HR Management: Organizational Change, Mergers & Technology

The Changing Nature of Work and HR's Strategic Role

The world of work has always been subject to continuous and ever-evolving transformation. Change is essential in any organization, and technology has fundamentally altered the way we work and live. In the pre-industrial era, workers lived in relative isolation, crafting goods required for their homes and farms, striving to be self-sufficient. The industrial revolution of the past century changed that way of life dramatically. People moved to cities and towns — locations pre-determined by the presence of factories and industries. The new worker was often taught a single skill used repetitively in mass production within an assembly-line setup. Whereas in the past an individual sold goods or produce that he or she personally created or grew, the modern worker sold his or her time (Curry, 2003).

The Human Resource Department's functions have changed considerably, and the department is taking on more duties and responsibilities than ever before. The HR department is becoming a strategic partner for the organization, as it controls the most important asset a company possesses — its people. The cost of the human asset currently represents a major portion of the expenses organizations face. Technology, the Internet, and the globalization of markets have drastically changed the way most organizations operate. Understanding the variables affecting present-day organizations and the models that modern HR departments prefer will help organizations use their human resource asset more effectively. More than physical or financial resources, changing the mindset and managing the human factor will ultimately represent the new competitive edge for any corporation.

Communicating the goals and mission of the company effectively to all employees is important. At the same time, reviewing employees' grievances and complaints is essential. Building value-based communication both vertically and horizontally throughout the organization reduces redundancy of tasks and fosters worker involvement. Knowing workers' views and aligning a company's goals with those of its employees is paramount. The job market has become increasingly specialized, yet it simultaneously expects most individuals to multitask.

Elton Mayo, conducting experiments between the 1920s and 1930s, evaluated human behavior in the workplace. He concluded that all individuals felt a need for recognition, security, and a sense of belonging. These factors played an important role in a worker's life, since work activities and their consequences in modern times inevitably extend into the home and the worker's social life. Both internal factors — from within the work environment — and external factors that affect the organization play an important role in the worker's well-being (Mayo, 1977).

Motivation, Workplace Environment, and Diversity

According to Herzberg's two-factor theory, various elements affect motivation: working conditions, salary, job security, and company policies. Achieving results beyond expectations in the workplace, recognition of the value of one's work, pride in the work itself, responsibility, advancement, and growth all act as stimulants that motivate workers to improve the quality of their output (Herzberg, 1964). Very often, pride in a task well done is a greater motivating factor than mere financial reward (McKenna and Maister, 2003).

All HR departments strive to create an environment of mutual respect, encouragement, and teamwork — one that rewards commitment and performance. Such an environment is responsive to the needs of employees and their families. The HR department, recognizing that a happy and satisfied employee is also a productive one, helps identify factors that affect workers within the organization. Creating an environment where competition is balanced with collaboration and employees maintain a positive attitude is key to a productive and healthy workplace. A healthy level of competition induces challenge and motivation; however, instilling unrealistic expectations can seriously damage an individual's self-esteem and thereby harm job performance. Knowledge management and labor management are among the defining assets of any organization, especially as many mid-level management positions have become redundant and workers are being made more accountable.

Legal requirements from state and federal governments mandate that organizations maintain sufficient diversity with respect to race, gender, age, and ethnic background. Diversity can promote thinking outside the box and introduce different points of view into discussions and decision-making. For example, women and men often bring different styles of management and leadership; a genuine mix of both styles can enhance the functioning of any department or team. A workforce with greater age diversity can also provide richer experience and historical perspective in forecasting and decision-making sessions.

The main objectives of the modern HR department are to maintain a qualified workforce, attract and retain the best employees, and build a work environment in which workers can thrive and grow — all while ensuring that the goals of the organization are met efficiently. Value-based human resource management systems are becoming the modern trend. The workforce has become increasingly knowledgeable about its rights, and management faces growing pressure to keep workers engaged and satisfied. In response, organizations are striving to employ well-balanced, diverse teams capable of working together to achieve the company's objectives.

Globalization and Networked Organizational Structures

External environmental factors — including regional economics, technology, social influences, political forces, and globalization — have increased pressure on companies. Increasing efficiency and productivity has always been central to implementing any change. Management has long recognized that the human element introduces the greatest variability into organizational systems and has sought various methods to manage this factor effectively. Using human resources as a strategic tool is critical for effective management.

In the past decade, the world economy has become more interrelated. In an increasingly global market, the networked type of organizational structure has become prevalent. Decentralized and independent work centers and factories serve as nodal points within this structure, producing components or sub-assemblies that feed into a finished product. Many nodes in a network structure are essentially independent organizations in their own right. An illustrative example is Dell Computers: when a customer places an order, parts are shipped from different locations, coordinated to arrive within a day or two of one another. The monitor, computer unit, keyboard, and speakers may each originate from different manufacturers and geographic sources.

An efficient level of coordination and logistical planning is required at all nodes in such a network. Teams and work centers are often geographically dispersed. In a global economy, multinational companies require a common information pathway to eliminate repetition and redundancy across the organization. Any policy or system change in one location will have a direct or indirect impact on all other linked locations. For this type of organizational structure to perform optimally, the HR department must provide all relevant and accurate information in very short time intervals — which may require fundamental changes to business processes, technology, organizational structure, and vendor and customer relationships.