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From Four-Frame Model I found out about four key frames to build or rebuild a successful organization. Two frames which are important for us are:

·       Structural Frame – problem arises when the structure does not fit the situation.

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·       Human Resources Frame – challenge is to adapt business to employees – discover a way for people to get the work done while feeling good about what they are doing.

As I think in this case are two main problems. First of all, its HR structure division and second difficulties in communication between workers and HR executive. As was noted in case study Staff Association has no rights and no influence in the company, this may be another serious issue. Before reconstruction, there were only 4 regions with 180 branches and 1800 employees, as for me decreasing this number and dividing it on 6 instead of 4 regions was a nice idea; as it became easier to manage and we will have a clearer picture on the situation and certain divisions which have difficulties. Further, we will use Ulrich’s three-legged model to describe changes which need to be done to recreate the previous success of the firm.   

Management Changes

Ulrich’s three-legged model

David Ulrich – influential US academic, created model for establishing the HR function, he stated that in big businesses the formerly integrated HR function must be distributed into three segments.

v Shared service activities would be concerted in a call-centers with backup of internet tools to deliver organizational and basic help to the rest of the organization. Basically, tasks which were previously implemented locally by units or corporate divisions are reorganized, updated and centralized, to create general information pool and share it to create attractive and efficient solution. This offers cost benefits through economies of scale.

v Business partners are entities or small groups which are working together with the organization’s managers on main initiatives and management change. 

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