Organizational Management: An Analysis of Home Foods

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Introduction to organizational management
Name of the student
Name of the university
Author’s note

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Executive summary
This assessment deals with the study of the human resource management and the
finance management with their respective aims in the organization. The company Home
Foods have been taken for the study and the analysis of the same. The effective management
reporting system is also explained for the better understanding of the performance of the
organization. The aims of the different departments is to achieve the goals and set objectives
of the organization.

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Table of Contents
Key aims of human resource management................................................................................3
Key aims of finance...................................................................................................................6
Discuss how an effective structure can positively contribute to the success of the organization
Home Foods...............................................................................................................................9
Conclusion................................................................................................................................11
Reference List..........................................................................................................................12

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Key aims of human resource management
Human resource management is defined as a term, which is used for description of the
managing and the developing process of the organization’s employees (Wilson, 2018). Also
known as a personal or talent management, antiquatedly. The whole process includes
recruitment, selection, of employees, giving orientation, which trains and develops in order to
raise the employees’ performance to decide their compensation and give them advantages,
boost the moral of the employees by establishing appropriate and healthy relations with
workers and their trade of unions by assuring the safety of the employees, assuring their
welfare and taking appropriate measures with the laws of labour. The overall process of
planning, organizing, directing and controlling is involved and carried along with
procurement, development and maintaining of human resource (Vasu, Stewart and Garson,
2017). HR management is helpful in achieving individual, organizational and social
objectives. This is considered to a multi-disciplinary subject with the study of management,
psychology, communication, economical and social issues. The team issue and team spirit are
always a matter of concern with the process being continuing. HR management is defined as
a department performing different functions like planning, recruiting, analysing, conducting
job interviews, selecting the eligible and suitable candidates for the organization, orienting,
training, compensating, giving the advantages and the required incentives, praising,
enhancing the work quality, maintaining discipline, auditing, maintaining the relationship in
industries and maintaining overall compliance within and outside the university. The
appropriate use of the skilled workforce available and assuring its effective implementation is
taken care of by the Human Resource management. The basic aim being the making of the
job opportunities and the dealing with the same. The human resource concepts and techniques
are important to all the individuals associated with the management process. The manager

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cannot afford to hire the wrong person wasting their time in the unhelpful interviews and
putting the organization’s reputation at cost (Ross, 2016). They should look that the company
does not experiences the high turnovers and lead to losses.
The key aims of the Human Resource Management are-
Strategic direction-Every industry aims to become the leader in the operating market and
this aim is fulfilled by the Human Resource management of the company. It identifies the
amount of revenues generated by the company, the prices they share and its increase or
decrease over time, assuring that the highest quality design is maintained of the product to
secure the companies share (Riggio, 2017). The HR management aims to fulfil these aims.
For example, Home Foods makes sure that the products they deliver to the customers are not
of the degrading quality and the manufacturer supplies the right product devoid of any faults,
so that they can gain customer interests and trust.
Organization wide human resource role-The HR management aims to coordinate the
efforts of each of the departments of the organization to make contribution to the overall
goals and objectives. For instance, the HR objectives related to the sales of the products of
Home Foods and its management for establishing the salary structure in order to reward the
sales representatives. The HR takes the responsibility to lead the research for recruiting
process to employ the best eligible and suitable employees in the company. The aim is
basically to create a healthy work environment with qualified individuals to gain competitive
over other industries in the market (Phillips, Neal and Webb, 2016).
Defining organizational structure and driving productivity-The method of realising the
competence of the organization and driving the efficiency of work is one of the main aims of
human resource management. It is chiefly determined to accomplish the set goals. It also
governs the rules and regulations functioning in the organization. Hiring of the proper

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individual with giving them efficient training and involving them into courses for personal
and professional development.
Building coordination between organizations and department-The department is
responsible for coordination and building the harmonious atmosphere within the varied
departments operating inside the industry. It aims at making the efficient use of the
employees with the help of proper direction and implementation of plans and strategies (Noe
et al. 2017). The refinement of the conditions leading to successful outcomes, by making
right decisions about the human resource planning, recruiting, evaluating, training, rewarding
and improving the staff associations for making the business strategy sustainable.
Offering satisfaction to the employees-Ensuring sustainability of the capable individuals in
an organization is a very important aim to be fulfilled by the human resource management
because of increasing competition globally. The environmental, cultural and professional
aspects need to be considered while assuring the satisfaction to the employees. The policies,
ideas and the strategies must be in alignment with the goals to achieve. These aims are very
important to be fulfilled and completed with responsibility to gain the maximum results and
advantages in the favour of the company (Nicotera, 2019).

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Figure: HRM Process
(Source: Nicotera, 2019)
Key aims of finance
Finance is very important for any of the organization to operate effectively. There are
also certain limitations imposed on finances and its management. And it is very crucial to
make sure that investment is done in the way to gain maximum returns than the cost.
Financial management assures in reducing the finance cost and managing for adequate funds
to carry out the formulating, organizing and handling of the financial resources by using the
funds efficiently. This area of management is dedicated towards the use of funds in judicious
manner by careful and thorough selection of the capital sources to attain the goals. It
performs the function organically with the implication of many theories. The legal and
accounting relationship is also taken into consideration among the sources of funds in the
company. The adequacy of the available funds is very essential to carry out processes like
implementing any technological strategy or during installing any machinery and power plant

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(Nicklin and Spector, 2016). One must have the complete knowledge of investment, finances
and decisions relate to the dividends in order to understand the business operations. The
funds must be available for both long term and short term. Investment decision for long term
is known as the Capital Budgeting for entrusting funds in the form of fixed assets. These
investments are the irreversible decisions because they are utilised in the sale or the purchase
of the land or the property or acquirement of new machinery or power plant or replacement of
the old ones for greater efficiency. The pursuits of finances and performances is dependent on
these decisions. Short term investment on the other hand is known as the Working Capital
Management, in which investment is done in the form of current assets for a shorter period of
time. The decisions are taken according to the availability of the amount of funds which will
directly affect the performance (Namada, 2018). The nature of share and the identification of
the resources of funds are important in order to distribute among the shareholders and the
investors. This decision involves complexities because of the fair distribution of profits
among the shareholders and the company.
The key aims of finance includes –
The investment decisions: the function of finance here is to decide about the funds of the
company. Decisions of investment are taken in relation to the management of the working
capital, budgeting of capital, managing the investors and the mergers, managing and looking
after the buying and lease of assets (Nakamura et al. 2016). The decisions related to
investment aims at creating revenues, earning profits and saving costs.
Financing decisions: the decision is taken by the company in relation of raising funds from
the eligible and the suitable sources. The two main sources used are the equity and the
borrowing which should also consider about the short term and the long-term financing.

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These sources of financing used at appropriate times serves greater purpose and must be
agreed upon the terms and conditions.
Dividend decisions: these decisions aim towards frequent and fair return of the cash and
interests to the owners. The finance management aims to maintain the balance between the
profits earned and the payment of the amount as the dividend. The finance management aims
at increasing the value of the firm in the long term by deciding the collection of the funds by
the issue of debentures and the shares. The profits must be earned in the short term without
degrading the value of the quality of products and without neglecting the customer’s interests
and the employees working environment (Mouzelis, 2017). The dividend decisions are very
important as it directly affects the company’s success and regulations.
Liquidity decisions: the finance management has to make sure that there is enough capital
and money to pay for the bills. It has to make sure that there are sufficient cash reserves in the
organization in case of any emergency and need and unpredictable circumstances (Kerzner
and Kerzner, 2017). The decision also includes the managing of the current assets so that
there is no failure in making payments.
Cash flow management: the finance management aims to maintaining the bills and making
expected payments to the customers without sacrificing the quality of the products and
services. The continuous flow of cash within and outside the company is very necessary and
the finance management has to aim in improving and enhancing the same.
Proactive tax planning: the management of finance doesn’t waits for the last moment to
fulfil its aims and objectives. It also makes continuous changes in accordance with the tax
planning and the changing policies. The rate of the depreciating assets and offering of the
voluntary benefits is to be considered by the finance department so that there is no failure in
the planning of the tax and no legal action is taken in case of any misconducts.

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Discuss how an effective structure can positively contribute to the success of the
organization Home Foods
The lack of balance in the various parts of the company leads to is failure. The
coordination and the cooperation is very important to avoid failure within any work in any
department. The organization of the work must be done on the basis of the allocation and
making groups of the resources necessary for the attainment of goals. Home Foods is a
dominating market in the North England being a fast supplier and distributor of products and
services. Initiative have been taken to enhance the productivity and expand the market
structure with knowing about the shareholders holding list of distributions and the outlet of
the customers (Kaufman, 2017). The entry of the new competitors has however, increased the
whole pressure to bring about innovative changes in the products and making unique
alterations to attract the customers. The new entrants have enticed some of the customers of
the Home Foods by reducing the prices of their produces and selling them at relatively
cheaper rate. However, the Home Foods is still at the leading position with provisions of
better quality products with the introduction of the innovative techniques. Sometimes, the
increase in the cost overheads leads to the disbalance in handling causing destructions and
increasing the amount of the wastes produced (Junni et al. 2015). Home Foods, also recruits
the staff according to the need and the requirement based on the work load with paying
higher salary levels than average. With the decrease in the market shares, the effectiveness in
the management system also witnesses a decrease. The profits gained is added to the
budgeting of the company, and the expenditures of the different departments are analysed and
operated. Home Foods is planning to take more strict actions and implementing of more
policies and regulations to increase the positive affects and reduce the adverse impacts. The
company concerns about the stakeholders and takes steps to address the problems giving the
suitable solutions. The management of the Home Foods decides the gathering of the revenues

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for the specified areas to invest taking in consideration about the earning of the products and
proper execution of the work. The standards of the enterprise is estimated on the basis of the
forming of the rules, activities, instructions of the processes and the work procedures. The
management also focuses on reducing the miscommunication and other complex issues
which operates within an organization and will prevent from efficient working (Adler, 2018).
The work is regularly monitored and carried accordingly with changes whether required or
not. The centralization and the decentralization of the work is very important and significant
decisions needs to be taken for the same. The different types of ways the organization works
are Product-Based, Market-Based, Process-Based, and Customer-Outlets Based ways. Each
way aims to achieve goals as early as possible and that is sustainable. The services of Home
Foods include manufacturing and supplying of the food and equipment of kitchen for the
commercial purposes. The experience of more than ten years has made them knowledgeable
about the potentials used in changing the project proposals for the fulfilment of individual
food demands (Hislop, Bosua and Helms, 2018). In order to ensure dedicated and apt
planning all sorts of food service requirements are fulfilled which leads to immense growth in
volume of sales. Internal and the external sources of costs impact the running of an
organization. The Home Foods on which it bases its price is known as the internal costs such
as labour cost, energy, plant and other overheads. On the other hand, the external costs
include the cost at which the product is disposed, the cost including the degradation of the
environment due to pollutants and wastes from the production. The tax is directly added on
these external costs while the manufacturing of the products and services by Home Foods. An
effective management reporting is needed to identify each and every department of
management in an organization such as the human resource management, finance
management, customer service management and others. Effective management reporting
system helps in selection and control of the systems and the other procedures by providing

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information it is used as a control tool and is helpful in the profitable operations (Brickley,
Smith and Zimmerman, 2015). The overall objectives is easily achieved with the help of the
effective management reporting system which is also used by the Home Foods. Effective
structure in an organization like Home Foods aware the organization and make it realise its
responsibilities by encouraging the workers and the different departments to increase the
working level and focus on the objectives. The company is ready to make the necessary
changes randomly based on the requirement of the changing situations in order to enhance
agility and creativity of the performance. Certain standards for evaluating the effectiveness
must be implicated to make continuous progress in the organization so that it does not
becomes competitively weak (Chmiel, Fraccaroli and Sverke, 2017).
Conclusion
Thus, it is concluded that how the different management departments aim towards the
overall success and development of the organization. The Home Foods being the leading
organization in the industry aims to achieve its goals with the effectiveness of these
management structure. However, it is recommended that it must necessitate the changes
accordingly with the emerging economy and transforming needs and demands of the
customers in order to gain competitive advantage over others.