Analyse the impact of organizational structure of any company on the management of its human resources
Jonathan. K. Kush is the lead business writer at 123 Writing. He holds a BA (Hons) degree in Business Administration from the University of Brighton, UK. As a Market Research Analyst by profession, Jonathan has nearly a decades experience in market research and business analysis. His passion includes studying markets and industry trends to understand their impact on company strategy, performance and ways firms can mitigate their environment to outcompete rivals.
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Organizational structure plays a significant part in the performance of a company. In fact, the right or wrong structure can mean the difference between a high or low-achieving organization. While the organizational structure is often associated with the hierarchy and the chain of command that aids in the organization of complex networks of people and resources, the systemization of jobs and roles, it's more than just this. An effective organizational structure is about creating a framework that aligns the human resource with business priorities, and strategies, creating a culture that enables people in organizations to understand how things are done or handled as well as distributing and rationing power in a way that empowers people to make certain decisions and control other people’s behaviour.
The right organizational structure is an essential cornerstone for the success of organizations primarily because it has the ability to shape the attitudes and behaviour of the entire human resource in the same way that the groups and teams they operate in, can. One of the best ways to understand an organization’s structure and its impact on the management of human resources is to look at its chain of command, which is often represented visually as an organizational chart. This essay will use EasyJet’s organizational structure to understand its impact on the management of its human resources especially the impact on recruitment and retention, job satisfaction, and firm performance.
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HRM 601 Final Exam: Past Exam Question & Answer
Analyse the impact of organizational structure of any company of your choice (or your own company) on the management of human resources. (15 marks; 750 words)
Key Learning Outcomes
By the end of this exam assignment, students should be able to:
- Understand what organizational structure is.
- Understand the impact of organizational structure of any company on the management of its human resources and the choice of organizational structure impacts culture, with consequences for employee job satisfaction, innovation, and firm performance.
- Apply HRM theory to practice.
INTRODUCTION
Why does organizational structure matter for the management of the human resource? What is the impact of organizational structure on the management of the human resource? Organizational structure matters and is considered one of the key elements of organizational success (Mullins, 2016; Armstrong, and Taylor, 2017). It matters because it can impact every aspect of HR management from its ability to attract, engage and retain top talent, to shaping workplace culture with consequences for job satisfaction, innovation, and firm performance.
The right organizational structure is an essential cornerstone for the success of organizations primarily because it has the ability to shape the attitudes and behavior of the entire human resource in the same way that the groups and teams they operate in, can. In essence, the right or wrong structure can mean the difference between a high or low-achieving organization.
This essay explores the impact of organizational structure on human resource management in the case study company of EasyJet. It will explore how the choice of the organizational structure of EasyJet, especially with regards to its policies and practices, can impact the attitudes and behavior of the entire human resource, decision-making ability, and communication but also can impact job satisfaction, innovation, and firm performance.
What is an organizational structure?
Organizational structure refers to the patterns of formalization, differentiation, and centralization of jobs and people within an organization. It is about hierarchy and the chain of command that aids in the organization of complex networks of people and resources, systemization of jobs and roles, enabling people in organizations to understand how things are done or handled as well as distributing and rationing power in a way that empowers people to make certain decisions and control other people’s behavior (Torrington et al.,2017).
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