HR: Value and Contribution to Organisational Success

This document discusses the value and contribution of HR in organizational success. It covers topics such as the importance of organizational design theory, different approaches to motivate human capital, the impact of emerging HR trends, and the role of organizational design in change management. The document provides examples and recommendations for ARM Holding PLC.

HR: Value and
Contribution to
Organisational
Success

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Critically evaluate the importance of organizational design theory and apply the concept in
context of organizational structure & strategy with the help of suitable examples.....................3
2. Analyse the different approaches & techniques to motivate human capital and make them
skilled or dedicated towards work...............................................................................................4
3. Evaluate that how emerging HR affect the role of HR function in future and provide valid
judgement.....................................................................................................................................7
4. Critically evaluated that how organizational design respond and follow change management
which impact business design and complex relationship............................................................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Human Resource play essential role in the organization to add value and contribute in
the success of business. Employees are the valuable assets who can help the companies to
perform their operational activities or make them able to maximise their efficiency as well as
effectiveness (Anitha, 2016). HR motivate individuals and maintain work culture so that they can
perform tasks effectively in order to enhance their productivity as well as performance. HR
manager of ARM Holding PLC asked to prepare report which further delivered to the director of
human resource. This assessment covers various topics such as importance of organizational
design theory and implementation of it organizational structure. Implement different approach
for motivating human capital and knowledge management, HR functions and critically evaluate
the organizational change which further impact the business design.
MAIN BODY
1. Critically evaluate the importance of organizational design theory and apply the concept in
context of organizational structure & strategy with the help of suitable examples
Organizational design theory is the step by step process which helps in identifying those
functions which was not properly work or unable to fit with current business goals & objectives.
After that, management build policies to improve or implement changes and further they focus
on technical or individual aspect of organization. In context of ARM Holding PLC, management
use this theory to identify dysfunctional aspects which is very essential to identify. Importance of
the theory could be understood with the help of following points:
 Organizational design theory provide excellence customer service.
 Increases productivity as well as profitability by reducing operating cost.
 Improves efficiency and cycle time of the business operations.
 It helps in developing clear strategy for managing and getting business growth.
Above mentioned importances help the organization to improve its overall efficiency as
well as effectiveness and make sure that, it will positively impact the organizational structure &
strategies (Beneke and et.al., 2016). With the help of it, managers of ARM Holding improve
individual work efficiency or it make them able to formulate strategies for the future which
further provide growth in the market.
Appropriate theories for organizational structure:

With the help of organizational structure theory, business able to develop plans for the
success. It will influence the management that how they can allocate resources and interact with
environment. There are various theories which could be implemented by the ARM Holding Plc
or to formulate business strategy. Some of them discussed below:
Contingency theory: This theory is used to deal with conflict in the business among the
people. In the workplace, conflict is unavoidable or management need to take effective actions to
resolve it. Management evolve their own strategy as per the need and adopt changes which is
important for organizational success. So, it help the managers of ARM Holding Plc to make
effective decisions to achieve business goals & objectives. For example: In the Tesco, managers
implement contingency theory in order to reduce conflicts among the people because it affect the
overall operations as well as revenue margin of the company.
Systems theory: This theory based on the interrelationship of different functions in the
organizations. It evaluate that how single change will affect the other parts of the business. Every
small change will cause big alteration in the another part. Before implementing any changes in
the organizational structure, managers of ARM Holding Plc need to evaluate its after effects and
then adopt changes which suits business environment (De Guimarães and et.al., 2016). For
example: Ford company wanted to provide quality products which meet the customer's
expectation. Management focus on the business as well as technical need to improve the overall
performance or satisfy consumers. Managers of ARM Holding follow the system theory in order
to fulfilling organizational strategy.
From the overall discussion it has been concluded that by using organizational design
theory and organizational structure theory, managers maintain overall performance or build
strategies for get success. It helps in improving operational or customer service efficiency which
help the business to achieve desired goals & objectives. In the business, every decisions and
actions will be done after evaluating organizational structure. Because it help the managers to
perform as per their strategies in order to enhance overall performance and productivity.
2. Analyse the different approaches & techniques to motivate human capital and make them
skilled or dedicated towards work
In order to perform well in the business operations or enhance individual performance
and productivity, managers adopt theories which help them to attract, maintain, develop or
provide rewards to the employees as per their performance. There are some different approaches

which is used by the managers of ARM Holding Plc to skilled their employees or make their
workforce dedicated. It mentioned below:
Approaches for motivation:
There are three different approaches to motivate workforce and make them productive as
well as dedicated towards their work (Approaches for Motivation, 2020). It mentioned below:
 Stick approach: It is the oldest as well as classical view which cause the performance
through the fear of penalties if employees fail in their work. In this approach managers
are very strict and control their entire workforce to become more productive for the
organization. It shows a negative attitude of superior which suppress the spirit of
workers.
 Carrot approach: In this approach, managers treat their employees as valuable assets for
the company and give them unconditional rewards which does not motivate employees.
Because workers do not feel any gratitude towards manager or company. Managers of
ARM Holding Plc need to give rewards as per individual performance otherwise
employees think that there is only carrot and no stick. Managers thinks that, employees
will remain loyal or grateful for the company if they get rewards unconditionally, but it is
not actually happen.
 Combined approach: This approach suggest that, managers should have stick in one
hand and carrot in another one. Because fear of penalty make them dedicated towards
their work or if they perform well then they get rewards (de Sousa Jabbour and et.al.,
2018). It is like penalty or reward approach where, if employees perform well then they
get rewards or if they not doing well then they will be penalties. It is highly productive
approach which help the ARM Holding Plc to motive employees as well as maximise
productivity or profitability.
In order to make their workforce skilled, dedicated or productive, managers of ARM
Holding use combined approach for motivating their workers. It further helps them to achieve
business goals & objectives through increasing individual performance as well as productivity.
Approaches for human capital:
In order to become high performing organization, business need to focus on human
capital and leverage talent to make their human resources capable to achieve high performance

(Approaches for Human Capital Management, 2020). There are various approaches for this but
some of them discussed below:
 Training & mentoring: Most of the high performing organizations provide additional
training programs to their employees to make them more productive. In addition, ARM
Holding Plc need to provide mentoring programs as well (Fellnhofer, 2017). Along with
this, they should develop leaders with the help of training programs which attracting
talent of future generation. In order to make their worker skilled and dedicated they need
to trained them or improve their performance.
 Attract quality talent: It is observed that, best performing organizations have best talent
in terms of human capital. They need to recruit people who have ability to perform their
task or achieve desired goals & objectives. Basically, managers of ARM Holding should
attract talented people as per the role who have relevant skills and they dedicated for their
work.
Above mention approaches followed by the managers of ARM Holding Plc because it
helps in making their workforce skilled and dedicated.
Approaches for knowledge management:
Knowledge management is the systematic process which is used to share in the
workplace and how it influence the corporate culture as well as business objectives. It helps the
business to achieve their goals by effective use of knowledge which they have (Different
Approaches to Knowledge Management, 2012). There are various approaches which could be
used to enhance overall performance of ARM Holding Plc but some of them disused below:
 Tactic knowledge management: It helps ARM Holding Plc to understand the
knowledge which any individual have and further they move people into organization to
transfer information. It is very simple to implement but it increases the dependency on
individuals (Gregory, 2016). If that person leave the company than knowledge also left
from that place. Through sharing knowledge they make other people skilled or dedicated.
 Explicit Knowledge Management: In this approach, knowledge of individual redesign
in the various forms such as reports, manuals, documents etc. It help the managers of
ARM Holding Plc to share, communicate the information with many people at the same
time or improve their knowledge. It is the another way to make their workers skilled.

From the above discussion, it has been analysed that explicit knowledge management is
the best approach to share or maintain knowledge in ARM Holding Plc. It further helps the new
recruiters as well in order to make them skilled or dedicated towards their work.
Recommendation:
For ARM Holding Plc, management follow explicit knowledge management but they
should follow Tactic knowledge management approach too. In order to make their employees
skilled and dedicated. In addition, for motivating employees they can follow Maslow need
theory.
3. Evaluate that how emerging HR affect the role of HR function in future and provide valid
judgement
There are various emerging HR factors which may further affect the role of HR functions
in the future (Emerging HR Developments, 2020). Managers of ARM Holding Plc need to
evaluate those trends for HR development. Some of them discussion below:
 Use of artificial intelligence in recruitment: Use of AI is an innovating step in the
various industries like manufacturing, marketing, finance, banking etc. With the help of
AI, ARM Holding Plc follow online recruitment or hiring process. In future, it will
improve the role of HR functions or make them able to save their time, it provide faster
candidate screening, attract quality talent etc.
 Data analytics transforming HR: In the organizations, HR functions rapidly adopt the
data analytics skills because it helps in making data driven decisions to attract top talent
& retain as well. In future, use of data analytics will be increases or identify the trends or
pattern of employees absenteeism. In future it will help the HR department ARM Holding
Plc to formulate strategies and implement in order to get success or achieve business
goals & objectives (Hernaus, Vuksic and Štemberger, 2016). It has various benefits such
as reducing employees turnover, enhance employees experience & satisfaction,
productivity, performance etc.
 Continuous performance management: It is the approach which is used once in a year
for the feedback or review the performance. Management gone through with various
transformation in the business operations in order to improve individual as well as entire
ARM Holding companies performance. Through focusing on employee engagement and

talent retention will helps in improving overall performance. This emerging trend of HR
affect the role of HR functions in the future.
Above mention emerging HR developments is beneficial for the role of HR functions in
the future. It help the ARM Holding Plc to attract talented people, make effective decisions in
respect of the employees as well as improve performance. Basically, in future it helps the
organization to improve individual productivity as well as profitability.
From the above discussion it has been recommended that ARM Holding Plc should
implement latest HR development trends in the HR functions (Kirkley, 2016). It aid the
managers to improve individual performance as well as productivity.
4. Critically evaluated that how organizational design respond and follow change management
which impact business design and complex relationship
Every organization design their own structure and make sure to control over business
environment. There are various types of structure which is used to respond market or
competitor's pressure, government or consumers. Business design their structure on the basis on
organizational goals & objectives. Managers of ARM Holding Plc evaluate the design of
business and implement various changes as per the requirement (Pedron and et.al., 2016). There
are some examples of changes in the ARM Holing which are mentioned below:
 Transformational change: In this change, business alter their model, strategies,
structure, culture design etc. Organizations may experience transformational change in
response to crisis or improve their market situation. These changes also occur in response
to change in technology. ARM Holding Plc take advantage through implementing new
business model. In the business environment, there are already various companies who
take advantage through implementing changes in their operations (Rehman, Seth and
Shrivastava, 2016). Fox example: Nokia is the world's leading company in the cellular
phones market because they focus on new technology and implement changes.
 Psychological change: It is one of the principle of change management which is used to
improve employees perspective. Business need to focus on people perspective and do
something about social issues which encounter individual's personal life. An individual
have various needs which company need to satisfy. Managers of ARM Holding Plc
implement psychological changes in order to respond organizational design.

For example an employees of ARM Holding Plc innovate new software but in order to
implement this, they need to transform organizational design (Scott, DeLone and Golden, 2016).
Management of the company change their business model or strategies accordingly and also
provide training to the employees so they can perform their task without any fear of losing their
job rather than hiring new people.
CONCLUSION
With the help of above discussion, it has been concluded that HR functions helps the
business to get success through contributing in various aspects. With the help of organizational
design, entity able to maximise productivity as well as individual performance. It addition, it is
useful for managers to build strategies and implement in well manner. In addition, in order to
make their workers skilled and dedicated, they need to follow various approaches for motivation,
knowledge management or human capital. Along with this, there are various emerging HR trends
which help the HR functions in the future to enhance overall business performance.

REFERENCES
Books & Journals
Anitha, J., 2016. Role of Organisational Culture and Employee Commitment in Employee
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innovation and organisational performance: A survey of the Brazilian furniture industry.
International Journal of Production Economics. 180. pp.135-147.
de Sousa Jabbour, A. B. L. and et.al., 2018. When titans meet–Can industry 4.0 revolutionise the
environmentally-sustainable manufacturing wave? The role of critical success factors.
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Fellnhofer, K., 2017. Drivers of innovation success in sustainable businesses. Journal of Cleaner
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100). Routledge.
Hernaus, T., Vuksic, V. B. and Štemberger, M. I., 2016. How to go from strategy to results?
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Journal.
Kirkley, W. W., 2016. Entrepreneurial behaviour: the role of values. International Journal of
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Pedron, C. D. and et.al., 2016. Value-focused objectives for CRM system adoption. Industrial
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Scott, M., DeLone, W. and Golden, W., 2016. Measuring eGovernment success: a public value
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Online
Approaches for Human Capital Management. 2020. [Online]. Available Through:
<https://www.weforum.org/agenda/2015/09/6-ways-successful-organisations-approach-
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Approaches for Motivation. 2020. [Online]. Available Through:
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approaches-to-motivation/2520>
Different Approaches to Knowledge Management. 2012. [Online]. Available Through:
<https://ivm.org.uk/pdfs/MANJIT-knowledge-management-norther-branch.pdf>
Emerging HR Developments. 2020. [Online]. Available Through:
<https://empxtrack.com/blog/hr-trends-2020/>