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Robust organization structure can help firm to become more agile and
will aid them in dealing with todays intricate marketplaces.
Organizational design shapes the companys execution strategy, how it
engages its employs and responds to the changes of the industry on
the ongoing basis.
BCG recognizes that organizational and people competencies drive
performance and enables strategy. They have identified 14
characteristics grouped into 5 broad dimensions, which are common
to most of High performance organizations.
Leadership: An aligned leadership is effectual deep within company
Design: A lean configuration mirrors the firms strategic focus and
has clear roles and accountabilities
People: Highly functional firm translates its business strategy into a
influential peoples strategy which attracts and retains its competent
talent.
Change Management: Firm has the capability to push and support
large-scale change and to predict & adopt strategy accordingly with
highly volatile environment.
Culture and Engagement: The culture is fashioned to accomplish
strategic objectives, and its employees are driven to go beyond the
call of duty in pursuit of corporate objectives.
At BCG a relatively flat organization structure is observed. Flattening or
Delayering as it is recognized eliminates the traditional hierarchy of
the management, which spans a layered control over processes on the
firm reducing the flexibility of the firm. BCG applied for a trademark in
2005 for the term delayering to define its unique methodology to
flatten the organizational pyramid.
There are number of pros and cons to this type of organizational
arrangement. Advantages include superior communication with
management and personnel, boost in work morals due team
motivation, minimum bureaucracy maximum governance and ease in
decision making. Also financially it be a much more feasible option to
explore this type of arrangement due to reduction in cost structure.
There still some hindrances to growth in this type of structure as it
increases the span of control that manager has, lack of layers may
affect the strategic management decision making.
Human Resource
The key to improve companys overall performance is to run an
excellent peoples operations. This peoples operation has come a long
way surfacing from a traditional role as a mere processer of clerical
dealings to being a strategic cohort in the businesses. HR heads
requires a sharp vision of their existing competences, a set of strong
priorities connected to the business strategy, and a directed approach
to improve the most vital setbacks.
BCG envisages to achieve these goals by engaging company leaders in
the HR functions to keep underlined activities aligned with set
objectives. For this specific purposes HR function at BCG is streamlined
into 27 different areas, which constitutes from leadership to talent
management to strategic workforce planning and employee
engagement, social branding and diversity management.
Every
aspects of these areas is analysed from the current scenario and future
capabilities that can be achieved. An analysis, which BCG usually cites,
is that Businesses on Fortunes 100 Best Companies to Work For list
have beaten the S&P 500 in at minimum 8 out of the past 10 years
indicating HR as a vital component for outperforming the competition
in total shareholder return.
The following 27 topics were identified in a recent survey as being the
most critical HR topics, ranked in order of importance- to connect,
prioritize and impact
Leadership
planning
Social media
Talent management
Rewards
recognition
HR communication
HR and workforce
analytics
Behavior
culture
HR
and
strategy
and
people
Performance
management
and
HR staff capabilities
Employee
engagement
Training
learning
and
Strategic workforce
Employer branding
Onboarding
Generation
management
HR services
systems
and
Recruiting
processes
Recruiting strategy
HR
organization
and governance
HR processes
Labor costs
restructuring
and
Diversity
management
Assignment
management
HR
internationalization
Work councils and
union management