Organizational Theory in Human Resources

OrganizationalTheory in Human Resources

Outline

Topic:Organizational theory in human resources

Objective:To explore the new challenges in the business environment and theirimpact on the choice of organizational theories used in themanagement of human resources.

Thesis:Organizations operating in the modern business environment faceunique challenges, which force them to shift from the use ofrule-based approaches (such as bureaucracy theory) to contingencyapproach in the management of human resources.

  1. Modern organizations face unique challenges that require a drastic change in the theories as well as the management models used in the management of human resources (Draft, 2013).

  2. Key challenges that modern organizations face include the use of technology, increase in competition, globalization, pressure for ethical compliance, and an increase in diversity (Abhishek, 2013).

  1. Preview of the main points

  1. Importance of organizational design in human resource management

  1. The organization design adopted by the management indicates its specific characteristics and the way it related with its environment (Draft, 2013).

  2. An effective organization design is based on the contingent factors that influence the organizations structural dimensions (Draft, 2013).

  3. The role of the organization design in the contemporary business environment is to help the organization develop new capabilities and implement strategies that can help it cope with modern operational dilemmas (Dannar, 2014).

  4. An organic design result in the establishment of a high performance organization since such a design brings the best out of the people (including the employees) and impart exceptional capabilities into human resources, which enables them to deliver high results (Shooshtarian, 2014).

  1. Impact of bureaucracy on human resource management

  1. A bureaucratic structure increase efficiency of human resources and the organization by allowing a greater control of all operations and flow of orders (Stewart &amp Rogers, 2012).

  2. Human resource managers consider a bureaucratic design to be rule-bound, which prevents human resources from engaging in tasks that they believe are necessary (Al-Habil, 2011).

  3. A combination of bureaucratic behavior and human resource quality increase the efficiency as well as the performance of the organization (Husain, 2013).

  1. Organizational theory in a contemporary business environment

  1. The use of a contingency approach in the management of human resources and designing of the organizational structure enhance performance by increasing the competitive advantage of the organization (Jery &amp Souai, 2014).

  2. The contingency approach increases efficiency in strategic management of human resources in an unpredictable environment (Sajeevanie, 2015).

  1. Conclusion

  1. The type of organization design adopted by the management has direct impact on efficiency of the human resources.

  2. Bureaucratic organization designs were effective in early days when the business environment was predictable.

  3. Events in the contemporary business environment are unpredictable, which makes the contingency organizational theory the most appropriate approach in strategic management of human resources.

Organizationaltheory in human resource management

Annotatedbibliography

Abhishek,G. (2013). International business environment: Challenges andchanges. ResearchJournal of Management Sciences,2, 34-38.

Thepurpose of this article is to discuss the new challenges thatbusinesses face in the 21stcentury. Abhishek argues that the current environment is dynamic,complex, and interdependent, which makes it difficult to apply thetraditional organizational theories. Abhishek pursed the purpose ofthe article by reviewing the studies done by other scholars. The useof literature review methodology allowed Abhishek to consider theperspectives of other researchers, but the methodology denied theauthor the opportunity to use primary data in making conclusions.However, the article will be used to discuss trends that affectmodern organization as a result of an increase in complexity of theenvironment.

Al-Habil,W. (2011). Rationality and irrationality of Max Weber’sbureaucracy. InternationalJournal of Management and Business Studies,1 (4), 106-110.

Thepurpose of this article is to assess the viability of the Weber’stheory of bureaucracy. The author holds that modern organizations canapply some aspects of the organizational theory of bureaucracy, suchas control. The author used the literature review methodology toachieve the purpose of the article. The methodology allowed Al-Habilto conduct an in-depth analysis of the theory of bureaucracy, but itdenied the author the ability to determine the quality of data usedto make conclusions regarding the viability of the theory. However,the article provides useful information about aspects of thebureaucratic organizational theory that can still be applied in themodern business environment.

Dannar,R. (2014). Using organizational design to move beyond theexplore/exploit conundrum. Journalof Strategic Leadership,5 (1), 1-9.

Thepurpose of this article is to explore the unique challenges that themodern organizations face. Dannar argues that the pace of change inthe business environment has increased, where modern organizationface obstacles associated with globalization and technology. Theauthors identified that these operational dilemmas can be addressedby using organizational design as a tool to build new capabilitiesfor the organizations. Dannar achieved the purpose of the articlethrough a review of literature as a research methodology. The reviewof literature allowed the author to identify trends that relate tochanges in the environment, but there is a probability that errorscontained in other articles were included in the Dannar’s article.However, it is a scholarly article that will be used to advance anidea that modern organizations must change their view of theorganization design and see it as tool for introducing uniquecapabilities.

Draft,L. (2013). Organizationtheory and design (12thEd.).Boston, MA: Cengage Learning.

Thebook addresses the application of the organizational theory anddesign in organization’s operating in the modern businessenvironment. The purpose of this book was to analyze the impact ofemerging challenges in the selection of organizational theories anddesigns that should be used by modern organizations. Draft identifiedthat modern organizations operate in an environment that is dynamic,complex, and unpredictable. The content of the article was obtainedthrough a review of articles and books written by other others, butthere is an element of the author’s opinion. The literature reviewmethodology allowed the research to analyze the findings of differentauthors in the book, but the inclusion of an expert opinion mighthave introduced bias. However, the article is a reliable source thatwill be used to indicate that modern organizations should selectorganizational theories and designs that can help them address modernchallenges.

Himid,J. (2013). Strategic human resource management and performance: Theuniversalistic approach-Case of Tunisia. Journalof Business Studies Quarterly,5 (2), 1-18.

Thisarticle address the issue of an increase in the turbulence of thebusiness environment, which has necessitated a departure fromtraditional organizational theories (such as Max’s bureaucracy) andthe adoption of theories that can help organizations address emergingchallenges. The author used the case study of Tunisia to indicatethat a universalistic approach would be more appropriate thanconventional approaches in strategic management of human resources.The case study methodology allowed Himid to collect more details thanwhat would have been achieved with the use of an alternativemethodology. However, the generalizability of the findings islimited. The article is a useful source that will be used to discusshow the business environment has changed and how this change hasnecessitated the use of modern organizational theories.

Husain,Y. (2013). Impact of human resource quality and bureaucracy behavioron organizational performance effectiveness. InternationalJournal of Science and Research,6 (14), 881-885.

Thepurpose of the authors was to examine the relationship that existsbetween bureaucratic behavior and the quality of human resources.Husain argued that a combination of bureaucratic behavior and thequality of human resources increase efficiency of the organizations.The authors conducted a quantitative survey of 72 employees, whichallowed them to provide objective findings. However, the use of aquantitative design made the findings too abstract to be applied inspecific contexts. The article will be used to indicate that oldorganizational theories (such as the Max’s bureaucracy theory) canstill be used in modern HRM practices, but with some adjustments.

Jery,H. &amp Souai, S. (2014). Strategic human resource management andperformance: The contingency approach case of Tunisia. InternationalJournal of Humanities and Social Science,4 (6), 282-291.

Thepurpose of this article is to discuss how human resources areconsidered by modern organizations as the primary sources ofcompetitive advantage in a dynamic environment. The authors arguethat the human resources are critical in enhancing thecompetitiveness of the organizations since they are rare anddifficult to imitate. However, competitiveness can only be obtainedif the HRM practices are guided by contingent organizational theory.Jery and Souai achieved the purpose of their article by conducting acase study of the application of the contingency approach in Tunisia.The case study methodology enabled the authors to establish thecomplex relationships between contingent human resource practices andemployee performance. However, the case study design limited thepossibility of generalizing the findings reported in the article.However, the article provides useful information that will be used todiscuss the connection between HRM practices that are guided bycontingent organizational theory and performance of the humanresources.

Lunenburg,C. (2012). Organizational structure: Mintzberg’s framework.InternationalJournal of Scholarly, Academic, and Intellectual Diversity,14 (1), 1-8.

Lunenburgaddress the issue of organizational structure and how it determinesthe ability of a firm to achieve its goals. The author argues thatdifferent organizational designs (including the professionalbureaucracy, machine bureaucracy, adhocracy) are adopted by differentorganizations depending on their needs. The authors made conclusionsby review the articles published by other scholars. The review ofliterature is a study methodology that limits the ability of theauthors to assess the quality of data used by the authors of thearticles being reviewed.However, the present article providesuseful information indicating the importance of adopting anorganization design that suits the needs of the organization.

Monteros,A. &amp Bravo, C. (2012). Case study: Downsizing strategy influenceon the structure of the firm. Management,17 (1), 75-92.

Thearticle provides a discussion of the significance of downsizing theorganizational structure as a strategy for increasing efficiency inthe management of all functions, including the human resources. Thetwo authors argue that restructuring the organization with theobjective of reducing the size of its structure can increaseefficiency and flexibility. A case study design was selected for theresearch, which allowed the authors to collect richer data. However,the design reduces the possibility of generalizing the findings toother scenarios. The article meets the scholarly standards, whichmeans that it will be used to advance the argument that modernorganizations should reduce their vertical organizational structuresin order to enhance efficiency.

Mueller,R. (2014). Alternative organizational design and its impact on thefuture of work. Journalof Strategic Innovation and Sustainability,9 (2), 48-58.

Muellerdiscusses the significance of changing the approaches that have beenused to facilitate organization design over the years. The authorargues that the pyramid approach has become ineffective after beingused for over 4,500 and recommends that organizations should adoptdesign strategies that will increase the survival of theirorganizations in the contemporary business environment. The use of aliterature review design limited the ability of the author to collectprimary data, which would have enhanced the reliability of thearticle. However, the article will be used to discuss the importanceof changing the approaches used in organization design in order toenhance the effectiveness of the HRM practices and survival of theorganizations.

Rishipal,D. (2014). Analytical comparison of flat and vertical organizationalstructure. EuropeanJournal of Business and Management,6 (36), 56-65.

Rishipalcompares the effectiveness of a flat and a vertical organizationdesign in a fast changing and hypercompetitive environment. Rishipalargues that a flat organization design is more suitable in the modernenvironment because the environment has become complex, rapidlychanging, and give firms a limited time to respond to changes. Theauthor applied the literature review design and the expert’sopinion to make conclusions. However, the expert’s opinion may haveintroduced bias, which limited the reliability of the article.Nevertheless, the article meets the scholar standards and will beused to make advance the argument that companies need modernorganizational designs (such as a flat design) in to survive in themodern hypercompetitive environment.

Sajeevanie,T. (2015). Strategichuman resource management and theoretical background: A criticalreview perspective.Nugegoda: University of Sri Jayewardenepura.

Thepurpose of the article is to explore trends in the field of strategichuman resource management (SHRM). Sajeevanie argues that thecontemporary environment require organizations to use the best fitapproach, which is consistent with the contingent theory, in themanagement of human resources. The use of the literature methodologyallowed Sajeevanie to identify trends in SHRM, but it reduced theauthor ability to control the quality of the data used by the authorsof the articles that were reviewed. However, it provides usefulinformation that will be used to explain that the best practices aregetting outdated and replaced by the best fit or the contingencyorganizational theory in the management of human resources.

Shoghi,B. &amp Safieepoor, A. (2013). The effects of organizationalstructure on the entrepreneurial orientation of the employees.InternationalJournal of Academic Research in Business and Social Science,3 (11), 90-100.

Shoghiand Safieepoor discuss the impact of the organization design orstructure on the employee behavior with the main focus on theentrepreneurial orientation. The two authors argue that the type andthe size of the organizational structure influence behavior andorientation of the employees. They used a case study design to findthe data to drive their argument. The case study design limited thepossibility of using the findings to explain the relationship betweenthe organizational structure and behavior of employees in otherindustries. However, it is a useful source that will be used todiscuss how the organization design selected by the organizationcontributes towards the efficient utilization of its human resources.

Shooshtarian,M. (2014). The effects of organizational structure on organizationaltrust and effectiveness. PolishJournal of Management Studies,10 (2), 73-84.

Thepurpose of the article is to explore the association betweenorganizational structure and effectiveness of the employees or thehuman resources. Shooshtarian argue that the environments in whichorganizations operate in have changed and employees demand to begiven an opportunity to make real contributions. The applicationbureaucratic organizational theory denies them this opportunity,which calls for the organizations to reconsider their organizationdesign and structures. The author achieved the purpose of the articleby conducting a cross sectional study of 350 employees. The crosssectional study methodology allowed Shooshtarian to reduce the costof the study, but it could not facilitate the establishment of thetemporal relationships between the variables. However, this articleis a useful source that will be used to show that bureaucracy reduceseffectiveness in the management of human resources in the modernenvironment.

Stewart,J. &amp Rogers, P. (2012). Developingpeople and organizations.Wimbledon: Chattered Institute of Personnel and Development.

Thepurpose of this book is to explain the relationship betweenorganizational theory and the development of human resources. Theauthors argue that the use of technology has allowed the managementto communicate directly with the workforce, which has eliminated theneed for a long and bureaucratic organizational design or structure.The book is presented from an expert’s perspective. However, theuse of expert’s opinion increased the risk of bias. However,provides reliable information that will be used to attempts to usebureaucracy in the modern organizations leads to inefficiency in themanagement of human resources.

Tran,Q. &amp Tian, Y. (2013). Organizational structure: Influencingfactors and impact on a firm. AmericanJournal of Industry and Business Management,3, 229-236.

Trainand Tian address the key factors that influence the process ofdesigning the organizational structure. The authors argue that theorganization design of each firm is unique since it is influenced bydifferent contingent factors. The authors achieved the purpose oftheir study by conducting a qualitative research. A qualitativeresearch design was preferred because it allows researchers toconducts an in-depth analysis of the underlying issue, but there is ahigh chance of subjectivity that limited the reliability of thefindings. However, the article will be used to show that the processof organizational design should be guided by the underlyingcontingent factors.

References

Abhishek,G. (2013). International business environment: Challenges andchanges. ResearchJournal of Management Sciences,2, 34-38.

Al-Habil,W. (2011). Rationality and irrationality of Max Weber’sbureaucracy. InternationalJournal of Management and Business Studies,1 (4), 106-110.

Dannar,R. (2014). Using organizational design to move beyond theexplore/exploit conundrum. Journalof Strategic Leadership,5 (1), 1-9.

Draft,L. (2013). Organizationtheory and design (12thEd.).Boston, MA: Cengage Learning.

Himid,J. (2013). Strategic human resource management and performance: Theuniversalistic approach-Case of Tunisia. Journalof Business Studies Quarterly,5 (2), 1-18.

Husain,Y. (2013). Impact of human resource quality and bureaucracy behavioron organizational performance effectiveness. InternationalJournal of Science and Research,6 (14), 881-885.

Jery,H. &amp Souai, S. (2014). Strategic human resource management andperformance: The contingency approach case of Tunisia. InternationalJournal of Humanities and Social Science,4 (6), 282-291.

Lunenburg,C. (2012). Organizational structure: Mintzberg’s framework.InternationalJournal of Scholarly, Academic, and Intellectual Diversity,14 (1), 1-8.

Monteros,A. &amp Bravo, C. (2012). Case study: Downsizing strategy influenceon the structure of the firm. Management,17 (1), 75-92.

Mueller,R. (2014). Alternative organizational design and its impact on thefuture of work. Journalof Strategic Innovation and Sustainability,9 (2), 48-58.

Rishipal,D. (2014). Analytical comparison of flat and vertical organizationalstructure. EuropeanJournal of Business and Management,6 (36), 56-65.

Sajeevanie,T. (2015). Strategichuman resource management and theoretical background: A criticalreview perspective.Nugegoda: University of Sri Jayewardenepura.

Shoghi,B. &amp Safieepoor, A. (2013). The effects of organizationalstructure on the entrepreneurial orientation of the employees.InternationalJournal of Academic Research in Business and Social Science,3 (11), 90-100.

Shooshtarian,M. (2014). The effects of organizational structure on organizationaltrust and effectiveness. PolishJournal of Management Studies,10 (2), 73-84.

Stewart,J. &amp Rogers, P. (2012). Developingpeople and organizations.Wimbledon: Chattered Institute of Personnel and Development.

Tran,Q. &amp Tian, Y. (2013). Organizational structure: Influencingfactors and impact on a firm. AmericanJournal of Industry and Business Management,3, 229-236.