Value and Contribution of Human Resources to Organisational Success: A Case Study of ARM Holdings PLC

This report evaluates the value and contribution of human resources to the success of ARM Holdings PLC. It discusses the importance of organizational design theory, approaches for attracting, maintaining, developing and rewarding human resources, emerging HR developments, and the relationship between organizational design and change management. The report is based on a case study of ARM Holdings PLC.

Student Name:
Student ID :
Unit/Module : 36 HR: Value and Contribution to Organisational Success
Programme : HND Business
_______________________________________________________
Nelson College London
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Executive Summary
This report has been prepared based on ARM Holdings PLC to identify the value of its
human resources and their contribution to make it successful. At the beginning part, this
report has defined organizational design theory and identified its importance for developing
organizational structure and fulfilling organizational strategy. Different approaches have been
discussed in this report through which ARM Holdings PLC can attract, maintain, develop as
well as reward its human resources. This report has also explained emerging HR
developments as well as identified the relationship between organizational design theory and
change management.
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Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................4
L01.............................................................................................................................................5
P1: Evaluate the importance of organizational design theory in the context of
organizational structure and fulfilling organizational strategy, using specific organizational
examples.................................................................................................................................5
L02.............................................................................................................................................7
P2: Analyze the different approaches and techniques used for attracting, maintaining,
developing and rewarding human resources to create a skilled and dedicated workforce.. . .7
L03.............................................................................................................................................9
P3: Conduct research and use contemporary knowledge to support evidence for emerging
HR developments...................................................................................................................9
L04...........................................................................................................................................11
P4: Evaluate how organizational design has to respond and adapt to change management
and the relationship that exists between the two using a specific organizational situation. 11
Conclusion................................................................................................................................13
References................................................................................................................................14
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Introduction
An organization is consisted of several types of resources and among all of them human
resources is one of the most important resources. Maintaining efficient and skilled human
resources within an organization is necessary to achieve the goals and objectives of that
organization. The aim of preparing this report is to describe the contribution of human
resources to the success of an organization and the importance as well as way of maintaining
efficient human resources within an organization. This report will be prepared based on the
scenario of ARM Holdings PLC. According to ARM, (2020), it is a global software design
company which was founded at 1990 in United Kingdom. This report will cover different
topics related to human resources including organizational design theory, approaches for
attracting and maintaining human resources, contemporary knowledge for HR development
and others from the perspective of ARM Holdings PLC.
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L01
To
HR Director ARM Holdings PLC
ARM Holdings PLC
London, United Kingdom
Subject: A report on contribution of HR function to the value and success of the organization.
P1: Evaluate the importance of organizational design theory in the context of
organizational structure and fulfilling organizational strategy, using specific
organizational examples.
Organizational design theory
Organizational design refer to the process where an organization is functioned and designed
by its people. Organizational design demonstrates the way of constructing a configuration of
an association or company. It is a methodology that helps companies to identify work flow,
process, structure and other things that are necessary for organizational goals so that
organizations can achieve their goals and objectives by developing plan and adopting
essential changes.
Importance of organizational design theory
Companies should consider and emphasis the organizational design to form its structure. To
achieve the organizational goals and objective, ARM Holdings PLC have to form
organizational configuration appropriately. Otherwise the company will fail to identify its
required actions.
The importance of organizational design theory to fulfil organizational strategy based on
organizational structure is the following:
Improving customer service and gaining more sales: Organizational design theory helps
an organization to improve and provide better customer service. A good organizational
design enables ARM Holdings PLC in constructing structure that helps employees to provide
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better customer service. Better customer satisfactions increase in gaining more sales and
more profitability.
Greater profitability: Better organizational structure helps companies to increase its
productivity in effective and efficient manner as well ensuring more profitability. In a well-
structured organization, employees are motivated and make them efficient and their activities
effective that help companies to gain more profitability.
Reducing costs: Organizational design theory helps companies to reduce their operating cost
that impact the overall cost reduction.
Improving performance: Companies like ARM Holdings PLC can ensure a positive work
environment by designing a well structure. Positive work environment boost employees
performance.
Stimulating innovation: Organizational design theory helps ARM Holdings PLC to create a
better organizational structure that will motivate its employee so that they become more
innovative and creative.
Increasing productivity: By designing a well structure, ARM Holdings PLC will be more
effective in production that will help the company to obtain its objectives. Increased
productivity indicates increased profitability.
Improving communication: A well designed organizational structure will help ARM
Holdings PLC to improve its overall communication within the organisation. So that
communication gap is minimum and overall effectiveness and efficiency increased.
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L02
P2: Analyze the different approaches and techniques used for attracting, maintaining,
developing and rewarding human resources to create a skilled and dedicated workforce.
As mentioned earlier, human resources are one of the most important resources of an
organization, so an organization needs to ensure the development of its human resources.
According to Wright and McMahan, (2017), for developing the human resources of ARM
Holdings PLC as skilled and dedicated workforce, it needs to attract potential people,
maintain them properly as well as rewarding them according to their performances. There are
different approaches and techniques through which ARM Holdings PLC can attract, maintain
and develop as well as reward its human resources to create skilled and dedicated workforce.
Some approaches of attracting, maintaining, developing and rewarding human resources are
discussed below:
Providing positive working environment: Raziq and Maulabakhsh, (2015), referred
positive working environment as the environment of an organization where the employees
can enjoy all the necessary facilities, can interact with each other and they can express their
opinion freely. ARM Holdings PLC can attract the potential candidates who have the
required skills to work within it as well as can maintain the skilled employees who are
already working within it. Providing positive working environment also increases the
motivation levels of its employees which lead to the increasement of their productivity level
as well as encourages them to be dedicated to their works.
Providing training: Employees may lack of skills which are required to perform their jobs
properly. ARM Holdings PLC can identify the lackings of the employees and provide
training to them for developing required skills within them. Through providing training, its
employees may become more skilled than before.
Providing reward based on performance: As the name describes, performance-based
reward means providing rewards to the employees according to their levels of performances.
According to Gavish, Gerdes and Kalvenes, (2015), providing reward based on the
performance influences the employees of ARM Holding PLC to increase their performance
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levels to get more reward. Thus, the productivity as well as skills of the employees can also
be increased.
Providing opportunity to contribute: When the employees of ARM Holdings PLC can get
the opportunity to make actual contribution to the goal attainment of the organization, they
will be motivated to act with more dedication within the organization. This may ARM
Holdings PLC to transform its human resources as skilled and dedicated workforce.
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L03
P3: Conduct research and use contemporary knowledge to support evidence for
emerging HR developments.
According to Lucas and Deery, (2015), emerging human resource developments indicates
potential social, political as well as economic trends which can influence the development of
human resources within an organization. The business environment is changing with the
passage of time and for remain competitive in the changed business environment,
organizations need to develop their human resources according to the changed environment.
ARM Holdings PLC needs to consider several issues which may facilitate emerging HR
developments within it like globalization, workforce management, legal requirements and so
on. These issues are discussed below:
Globalization: Hall, (2017), referred globalization as the concept where the whole world is
considered as a boundaryless global market. Through globalization, the culture of one
country is mixed up with the cultures of other countries. According to Hall, (2017), this may
make the current human resources of an organization like ARM Holdings PLC obsolete and
may create the need to develop human resources according to the changed culture.
Workforce management: According to Randolph Thomas and Horman, (2018), workforce
management refers to the set of activities that an organization undertake to facilitate the
productivity of its employees. The number of organizations are increasing day by day and the
business environment is also changing. In order to provide tough competition to the new
organizations, ARM Holdings PLC needs to ensure higher productivity of its employees. This
may influence ARM Holdings PLC to change its workforce management which may
facilitate emerging HR developments.
Legal requirements: Some legal requirements may create the need for emerging HR
developments within ARM Holdings PLC. For example, newly proposed laws related to
human safety, compensation, recruitment and so on within ARM Holdings PLC.
Company policy: The company policy of ARM Holdings PLC is continuously changing
after a specific interval time. This may facilitate emerging HR developments within it.
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Some ways to ensure emerging HR developments within ARM Holdings PLC are discussed
below:
Reviewing culture and feedback: The business culture and methods of collecting as well as
analyzing feedback have changed over times. ARM Holdings PLC needs to review the
changing culture and methods of collecting as well as analyzing feedback for developing its
existing human resources.
Digitalized rewards and recognition: According to Kim, (2016), providing rewards and
recognition are two most effective motivational factors in order to develop the existing
human resources of an organization. Considering the impact of technologies on the current
business environment, ARM Holdings PLC needs to offer digitalized rewards and recognition
opportunities to its employees for developing them.
Sincerely
Junior HR Manager
ARM Holdings PLC
Cambridge, United Kingdom
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L04
P4: Evaluate how organizational design has to respond and adapt to change
management and the relationship that exists between the two using a specific
organizational situation.
Change management
Todnem By, (2015), referred change management as the process of maintaining change
within an organization to an optimum level for getting positive results from that change. In
other words, change management means identifying and implementing necessary changes
within the organization for achieving its goals and objectives.
Organizational design and change management
A complex relationship is existed between organizational design and change management. As
a global organization, ARM Holdings PLC may face changes frequently and it needs to
respond to these changes accurately for acquiring benefits. It needs to change its structure
according to the changes for remaining competitive and for this its organizational design
should adapt change management properly.
ARM Holdings PLC may need to adopt change management for several reasons and some of
them are mentioned below:
1. The current design of ARM Holdings PLC has become obsolete.
2. It is necessary for ARM Holdings PLC to change its current strategies or goals to
achieve competitive advantage.
3. Any changes occurred in the internal or external environment of ARM Holdings PLC.
Considering the importance and influences of change management, the organizational design
of ARM Holdings PLC needs to respond in certain ways or follow some specific steps for
adapting to change management. These ways are discussed below:
Identifying current state of the organization: ARM Holdings PLC needs to identify the
current changes which have occurred within or outside the organization.
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Developing new organizational design carefully: ARM Holdings PLC needs to develop an
appropriate plan to develop new design for it based on the changes in its internal as well as
external environment.
Communicating organizational design: The newly developed organizational design needs
to be communicated with all the related parties inside and also outside the organization.
Implementing the organizational design: ARM Holdings PLC needs to implement the plan
in orderly manner in order to change its existing organizational design.
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Conclusion
The whole discussion of this report has focused on identifying the value and contribution of
human resources of ARM Holdings PLC to its success. This report has identified that
organizational design theory is important for any organization including ARM Holdings PLC
to achieve its goals and objectives, inspire innovation, increase productivity and improve
communication within the organization. It is also mentioned in this report that ARM
Holdings PLC can attract, maintain, develop and reward its employees through different
approaches like providing positive working environment, training, performance-based
rewards and many. The rationale of emerging HR developments within ARM Holdings PLC
has been discussed in this report. At the end part, this report has explained the relationship
between organizational design and change management briefly.
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References
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