PERSONNEL MANAGEMENT N4
1 The Enterprise as an organisation Organisational concepts Vision
A vision statement is a strategic view of the enterprise, explaining what the company wants to become in the future, it sets a defined direction for the company’s growth. By highlighting the following
The processes to adopt to satisfy customer demand for goods and services
The products to offer and how to offer them
The resources and skills the enterprise will need for future growth
Mission
A mission statement defines what an organization is, what it does, how it does it, and why it does it. (Its aims and objectives).
Elements of the mission statement
Description of the Enterprise
Description of the customers it serves
Description of the needs of the customers
The method of satisfying customer needs
The values of the Enterprise
Advantages of having a mission statement
It helps to coordinate and hold the functions of the Enterprise together
A mission statement guides the activities of the enterprise and steers it toovercome its competitors
It helps to build the image, values brand culture or the enterprise to ensure managers and other stakeholders do not have any doubt about the primary aim of an enterprise.
Values
The values of an enterprise state how an organisation or Enterprise deals with its customers employees suppliers and other Enterprises. Values are used to Guide an enterprise to draw up its policy documents
Policy
Policy is made up of guidelines, used to guide managers and employees to make decisions. Policies are based on the laws that govern the country and take into consideration the values of the workers
Importance of a policy document in an orgarnisation
Used to guide organisation to formulate rules and procedures
It sets the acceptable standards of behaviour in the organisation
It helps to keep all the people in the organisation committed to the statements of the policy.
It brings together management and workers and regulate their communication and interaction
It’s proof to an existing communication and relationship between management and the workers
It outlines and recognises the needs of the employees
It recognises the rights of workers and the obligation of management towards their employees
Steps in formulating a policy document
Identify policy objectives
Write down the policy. This may involve brainstorming, discussions and
consultations to develop a draft and subsequent final policy.
Adopting the best Solution
Implement the policy
Evaluate the policy
Importance of organisational policy and human resource development
It lays the procedure for recruitment training compensation administration and other manpower activities
Caters for the Needs of individual employees in the organisation
Ensures and promotes freedom of association
Develops promotes and maintains communication and personal contact between the Enterprise and the employee
It ensures promotion and remuneration of employees according to Merit and seniority
It guarantees responsible disciplined and rational conduct of employees and employers towards one another and towards the South African Community
It promotes and protects a dignity and self-esteem employees
assists employees in developing their skills and having the opportunity to use these skills to promote job satisfaction
Goals and objectives
A goal is a broad, over-arching destination. it does not describe a strategy to get there or offer the specific tasks necessary to achieve the strategy. It simply is out there as a destination or target.
An objective is a specific, measurable activity you will take to work towards attaining a goal .Goals and objectives will guide an enterprise to formulate a strategy to achieve its mission and Vision
Strategies
Strategies are usually chosen and supervised by top management, they state how things will be done, the methods to be used to achieve set objectives.
Strategic planning
It refers to the process through which the key decision-makers in an organisation make decisions on how to address business opportunities and risks in the external environment/
Steps of the Strategic Planning Process
Set values or reasons why the enterprise exists
Analyse the political, social, and economic characteristics of the external environment
Establish the strengths, and weaknesses of the enterprise
Set goals and objectives
Develop a plan of action that will help the enterprise achieve its goals
Importance of strategic planning/management in human resources
Results in right personnel being recruited and personnel costs(wages, salaries, replacement, training) are minimised
Improves enterprise efficiency and this helps all functions to run smoothly.
The enterprise with the right personnel becomes more competitive.
Can result in new departments and new operations being set up when skills, knowledge and attitudes are put into consideration and those skills which lack can be gained through training.
Enterprise structures
Enterprise structure represents the way in which tasks are divided, grouped and coordinated .An enterprise structure will make the enterprise effective and productive and will be representative of the management style of the enterprise and its human resource strategy
How to restructure an enterprise
Restructuring an enterprise can be done using the following steps
Draw up of the lst of work to be done to achieve the organisational goals
Break the work into tasks as they are or can be performed by an individual or a group
Combine tasks that go together into departments
Set up communication channels and coordination methods to support the work of departments
Continuously monitor and evaluate the effectiveness of the enterprise structure and correct any divergences.
The external environment and the enterprise
An external environment is composed of all the outside factors or influences that impact the operation of business. The enterprise communicates with individuals, groups and other actors. The enterprise has no control over them, in return they influence the enterprise, negatively or positively . They include
Investors
Competitors
Governments
Customers
Media
Labour actors e.g trade unions
Suppliers
Banks and other financial institutions
The civil society and related orgarnisations
Divisions of the external environment and their influence on enterprise
Outside influences that can impact a business. Various external factors can impact the ability of a business or investment to achieve its strategic goals and objectives. These external factors might include
Political environment-
Social values, ethos, demographics of the population
Economic
Technological
Physical
International
Enterprise design
Enterprise design is the process of creating a hierarchy within a company. It helps management to establish the company departments, chain of command, and overall structure.