Human Resources and Organizational Structure Essentials

Human Resources Management

Training and Development

The main objective is to increase the relational abilities of the future expatriate and, if possible, their family. Training varies by country, influenced by industry, technology, strategy, and organizational structure.

Performance Management

Employees require processes for rewarding, promoting, demoting, improving, retaining, or terminating. Management must provide objective, honest, and fair data on employee performance to ensure pay and promotions are merit-based. This process contains four elements:

• Performance standards
• Measurement
• Feedback
• HR intervention

Recruitment

Recruitment is the process of finding the right person for the right job at the right time. This involves identifying vacancies, defining required skills, and generating a pool of applicants. Note: In collectivistic societies, firms often focus on the families and friends of current employees, a practice known as "backdoor recruitment" where existing staff vouch for candidates.

Organizational Structures

Defining Organizational Structure

Organizational structure is the pattern of interactions and coordination that links technology, tasks, and human components to ensure the organization accomplishes its purpose. The primary goals are to facilitate the flow of information and achieve effective coordination and integration of diverse activities.

Pyramid and Flat Organizations

The pyramid structure features vertical and horizontal dimensions with a broad base, where the majority of employees are at the bottom manufacturing the product. Reporting relationships are essential to coordinate, motivate, and control employees.

Line Relationships and Chain of Command

Line relationships connect positions at each level, forming the chain of command. Grouping depends on functions, departments, sections, or units. Jobs can be categorized by:

• Function
• Product/Service
• Customer
• Geography
• Time
• Technology

Designing an Organization

There are five main questions when designing a structure: specialization, hierarchy, grouping, integration, and control.

Hierarchy and Span of Control

Hierarchy is a coordinating and integrating device that aligns the activities of individuals, groups, and departments. The span of control refers to the number of subordinates who report to a supervisor (e.g., flat structures utilize a wide span).

Matrix Structure

Developed in the 1950s to cope with complexity, the matrix structure involves dual reporting lines (two bosses). It occurs when one structure is imposed upon another, most typically by combining departments based on product and function.

Control Mechanisms

Control mechanisms determine how subunits are monitored: centralization involves close monitoring, while decentralization allows for greater flexibility.