This article discusses the impact of organisational strategy on human resources and the role of HRM in change management. It also explores the principles and models of change management and the matrix model of organisation structure. The case study of Johor Insurance is used to illustrate these concepts.
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Running head:ADVANCED HUMAN RESOURCE PERSPECTIVES Advanced Human Resource Perspectives Name of the Student Name of the University Author’s note
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1ADVANCED HUMAN RESOURCE PERSPECTIVES 1. Human resources strategy and organisational strategy Human rescores are the people associated with an organisation; people come with their skills and expertise which help in the operations of the business. These people and their skills are regarded as a significant asset for the company. In order to manage the human resources, business organisations have HR department that look after the recruitment, performance, healthy and safety, development opportunities etc (Marler et al. 2013). Johor Insurance is an organisation that has seen its share of market and in the recent times is going through a change due to the changes in the market trends. The company with the help of international management-consulting firm re-strategized the management decisions. The company recognizes the importance of human resource.Any business organisation is run with the help of the employees and the staff members and the management of the company looks after the way the operations are being held, therefore cost reduction was not used rather the structure of the organisation was altered (Marler et al. 2013). Organisational strategy that the company has come up with along with the consultancy is that the company will now have two separate divisions looking after two separate kinds of clients: JI retails (Car, home and property insurance) and JI B2B.JI B2B will be launched as a separate organisation called Commercial Underwriters Asia-Pacific. Therefore to keep up with these changes in the organisation human resource department also had to draw strategies. At this verge of change the organisation retained key executives as experience of the people in the industry will help regain the position of the company in the market faster, the organisation here focused on the skills and expertise of the human resource. Another major aspect of retention of the staff is some of the government policies of Singapore regarding the
2ADVANCED HUMAN RESOURCE PERSPECTIVES insurance industry. According to the rules the people working in the insurance industry has to be registered with the Monetary Authority of Singapore (MAS). To register new people would take over a year. On the other hand recruitment will be an important role of the Human resource department in the case of the new organisation that is set to incorporate. The new organisation will have new operational aspect and hence the skill, expertise and the qualifications of the people will be organized by the HR department accordingly to suit the objectives (Marler et al. 2013). 2. HRM's role in change management - principles and models Johor insurance is going through a massive change in the organisational structure and design therefore major transformation will be required in the Human resource department as well. Resistance to change is something that is natural people do not understand or predict the outcome of the future, therefore they resist to any kind of alteration in the organisation. Organisations should have an adaptable business strategy so that in such cases the organisation can easily adopt to the dynamics of the change (Hayes 2014). The amendments brought about in Johor Insurance will directly impact the employees of the company and hence the role of the HRM becomes evident in change management. Retaining and recruitment will take place at the same time, the ones who will be retained will be analyzed according to their performance and the ones who will be recruited for the new organisation shall be welcomed with different expertise and new skills so that the new organisation is equipped for the changes. The divisions that the HRM will be focusing on are sales, claims, adjusters and
3ADVANCED HUMAN RESOURCE PERSPECTIVES professional services (Maheshwari et al. 2015). Some of the principles of change management are: Strategic approach to change impacting the people associated with the organisation The changes should begin from the top level The management HRM should also focus on the progress Matrix model of organisation structure is a combination of and a balance between the projectized organization structure and the functional organization structure. In this structure an employee might be reporting to two seniors at the same time one of the functional manager and other is the project manager. As the organisation has formed two wings it is employees based on their function and the project might have to be reporting to two mangers. As productivity will be one of the major aim of the Johor Insurance the company this organisation structure though it is complicated structures it proves beneficial for organisation that has diverse product and service Line. This model focuses on the skills and expertise of the employees, Johor Insurance retains policy and recruitment policies are based on skills and experience. This model ensures higher efficiency and greater commitment of the employees (Harper 2015).
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4ADVANCED HUMAN RESOURCE PERSPECTIVES Figure: Matrix Model of Organisation Structure Source: (Harper 2015)
5ADVANCED HUMAN RESOURCE PERSPECTIVES Reference list: Harper, Charles.Organizations: Structures, processes and outcomes. Routledge, 2015. Hayes, John.The theory and practice of change management. Palgrave Macmillan, 2014. Maheshwari, Shweta, and Veena Vohra. "Identifying critical HR practices impacting employee perception and commitment during organizational change."Journal of Organizational Change Management28, no. 5 (2015): 872-894. Marler, Janet H., and Sandra L. Fisher. "An evidence-based review of e-HRM and strategic human resource management."Human Resource Management Review23, no. 1 (2013): 18-36. Nankervis,AlanR.,MarianBaird,JaneCoffey,andJohnShields."Humanresource management: strategy and practice." (2013).