IntroductionEffective management and success of business firms, today, rely on the use of appropriate model. An appropriate business type is the one that has greater benefits than risks. The company should employ suitable people management theories and practices in order to ensure high performance levels, employee and customer satisfaction. Development of HR specialists is vital in every organization that seeks continuous success by proper human resource management. Therefore, this paper attempts to examine appropriate business structure, benefits and risks involved, appropriate management theories and practices, as well as considerations for senior management and HR specialists.
BackgroundI have been employed in a medium sized manufacturing company as an operation manager. The company currently has a gross turnover of more than £5 million, 5 directors, 300 workers, and 25 managers. This company employs outsourced support for information technology systems, payroll, finance, and human resource specialists for recruitment. Our company has won contracts that are sufficient to take it to the next level with a projected increased turnover of £20 million in 2 years. Therefore, the company needs to recruit extra employees and as per our philosophy, we employ locally.
Nonetheless, we are situated in a developing locality where most of the people have basic academic qualification; hence, unable to quickly develop extra skills and learning so as to ensure the firm’s consistent success. To address this issue, our directors have scheduled a meeting in which the firm’s action plan is developed. Every manager is assigned a specific task to manage, and mine concerns human resource management, particularly on how the company can employ a highly committed and engaged personnel. Our company is a corporation that has adopted a functional structure, which entails the differentiation of jobs around specialty areas (Daft 2009, pp.
104-107). For instance, in the company, there are human resources and accounting specialists that are employed to address these specialized roles. Here, the functional line managers are expected to report to the CEO, but commonly have independence in the day-to-day decision making, such as firing and hiring employees. LiteratureCompany’s functional structure There are numerous organizational structures that include functional, simple, product, matrix, and multidivisional structures. In this case, the company adopts a functional structure that involves differentiation of jobs or tasks around employees’ specialty areas (Daft 2009, pp.
104-107). For example, a company can have various specialists that include human resources and accounting specialists that are employed to address these specialized roles. Advantages in relation to HRMThis structure gives the firm an opportunity of having specialists that are competent in appropriate decision making. It also bestows the CEO can manage all firm’s interests without worrying about ordinary problems. It also allows solving of problems and exploitation of opportunities even in the absence of the CEO (Daft 2009, pp.
104-107). Disadvantages in relation to HRMHere, Daft (2009, pp. 104-107) says that functional-area managers seem to emphasize on domestic versus whole firm’s strategic matters. There is also a weakness of failure to inform CEO of the possible difficulties or problems; hence being caught by surprise and delay in solving them. In this structure, the company’s vertical communication can get difficult; thus, rivalry or duplication among departments. There is also poor accountability caused by weak connection between functional and product units.