Understanding Organizational Function, Strategies, And Managerial Approaches

Data collection method

The present report is based on the understanding of how an organization operates their function, strategies and managerial approaches. The major purpose of the report is to present an organizational function, strategies and other significant managerial aspects with suitable management theories. In order to develop the report, real organizational functions of Harder Kulm Restaurant have been considered in the report. The organizational functions of the restaurant have been presented in the report with management and specific functional theories. It is necessary to conduct a research to know how an organization operates in today’s competitive environment. Moreover, in today’s dynamic market environment, no existing management or functional theory can guarantee success. The organizations always need to devise and apply the strategies based on the current market scenario. In addition, existing studies do not always provide accurate judgment of the future market scenario; thereby, the discussion in the current report has been supported with primary data and findings. It is slightly similar to a study on “Human resource management and performance: Evidence from small and medium-sized firms” conducted by Sheehan (2014), which helps to identify a significant gap in the existing HRM performance literature within the context of small and medium size firms. Likewise, the current study would also provide significant findings, which would be useful for future studies. 

The major aim of the report is to derive an understanding about management theories and strategies and present them with real-world facts and findings.  

• To develop understanding about HRM functions and theories
• To demonstrate how management or any HRM theory can be applied to organizational context
• To present an analysis of Harder Kulm Restaurant’s organizational functions with theories
• To provide suitable recommendation for developing the existing organizational functions

In order to conduct the analysis and develop the report, significant dataset has  been collected. Both primary and secondary data has been collected for the analysis. In order to achieve the above-mentioned aim and objectives, the discussion needs to be supported with primary data- data related to the current operation of Harder Kulm Restaurant. Here, the primary data has been collected by conducting a survey among the employees of the restaurant. Specifically, to collect the data, quantitative data collection method has been applied which includes 30 close-ended questions.   The questions are particularly developed based on current HRM functions of the restaurant.

Harder Kulm Restaurant in Switzerland provides a combination of fantastic views, tasty food as well as good accessibility. The firm provides everything that is ready to satisfy the small and the big hunger. Even though, the firm has increasing popularity due to the ambience of the environment but it is considered under the category of small and large size firms. However, the restaurant has developed some specific long-term goals –such as expanding the operation and promoting the service in the global environment with the purpose of attracting the visitors.

Harder Kulm Restaurant

Mission Statement- The mission of Harder Kulm Restaurant is “ Be in business for yourself but not by yourself”. Kulm Restaurant supports its commercial and promotional systems. Particularly, it pays attention to reduce the risk and increase the potential for success (jungfrau.ch. 2018).

Core products/ Service- The firm provides continental light meal as its major products. However, the restaurant also emphasizes on spaghetti and other major European food items. Nonetheless, people from Asian nations visit Switzerland; thereby, the restaurant also keeps the blends of Asian food (jungfrau.ch. 2018).

Target market- As the firm is running the operation at the mountain; it has accessibility to reach the tourists. Tourists from different nations come and visit Harderkulm in Switzerland. Therefore, the target market of the restaurant is the international visitors. Such accessibility of global customers increases the ability of promoting the service to the international market.  

Customer service of the firm is not effective due to lack of staff. The existing employees of the restaurant are not able to provide required customer service. As discussed above, customers from different nations visit the place and visit the restaurant, which indicates that employees have to deal with the customers of different cultural background. Nonetheless, the employees are not trained enough to deal with the multi-cultural people. In addition to this, the supervisor of the restaurant does not interact with the employees on a regular basis, which creates a gap of communication.

In today’s business world, firms’ strategies are usually defined with the element of global competition and consequently, industrial economy has been observed to be passing towards the knowledge economy. As put forward by Sierzchula et al. (2012), due to the persistent competitive market development, it becomes difficult to keep and maintain a sustainable growth for firm’s side. All studies and practitioners know the benefits and barriers of competitive market environment and they seek to find ways for becoming flexible to competitive market conditions. Thereby, these efforts have mostly been put on human resource management practices in last twenty years particularly with the use of strategic HRM approaches. The following is an analysis of the concept of human resource management, which has been supported, with the findings of few existing studies.

Even though it was generally accepted industrial revolution introduced the concept of HRM but the fact is that the source of HRM remains in the past. As mentioned by Tooksoon (2011), just as the worker who tend to share the work that have to be conducted in the modern organizations, the humans in the ancient society too, divided the tasks among themselves. Thereby, Guest (2011) on their human resource management study mentioned that the division of labor has been come into the actions since prehistoric period. In this context, Renwick, Redman and Maguire (2013) mentioned that the terms of human resource management as well as the human resource have widely replaced rather than the personal management (PM) in the process of managing people in the organizations. On the other side, with a new concept Sabir, (2015) mentioned that organizations consider the HR department as playing a crucial role in staffing, training as well as helping to manage people; thereby, the people and the organizations could perform its operation at the maximum capability in a highly fulfilling manner. Based on two different journals presented above, it can be mentioned that the purpose of HRM could change with the definition a researcher makes because the definition could vary from one researcher to another according to the point of view. However, it can be concluded that overall of purpose of human resource management to make sure that the organization has the ability to accomplish success through its people.

Human Resource Management

As put forward by Love and Singh (2011), generally, human resource management focuses on maximizing the contribution of employees in organization. Another study on human resource and its importance in today’s organization conducted by Kehoe and Wright (2013), mentioned that deriving people’s service, enhancing their skills as well as motivating them to greater level of performance and ensuring their persistent maintenance and commitment to the firm are mandatory in the achievement of organizational goals. Hence, Kehoe and Wright also mentioned an HRM specific function as the combination of four functions such as staffing, training and development, motivation and maintenance. On the other side, Wright and McMahan (2011) defined HRM as the strategic approach to manage employment relations which insists on the fact that leveraging people’s capabilities remains significant to achieve sustainable competitive advantages.

 Similarly, Lengnick-Hall, Beck and Lengnick-Hall (2011) also mentioned that HRM functions can be considered as the function of planning, recruitment and selection, performance management and appraisal, reward management and development of employment relations. The elements mentioned in the above-presented definitions can be achieved through a distinctive set of integrated program, practices and policies. According to Buller and McEvoy (2012), functions of HRM involves the action of guiding the organization in attracting the quality as well as quantity of the candidates required in terms of firm’s strategy as well as operational goals, expected culture and employee needs. The below are some of the major HRM functions derived from the existing studies discussed above. 

Planning- As put forward by, Bloom and Van Reenen (2011), this might involve predetermined course of action. In such technique, the goals of the firm and the formulation of the policies as well as programmes for achieving them are outlined. A well designed plat makes the implementation easy and perfect.

Organizing- This is particularly known as the technique by which the structure as well as the allocation of jobs are highly determined. According to Jackson Schuler and Jiang (2014), organizing could involve each sub ordinate a particular task, developing departments, delegative authority to subordinates, formulation of channels of authority and communication, and coordination of the work of the  workers.

Staffing- This is considered as the technique through which managers recruit, select, promote and retire the workers. This process also includes the technique of taking decision regarding the type of people to be hired, recruiting the prospective workers, developing performance standards, compensation of the employees, evaluation of the performance, training and development program of the employees (Alfes et al. 2013).

Major HRM Functions

Controlling- This process helps to set the standard for measuring performance to evaluate how actual performance and developed standards varies, which would help to identify the required improvement.

Corporations tend to undergo dramatic change with the required implications for how HR is managed and HR function is best organized. In addition, the force driving change includes the rapid implementation of IT, globalization of the economy as well as growing competitive changing business environment. On the other side, there is an increasing consensus that developed human capital remains critical to a firm’s success and the function of HR should be strategic. “Human Resource Management” theory talks about some particular actions and processes to be implemented to gain a positive return from the organizational workforce. However, the papers did not talk about how human capital theory with the help of human resource management focuses on maximizing the value of organization’s human capital and the value of anticipated returns –productivity 

The above-mentioned theories on HRM indicate a set of actions or functions of HRM that should be applied to a workplace.  However, in the case of Harder Kulm Restaurant, the above-mentioned functions seem to be different. Kulm Restaurant does not apply any modern concept of HRM. In the literature, it was found that HRM should play the role of staffing, training and helping to manage people in the workplace. However, the survey data mentioned below indicates that employees at Kulm Restaurant lack coordination among themselves and there is a gap communication between the managers and employees, which hinders the implementation of fundamental of HRM concept to the existing work culture.

How much do your opinions about work matter to your co-workers?

Options	No. of responses	Percentage	Total Respondents
Strongly matter	11	22%	50
Moderately matter	14	28%	50
Neutral	2	4%	50
Does not matter at all	23	46%	50

Table 1: Value of workers’ opinion to co-workers

The overall definition of HRM presented in the literature indicates that the purpose of HRM is to make sure that the organization has the capability to accomplish success through people. Nonetheless, current operational practices of Kulm Harder indicate that the firm does not have any developed framework to accomplish its operational goals using its human resource.

In the study conducted by Kehoe and Wright (2013), it was observed that by enhancing employees’ skills and motivating the employees, a great level of performance can be achieved. Nonetheless, in the case of Kulm Restaurant, employees do not have the opportunity of enhance their skills as they hardly receive guidance from supervisors. This happens because there is a gap of communication between the supervisors and employees existing in the workplace (refer to below mentioned table) 

Conclusion

How approachable is your supervisor?

Options	No. of responses	Percentage	Total Respondents
Highly approachable	9	18%	50
Moderately approachable	12	24%	50
Neutral	3	6%	50
Not at all approachable	26	52%	50

Table 2: Employees views on supervisor’s approach

 A study conducted by Lengnick-Hall, Beck and Lengnick-Hall (2011) mentioned in the literature review says that HRM consists of some significant functional elements such as staffing, training and development and motivation.  Likewise, a study is conducted by Bloom and Van Reenen (2011) mentioned in the literature review indicates that the functions of HRM may include planning, recruitment and selection, performance management and appraisal and reward system. There are some other papers that provide the similar findings regarding the HRM functions but the survey data mentioned below indicates that Kulm Restaurant does not implement those elements properly and the purpose of HRM goals remains unachieved.  In addition to this, it has also been identified that although the employees seek to improve their performance but they do not receive feedback from supervisors and consequently, they lack motivation.

How far do you agree that training and development provided by your restaurant is effective enough to improve your performance?

Options	No. of responses	Percentage	Total Respondents
Strongly Agree	7	14%	50
Agree	11	22%	50
Neutral	2	4%	50
Strongly disagree	16	32%	50
Disagree	14	28%	50

Table 3: Training and development provided by the restaurant

How improved is your performance after getting feedback from your supervisor about your work?

Options	No. of responses	Percentage	Total Respondents
Highly improved	11	22%	50
Moderately improved	12	24%	50
Neutral	3	6%	50
Did not improve at all	24	48%	50

Table 4: Employee performance enhancement

In the literature review, it was studied that by applying HRM functions or the entire HRM concept, organizational productivity can be increased by leveraging the skills and competencies of each employee. Nonetheless, when the organization pays least attention to its employees, such desired output cannot be derived. One of the functions of HRM- such as planning helps to set organizational goals and policies. This means the planning stage does involve the strategy of how goals can be achieved and HRM policies can be implemented. However, such functional can only be implemented when there is a solid communication and interaction among the business heads, supervisors and employees. On the contrary, employees at Kulm Restaurant lack motivation, as they do not know whether they would receive the growth opportunities. Moreover, employees do not find motivation as they hardly receive rewards for their performance. Consequently, as employee motivation and satisfaction are questionable at Harder Kulm Restaurant, the organizational productivity is highly affected.

How far do you agree that Kulm Restaurant provides suitable career growth opportunities?

Options	No. of responses	Percentage	Total Respondents
Strongly Agree	10	20%	50
Agree	9	18%	50
Neutral	2	4%	50
Strongly Disagree	15	30%	50
Disagree	14	28%	50

Table 5: Career Growth Opportunities

How consistently does your employer reward employees for good work?

Options	No. of responses	Percentage	Total Respondents
On an annual basis	11	22%	50
Quarterly	9	18%	50
Monthly	7	14%	50
Rarely	23	46%	50

Table 6: Employee reward programs

Conclusion and Recommendation 

The completion of the report indicates that human resource with developed talents and creativity of the employees are able to reach and utilize information brings the fundamental power to deal with the competition in the world market. The review of literature implies that in order to remain sustainable in the competitive environment, the firms should focus on its internal capacity because when the organizations are internally prepared, they can take up the external challenges. However, the analysis and findings imply that Kulm Restaurant is not internally prepared for taking up the external challenge. The firm is not able to implement human resource management properly.  The survey indicates that employees are not motivated about the work and as a result, they grow a laidback attitude towards the organizational goals. Likewise, some other significant HRM issues are also found in Restaurant’s operation. Thus, to deal with or resolve the issue, the following recommendations have been provided.

Training and development programs- Employee training and development is certainly broad term, which covers several kinds of employee learning programs. Thereby, the training and development program would certainly help to enhance employees’ skills. The employees of Kulm Restaurant serve the customers of different cultural backgrounds; thereby, training and development programmes must include the elements of communication. The employees should acquire adequate communication skills by attending training programs on a frequent basis. Likewise, through development of programs, the firm needs to devise employee growth and future performance strategies.  The need of training and development of employees should not end when they go back to work. In addition, a continuous support is constantly required to make sure that training provided sticks.

Employee feedbacks- The employee feedback strategy works as employee motivation. If employees’ effort remains unrecognized by the supervisors, employees lack motivation in their work. Thereby, it is responsibility of the supervisors to provide feedback on employees’ performance on every week. In addition, if an employee takes additional initiative related to task, the supervisors should praise such effort, so that in the coming future, the employees would take such initiatives for the betterment of the organization.

Rewards and recognitions- Rewards and recognition is one of the significant elements of employee motivation. Each employee or the group of employees should be assigned with specific number of tasks and on the completion of each task, employee efforts should be recognized. The firm could provide both monetary and non-monetary benefits to the employees on their success.  Rewards system should be designed equally so that the employees of each level receive the equal amount of benefits.  

References and Bibliography 

Alfes, K., Shantz, A.D., Truss, C. and Soane, E.C., 2013. The link between perceived human resource management practices, engagement and employee behaviour: a moderated mediation model. The international journal of human resource management, 24(2), pp.330-351.

Bloom, N. and Van Reenen, J., 2011. Human resource management and productivity. In Handbook of labor economics (Vol. 4, pp. 1697-1767). Elsevier.

Buller, P.F. and McEvoy, G.M., 2012. Strategy, human resource management and performance: Sharpening line of sight. Human resource management review, 22(1), pp.43-56.

Guest, D.E., 2011. Human resource management and performance: still searching for some answers. Human resource management journal, 21(1), pp.3-13.

Jackson, S.E., Schuler, R.S. and Jiang, K., 2014. An aspirational framework for strategic human resource management. The Academy of Management Annals, 8(1), pp.1-56.

jungfrau.ch. (2018). Harder Kulm Panorama Restaurant. [online] Available at: https://www.jungfrau.ch/en-gb/harder-kulm/harder-kulm-panorama-restaurant/ [Accessed 30 Jan. 2018].

Jiang, K., Lepak, D.P., Han, K., Hong, Y., Kim, A. and Winkler, A.L., 2012. Clarifying the construct of human resource systems: Relating human resource management to employee performance. Human resource management review, 22(2), pp.73-85.

Kehoe, R.R. and Wright, P.M., 2013. The impact of high-performance human resource practices on employees’ attitudes and behaviors. Journal of management, 39(2), pp.366-391.

Lengnick-Hall, C.A., Beck, T.E. and Lengnick-Hall, M.L., 2011. Developing a capacity for organizational resilience through strategic human resource management. Human Resource Management Review, 21(3), pp.243-255.

Love, L.F. and Singh, P., 2011. Workplace branding: Leveraging human resources management practices for competitive advantage through “Best Employer” surveys. Journal of Business and Psychology, 26(2), p.175.

Marler, J.H. and Fisher, S.L., 2013. An evidence-based review of e-HRM and strategic human resource management. Human Resource Management Review, 23(1), pp.18-36.

Purce, J., 2014. The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals), 67.

Renwick, D.W., Redman, T. and Maguire, S., 2013. Green human resource management: A review and research agenda. International Journal of Management Reviews, 15(1), pp.1-14.

Sabir, A., 2015. Human Resource Management-Challenges and Synchronising Valuable Resources. International Journal of Engineering and Management Research (IJEMR), 5(6), pp.555-559.

Sierzchula, W., Bakker, S., Maat, K. and Van Wee, B., 2012. The competitive environment of electric vehicles: An analysis of prototype and production models. Environmental Innovation and Societal Transitions, 2, pp.49-65.

Tooksoon, H.M.P., 2011. Conceptual framework on the relationship between human resource management practices, job satisfaction, and turnover. Journal of Economics and Behavioral Studies, 2(2), pp.41-49.

Wright, P.M. and McMahan, G.C., 2011. Exploring human capital: putting ‘human’back into strategic human resource management. Human Resource Management Journal, 21(2), pp.93-104.