HR Functions:

Over the past few decades, the common wisdom that has emerged from the expanded field of HR is that
‘people’ are the greatest asset of a firm that produce the most remarkable and noteworthy contribution
to the organization (Hall, 2005). There is a great deal of agreement among practitioners and scholars
globally citing their observation in favor of this prevailing concept. Given all this, the effective
intervention of the HR department to maximize the output and productivity of employees as the best
way to engage and influence the performance of the employees is through the HR intervention (Delaney
and Huselid, 1996).

HR Roles:

The role of HR in an organization constitutes all the activities and functions performed towards helping
the organizational strategic objectives and organizational capability (Crawshaw et al,2014). The role of
HR starting from recruitment and selection onto the process of training and development, HR planning,
contracts provisions, equal opportunities provision, employee welfare and counseling, reward and
compensation system to health and safety, dismissals and dealing with grievances, all of these activities
represent a stronghold of activities performed under the umbrella of the HR department that
contributes towards the effectiveness and efficiency of a firm.

Organizational Structure:

The framework of the relations on jobs, operating process, group and people, and system represents the
organizational structure at play. For any firm, this structure not only represents the hierarchy of
commands and functions but also directs the firm towards role-plays, decision making, transfer of
information and action and most importantly the autonomy of each person and the overall department.
An overview of organizational structure provides information about power and reporting,
communication channels, decision making and the internal relations of organization (Hold and Antony,
1991). The Conceptualization of organizational structure manifests the process of systematic thinking.
While planning an organizational structure, the following three principles are considered;

- Organization structure portrays the formal reporting and relations across an organization. It also
determines the hierarchy levels and span of control.
- The organization structure must include a design of systems which are used to coordinate
relations.
- The organization structure determines the position of each employee & their departments.

Key Terms Related To Organization Structures & Format:

1. Departmentalization
This refers to the grouping of different functions into a manageable unit for achieving the overall
objectives of the enterprise. It means that each department is assigned a set of objectives and
guidelines to follow in order to achieve the overall function of that department which has a
balanced role in the over organization strategies and functions.
2. Delegation
This is the process that makes the overall management of a firm or a department possible. It is
the function of achieving results through the accomplishment of others. In an organization a
manager encloses their trust in others with authority and responsibilities to create
accountability for results. In all small and large organizations, tasks and responsibilities are
delegated to others to achieve the desired outcome.

3. Scalar Principle
This principle refers to the ‘chain of command’ in a firm. It is the clear definition of authority by
a person, group or department in the organization. The authority of command or responsibilities
usually flows from the top to the firm or lower level in different organizational structures and
hierarchy.

4. Centralization

This is a system of organization structure and hierarchy where very limited authority is
delegated. Here, the authority lies at the top and it is funnel down to the lower levels with very
less or limited authority and control over decision making.

5. Decentralization

This is a system of organization structure where authority is shared in a significant amount to

the lower level. Here, the authority and control is delegated all around and certain people and
departments have equal or significant amount of command over the decisions.

6. Contingency Approach

This is a very famous organizational structure approach where the structure depends on the
prevailing situation after aligning with major dynamics like the environment, technology and
other forces.
 References:

Hall,!L.,!HRM!practices!and!
employee!and!organisational!
performance:!a!critique!of!
the!research!and!Guest’s!
model,!2005.!Research!
working!paper.!
Hall,!L.,!HRM!practices!and!
employee!and!organisational!
performance:!a!critique!of!
the!research!and!Guest’s!
model,!2005.!Research!
working!paper.!
Hall,!L.,!HRM!practices!and!
employee!and!organisational!
performance:!a!critique!of!
the!research!and!Guest’s!
model,!2005.!Research!
working!paper.!
Hall, L. (2005). HRM practices and employee and organizational performance: A critique of the research
and Guest’s model, Research Working Paper.

Delaney, J.T & Huselid, M.A (1996). The Impact of Human Resource Management Practices On
Perceptions Of Organizational Performance. Academy of Management Journal 39(4).

Crawshaw, J.R., Budhwar, P., and Davis, A. (2014). Human Resource Management: Strategic and
International Perspectives. London: Sage.