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Organizational development - Essay Example

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ORGANIZATIONAL DEVELOPMENT Part 1 26th, February 2013 a) External Environmental Factors The general organizational strategy is greatly influenced by the external environment. Specifically, macro environmental factors impact on an organization in various ways…
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Download file to see previous pages They are applied to understand the aforementioned elements (Armstrong, 2009). After using such strategic concepts, the following factors and their effects on Aldi are being discussed. Competitor Power Competitors may look to poach the employees of Aldi through head hunting. This is a very common threat faced by most of the organisations. You invest so much of money to train and develop an employee and suddenly he or she may be poached by one of your competitors leaving an organisational gap. In this case, the competitor might be offering more attractive compensation to the employees, therefore, making the employees to leave, especially if the company lacks enough finances to upgrade its employees’ compensation (Bamberger & Meshoulam, 2000). Economic Uncertainty Economic uncertainty may lead Aldi to freeze their recruitment temporarily or even release some of the existing employees, or it may lead them to cut short on some of the employee benefits leading to a state of organisational unrest. When this happens, the trained and skilled employees will lose their jobs in Aldi, leaving Aldi with few employees, therefore, a shortage of skills that previously were present occurs. This will be felt in the workload of the company, which will be demanding for the employees left behind to handle (Torrington, Hall & Taylor, 2011). However, this will be beyond the control of Aldi. Talent Shortage At some point of time the Aldi may come across a phase when demand is greater than supply, i.e. there is need for quality manpower but there is a lack of adequate supply. Talent shortage may be for senior executive position or for new comers (Bamberger & Meshoulam, 2000). This can become challenging to the organization, since more skills and talent will be required to address new demands in the market. This might lead to poor performance of the company. Industry-centric Some organizations are more affected by employee turnover than others. This is something they cannot control because of their nature and specialization. These kinds of organizations are those that deal with tourism, healthcare, food, and retail industries. Aldi, being a retail company therefore, puts it in a situation whereby most of its employees could leave. Most retail companies do not require employees who are highly skilled, like other professional careers. Therefore, this is Aldi’s nature, which is beyond the organization’s control. A good number of employees might leave Aldi, since there are many other retail companies, where they could get opportunities too. Additionally, employees working in jobs that require less or simple skills, such as retailing, are more likely to switch jobs (Armstrong, 2009). b) Aspects of Corporate and Human Resources Strategy Nowadays, it is widely believed that human resources of an organization is influential in the organization’s productivity levels. The human resources can as well be the source of an organization’s competitive advantage over its competitors. This is achieved when the human resources has adopted effective policies for managing people, who are the employees, and these policies have been integrated with the culture of the organization, as well as the strategic business planning of the organization. With this, Aldi, as an organization, can also make use of different aspects of human resources and corporate strategy to enhance its organizational capacity. The human resour ...Download file to see next pagesRead More
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