Human Resource Management Functions and Structures

Appraisal

The evaluation of an employee's performance and contributions to the organization.

Retention

The ability of an organization to keep its employees and reduce turnover.

Redundant

Not or no longer needed or useful; superfluous.

Stakeholders

Individuals or groups that have an interest in the success and outcomes of a business, including shareholders, customers, and employees.

Motivation strategies

Techniques used to encourage employees to perform at their best.

Workforce planning

The process of anticipating and meeting an organization's current and future needs.

Recruitment and selection

The process of attracting and choosing candidates for employment.

Training and development

Programs designed to enhance the skills and knowledge of employees.

Performance management

The continuous process of identifying, measuring, and developing the performance of individuals and teams.

Payment and remuneration

The compensation provided to employees for their work, including salary and benefits.

Discipline and grievances

Procedures for addressing employee misconduct and complaints.

Employee welfare

The support provided to employees to ensure their well-being and job satisfaction.

Demographic change

Changes in the characteristics and trends in a population that can affect workforce planning.

Labour mobility

The extent to which labor can move geographically or change occupations.

Geographical mobility

The ability of workers to move to different locations for employment.

Occupational mobility

The ability of workers to change jobs or careers.

Immigration

The movement of people into a country for work purposes.

Flexitime

A system where employees can choose their working hours within certain limits.

Gig economy

A labor market characterized by short-term, flexible, and temporary contracts.

Accountability

The extent to which a person is held responsible for the success or failure of a task, job, or project.

Bureaucracy

The administrative systems within an organization, including formal policies and procedures.

Centralization

The situation where decision-making is predominantly made by a small group of senior managers.

Chain of command

The formal lines of authority in an organization, showing how commands and decisions are communicated.

Communication

The transfer of information from one entity to another.

Organizational chart

A diagrammatic representation of an organization's formal organizational structure.

Decentralization

The situation in an organization where decision-making authority is delegated throughout, rather from a central authoritative group.

Delayering

This occurs when an organization removes one or more layers in its hierarchical structure, i.e., the number of layers of management is reduced, or made flatter.

Delegation

The act of line managers entrusting and empowering employees with authority to successfully complete a particular task, project, or job role.

Flat organization

Also known as a horizontal structure, this type of organizational structure has only a few layers of management.

Flat structure

Type of organizational structure that has few levels in the organizational hierarchy.

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Levels of hierarchy

The number of layers of formal authority in an organization. It is represented in an organizational chart.

Line manager

The person directly above an employee in the organizational structure of a business.

Managers

People responsible for the day-to-day running of the business or a department within the business.

Matrix structure

A form of flexible organizational structure that uses teams of employees with suitable skills and qualifications drawn from different departments or divisions of the business.

Organization by function

Structuring a workforce according to business functions, i.e., specialised roles or tasks.

Organization by product

Structuring a workforce according to the goods or services sold. Each department focuses on a different product within the organization's overall product portfolio.

Organization by region

Structuring a workforce according to different geographical areas based on where the firm's operations are.

Organizational structure

The formal interrelationships and hierarchical arrangements within a firm.

Outsourced workers (HL only)

Also known as outsourced vendors or the contractual fringe, these are the individuals or other organizations hired on a contract basis to carry out a specific but non-core role in Charles Handy's Shamrock organization.

Peripheral workers (HL only)

According to Charles Handy, these are the contingent workers, consisting of part-time and temporary staff hired by the organization.

Professional core (HL only)

According to Charles Handy, these are the core workers consisting of full-time specialists who are vital for the organization's operations and survival.

Project-based organization (HL only)

This flexible organizational structure is based on the specific needs of a particular short-term or temporary project.

Responsibility

Refers to a line manager's level of concern in term of the people they are in charge of. An organization chart shows the breadth and depth of a person's roles and responsibilities in the business.

Shamrock organization (HL only)

Type of flexible organizational structure, coined by Charles Handy, advocating that organizations must adapt to changes in the business environment by having a core workforce, contingent workforce, and outsourced vendors.

Span of control

Refers to how many workers are directly accountable to (or under the authority of) a particular line manager.

Tall organization

Also known as a vertical structure, this type of organizational structure has many layers in the organizational hierarchy.

Tall structure

Type of organizational structure that has many levels of hierarchy, so the span of control is likely to be narrow.

Project-Based Organization

Is a flexible organizational structure based on the specific needs of a particular project or business venture.

Matrix organization

No formal hierarchy within the team; members may select a chairperson to coordinate.

The Shamrock Organization

The Shamrock organization is Charles Handy's model of a flexible organizational structure, consisting of the professional core, the contingent workforce, and outsourced vendors or workers.

Professional Core

The professional core (core workers) in Charles Handy's Shamrock organization consists of full-time experts who are vital for the organization's operations and survival.

Contingent Workforce

(or peripheral workers) in Charles Handy's Shamrock organization consists of temporary staff hired by the organization.

Outsourced Vendors

in Charles Handy's Shamrock organization are individuals or other organizations hired on a contract basis to carry out a specific but non-core role.

Cultural differences in project teams

Project-based organizations can face challenges like cultural differences, overlapping workloads, and demotivation from multitasking.

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Tall organizations

Has many management levels, with the CEO or managing director at the top.

Authority in tall organizations

Senior managers in tall organizations have more authority than lower-level employees, who have less experience and responsibility.

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Team composition in project-based organizations

In project-based organizations, team members come from various departments and disband after project completion.

Matrix organizations

Employees report to multiple line managers - both their functional manager and their project team lead.

Suitability of project-based organizations

Project-based organizations are suitable for short-term, critical projects requiring expert collaboration.

Challenges in matrix organizations

Matrix organizations are best for less complex, shorter assignments where staff might work on several projects at once.

Shamrock organization

Divides the workforce into three parts: Professional Core, contingent workforce, outsourced vendors

Legal challenges in Shamrock organization

Flexible contracts in the Shamrock organization may create worker uncertainty and legal challenges.