Organizational Dynamics and IHRM

HR departments of multinational organizations invest a lot of resources and effort into selecting and training expatriates, and most concentrate on knowledge training and behavior modification training relevant for specific cultures, according to the report. They are guided by a cross-cultural perspective that ‘emphasizes differences and similarities of values and behaviors among countries’.

However, because multicultural teams operate in a global context, with people from different nationalities working together to accomplish a global mission, ‘comparisons between different national cultures not desired’.

For over thirty years the emphasis and progress on equality and diversity has been ongoing but slow. Globalisation and demographic change are putting further pressure on organisations to develop and manage equal opportunity and diversity strategies to improve performance and promote competitive position. Furthermore, the CIPD defines diversity as: ‘valuing everyone as individuals as employees, customers and clients’ so diversity is a broader term of equality which aims to improve the opportunities of disadvantaged groups within an approach inclusive of all employees rather than focusing on the disadvantaged as in equality approach. Some of the main diversity issues may include:

  • Age discrimination
  • Bullying and harassment
  • Disability
  • Equal pay
  • Race discrimination
  • Religious discrimination
  • Sex discrimination

There are four fundamental business activities that contribute to an organization’s dynamics.

First, planning requires management to structurally define departments and divisions. Managers set measurable goals that will define future actions and decisions. Organizational planning may involve inventory control, production scheduling, revenue forecasts and expense management. Managers use these plans as the actionable foundation for all their regular duties.

Second, goal execution involves implementing, evaluating and following up with expected deliverables. In order to accomplish this, managers must allocate resources and responsibilities to employees based on skills and schedules.

Third, leadership involves hands-on, exemplary oversight that drives innovation, knowledge and performance.

Fourth, resource control refers to how executives and management establish systems that gather data which is used to determine if goals are met.

Every company will have managers who are responsible to monitor and control certain business functions. At the heart of an organization’s dynamics lies human resources management, which is concerned about optimizing employee performances. HR managers are trained to improve individual and organizational effectiveness through applying relevant behavioral sciences and HR management principles.

Project managers drastically impact a company’s dynamics and overall performance. Successful project managers will ensure quality through careful planning that addresses risk, communications and progress management. They also create open forums that empower vendors, employees and shareholders to share information. Project managers directly impact the financial health through financial monitoring and integrated cost controls.

Functions that effect

A business entity needs a positive work environment so that every employee can give their best and boost the individual as well as organizational dynamics of that place. A small business must function smoothly so that it can show profit margins.

It is a fact that some business functions can harm business activities. Hence, it becomes essential that the management recognizes such events and take appropriate action plan so that the organizational dynamics remain unchanged in the workplace.

  1. Quality Control

This is a crucial business function because an organization has to set up quality control measures so that the employees can bring out the best possible qualitative work.

The management appoints a quality control supervisor to check the work that has been produced and identify any related issues and problems. This is no doubt an effective measure to boost the quality, but it also harms the employees. Some of them might not be comfortable with the idea that the supervisor is keeping tabs on them and their workflow, and this can cause dissent and disharmony.

It is effortless to change organizational dynamics when things do not go in your favour or to your liking. The environment which at one time inspired cooperation and teamwork can easily be replaced by suspicion and resentment via a critical business function and that is quality control.

  1. Productivity Improvements

Business entities will try to maximize their production to boost their sales figures and ultimately, revenue margins. For this purpose, it becomes essential to initiate measures that will include penalties as well as bonuses. The management even implements necessary processes and appoints a workforce to monitor the production and related operations closely.

This will help to understand the relevant issues so that measures can be taken to eliminate or minimize them. The employees often misunderstand the reason for these measures. It seems intrusive to them and this is why some try to resist and put obstacles in these efforts. It has the power to cause a rift and disrupt the organizational dynamics.

Thus, make sure to take the employees in confidence while implementing productivity improvements so that the employees’ keep on working in a friendly environment and the business can avoid reluctant and disgruntled employees.

  1. Cost Controls

The primary reason for establishing a business entity is to earn profits, and the best way to do so is by boosting sales and minimizing costs and expenses. A business needs to control its costs from day one so that they do not go out of hand and remain within the framework. The single most important expense is the payroll that a business has to pay its employees and workers as salaries and wages.

In several cases, it is seen that a business entity will try to cut down on extra and unnecessary expenses like overtime and take cost control measures like cutting down on wages and salaries.

This can spread discontent and fear amongst the workforce and result in unproductive behaviour, for instance, minimized efficiency and productivity. Thus, cost control measure can be a disaster and result in unfavorable organizational dynamics if not handled in an efficient manner

  1. Staff and Professional Development

An essential function of a business organization is to provide learning and training skills to the employees to enhance their know-how and boost the levels of efficiency. This positive effort on the part of the organization is not a welcoming effort for every employee.

No doubt some will give it a thumbs-up, but numerous employees will consider it as a burden they will have to bear. For such employees, it is not a choice or a suggestion but an order.

It is up to the management to make it clear to its employees that these are professional development measures that will improve the skills of the employee and help him in reaching a step high in their career ladder. Recognize the fear and uncertainty of the employee as he might not be comfortable in handling new technologies, and this is why he has been against the training movement.

Reassure your workforce and make sure to take them in confidence if you are interested in maintaining a positive environment in the workplace that will not disrupt the organizational dynamics.

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