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Introduction
Human resource (HR) are the most important resources of an organization. Human
significantly affected by the organizational structure and culture. This paper will explain
regions/countries. This paper will also examine the how the effectiveness of HRM is
measured and will identify the key performance indicators (KPIs) and metrics as basis
of the measurement.
Organisational structure is important in order for a business to function well and grow.
relationships that are deliberately designed to achieve goals and objectives (Agbim,
such that everyone in the organisation have a clear idea of their roles and
responsibilities, who are they reporting to, and who should be reporting to them, and
practice that is aimed to develop the human resources for better performance at the
organisation. It regulates the organisational structure in an appropriate way so that
The organisational structure will influence the organisation’s HRM in terms of selection
of the correct people with right talent for every level of the organisation. According to
employees behave, their performance, satisfaction, motivation, passion for work, and
For the case of DaimlerChrysler (DC), after they bought and acquired various
companies, their structure has become disorganised which caused quality problems,
purchased companies did not fit their existing organisational structure which caused
confusions and delays in execution of works. Improper allocation of task and position
also caused redundancy in terms of position and duties that eventually translate into
To address this issue, the board decided to make some changes to the existing
consolidate and integrate the G&A functions. Consolidation and integration of various
G&A functions will centralise the reporting process for each function that leads to a
more consistent processes and faster and efficient decision-making. This gives way
(Hansen, 2018 cited in Cameron & Freeman 1991). It also cited as the primary reason
for the failure of organizational change (Hansen, 2018 cited in Linnenlueke & Griffiths,
norms, beliefs, attitudes assumptions that may not have been articulated but shape
the ways in which people in the organizations behave’. Culture according to Schein
problems of external adaptation and internal integration which can be considered valid
as it has worked well enough that it should be taught to new members as the right way
For the case DaimlerChrysler (DC), their acquisition of various companies from all
over the world has brought in cultures that are different and not align with their existing
culture, given that the companies they acquired are based and operates in different
countries and regions. It is evident that the difference in culture affected the
cause tension, pressure and negative attitudes among HR. This might be the case for
companies’ cultures are not aligned to the exiting culture. The HR practices of DC that
were formulated based on technology- and quality- focused culture has given the
company its share of success. However, these practices did not work out well after all
the acquisitions. As suggested by Isac and Rusu (2016), HR practices that have been
successful in an organization can fail in other culture, especially if the take over was
done without analysing the culture adequacy of the organization where it is supposed
existing and acquired companies had cause differences in management style that
difference in management culture can cause the merger to fail (Weber et al., 2014).
The effectiveness of human resource management depends on its fit with the
the impact of the HRM practices and HR’s contribution to organizational performance.
The indicators of human resource effectiveness can be divided into quantitative and
qualitative. Quantitative measures are those that are exactly quantifiable while
qualitative are those that can be measures by surveys, questionnaires and interviews
may track are labor costs, the average length of the working day, efficient fond of
working time per employee, disease rates, labor productivity, HR ROI, fluctuation rate,
manager o employee ratio, rate of recruits leaving, and managerial post from internal
source which are in accordance with the vision, philosophy, culture, objectives and
strategies (Majerova, 2008). On the other hand, a study by Boudreau and Lawler III
A new tool HR Scorecard, which is based upon Balance Scorecard model introduced
by Kaplan and Norton (2007), was outlined by Becker, Huselid and Ulrich (2001) that
does two important things; manage HR as a strategic asset and demonstrate HR’s
Scorecard are key performance indicators (KPI) for the success of workforce
(Gabcanova, 2012 cited in Huselid, Becker and Beatty, 2005). According to the study
of Eckerson (2007), good KPIs are sparse, drillable, simple, actionable, owned,
The KPIs as suggested by Gabcanova (2012) are summarised in the table below.
Decreasing of turnover
% of turnover Recruiting costs
rate
Effective using training Efficiency of investment
ROI of training
budget to human capital
% of employees who Number of successors
Succession planning
were promoted on key posts
Customer
% of multiskilled
Using human capital Qualification index
employees
% of employees who
Retention of the Participation in career
performed the
employees coaching program
Employee Dialogue
Amount of investment
Savings (money and
to IT HR technologies
time) from HR IT
Corporate social Number of activities
technologies Number of
responsibility organized for
new hiring relates to
employees (sport,
good referral program
family day, etc.)
Posts filled by internal
Internal flexibility Job rotation
sources
Simplify of the sales Time for dealing with % of customer
process customer satisfaction
Result from employee Influence of the inflation
Increasing of motivation
motivation survey on salary
Internal
Compensation cost
improvement salary
Consistently develop of
leadership skills and
strengthen manager´s Leadership index Leadership index
role as a coach and a
mentor
Learning outcome 4.4 – Make justified recommendations to improve the
The mergers and acquisition that DC undertook has not been successful so far and
cost them to lose their competitive advantage and has caused their customer ranking
prowess, which is DC’s main advantage brought about by their technology- and
quality-focused culture. These are attributed to the misfit in the organizational structure
Organizing and staffing their operations is one of the fundamental challenges of every
companies and becomes even more complicated once the company decides to do
business internationally (Boundless.com, 2016). DC was not able to utilize its human
resource efficiently and the flow of authority is not clear, which is causes by its existing
organizational structure that is align with the company’s strategies. One way to tackle
by adding an international division which will take care of all the international business.
Further, the international division can also be structured and organized geographically.
Adding international division will make the existing domestic organizational structure
unchanged. Hence, its domestic success will be retained. And also, geographically
structuring the international division will allow each country managers to operate
independently and be able to formulate HR strategies that will meet the needs of local
also facilitate in maintaining the organizational culture for each country. The
pressure and strain inside the organization, driving new understanding and adaptation.
Organizational culture offers a shared system of meanings which is the basis for
cultures of inside DC, thus, it is important that these cultures are align to the overall
goal of the company which is gain back its competitiveness and promote profitability.
determine what needs to be changed and implement plans for change. Hence, it is
important for DC to have culture that also promotes flexibility that will allow each
Conclusion
Organizational structure and culture affect the human resource management in many
ways, and subsequently affect the overall performance of the organization. The
mergers and acquisitions that DC undertook had introduced new structure and culture
that did not match the existing. These has affected the company’s performance
negatively and lose its competitive advantage and profitability, highlighting that the
ignored. It is also important that effectiveness of the HRM is measured to track the