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Common law - Case Study Example

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Because human resource management (HRM) requires emphasis on the human element in business, successful strategy must be directed at the employee base more than at upper management or business design. Leadership needs to know who their employees are and be aware of the different levels of management and how they get along with other employees…
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Common law
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Download file to see previous pages Further, it is the concern of Stahl and Mendenhall (2005) that strategic and financial goals are too often emphasised in business, whilst the psychological, cultural and human resource implications are not fully recognized. A company that recognises and includes its employees in the decision-making process will enjoy increasing success in the long run. It is the long-term goals that matter the most.
Organisational development (OD) is a planned organisation-wide approach to improving effectiveness, utilising humanistic values and beliefs about the potential to grow and a willingness to make changes. Work was once considered a mechanistic and rational process, but, over time, research has indicated that organisations are not as rational as the public has perceived them to be. OD is informed by a set of humanistic values and beliefs about the potential of people and organisations to develop and grow. Effectiveness is influenced by relationships, and understanding interdependencies within the work system is critical because change in one place will have an effect elsewhere (Opening Up OD, 2004).
There are two ways to develop a business: in terms of structure and in terms of staff selection. Structure is the method used to set up the business from a mechanical and linear viewpoint. It offers a working outline from leadership to individual performance, as set forth in the Burke-Litwin model below (Using, 2006). However, a company that offers incentives for employees will find it much easier to capture the market share in the long run. In this respect, the McKinsey 7-S Framework appears to offer a more interconnected method of organisation (Famous Models 2006). Both of these systems have initiated criticism, but where people are involved, although a rigid framework might appear to bring about positive results, it leaves no room for compromise and is doomed to failure over time.
Models of Performance

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It should be noted in the Burke-Litwin Model above that although the chart appears to be linear, the use of it in this case is more interactive and circular. The response from employees at AAH Pharmaceuticals in the UK to a questionnaire conducted by an outside company, Roffey Park, garnered an 86% response. The model allowed an analysis of organisational dynamics, and the findings were fed back to employees in a newsletter, completing the circle (Using, 2006). This is one indication of how the Burke-Litwin Model can be used, but unless its structure is flexible, it could bring about a less than satisfactory result.
The Seven S Framework below appeared in The Art of Japanese Management by Richard Pascale and Anthony Athos in 1981, at a time when Japan was at the top of the global economic field. It became a basic tool for the McKinsey Consultancy and is called the McKinsey 7S Model. Whilst the Burke-Litwin Model studies activities, the 7S Model observes people. Chimaera Consulting offers their interpretation of the model (n.d.):

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