Decentralization simply implies spreading of authority to other arms of an organization. In other words, decentralization necessitates an organization to broaden decision and policy formulation function to other departments. This structure is important in achieving employee motivation while at the same time offering training facility for upcoming managers. Nevertheless, decentralization is problematic if applied incorrectly. It is bound to give too much independence and competition which has a subsequent effect of conflicting interest within an organization (Whittington, 3). This will therefore pull down productivity of employees and ultimately performance of an organization.
Decentralization also discourages adoption of innovations since major decision making organs are isolated and weak. Another critical factor to note is that decentralization gives rise to extra expenses for training individuals who will take up some duties. Delegation of duties occurs after identifying qualified individuals and subsequently training them on their new responsibilities. Higher administrative costs are linked to a decentralized system but with the use of shared service units which supplies service to units within an organization, these costs are brought under control (Whittington, 9). The costs can also be reduced by the use of centers of excellence. The center basically has a specialist in a given line of duty. Their role is to act as consultants and will be paid by the units.
It is imperative to note that some personnel have no interest with delegation of responsibility. In this sense decentralization will act as a disincentive to wok. An example is an individual who is productive when working on a specific activity only. If this individual is given more duty, then his or her productivity will automatically decrease.
Processual approach to strategy making
This relates strategy to learning and adaptation process. According to processual approach, compromise and adjustments, both internal and external, supersedes environmental factors. The approach takes into account a pragmatic approach with an aim of simplifying complex processes. This is in agreement with a fact that environment is imperfect. In a study by Whittington (22), ‘‘Contrary to classical approach, processual approach shades light on antagonism between firms driven by the co-evolution of mechanisms that create variety and selection’’. The managers should therefore diversify there organization so that its activities is equivalent to the needs of impulsive surroundings.
Precessual view classifies organizations as an association of individuals with varied views. There is need for a continuous process of negotiations so as to arrive at a conclusive end where all parties affected are satisfied. This approach is beneficial to management since it simplifies the difficulty of gathering information, processing such information into a specific decision criterion and finally taking action. Furthermore, the approach guarantees worker satisfaction.
This approach to strategy making can further assist management in coming up with creative ideas about an organization. Different employees act as source of best strategy for a firm. Human resources management is therefore bound to recognize abilities of these employees with an objective of deriving the best result in a process of making a strategy. In addition, processial approach helps management to generate ideas about other firms so as to act competitively.
Culture and strategies used in human resources management
Culture is what makes an organization exclusive from the point of view of both employees and the outside world. Believes and practices within an organization makes up its culture. It has an impact on human behavior since it enables a person respond appropriately to a given situation. Teamwork and cooperation between workers is a culture evident in many organizations. It remains the responsibility of human resources to ensure that team spirit is built through training and team building procedures.
Culture is fully described by the nature of job being shared. Individual gains understanding of what is expected of them by constantly interacting with others in an organization. This has an influence on management of human resources in that employees gain experience after a positive interaction within an organization. Meetings held in an organization are channels through which varied views and experiences are exchanged for the benefit of all.
Fair recruitment procedures form a culture of an organization. Free and transparent process of recruiting individuals into various positions has remained to be the objective of many companies in the present times. A process marred with corruption scandal lowers the profile of an organization. This automatically influences strategies used by human resources in managing its labor force. Some organizations have a culture of training its workforce on a continuous basis to increase productivity. The human resources department is hence obliged to recruit fresh individuals who are willing to go through training process. This is part of managing human resources with an objective of deriving both individual and organizational benefits.
HR Planning in strategic plans
Human resource planning is a process which draws the impact of business strategy on the human resources of a business establishment. For a business strategy to succeed, employees must be well versed and aligned to the strategy. They are required to possess necessary skills and competent for the activity to be carried out. If any replacement for succession is needed then planning is imperative.
Human resource planning is important in determining the number of staff to be employed during a given time and at a specific location. Excessive labor force breeds underutilized staff which becomes a liability to a company. Understaffing has adverse effect of lowering production or even failure to meet strict deadlines. This means that human resources team must know if there is a correlation between productivity and number of labor force. Moreover, flexibility of work and the approach used in acquiring employees must be reconsidered.
Issues related to maintenance of highly skilled staff should be scrutinized appropriately. This can be through watching the level of resignation, discovering the reasons for such resignation, and also comparing the rates of loss with other companies of the same rank. Absence of this delicate data subjects the organization to unprecedented loss of productive labor. Its long term goals in addition to recruitment and induction process will be hampered if planning is not done. Knowledge about employee resignation assists human resources team to identify problematic areas in an organization and subsequently rectify the situation. Additionally, downsizing program must be well implemented in order to protect the interest of the company and those of individuals.
Recruitment and selection as part of HR strategy
Human resource management strategy deals with ways of carrying out the functions of HRM. An organization is at liberty to include recruitment and selection as part its strategy. A glimpse at any successful business is a proof of efficient and caring employee who is satisfied with the job. The task of achieving this kind of employee lies with the selection and recruitment team.
If recruitment and selection criteria are not included as organization’s strategy, a well established business can face difficult situation. Employer must describe vividly the kind of employees they need in an organization. The skills required for the job should be listed in a precise manner. Some skills are transferable in nature and will benefit the organization if identified in an employee. To arrive at a desirable candidate for the job, the advertised vacancy must be very specific in nature. This validates inclusion of selection and recruitment exercise as part of the human resource strategy.
Qualifications and experiences are important factors to be considered in any human resource planning and strategy. To reach the right applicant for the job and avoid employing those who are under qualified, qualities required must be laid out clearly in a strategy. A resume summaries both educational background and experience in a candidate. It is inevitable to exclude this in a strategy.
In order to retain an employee, the process of recruiting, staffing and hiring ought to be included in the HR strategy. Ability of individual employee contributes to the success of an organization. For an organization to attain its wide goals, training and employee development must be included as a strategy. All these factors form a reason for the inclusion of recruitment and selection in HRM strategy.
Whittington, Richard. “What is Strategy – and Does it Matter?” London: Thomson Learning, 2002.