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Typology
All human resources staff at Organization X
According to theorists Jeffery Sonnenfeld and Maury Peiperl, organizational can be classified into one of four different career and staffing systems types, based on features like overall human resources strategies, human resource focuses, policies toward employee entry, policies toward employee development, and policies toward employee exiting. These four types include the club, the baseball team, the academy, and the fortress. Depending on the industry and type of organization, and the goals of the organization, one type of human resource system might work better than the others. The purpose of this memo is to analyze and explain the strategy type that most closely matches that of our organization, Organization X, and to make recommendations for policy changes.
ORGANIZATION X
Organization X is an international courier business with several thousand employees throughout the world. However, the company hub is in the United States. Currently, Organization X follows most closely the club model. Emphasis is on keeping costs low, with the aim of earning short- and long-term profits. The organization focuses on providing customer service needs to clients. Personnel policies are relatively rigid. Organization X hires mainly entry-level applicants at low wages, who are expected to work their way "up" through the organization. Skill and talent development occurs on the job, within the framework of the organization's methods. Promotions are made from within, and Organization X does not generally...
As a result, many upper-level management positions are filled by people who have been with the organization for a long time. Management staff enjoys secure positions. The benefits of using the club model of human resources management include the level of familiarity with the organization's mission and goals among upper-level management; a lack of resentment among employees who might otherwise feel that they are being overlooked in favor of big shot management personnel from external sources; relatively low turnover rates; and low costs inherent in the employee hiring, development, and exiting procedures. However, there are significant drawbacks to our company using the club method. For example, this model does not allow for Organization X to expand into new markets, a move that would greatly enhance profits and market presence. In order to grow and develop into a more robust organization, we recommend that Organization X adopt a model more reminiscent of the academy. Such a shift would increase risk and temporarily elevate costs. However, in the long run Organization X and its employees would benefit.
RECOMMENDATIONS
Our recommendations for human resources policy changes include the following:
1. Emphasize innovation and risk-taking by expanding into new markets and diversify. To do so, Organization X will need to hire some employees directly from other organizations; in other words, Organization X will need to invest more in "buying" talent. Currently, all management positions are filled from…
References
Baruch, Yehuda and Peiperl, Maury (2003). "An empirical assessment of Sonnenfeld's career systems typology." International Journal of Human Resource Management. 14(7) p.1267 -- 1283.
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