Impact of Organizational Structure on Human Resource Management

The organizational structure has a significant impact on Human Resource Management (HRM) as it affects the way employees work together to achieve common goals. The company under analysis has a flat structure with four duty managers who provide ideas for managing workload and team leaders involved in decision-making. Effective HRM involves continued performance assessment to improve employee retention, which is crucial for organizational success. Financial and non-financial factors such as incentives, bonuses, job satisfaction, and enrichment contribute to employee motivation, leading to increased productivity and attainment of organizational goals.

Julphar Company
Strategic Human Resource Management

Assessment Task 1:
1. Importance of SHRM
Strategic human resource management is defined as the management plan which is having a
strategic approach in which the policies and procedures are linked to the strategic objectives of
the company. The strategic management helps to take the managerial decision which determines
the performance of the company in the long run. The strategic human resource management
harnesses the potential of human resource which leads to organizational success (Mello et al.,
2014). It is the key to organization success through channeling the human resource in the right
direction towards the achievement of organizational goals. It enables the employees for
completing the objectives of the company through empowering and engaging the employees. For
example, the training and development provided to the employees help to solve the
organizational problem regarding the quality of work and it helps to achieve the objectives of an
organization in a most efficient and effective manner. The performance of the employee is
accelerated through a proactive approach of strategic human resource management. The human
resource manager has two functions, namely, managerial functions and operational functions.
The managerial functions include planning, directing, controlling, coordinating and others. The
operational functions include welfare to employees, compensation, and others.
2. Julphar Company
The Julphar is a public shareholding company which is based in the United Arab
Emirates. It is related to Gulf pharmaceutical industries. The total employees of the
company are 2,900 (Julphar et al., 2016). The company is managing its human capital

adequately through a strategic approach which helps to achieve the goals of the
company.
a. Organization objectives towards HR management
The objective of the organization is to manage the human resources in an efficient and
effective manner which helps to contribute towards the achievement of official goals. The
other objective is to provide the healthy and friendly environment to the employees
which motivate them to improve the productivity of the company. The working
procedure of an organization towards the management of human resource includes
training and development, teamwork, employee engagement and retention which help to
manage the human resource of an organization (Buller et al., 2012).
b. SHRM related to recruitment
The aim of recruitment is to attract right candidate for the right job. The activities related
to recruitment include campus hiring, internal hiring, portals and others. The strategic
human resource management helps to identify the right employee required for the
particular position to achieve the objectives of the company.
 SHRM related to retention
The strategic human resource management helps to retain the employee through building
the strategies such as increasing the job enrichment, and job enlargement which retains
the employee through motivates them and provides benefits to both the employer and
employees.

 SHRM related to importance of HRM
The strategic human resource management helps to develop the plan related to
recruitment, compensation, and training which helps manage the human resource in a
most efficient and effective manner. The human resource management has been
developed into strategic human resource management which emphasizes the effective
functionality of organization (Zikic et al., 2013). The policies of human resource
management are linked to the strategies of the company, and strategic human resource
management is directly related to the performance of an organization.
 SHRM Purpose assessment
The purpose of strategic human resource management is to improve the performance of
employee, high quality of service, improvement in organizational performance, training and
development which are directed towards the achievement of organizational goals. The strategic
human resource management acts as a success key for the company through managing the
employee by a strategic approach in applying the human resource techniques to achieve the goals
and objectives of the company.
3. Evaluation of SHRM towards organizational goals
The strategic human resource management helps to provide high skills employees, high service
quality to the customers, revision of the performance of the employee which leads to enable the
new innovative and reliable performance of an organization. The organizational goals of the
company can be achieved through high-skilled performance of the employee which can deliver
the high quality of service that leads to improving the brand image in the eyes of the consumers.
The improvement of brand image is the objective of an organization which is achieved through
strategic human resource management by increasing the performance of the employee. The

strategic human resource management improves the performance of an organization, create
a .organizational culture, and provide the competitive advantage which helps to attain the
organizational goals (Armstrong et al., 2014).
Assessment Task 2:
1. Analysis of business factors contribution
The strategic human resource management helps to recruit right employee for the right position.
The strategic human resource management focuses on the activities of human resource
management which develop the company. The strategic human resource management is applied
to the company for getting the satisfactory outcome. Following are the business factors:
1. Business growth
The growth of the business is based on the performance of human resource, and strategic human
resource management helps to improve the performance of the employee. The growth of the
company depends on the brand image which is improved by providing high-quality services, and
strategic human resource management helps to improve the services through providing training
to the employees (Ahlvik et al., 2015).
2. Location of operation
The company operates in the United Arab Emirates with the network of eleven plants. The total
employees are twenty-nine hundred who contributes to the growth of the company.
3. Change in business

The company has gone through a radical change by implementing the web-based system in an
organization. It helps the consumers to purchase online with twenty-four hours service. The easy
payment service can be accessed by the consumers which help to improve the quality of services.
2. Human resource plan
The company has rich human resource management which operated eleven plants in a most
efficient and effective manner. The company has created human resource plan for the
performance of human resource. The plan is developed by the human resource manager.
 Organizational objectives
The objectives of an organization are based on SMART approach in order to provide best
services to the consumers.
 Employee development
The training program is developed for the employees who helps to improve the
performance of the employee and enables them to achieve the objectives of the company.
 Selection and recruitment
The selection is the initial stage of the process in which right employee is selected for the
right job according to the organizational structure of the company. Then the recruitment
process started accordingly which helps to avoid the unwanted position in an
organization.
 Retention

The planning of retention provides the opportunity to keep the skilled personnel in the
company for the long duration of time. The development of career planning and
promotion helps to avoid potential recruitment of the company.
The development of human resource plan includes following stages:
1. Data collection:
The data of human resource is collected for the assessment purpose. The planning
process evaluates the issues on the implementation of strategic plan, an internal
supply of the human resource and others. The data and the information are collected
from the internal and external environment of the company (Mathis et al., 2016).
2. Forecasting:
The forecasting includes identifying the future human resource requirement according
to the strategic planning of an organization. The human resource planning helps to
meet the demand of human resource with the supply.
3. Reconciliation:
The reconciliation helps to determine the gap between the supply of human resource
and demand of human resource. It helps to grow organization with its operational
plans.
4. Action plans:
The gaps determine in the reconciliation plans need to be addressed at this stage. The
requirements of resources are identified to address the gap.
5. Feedback:

The human resource plan is evaluated on the basis of its effectiveness and feedback is
provided if the implementation of the plan is not successful.
Evaluation of HR Plan
The strategic human resource management helps to increase the performance of human resource
in an organization. The performance of the company is improved by the effectiveness of human
resource plan. Following are the stages in which human resource plan contributes:
1. Business cost
The human resource plan contributes to the optimization of cost by eliminating the
unwanted expenses in human resource practices. The cost minimization is the element of
human resource activities.
2. Improve performance
The human resource management helps to improve the performance of employees which
is required to attain the objectives of the company.
3. Succession planning
It is the key objective of the company is managing growth which can be achieved through
strategic planning. It helps to understand the need of skillful and perspective employees
in an organization.
3. Purpose of HRM Policies
The main purpose of human resource management is to manage the employees within the
company such as recruitment, evaluation, selection and others. It is very important in managing
the human resource in the most efficient and effective manner. The human resource management
is closely linked with the very department. It helps to prepare for the difficult circumstances such

as increment of workload, redundancies and others. Following are the characteristics of human
resource management:
 Flexibility
The policies of human resource management are subjected to change such as the change in
business fields which is anticipated in the human resource policies.
 High commitment
The human resource policy ensures the management of human resource towards the
organizational goals.
 Strategic integration
The policies of human resource management are integrated with the strategic plans of an
organization.
 High quality
The human resource policy ensures results of high quality by improving the potential of human
resource.
Following are the policies of human resource management:
 Health and safety policy
The company emphasizes on the health and safety of an employee in an organization. The
measure of risk arises from natural disaster, accidents, terrorist attacks and others. The company
encourages the employees for considering the health and safety measures as the responsibility of
job (Armstrong et al., 2014).

 Working durations policy
The company has fixed forty-eight working hours for the employees in a week. The company has
statutory requirements for the leave and working hours. The total leaves for the employee in a
year is twenty which includes sick leave, and others. The maximum paid leave to the employee is
5.6 weeks.
 Bullying and harassment policy
The company has put the specific employee policy to every employee in an organization which
is imposed by the legislation and the regional cultural norms. There is no discrimination among
the employees on the basis of caste, color, and creed. All personnel is accountable for behaving
respectively with their peers who develops the environment free from harassments and
discrimination.
 Equity and diversity policy
The practice of equity and dignity is done in an organization with lots of integrity. The company
has adopted various strategies to develop diversity practices in an organization.
4. Regulatory policies
The impact of regulatory policies is very important for the proper practices of human resource
policies. The regulatory policies emphasize on the discrimination, pay scale, equality
employment rights and others. Following are the impacts of regulatory policies:

 Race relation act
According to the Race relation act 1992, the discrimination on the basis of caste, color, religion,
race, nationality and others is illegal. The discrimination practiced by anyone leads to terminate
the employment (Enders et al., 2013).
 Sex discrimination act
According to the sex discrimination act 1995, the discrimination on the basis of sex is illegal or
on the grounds of perceives sexual orientation. There should be no discrimination at the
workplace.
 Employment act
According to the employment act 2008, all employees have equal rights regarding the wage and
other rights. There should be no discrimination at the time of recruitment on the basis of caste,
color, creed and others.
Following are the roles of human resource management in the company which is impacted by
regulatory:
 Advisory role
It includes the offering services which are provided to the employer and employees. It includes
the offerings to line managers regarding the amendments in legislations.
 Service role
It includes administrative activities such as payroll, delivery of human resource programs and
others.

 Guidance role
It is directly involved in the building of human resource policy of an organization and
implements these policies.
5. Organizational culture
The key element of management practice is organization culture. The culture provides the
dimensional and central location in the company. The explicit attention is perceived by the
organizational culture by the thinking of people regarding the values of the company. The
strategy is influenced by the organizational culture which impacts the doing of business and
responds to change. There are benefits of strong culture when the company is focused on a need
to change. The operating activities of the company are influenced by the culture of an
organization. Thus the understanding of organizational culture is very important for directing the
employees towards the success of the company. The company has task culture in which the team
members work together to deliver the project. The teamwork plays an important role in attaining
the goals of an organization. The company is using the team-based approach to complete any
task. It helps to motivate and empower the employee towards the accomplishment of a task. The
team members are open to discussing the ideas towards the development of decision (Alvesson et
al., 2012). The team members are having a different ethical background and situated from
different countries, but the objectives are common to achieve the organizational goals of the
company. All the team members are working hard towards the achievement of organizational
goals.

6. Recommendations to improve effectiveness of HRM
The role of the human resource manager is to ensure that the organizational goals and objectives
are achieved. The regular communication with the employees helps to improve the performance
of employees. It is recommended that human resource should be utilized in a most efficient and
effective manner through regular performance evaluation. The human resource manager works at
strategic and business level. As a strategic partner, the manager must design appropriate
framework of human resource management which includes reward system, recognition,
appraisal, recruitment, selection, retention and others. As a business partner, it is recommended
that the human resource manager must think critically for taking decisions such as cost allocation
and others. It is recommended that the human resource manager must be considered as employee
sponsor because it works both at strategic and business level. The motivating working
environment must be created which helps to increase the potential of employees that directly
contributes towards the attainment of organizational goals. The human resource works
effectively by continued performance assessment which helps to improve the effective of human
resource management.
Assessment Task 3:
1. Analysis of organizational structure impacts on HRM
The organizational culture focuses on optimizing the organizational culture. The organizational
culture is classified into four categories, namely, hierarchies, committees, matrix, and ecologies.
The hierarchal structure contributes towards the attainment of the common organizational goal.

The structure of the organization is set in different structures which are depending on the
organizational goals. The allocation of roles and responsibilities is expressed in the
organizational structure. The description of such structure is commonly named by the
department, brand, and others. The company has eleven plants which are working on the
different sites, but the company is having one branch in the United Arab Emirates, so the
decision making of the company is done in a shorter period which is a good nature of the
company. The company has the flat structure. There are four duty managers who provide the
ideas regarding the managing of workload from the site manager. The managers run different
shifts, and they have team leaders who took participation in the decision making of the company
(Minbaeva et al., 2014). The stock controller plays a vital role in controlling the inventory of the
company and apart from their roles and responsibilities they also help other peers. On the bottom
level of the company, there are customer service assistants who assist the customers, and they
also do shelf filing work. The lower level is also the major contributor to the management team.
2. Monitoring of HRM effectiveness
The human resource is the most important asset of the company because all the business
functions are incomplete without human resource. Thus it is important to maximize the potential
of human resource capabilities and managed them in a most efficient and effective manner. The
management of human resource ensures that the employees are working towards the
achievement of organizational goals. The organizational change impacts on the human resource
and other factors which are managed by the human resource management. The human resource
acts as a bridge between the organization and employee which helps to understand each other
which is very necessary for the productivity of the company. The retention of employee is

necessary for the company which is done through financial and non-financial factors. The
financial factors include the incentive, bonus, and others and non-financials includes job
satisfaction, job enrichment and enlargement (Hoffmann et al., 2014). It helps to motivate the
employees who improve the performance of the employee, and it enables to achieve the
organizational goals. The retention of good level leads to low cost of human capital.

References
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Julphar. (2016). Julphar.net. Retrieved 12 October 2016, from http://www.julphar.net/