Th starategic objectives for restructuring hr & significance of strategic role for future leaders


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Th starategic objectives for restructuring hr & significance of strategic role for future leaders

  1. 1. 2011 International Conference on Sociality and Economics Development IPEDR vol.10 (2011) © (2011) IACSIT Press, Singapore The Strategic Objectives for Restructuring HR and Significance of Strategic Role for Future Leaders Ali Muslim Bin Aqeel 1, Aamna Shakeel 2 and Ali Naseer Awan 3 1 Tele: +92-3445470534, E-mail: 2 E-mail: 3 E-mail: Abstract. The paper reflects the concept of long term objectives made by the hr managers to redesign the functions and operations of an organization. The success relies on the effective implementation of these objectives but also on the motivational power of the employees. Paper also discusses the reasons for which organizations go for restructuring but the core is to attain profit and sustainability. We can’t deny the fact that to achieve success the organization management should be efficient and employees must be trained. Certain organizations to achieve success in implementing strategies starts downsizing that affect the loyalty of employees which results in organizational crisis. Therefore role of strategists is to keep an eye on the external environment of business and forecast new techniques to reorganize and improve business. Furthermore the paper exemplifies about new hired talent and how strategists help them in increasing their vision and enable them for carrier development. Finally it concludes that restructuring of the organizational culture and strategies help the organization in gaining competitive advantage. Key Words: strategic objectives, organizational success, employees loyalty, restructuring, competitive edge.1. Introduction Role of hr has always been vital for the development of an organization. As competition isincreasing among rivals, organizations are spending more finances on hr department to make theorganizational structure and its operations more efficient and effective. Today hr managers are muchmore concern in building such action plans that can lead the business towards profitability, growth,diversity and increase the tendency of the firm to extend its sales, ownership and manufacturing tonew markets. They prefer to innovation by keeping in view their competitors. Change in technologybrings different modes to carryout organizational operations, hr strategists aim to adopt these changesin order to keep the firm surviving. Hr strategists motivate their employees to perform their bestpotential and to align their objectives along with the objectives of an organization to providemaximum benefit to the business. The foremost responsibility of hr manager among these is to hireright individual for right post, provide orientation to new employees and mentor them, providetrainings, improve job performance, create working environment, generate policies according tocompetition, control labor cost, polish skills and abilities, provide secure environment, and healthfacilities.2. Literature reviews As restructuring is considered to be the key to develop the power of an organization consistentand strengthen its structure there are various researches conducted on restructuring hr, as it performscore functions and on developing future leaders. (Plesis, 2007) paper reflects the importance ofchange in culture, and to develop organization by successful leadership and accurate decision making.They suggested increasing the budget on training that could bring surety in employee’s success. (Hitt 136
  2. 2. et al., 2007), a mul ltifunctional factor that a assists the organizations survive wit the chang which o s th geappears to be essen ntial in today global bu y’s usiness landscape (Huey 1994); No y, oble 1999;Bo ossidy &Charan 2002; Kapla & Norton 2004; Hreb an n biniak 2005. In addition it is widely recognized that the n y dmajor h hurdles in th area of st he trategic man nagement ar related to strategy im re mplementatio not to onstrategy formulation (Flood et al., 2000) and strategic imp n plementation is the drivin force and the vital n ng drequirem for effective and bet ment tter-quality p performance of the organ nization (Kap & Norto 2000). plan onTherefor a lack in s re strategic lead dership speci ifically at the top of the o e organization is identified to be thebiggest bbarrier and h hurdle in efffective Strateegic executio (Alexande 1985; Be & Eisenstat 2000; on er, eerHrebinia 2005) ak Fig.1. C Conceptual mo of organi odel izational deve elopment and i entire restru its ructuring3. Imp portance of restructuring a strategists chal and llenges As t technology b brings in new methods o achieving success it al provides solutions to doctoral w of lsoproblem Comparis to previo ways to conduct org ms. son ous ganizational operations, s strategists ad dapt newtechniqu to carryo business successfu ues out ses ully. Advanc cing to new techniques is always visible to vstrategis and admit as a strong challenge, somehow th fail to im sts ts g hey mplement or develop poli icies thathelp in ccarrying out the operatio in new m t ons manner. We tend to liste about the failure of su en uccessfulorganizaations but the basic facto due to wh ors hich any org ganization fa are unide ails entified. The fact duewhich a any business fails depe s ends upon t the strategies, objectives, policies and their in naccurateexecutio To make organization structure and operations sustainab restructu on. nal ble, uring its deppartmentsis the fi step tow irst wards its growth. The m most importan of all is t renovatio maintena nt the on, ance andreorganiizing of hr deepartment an its functio because recruitment of an employee initialize from hr nd ons, edepartmment, their tra aining, devel lopment and performanc comes un d ce nder hr and i these func if ctions arenot perfformed effec ctively than whole of th organizational structur would co he re ollapse. Reor rganizingmakes o organizations growth con s nsistent and brings consstructive bloo in emplo om oyee’s talent so they tcould annalyze their aarea of weakkness and ge appropriate trainings. W could de et We eem employe as an eesasset of an organiza f ation and it i mandatory to develop their skills for future jo by using training is y obs gneed anaalysis (TNA) timely. ) 137
  3. 3. 4. How Restru ucturing? Ther are variou methods fo restructuri re us for ing, dependi upon the nature of an organization as well ing n pends upon t criteria s to achiev the vision and mission Although it is very dias it dep the set ve n. ifficult toreorgani the polic ize cies, operatioons, function framewo ns, orks, plans, d designs and whole of th entire hestructure their requ e, uires a clear path for w r which the organization develop its strength as well asprofessioonal strategists who ca fabricate the context of busines Most gr an t ss. rowing organ nizationskeeping in view the needs of em mployees and its vision ma strategic plans and o ake c objectives, no only to otget com mpetitive ed dge but also stimulate motivationa level of employees to achieve success. o alDependi upon the necessitatio certain obj ing e on bjectives mus be formula st ated by any o organization to fulfillits ambi ition and res structuring. 1 Organizations must or 1. riginate a ke plan to se its empl ey end loyees tosuccessf organizations for mutu trainings and practice By this vi ful ual s es. ision of emp ployees get broader towork wi competen ith ncies and the can utilize their best to develop or ey e o rganizational sustainabili Plans l ity.must inc clude only thhose employ yees who worked in the culture of or c rganization f more than 5 years for nand loya to the orga al anization. Mo ostly it happe when any organizatio send it em ens on mployees to any other aorganizaation, the oth one hire that employ providin much ince her yee ng entives and base salary, so loyalemploye must sign a detail co ees n ontract that iincludes such section “th employee or an emplo h he oyer willnot leave the organiz zation as if h will be off he fered by any other organi ization until h contract time will hisnot end”. 2. Manag gement must develop th feeling in employees as they are the owner of the t he n s rsorganizaation that wil help to enh ll performance. Employees must feel fre to come with such hance their p . ee wideas tha help in su at uccess of an organization and must be appreciate for their in n b ed nvolvement as it willdevelop interest to w work for the betterment of the firm. 3.Considerin employee as an asse for the ng es etfirm there must be c certain compe ensation pacckages, bonuses, incentiv apart from the base sa ves m alary thathelp in motivating e employees to be much l o loyal to the organization 4. After p n. performing survey of sexternal markets the basic salary must be fixe according to the pay g y ed g given to the eemployee at the sameposition in other or rganizations. As incenti ives are paid on the pe erformance of individua so the alattractiv package could bring and enhan the mot ve g nce tivational faactor to wor to achie rk, eve suchcompens sation. 5. Or rganizations must link pe erformance management with organiz m zational goal means ls;the feeli of an em ing mployee to w work should not only to work for him or to get his objectives but to malign his goals with the goals of an organizat s tion. 6. TNA must be con A nducted on ddaily bases so that the omanagem ment could know the s strengths of an employe his weak ee, kness as we as to identify the ellimprove ement or po ositive chang acquire by him. Be ge enefit of TN is to e NA evaluate the existingperformance of emp ployees and creating wa to improv it. The performance may get imp ays ve prove byprovidin training o mentoring or by coun ng or g nseling. 7. Management must origina a way to provide M ate oprofessioonal training with the h gs help of hr con nsultancy. Professionals must be hire from out sourcing edto mana the opera age ations in muc effective way as they are much aw ch ware of the eexternal environmentand com mpetition and train the em d mployees acc cordingly. 8. Senior mana agers must pperform their roles by rmaking such decisi ions that co ould help em mployees to provide tra aining and development (T&D)feedback The feedb k. back helps in grooming e n employees and provides a way to pr a repare thems selves forfuture joobs. As succ cession plan nning is the most import tant function of hr its p n purpose is to prepare ofuture le eaders, so by providing T y T&D feedbac the person on higher jo will train the person on the job ck n ob o 138
  4. 4. one step down. As when the person on higher jobs shifts to any other post, the coming employeewould be train for the tasks he need to perform on the new job.5. Significance of Human Resource Development (HRD) We can consider hr as the solution for the development of organization as well as the trade andindustry. In HRM humans are the driving force to bring in success by utilizing their internal skills andabilities. As restructuring the hr department and its functions, management comes with new ideas tooriginate more effective and impressive designs that help in accomplishing the goals of organization.When hr develops organization develops similarly when employees are provided with trainings andtests so they prepare themselves not only for the future jobs but also develop core competencies thathelp them to complete assigning tasks in future. HRD helps in increase the productivity as the skillsimproved than resources are also efficiently utilized. When organizations develop their structure withsupport of hr than it is also significance for the country as it is known when human resource developsnations develop. The basic purpose of HRD is to focus acquisition of attitude, behavior, skills andknowledge of employees. Skills and knowledge are enhanced as provision of trainings conducted butthe attitude builds in organizational culture. Apart from talent required for certain job the mostimportant thing is to understand the culture of the organization. Most of the people prioritize salary orother incentives but later on unable to set and feel uncomfortable to adjust themselves in theenvironment or culture of the organization so the culture values also impact the work of employees.Furthermore HRD provides with carrier planning and carrier development. When employees get thesense how to perform their jobs they go for carrier planning whereas carrier development is whenemployees get trainings and shift from jobs is carrier development. As employee has a personal visionand goal on the other hand organization has its own goals and when the employee plus organizationvision align together, shared vision help both in development to success and carrier planning. Whennew talent is hired usually organizations spend much finance on conducting trainings and developingthem for future positions. Successful organizations plan their career by themselves. As performing astrategist role hr managers provide maximum tasks, conduct trainings, organize workshops to polishthe skills of the new hired talent. Consultants and hr professionals from other organizations whenprovide trainings the vision of the hired talent also becomes broader but the question is how strategicrole significant for future leaders? As a strategist there exists many responsibilities and one of thebasic is to provide mentoring as well as counseling to employees. On initial stage the new hired talentis oriented with the culture of the organization and provides training as an internee. When he learn thetasks, become able to perform and know the job description than mold himself accordingly. All thestages are been mentor by hr strategists so that new hired employee can utilize the hidden talent anduse skills effectively for providing quality work. This all help an employee to boost his motivationalstrength, plan and develop his carrier. Strategic role is not only significantly beneficial for the newhired employee but also beneficial for the strategist as the strategist develop the employee for futurehe also develops himself for higher posts. This was been discussed in the paper earlier that if wecontemplate of succession planning, it helps in developing future leaders for the higher posts havingcompetent leadership quality. This all come through tasks, coaching, guidance and all an individuallearn from the culture of an organization. So in order to make organizations successful, to achieve itsaim and to generate maximum profit the management must involve itself in making objectives thatbrings effective succession planning because the future of any organization depends on its employeesand dependability of leaders is on the output that organizations give them in the form of compensation.Those organizations who don’t restructure themselves according to external competition can neversurvive for long so if they want success they must involve a collaborative team of executives withlower management to listen the issues and their perceptions to fabricate and mold organizationaccordingly.6. Conclusion 139
  5. 5. Strengthening the organizational hierarchy and maximum utilization of employees competencies,keeps the organization running. As the future rely on the strategic objectives and strategists decisionsthat how they formulate the objectives for restructuring the entire organization, there must beinvolvement of top, middle and lower management to present their theme to improve the system.Organizations must analyze the external environment to align their employees accordingly byproviding professional trainings as well as orient new modes that are much reliable and helpful foremployees in performing operations. Furthermore organizations must change the compensation plansso that the employees motivate themselves, and work by keeping in view the vision of theorganization. If organizations will able to develop the feeling in employees that it will be responsibleto secure their future and plan their carrier than the employees make assure the company’s successand when objectives are clear, restructuring done for the betterment of employees not only to gainprofit, and new hired talent is prepared through proper counseling and mentoring to turn out to beleaders of the future than success is no doubt certain.7. References[1] Alexander, L.D. 1985. ‘Successfully implementing strategic decisions’, Long Range Planning, 18(3): 91–97.[2] Beer, M. & Eisenstat, R.A. 2000. ‘The six silent killers of strategy implementation’, Sloan Management Review, (Summer): 29.[3] Bossidy, L. & Charan, R. 2002. Execution: The Discipline of Getting Things Done. London: Random House.[4] Flood, P.C., Dromgoole, T., Carrol, S.J. & Gorman, L. (eds). 2000. Managing Strategy Implementation: An Organizational Behaviour Perspective. Oxford: Blackwell.[5] Hrebiniak, L.G. 2005. Making Strategy Work: Leading Effective Execution and Change. Upper Saddle River, NJ: Wharton School Publishing.[6] Huey, J. 1994. ‘The new post-heroic leadership’, Fortune, 21: 42–50.[7] Hitt, M.A., Ireland, R.D. & Hoskisson, R.E. 2007. Strategic Management: Competitiveness and Globalization, 7th edition. Ohio: Thomson/South Western.[8] Kaplan, R.S. & Norton, D.P. 2000. The Strategy Focused Organisation: How Balanced Scorecard Companies Thrive in the New Business Environment. Boston, MA: Harvard Business School Press.[9] Noble, C.H. 1999. ‘The eclectic roots of strategy implementation research’, Journal of Business Research, 45: 119–134.[10] Plessis, A.J., (2007). Change, Organizational Development and Culture: Human Resource Management’s Role in a Future South Africa, Vol.3, no. 1, pg 1-11. 140