221 structure of the organization the responses to

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2.2.1. Structure of the Organization: The responses to the increased use of technology, economic and competitive pressures have changed the nature of people management in a number of ways. These include slimmer and flatter organization structures in which cross- functional operations and team working have become more important, more flexible working patterns, total quality and lean production initiatives, and the decentralization and devolvement of decision-making. The structure of an organization, basically, can be vertical or horizontal. Vertically structured organizations, has hard hierarchy, which reflects centralization. In this type of organizations, human resource is under tight control of upper hierarchical levels. On the other hand, horizontal organizational systems provide more flexibility to employees. 2.2.2. Organizational Mission/Purpose: All of the organizations should behave through their mission statements. Mission statements demonstrate the framework that firms should operate in. Therefore, it also determines the human resources policies, indirectly. As a mission statement shows the basic reason behind the foundation of an organization, it gives a base, in terms of orientation, to any function of it. 2.2.3. Policies and strategies of the organization: Organizational strategy reflects the set of methods to achieve purposes and requires the restructure of principles, rules, departments, simply mindset in an institution. The human resource policies of a firm should support activities to implement organizational strategy. Therefore, the selection, recruitment, education and development, performance appraisal and reward functions of HRM should be appropriate to the general strategy of establishment. The successful practices of human
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resource management functions facilitate to achieve objectives. In other words, sufficient organizational outcomes can be gained easier through the adaptation of human resource policies to business strategy. Every unit or function of an organization should adapt its strategy to organizational strategy. Therefore, human resource strategy or implementation should fit organizational strategy. Establishments should consider targets, purposes, policies and strategies when they are designing and practicing their HRM functions. The contingency approach of strategic human resource management suggests that HR strategy should be harmonious with organizational strategy and the human resources policies and practices should be consistent with this statement. 2.2.4. Size of the firm: The size of an organization, which is very important for the extent of HRM activities, can be measured especially through the number of employees, amount of income for a year, or the sum of production. Accordingly, HR practices, in terms of number of functions, will be higher in a large firm than a small or medium sized enterprise (SMEs).
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