HRM in Large Organizations

Chapter 7 of Human Resource Management in a Business Context (2nd Edition) by Alan Price - published by Thomson Learning

Contents

Objectives

The purpose of this chapter is to:
- Investigate why organizations structure their people management systems in different ways.
- Determine the influence of organizational goals on the management of human resources.
- Outline the advantages and disadvantages of alternative organizational structures.
- Compare and contrast the work of human resource specialists in different forms of organization.

Dimensions of organization

Organizations and the business environment

Organizational goals

Size

Cooperatives

Managerial structures

Organizational structures

Functional structures

Divisional structures

Networks

Virtual organizations

Organizational strategies

The HR role in large organizations

Flexibility

Summary

Organizations are taking increasingly divergent forms. The key dimensions of size and structure which constrain the people function. HRM is conducted in a variety of ways, due to these constraints and also because of strategic decisions taken to meet organizational goals. Businesses can choose to vary their structures and their people management systems for a number of reasons. Increasingly, flexibility is required from employees and managers to meet new circumstances. Centralized personnel departments have been largely replaced with more specialized units, some of which may be sub-contracted outside the organization. Nevertheless there are opportunities for human resource specialists dealing with complex issues arising from new organizational structures and flexible working patterns. These include contract arrangements, selection, control, assessment and training.

Further reading

The literature on large organizations is vast. Organization Theory and Design by Richard L. Daft, South-Western College Publishing, 7th edition (2000) is a classic in its field. Competing by Design: The Power of Organizational Architecture by David Nadler, and Michael L. Tushman, Oxford University Press, 2nd edition (1997) links organizational design to competitive advantage. Re-Creating the Corporation: A Design of Organizations for the 21st Century by Russell Lincoln Ackoff, Oxford University Press (1999) treats organizations as organic wholes. Understanding Organizations by Charles Handy, Oxford University Press, 4th edition (1993) remains the most user-friendly introduction to organization theory.

Review questions

Problem for discussion and analysis - The Rapid Supply Company

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