Understanding Organizations and the Role of Human Resources

Subject: Business
Type: Process Essay
Pages: 8
Word count: 2039
Topics: Human Resources, Business Ethics, Organizational Behavior

The advent of internet and globalization has led about an increase in the number of startups to fill the gaps that exist in the market. However it is evident that most of the startups end up failing and don’t even last more than a year (Armstrong, and Taylor, 2014). This majorly has been contributed by the increased competition that currently exist and also as a result of the failure of many startups to take into account the prerequisite strategies that would ensure that the business is successful. It is certain that the customer is king therefore every business operations, products and services ought to be tailored to meet the needs of the customers. Failure to take the customer’s wants and needs into perspectives generally is a recipe for failure. That notwithstanding there are very many factors that tend to influence an organization both internally and externally and if proper actions are not taken to address these forces then it is certain that the business may fail to succeed. It is therefore based on this aspects that this paper would want to delve to provide a briefing note which would guide a new start up to ensure that it is success in positioning itself in the market. Further through this analysis business startups would be cognizant of the dos and don’ts in the preparation of entry into the market.

Nova fashions which will be based in the US is a company that will be aimed at offering the latest attire and looks to its customers. It is important to highlight that the company stands to benefit considerable if it is able to position itself in this market. However such an industry has its hurdles and challenges due to the fact there is cut throat competition. Many companies that enter into fashion industry end up failing as most consumers are usually inclined to purchase from the renowned brands. This is due to the fact brands such as Nike and Adidas have been in existence for decades and have a proven track record of offering futuristic products in the market. Additionally such brands are termed as being trend setters. Therefore how will the company be able to gain a significant niche in such a competitive market? This would only occur by ensuring that the company concentrates its efforts on a segment of the market rather than broadly targeting the entire market. Additionally targeting the entire market would mean the company would have to invest considerable on the marketing and advertising. 

The company will specifically target the young girls between the ages of 17 to 25 years. This segment of the market is characterized by a high purchasing power and therefore they are more inclined towards fashion trends. Additionally the company will be online based and therefore will target the customers who are more inclined to shop online. Most people in this target age spend most of the time online which justifies why this target market would be beneficial to the company. The online market has experienced exponential in the recent times and more and more customers are now more inclined to purchase online rather than in the physical stores. This approach by the company ensures that its market reach is not limited to a particular geographical region but worldwide. The company will offer a wide variety of clothes and in specific all the fashion needs of this target market will be offered. The company will also ensure that it regularly updates its fashion trends to conform to the ever changing needs. In specific the company will take a futuristic approach in the production of attires so as to captivate the consumers. 

It is important to note that any start up would need to have a clearly set objectives, goals, mission and vision (Wilton, 2016). This is to guide the organization on where it wants to be in the future and also outlines the mechanisms that the organization would put into account to ensure that the targets are achieved. The objectives ought to follow the SMART approach which entails that the objectives ought to be realistic, measurable, timely, accurate, and specific. The company targets to serve over 10000 customers in the first 10 months from its inception. Further the company would target to break even by the first 4 months of operations. The initial months will certainly be capital intensive as the company will invest in not only the research and development but also intensive marketing campaigns. The company will be aimed at investing in augmented reality so as to have an edge over its customers. The company will come up with an app which would allow the customers to digitally try out their clothes even before they make a purchase. It is evident that one of the biggest drawbacks of online shopping is that customers are not in a position to see how the clothes look on them. This means that most tend to still perceive physical store shopping as having an upper hand. Therefore this an app will delve to fill this gap.  

An analysis of the external factors is allows an organization to note that forces that would affect its performance. A PEST analysis would be vital in analyzing the external factors that influence the company. These factors would include the political, technological, social and economic factors. Political factors have a bearing on the performance of all companies. In specific in the event there are political instability then the company’s operations would be negatively affected as the purchasing power would greatly be affected. The economic factors also have a negative influence on the performance of the company. For instance during the 2008 recession many companies were forced out of business and others merely collapsed (Goetsch. and Davis, 2014). Therefore the economic factors would greatly influence the company’s operations. That notwithstanding the taxation policy in the US is high compared to the countries in the east. Therefore the company would to have an offshore supplier of its products to ensure that is in a position to compete favorably. The social factors tends to analyze the changes and trends in the society. It is important to note that the shift of persons from physical store shopping model to online shopping has increased in the recent times therefore this means the company stands to benefit from the increase in the customer base. Finally the technological factors tend to cover the shift and advancements in technology. The rise in the use of augmented reality for instance would be of benefit to the company in ensuring it positions itself favorably in the market. 

The organization structure that would fit the company model is the functional structure. This structure tends to structure the company based on the function. Therefore in this organization there would be a production department, human resource department, marketing department and the sales department. This structure is essential recommended for small businesses and startups. This structure would also take into amount the hierarchical structure which would therefore entail that the company would be organized in layers. The top most layer will be made of the CEO, the second top layer will have the departmental mangers, the third layer would be made up of the skilled workers working under the various departments while the lowest layers will comprise of the subordinates. The merit if this structure is that the roles of all persons in the company is clearly and well defined. 

There exist four basic functions of the organizational structure; hierarchy, decision making, teams and advancement potential. All these functions are essential and when applied together ensure that performance is optimized. Hierarchy is essential as it outlines a proper chain of command and who the employees would report to. The organizational structure in question would aid in defining teams who would work together (Wilton, 2016). Teams would ensure that workers work together to ensure that the goals of the organization are achieved. It is vital to note that it ought to be implemented as it ensures there is a balance in the workers strengths and weaknesses. The other function is decision making. The structure would help determine the individual who would be tasked to make decisions. However the decision making abilities in some organization vary in different companies. This is because some companies let their employees be part of the decision making. This aspect would be embraced in the company as it would allow to feel that they are part of the company’s operations. The final function would be the advancement potential. An organizational structure such as the one the company would embrace would provide the employees with the opportunity to advance to higher levels. Additionally it would allow the employees to know what duties they would be responsible for once they advance to higher levels. 

Organizational culture is very important as it is reflective of what the organization stands for. The top management sets out an organizational culture which ought to be replicated by the junior staff. Therefore it is certain that the actions of the management would be replicated by the subordinates. The culture that the organization would like to set forth is that of a free work schedule and flexibility in the working hours (Armstrong, and Taylor, 2014). Additionally due to the aspect that the company is a fashion based company, the workers would be required to dress not in the official attire but in what represents the company’s image. In such a case the employees would feel free and they would become more engaged with the organization tasks. It is evident that a satisfied employee is more likely to give their all. A flexible work environment is one that would ensure that the employees become creative and innovative on the design of trendy attire. Another way such an approach would affect the company is that it would allow the company to retain its competent staff and at the same time cut down on the staff turnover. This essentially will ensure that there is uniformity in the company’s operations 

One human resource activity that would ensure that the company becomes successful is the performance appraisal. This in specific is one of the motivating factors that all workers yearn to get in any organization (Wilton, 2016). Therefore the company will set an appraisal system where the best workers get a reward, be it monetary or non-monetary. The second activity entails the hiring and recruitment procedures. The human resource department should come up with a process that identifies the best individuals for particular tasks. Clear guidelines ought to be set to ensure that the workers meet the minimum threshold required by the company. The third activity would entail the administrative activities. This in specific should cater for aspects such as training and seminars. It would be important that the workers are periodically trained to ensure that they acquainted with latest norms in this industry and also are aware of what the organization expects from them. 

HR professionals can be of help to line managers as they can offer guidance on the introduction and the development of procedures and policies with regard to efficient employee management. It is important to highlight that this may include aiding in the formulation of flexible patterns of working and also developing policies related to employee engagement. The second way that HR professionals can be of help is through regulation and legislation within the employment law field. Some of the examples may include providing advice to the line manager on the ways they would manage the recruitment process and also ways that they would ensure that discrimination is deterred from the organization. The third way that HR professionals can help the help line managers would include issues related to development and learning. It is certain to note that proper practice in human resource necessitates the formulation of personalized development and learning opportunities which ought to be in line with the personal learning style of the workers (Goetsch. and Davis, 2014). Additionally the practices would be required to be in line with long term strategies and goals of the company. Therefore the translation of such principles can be a key area where HR professionals can provide their support. 

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  1. Armstrong, M. and Taylor, S., 2014. Armstrong’s handbook of human resource management practice. Kogan Page Publishers.
  2. Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper Saddle River, NJ: pearson.
  3. Scott, W.R. and Davis, G.F., 2015. Organizations and organizing: Rational, natural and open systems perspectives. Routledge.
  4. Wilton, N., 2016. An introduction to human resource management. Sage.
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