The Structure of Modern Organizations

workers, technology, and the external environment. For example, in many areas routine and repetitive tasks have been taken over by technology. Customers are more savvy-they demand quality. The global economy has changed the concept of competition. No longer are your competitors the business down the road or in the next town. Today, the competition may be a continent away. These changes are reflected in the structure of organizations. The formal, almost rigid, organization of yesterday have been gradually replaced by other models that can respond quicker and more efficiently to the changing global economy.

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General Considerations Affecting Human Resource Management

Numerous factors within the organization effect the process of human resource management. In addition to the obvious importance of the financial health of the organization, the structure and strategy of the organization are vital considerations.

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Selection and Training of Workers for International Business

No matter what type of training is planned, the first consideration must be the proper selection of suitable workers. Only those individuals who are flexible will have an ability to adapt to a culture that may be far different from the home situation.
In addition to flexibility, the primary quality for selection of workers in an international environment must be the ability to convey respect for others. This attribute is essential when dealing with people who may have a far different value system. Although many countries exhibit certain similarities, the host country may be far different from the home country. The contrasts between the cultures may "feel" far different from the written word in textbooks.

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Global Human Resource Management

The external environment affecting human resource management differs from country to country. As the world economy becomes more global, it is essential for those involved with human resource management to be aware of local laws and customs that will impact their organizations. This demands flexibility and the sensitivity to be able to adjust to conditions that may be very different from those in their homeland.

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Conditions Necessary

Conditions Necessary for an Organization to Make the Shift to a Multicultural Orientation

1. The leadership must understand that a diverse workforce will embody different perspectives and approaches to work, and must truly value variety of opinion and insight.

2. The leadership must recognize both the learning opportunities and the challenges that the expression of different perspectives presents for an organization. 3. The organizational culture must create an expectation of high standards of performance from everyone.

4. The organizational culture must stimulate personal development.

5. The organizational culture must encourage openness.

6. The culture must make workers feel valued.

7. The organization must have a well-articulated and widely understood mission.

8. The organization must have a relatively egalitarian, non-bureaucratic structure.

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Stages Leading to True Organizational Diversity

1. Exclusionary Organizations -Although illegal in many parts of the world, this type of system still exists. The status quo is maintained and all elements of the work force remain stationary. This will not work in today's environment. In addition to the real possibility of legal action, these organizations deprive themselves of available talent and customers.

2. Club Organizations - This type of organization closely resembles the exclusionary type; but such organizations may allow a "token" minority as long as the individual is "deemed to have the 'right' credentials and perspectives." It is not hard to imagine what attitudes permeate such an organization.

3. Compliance Organizations - These organizations meet the letter-not the spirit of the law.

4. Affirmative Action Organizations - This type of organization is proactive in its outlook and recruits minorities and women.

5. Redefining Organizations - This type of organization is a step from the affirmative action type because it is willing to look at its' core values and recognizes the importance of diversity in meeting the goals of the organization.

6. Multicultural Organizations -This type of organization has "an ongoing commitment to eliminate social oppression throughout the organization."

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The Scope of Diversity

The importance of diversity is increasing due to a number of factors including the increasing numbers of women working outside of the home. A little over 30 years ago, married women made up 32 percent of the American work force; but that figure changed to 60 percent by 1990. At the same time, women with children under 6 years of age are the fasting growing segment within the U.S. workforce. Other countries also report increases in the female work force.

The presence of older people working past what was considered retirement age is another aspect of diversity. As general sanitation practices and medical technology have improved, the age customarily considered appropriate for retirement has risen due to workers in good health and able to make positive contributions to the organization.

The globalization of the world economy also has a positive effect on diversity. National borders are no longer considered the defining scope of an organization's boundaries. Bavarian Motor Works (BMW), a German automobile maker, builds cars in the United States. American companies such as Gillette, Coca-Cola, and International Business Machines (IBM) receive over 60 percent of their income from overseas sales. In addition, globalization and improved means of transportation have resulted in increasing geographic mobility. This mobility has, in turn, resulted in cross-cultural exchanges and language diversity.

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Diversity is a Positive Challenge 2

Even misunderstandings cost money. The Canadian province of British Columbia lost a 3 billion dollar high-tech project that would have created over 3,000 jobs because the prospective Asian investors chose California, citing newspaper accounts of racism in British Columbia as the reason for their choice.

The positive rewards of diversity are not limited to those areas attempting to attract foreign investment or to those companies who engage in global pursuits. Even organizations that remain domestic in nature benefit from diversity.

The benefit of employing a diverse workforce in the tourist/hospitality industry is obvious. For example, foreign tourists often require guides who speak their language; senior citizens may enjoy having other senior citizens for tour guides, and so forth. Healthcare organizations also benefit from diversity. Understanding patients who speak another language is a necessity. Other vital health-care concerns may involve cultural practices. Having someone on staff who understands these practices may be vital in caring for a patient. For example, in the southern United States it is not uncommon to find pregnant rural women eating laundry starch for its' supposed "good effects". In reality, this practice may cause anemia and endanger both the unborn child, as well as, the mother. Without the presence of a culturally aware staff person, this practice may not even be suspected by people who are not familiar with local culture.

Diversity also brings other rewards. It expands an organization's horizons and allows the organization-increased opportunities. Some of these opportunities may be quite unexpected. The case of the Chinese lady who worked as a chemist at Torinno Food Company provides a good example of this type of situation. She was a member of a product development group who was trying to solve a flavoring problem associated with the development of a new soup. Following a number of scientific attempts to solve this dilemma, the lady broke all the rules of her white, male-dominated group by simply going to the kitchen and utilizing her knowledge of Chinese cooking to solve the problem.

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Diversity is a Positive Challenge

Mere compliance with the law is not sufficient to actually create an organization that values true diversity. Diversity takes a number of forms: gender, age, level of perceived capabilities (disabilities), culture, education, and, language.

Diversity is also good for organizations. No longer is it possible for large business firms to remain competitive without considering globalization as a positive objective. As globalization increases, both domestic and foreign firms find themselves increasingly interdependent on markets, sourcing, and customers. Language differences, understanding the nuances of cultural variation, and establishing good faith with both foreign investors and customers now demands workforce diversity.

The special advisor to the Asia Pacific Foundation of Canada, Sandra Wilking, is cited in a recent study as stating that many Canadian businesses are losing opportunities in the Asia Pacific region due to their concerns about language differences, culture, and business practices. . Assuming that one's regional or national practices will be understood in other cultures is false and self-defeating. Such an attitude is also very expensive.

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The Role of the Government in Human Resource Management

The government is a basic external factor that effects the practice of HRM through the enactment of laws. In the United States, there are a numerous laws intended to protect the workers. Among these employment legislative acts are laws that prevent discrimination.

It is against US Federal law to discriminate against anyone on the basis of: race, sex, age, religion, national origin, marital status, physical or mental disability, being a disabled veteran or Vietnam-era veteran, or being pregnant.

According to the Civil Rights Act (1991), individuals are permitted to sue for punitive damages in cases of discrimination. Furthermore, discrimination does not have to be intentional to be illegal.

Title VII of the Civil Rights Act does permit certain exceptions:

• Work-related requirements are allowed if those requirements are necessary and a normal part of the job.
• Bona fide occupational qualifications such as mandatory licenses for certain professions-law, medicine, engineering, nursing, clinical social work etc.
• Seniority systems are accepted if they were not created to discriminate.
• Preferential-treatment for those groups who have been victims of discrimination.

Compliance to the law is regulated (in the United States) by the Equal Employment Opportunity Commission. In order to avoid legal action, organizations must carefully analyze their practices of hiring, training, and promoting to insure that they are in complete conformity with these laws.

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The Changing World of Organizations

Reorganization, downsizing, rightsizing, or whatever term is used means the trend is for less bureaucracy and more personal accountability. This has resulted in a change from multi-layered management structures to leaner and flatter organizational design. This has impacted on the human resource management function and forced organizations to practice strategic staffing. In other words, the hiring and retention of employees is now driven by the overall strategic plan of the organization.

The impact of technology has also greatly affected how organizations deal with people. Not only has technology-displaced workers, it has forced organizations to redesign jobs and seek "knowledge" workers. This has made long-standing hiring criteria unacceptable. It has also forced organizations to update their training methods.

The major shifts in organizational design and operation have changed the "deal" between the employee and the employer. The "deal" between the employer and the employee used to mean that if the employee was loyal, worked hard, and did a good job, the employer would provide a secure position with steady pay increases and financial security.

The world has changed. The new "deal" asks the employee to develop needed competencies; apply them effectively; and, remain flexible in work assignments. In exchange, the organization will support skill development; recognize contributions and pay fairly.

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Equity and Efficiency 2

The employees certainly want good working conditions, equitable compensation, and job security. The managers wish to meet the objectives set by the organization. Consumer's interests want economically priced quality goods and/or services. Stockholders are looking for return on their investments. Unions and regulatory agencies strive to protect the interests of the workers and neighbors are concerned with pollution/toxic issues and traffic control.

It is easy to see how the interests of these groups may come into conflict. For example, stockholders may advocate reduction in labor costs through reduction in the total workforce and/or wages and benefits. This will conflict with the interests of the workers. The managers' desire to meet organizational objects may conflict with the workers' desire for higher wages and better benefits. It is the HRM function to balance these needs in the rapidly changing world of organizations.

Although the ultimate responsibility for HR management belongs to the operating managers, the human resource professional is in the unique role to advise and counsel in order to ensure that decisions are tailored to the circumstances.

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Equity and Efficiency

All functions dealing with people must also be administered in a fair and equitable manner. In other words, both the procedures and the decisions of HRM must be fair and equally applied across all levels of the organization.

These procedures and decisions must also be efficient and reflect the aims of the organization. Integrating equity and efficiency can be difficult because they may conflict with one another.

The decisions made in the human resource management area affect all the stakeholders of an organization. A stakeholder is any person or group affected by the organization.

The stakeholders of most organizations would include: employees, stockholders, managers, consumers, unions, regulatory agencies, and neighbors.

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The Basic Activities of Human Resource Management

The importance of staffing cannot be exaggerated. It is the people within the organization who will eventually determine the health and viability of the organization. Providing AND retaining the proper people is an HR responsibility.

The concept of staff development is undergoing rapid transformation because of the change in organizational practices. No longer does staff development simply mean supplying a rigid type of orientation and periodic planned training. It is more likely to consist of setting up a mentor program with training for the mentors, as well as the new workers. Periodic training sessions may now mean assisting the employees in shifting from a more formal setting to a learning organization.

Managing compensation includes monitoring the competition's pay scales and benefit packages, as well as designing the pay scales. Benefit packages have radically changed from vacation time, health insurance, and sick days and now may include "cafeteria benefits," multiple health care options, compensation for learning and tuition reimbursement.

The employee/labor relations function of HR includes the provision of fair and equitable treatment for all employees and may also include labor relation activities such as contract negotiation and, in some cases, collective bargaining.

Maintenance of corporate culture is also part of the global functioning of human resources. It is in the management of human resources that the shaping of the criteria for promotion, disciplinary action, and firing are determined. Orientation and staff development are also human resource functions. It is within these functions that organizational culture is changed or maintained because these activities integrate the values and objectives of the organization.

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About

The Master of Business Administration (MBA or M.B.A.) is a master's degree in business administration, which attracts people from a wide range of academic disciplines.

The core courses in the MBA program are designed to introduce students to the various areas of business such as accounting, finance, marketing, human resources, operations management, etc. Students in MBA programs have the option of taking general business courses throughout the program or can select an area of concentration and focus approximately one-fourth of their studies in this subject.

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