficiently and effectively ensuring maximum responsibilities and authority. Position, rule and responsibilities are divided among its employees. As a result, activities are allocated among its employees (Tesco :: Online Groceries, Banking & Mobile Phones, 2000). Tesco oi is led by chief executive Dave Lewis which it’s 11 executive board members. While the management of the Tesco is interested to bring any type of change, board meeting defines and implement changes for achieving organisational goals and objectives.

In this competitive world business, both the Tesco PLC and coca cola are facing several times of challenges and changes to operating their business activities. Coca-Cola has changed its business strategy by bringing the motto, “tagline − think global, act globally.” As a result, Coca-Cola has brought about a revolutionary change, in its structural design and organisational activity. Now a day, Coca-Cola is a revolutionary soft drink company who are serving across the world.

 similarly, the Tesco has some specific changes in its structural design. Now it is prioritising the opinions and needs of customers according to their specific choices. People are now having opportunities to identify their choices. It has allocated its responsibilities among regional managers to a store manager. Then it has subdivided its activities to adopt which situation. As a result, the company is successfully managing changes. Needs and demands of customers are fulfilled which required products and services. It has successfully subdivided the roles and responsibilities of its employees and allocated them practically. Sales managers, employees, accountant, etc. Personnel’s have different roles and rights to handle any adverb situation at any time.

In conclusion, it is clear to us that the change in structural design is largely contributing to the advancement of an organisation like Coca-Cola or Tesco.

different approaches and techniques used for attracting, maintaining developing and rewarding human resources

In an organisational context, for attracting maintaining and developing the workforce, an organisation is required to take several types of initiatives. Such initiatives can be easily found in several types of motivational theories that have been analysed in the following-

To inspire employees in an organisation of context, it is the responsibility of the organisation to ensure proper motivation among them. Define the term motivation we can mention the definition of Jost (2015), where it has been noted, “motivation is a set of direction all activities which inspire an individual or a group of people to ensure maximum productivity and performance.” Here we can also mention the definition of Satinoff (2014), “motivation can be derived from the word motive which is defined as a need that requires satisfaction.”

Motivation theory: intrinsic and extrinsic motivation Source:

Figure 4: Motivation theory: intrinsic and extrinsic motivation Source: (Hagger, 2017)

Intrinsic motivation is a motivation process where an individual is inspired by personal rewards. Here no external threads are provided to individuals. In the motivation process, surety, fun, different types of entertaining activities, etc. Play a very important role to motivate people for working better. Inspiration is one of the most important intrinsic motivational tool. In intrinsic motivation an individual is inspired to participate in sports, cleaning the room, changing own behaviour, solving several types of questions and problems, studying several types of books, after all an individual is indeed with several types of fascinating activities (Thacker, 2012).

In an organisational context, extrinsic motivation is another important motivation process where an individual is rewarded or punished with external things for their deeds (Hagger, 2017). According to performance, individuals or employees are inspired by bonus, promotions, incentives, etc. For ensuring the maximum productivity. Prizes and rewards play a very crucial role in inspiring people who have done very well performance before.

Content versus process motivational theories

According to content theory, it is believed that there are some factors inside people that cause sustain or stop the behaviour of people. If someone can be motivated sweet thing that is required for them they will be motivated easily for achieving organisational goals and objectives (Wyer, 2018). All content theories, we can mention Maslow’s hierarchy of needs and Herzberg’s two-factor theory of motivation which are greatly helping organisations to motivate employees. 

In Maslow’s hierarchy theory, it is believed that there are 5 types of needs which should be fulfilled for motivating people. Those are

Figure 5: Maslow’s Needs Theory Source:  (Maslow, Stephens and Heil, 2015)

Physiological needs are those needs of an individual which must be fulfilled for his or her survival. In psychological needs food, water, air, shelter, dress etc. Can be mentioned which should be fulfilled by an organisation to motivate people. Safety needs is another and secondly important needs of an individual which include life security and resource security from the criminal act. He is an individual safety is hampered, he or she may be deconcentrated from activities. Thirdly, belongingness and love needs are important for an individual for ensuring the maximum services. We know that man cannot live alone that’s why he or she needs love and affection. If proper affiliation can be insured friendship and trust can be developed. As a result, an individual is inspired to work better in the workplace. Esteem needs are also very much important for people which includes prestige and respect for an individual. Self-actualization is the last or the topmost tier of needs that have been identified in Maslow’s hierarchy need theory. He is an organisation can inspire an individual for touching the peak of prestige opposition he or she become productive and efficient.

In Herzberg’s two factor theory, factors of motivation have been divided into two specific types including hygiene factors that decrease employee job satisfaction and motivating factors which increase employee job satisfaction.

Figure 6: Herzberg’s two factor theory

Source: (Wright, 2009)

In content theories, we have noticed that the theorist has tried to identify factors which are motivating people to increase performance and productivity. But in process theory, it has been trying to identify more the issues relating to how the process works and sustain itself about time. Hair in the following, equity theory and expectancy theory have been discussed.

It is maintained in Equity theory that, each and every employee of an organisation should be provided or allocated with similar responsibilities and rivers for the same level activities or position. If people in the same level are provided with several types of workload they will be demotivated to waka spontaneously (Vismara, 2016). If they are provided with equal proportioned activities, they will be inspired to work more.

Figure 7: Equity theory Source:

(Vismara, 2016)

In expectancy theory of motivation, it is believed that increased effort will lead to increased performance of an individual. In this theory, the decision making the power of an individual is recognised for perfectly contributing to his or her roles and responsibilities. Motivation is partly a decision-making process that evaluates effort for outcomes.

Contemporary knowledge and research to support emerging HR developments.

In human resource development, an individual should have several types of contemporary knowledge that will help him or her to conduct effective research. Here in the following, research has been conducted to develop human resource management of Coca-Cola. To develop the human resource management of the popular hair in the following, swot analysis and pestle analysis.

Swot analysis of the Coca-Cola

Strengths of coca cola

Coca-Cola has to own been awarded the highest brand equity award in 2011. The company has a huge market value of around 79.2 billion dollars. It has been should eat a global presence in more than 200 countries with more than 500 brands. All of the worlds, as a beverage company Coca-Cola have the maximum market share. It has developed fantastic marketing strategies. It has created a huge customer base with customer loyalty. All over the world, Coca-Cola has developed a huge distribution network chain.

Weaknesses of coca cola

In the global market, Coca-Cola is failing to complete the Pepsi. It has less product diversification than Pepsi. It is not represented in the healthy beverage market. It has an errorless water management system. Sometimes it is an allegation that Coca-Cola is failing to ensure proper health value.

Opportunities of coca cola

Coca-Cola has a great chance to bring a product diversification bye starting its business in health and food business. Hearing aid supply chain it can expand its business. All over the world, Coca-Cola has a chance to develop several types of products. In developing countries, Coca-Cola can attract more customers with lower prices. The market value of Coca-Cola can be increased with specific strategies.

Threats of coca cola

Indirect competitors including Starbucks, Costa coffee, and other local companies are creating you straighten the business activities of the coca cola. And other local companies are creating huge street on the business activities of Coca-Cola. There are many local companies are developed in the food and beverage sector. Market share of its competitors are getting popular among customers are stakeholders. Lack of proper raw material management is becoming tremendous.

Pestle analysis of the Coca-Cola

 to ensure proper human resource development of the Coca-Cola company, it is the political, economic, social, technological, legal and environmental situation.

Political

In many countries, Coca-Cola is facing several types of political crisis. In developing nations, it is particularly facing political violence which is hampering the production and supply chain of the company. Additional are several types of political decisions including imposing lost and regulation related to being buried sector is also impacting on business activities of coca cola. Local labour laws are also influencing on business activities.

Economic

 Changed socio-economic setup of several countries is directly impacting on business activities of coca cola. Very recently, a global financial crisis has occurred which has drastically impact on business activities of the coca cola (Coca-Cola Canada, 2018). Search financial or economic changes largely impact on business activities. Is known to ask that coca cola managed to remain relatively unscathed. Based on the financial condition of customers, they are like do sweets their products. Taxation, vat, etc. On the import of the raw ingredients of Coca-Cola are highly impacting on business activities. Changing the salary scale of labour in different countries are changing the business of the coca cola.

Social

Now a day in social trends people are likely to change or switch their food habits. As a result, customers are switching your habits to healthy drinks (Coca-Cola Canada, 2018). So, Coca-Cola is facing the tremendous loss of a customer. A major change in people’s preference and taste hampering or damaging business strategy of coca cola and reducing profits. Nowadays people are very careful about obesity. But it is proved that the products of coca cola are causing obesity among adolescents. In the Middle East, the business of coca cola has been reduced because of political and social crisis. Very recently, people all over the world are trying to prioritise their local products.

Technological

Technological advancement is largely contributing to the packaging production and distribution of products of coca cola. As a result, heat is enhancing its business all over the world. But it is a matter of concern that, competitors of Coca-Cola are trying to bring ultra-modern technology for products, production, supply, transformation, etc.

Environmental

 Because of increasing awareness of environment people are now very much care to ensure a better environment and trying to avoid poly carbon, plastics, etc. As a result, it is creating an impact on packaging and production process of the of the Coca-Cola

Legal:

 In different countries, local laws and regulations are impacting on business activities of the coca cola. Because of increasing gross income of a country and changing the social economic condition, people are demanding more salary. The government are taking the policy to increase the salaries of people, as a result, Coca-Cola is forced to pay more money because of legal action. In Europe, governments are more careful about beverage products to reduce obesity, heart attack, diabetics, etc. As a result, legal actions are going against Coca-Cola.

After evaluating different aspects of the coca cola, it is clear to us that Coca-Cola should take required initiatives to develop its human resource to reduce its cost production and increase profit. In this regard, it can organise different types of training events for its employees. Providing required rewards and incentives can be beneficial to the company to ensure proper human resource management. Bringing new technologies is also another important way of managing HRM (Wayne and Martocchio, 2016).

Conclusion

In conclusion, it is clear to us that human resource management has become one of the most important issues for its practical values. Nowadays, organizations are prioritising on HRM because of ensuring maximum productions, on-time supply and proper customer satisfaction. Several types of organizational designs are helping organizations to ensure the best efficiency. Motivational processes among employees are also increasing the proficiency of performance. Research related to human resource management is increasing productivities of organizations.

Reference list

Burton, R. M. and Obel, B. (2016) Organizational design : a step-by-step approach. Cambridge, United Kingdom: Cambridge University Press.

Business, O. (2016) Technical innovation and organisational change : the innovation design dilema revisited. Aalborg: Aalborg Universitet.

Clegg, S. (2012) Central currents in organization theory. 1 Frameworks and applications Vol. 1 … London: London Sage.

Coca-Cola Canada (2018) Coca-cola.ca. Available at: https://www.coca-cola.ca/ (Accessed: March 8, 2019).

Hagger, M. (2017) Intrinsic motivation and self-determination in exercise and sport. Champaign, Il: Human Kinetics.

Jost, P. J. (2015) Economics of motivation and organization. S.L.: Edward Elgar Publishing.

Maguire, E. R. (2013) Organizational structure in American police agencies : context, complexity, and control. Albany: State University Of New York Press.

Maslow, A. H., Stephens, D. C. and Heil, G. (2015) Maslow on management. New York: John Wiley.

Satinoff, E. (2014) Motivation. New York: Springer.

Tesco :: Online Groceries, Banking & Mobile Phones (2000) Tesco.com. Available at: https://www.tesco.com/.

Thacker, R. A. (2012) “Introduction to special issue on Human Resource Management certification,” Human Resource Management Review, 22(4), p. 245. doi: 10.1016/j.hrmr.2012.07.001.

Vismara, S. (2016) “Equity retention and social network theory in equity crowdfunding,” Small Business Economics, 46(4), pp. 579–590. doi: 10.1007/s11187-016-9710-4.

Waldemer, T. P. (2018) “Imperfect Harmony: Coca-cola and the Cannibal Metaphor in beba coca cola, Sangue de Coca-Cola, and A Hora da estrela,” Hispanófila, 153(1), pp. 97–108. doi: 10.1353/hsf.2008.0031.

Wayne, R. and Martocchio, J. J. (2016) Human resource management. Harlow: Pearson Education Limited.

Wright, M. (2009) Gower handbook of internal communication. Farnham, England ; Burlington, Vt: Gower.

Wyer, R. S. (2018) Social comprehension and judgment : the role of situation models, narratives, and implicit theories. Mahwah, N.J.: L. Erlbaum Associates, Publishers.

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