HRCI PHR – Business Management and Strategy – The HR Functions and Roles

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  • January 26, 2023
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1. Key Management Functions (1)

Key management functions in topic one key Management Functions the important management functions of planning, organizing, directing and controlling will be explained. The act of management includes planning, organizing, directing and controlling human, physical and financial resources to achieve desired organizational goals in an efficient and effective manner. In 1916, Henry Foil was among the first management thinkers to identify functions of management. He defined five management functions planning, organizing, commanding, coordinating and controlling and he believed that these functions were universal in the sense that all managers perform them in the course of their jobs, regardless of their industry.

The commanding and coordinating functions in Fios model were later mergen renamed the Direction function. The result was planning, organizing, Directing and Controlling and now is popularly known as the Four Functions of Management. So there are four kinds of management functions planning, organizing, directing and controlling. A diagram can be used to depict this cyclical pattern. Planning is a very common activity in our daily lives and we often don’t realize we are doing it. When will I wake up? When and how I will get to work? What errands do I need to run after work?

When and where to go after dinner? All these are examples of planning activities. Planning, as the management function is more for money structure file defined organizational planning in terms of forecasting future conditions, setting objectives, identifying the needs and resources, and planning actions. He also recognized that effective planning must take into account risk and unexpected contingencies. According to him, planning should be flexible and open to change. Planning is an important organizational activity that ensures proper utilization of resources to increase productivity, enhance efficiency, promote effectiveness and meet customer demands.

As HR professionals, we plan several activities at every level of the organization, including recruitment, evaluation and training. At a very basic level. The planning process typically involves establishing objectives which are statements of what needs to be achieved and when, identifying alternative courses of action, evaluating the various alternatives and making decisions about the best courses of action, formulating necessary steps and ensuring effective implementation and constantly evaluating the performance of plans and taking corrective measures when needed.

2. Key Management Functions (2)

Planning is the act of studying the future and arranging the resourcing for dealing with it, including forecasting, setting goals and deciding on the actions and there are number of types of plans and planning at different levels in the organization, including strategy Planning, Tactical Planning and Operational Planning. Now, as you know, strategy planning is first done on a corporate level to determine the organization’s purpose and direction. It is the strategy planning process that helps the company focus on the most effective ways to meet its goals. It provides an understanding of where the organization currently stands and what direction it should take going forward.

Organizational strategic planning generally has four stages formulation, Development, Implementation and Evaluation. HR professionals should understand and become partners in the strategic planning process to ensure alignment with the overall strategic plan as well as the various Departmental plans for the HR professional. Human capital planning, organizational change, management plans and human resource budgeting are some examples of strategic planning activities. Tactical Planning this is intermediate range planning carried out at the mid management level. This is done in various departments and functions. Tactical Planning has the purpose of identifying the available resources in the department, looking at the potential obstacles to succeed, and reviewing alternatives to implement the strategic plan for the HR professional.

Setting short term HR goals, developing Departmental budget plans, recruitment Planning and Performance Management Planning are some examples of tactical plans. Operational Planning is short term and designed to identify specific actions that guide the department’s day to day activities. Operational plans come from tactical plans and contribute to the achievement or organizational strategic goals.

Day Today planning for compliance, risk management and administrative activities like properly maintaining employee records and managing payroll are examples of operational planning for HR professionals. Those types of planning. There are different levels of planning. Strategy planning, tactical planning and operational planning. Strategy Planning is the responsibility the Board and Executive Management and sets purpose and direction for the organization. Tactical Planning is the responsibility of middle Management and links strategy to operations. Operational Planning is the responsibility of Operational Management and linked strategy to operations.

3. Key Management Functions (3)

Organizing refers to designing a structure to assist in accomplishing goals. The structure should effectively connect human and other resources to the task of the company. Once resources and action plans are in place, they need to be organized and aligned to deliver optimal results. At a more strategic level, the organizing function helps to identify the most effective structure for a business unit. Organizing helps define the roles, related jobs and coordination between authority and responsibility as a structure in the organization. This structure, usually in the form of an organizational chart, is a hierarchical framework which graphically shows the lines of authority and communications in the organization.

The structure determines the manner and extent to which roles, power and responsibilities are delegated, controlled and coordinated and how information flows between levels of management. Performing the organizing function generally involves four steps one, identifying activities to be performed or activities that might be part of an action plan are recognized two, organizing the activities into units or departments.

Here, management combines in groups similar and related activities into independent units and departments three, classifying roles and authority in these activities, such as classification of roles and authority, and their hierarchical ranking are conducted and four, drawing a clear organizational structure which means coordination between authority and responsibility is established. Individual roles and their accountability structure are determined. A clear organizational structure is drawn and all the employees are informed.

4. Key Management Functions (4)

Before we move on, we are going to pause for a moment so that you can answer some review questions. Whether strategic, tactical or operational, planning is an important activity that ensures effective use of resources to increase productivity, promote effectiveness and meet customer satisfaction. Which activities should you engage in to help with planning? Here you have the options create statements of what needs to be achieved, evaluate alternatives and choose the best course of action. Determine the activities to put the plan into action, evaluate performance and take corrective measures. Recruit talent and begin onboarding programs. Develop the mission and vision to set the organizational objectives and here is the answer for you to compare. Option One this option is correct. Establishing objectives by determining what needs to be achieved within a certain time frame is the first step you take when planning activities.

Option Two this option is correct. Identifying all options to achieve objectives is the second step in the planning process. Evaluating all options and deciding on a plan of action is the third step that you take when planning activities. Option Three this option is correct. Formulating the necessary steps and ensuring effective implementation of the chosen course of action is the fourth step in the planning process. Option Four this option is correct. Constantly evaluating the performance of the plan and taking corrective measures if needed is the final step you take when planning activities. Option Five this option is incorrect. You might recruit talent and orient new employees if that is the activity being planned, but this is not a step in the planning process.

And option Six this option is incorrect. Though you align your planning with the organization strategy, you don’t set over objectives in isolation. Once an organization or department has resources and action plans, they need to be optimally organized and aligned to deliver results. Next steps of performing the organizing function with the appropriate actions not all actions are part of the organizing function. These are the options identify activities, organize activities into units, classify roles and authority and draw organizational structure and these are the targets establish action plan tasks, combine similar tasks and rank similar roles and this is the answer for you to compare.

The first step in performing the organization function of management is to identify activities that might be performed as part of the action plan. Combining and grouping similar and related activities by managers into independent units and department is the second step done during the organization function of management. During the third step of performing the organization function of management, activities such as classification of roles and authority and their hierarchical ranking are conducted. The final step performed during the organizational function of management is the coordination between authority and responsibility being established. Individual roles and their command accountability structure are determined and a clear organizational structure is drawn and communicated to all employees. Formulating steps for implementing the action plan is part of planning and is not a step down in the organizing process.

Evaluating steps for implementing an action plan is part of the planning process, but is not a step in the organizing process. The directing function of management provides guidance and inspiration to ensure people complete tasks properly and on time. Which statements describe key elements of the directing function of management? Here have the options creating a shared understanding of action, plans, policies and expectations identifying what task to do within a certain time frame watching and directing the activities of a team inspiring, encouraging and stimulating people ensuring desirable actions from a team and grouping related activities into departments. And this is the answer for you to compare. Option One this is the correct option. Communication is a key element of the directing function of management that allows shared understanding of action, plans, policies and expectations and facilitates effective delegation of authority and smooth function of different parts of an organization. Option Two this is an incorrect option.

Identifying what tasks to do within a certain time frame is part of the planning function of management, not the directing function. Three this is the correct option. A key element in the direction function of management is the supervision of employees by their team leaders. Option Four this is the correct option. Again, motivation is a key element in the directing function of management, and it involves inspiring, encouraging and stimulating people to take a desired course of action. Motivation and internal feeling is related to human needs and leads to goal oriented behavior.

Managers often use positive, negative monetary and nonmonetary incentives to motivate their team members. Option Five this is the correct option. Leadership is a very important element of direction and refers to the ability to ensure desirable action from the team without the use of force and commercial. Effective leadership facilitates change, provides guidance, builds and increase employee morale, and promotes team spirit and option Six this is an incorrect option. Grouping related activities into departments is part of the organizing function of management, not the directing function.

The controlling process is a continuous process. With this function, management can anticipate future problems. Which steps are involved in the controlling function of management? Here are the options establishing performance standards, measuring actual performance, comparing actual performance against standards, taking corrective action, supervising performance activities, and or organizing performance activities into independent units.

This is the answer for you to compare. Option One this option is correct. Establishing performance standards is the first step in the controlling function of management. Performance standards are aligned with the company’s objectives and are often stated in monetary terms such as revenue, cost or profits. They can also be stated in non monetary terms such as units produced, number of defective products, or levels of customer satisfaction. Option two. Disruption is correct. The second step in the controlling function of management involves using the appropriate tools and methods to measure and report on the actual performance of employees, teams or departments. Option Three this option is correct comparing or analyzing the results of actual performance with the established performance standards. Results in corrective and preventive actions. Option Four this option is correct.

Taking corrective action is the final step in the controlling function of management. That is done. If required, correcting performance activities ensure that objectives are accomplished. This step might be necessary to prevent disruptions to goal attainment. Option Five this option is incorrect. Supervision is a step step in the directing function of management, not the controlling function. And lastly option six. This option is obviously incorrect. Combining activities into related groups is a step in the organizing function of management, not the controlling function.

5. Key Management Functions (5)

Directing is engaging in the activities that ensure effective operations. This includes leadership and motivating the employees to accomplish operational goals. Planning and organizing functions of management are fruitless unless plans and resources are put into action. To deliver results, managers need to provide direction to guidance, inspire people to complete the necessary activities properly and on time. Directing is management inaction. This is where managers get things done through their team members. Directing helps management control and supervise employees actions as well.

It is the function that allows management to support employee growth and development that is also in the best interest of the company. Communication, supervision, motivation and leadership are the four essential elements of directing. Communication is the exchange of information, facts, ideas, opinions and emotions from one person to another. It’s an important element in the directing function because it allows for the sharing of action, plans, policies and expectations and facilitates effective delegation of authority. It also promotes cooperation between business units. Supervision is monitoring and directing the activities of team members by team leaders. Motivation means inspiring and encouraging people to take a desired course of action.

And leadership refers to the ability to facilitate change, provide guidance, build and increase employee morale, and promote team spirit all in the pursuit of a common goal. Controlling is the last of the four functions of management and involves establishing performance standards and ensuring performance does not deviate from those standards. In other words, controlling is ensuring everything happens according to the plan. Controlling is a continuous process.

With this function, management can anticipate future problems and take corrective actions. Controlling generally follows four steps establishing performance standards that are aligned to the company’s objectives often stated in monetary terms such as revenues, cost or profits, or in nonmonetary terms such as units produced, number of defective products or levels of customer satisfaction. Measuring the actual performance using appropriate measurement processes and tools comparing actual performance against standards and identifying any deviation and when necessary, taking corrective actions.

6. Managing Organizational Change (1)

In topic two managing Organizational Change the role HR plays in developing, influencing and executing organizational change management strategies is discussed. Change is defined as an alteration or transformation individuals, teams and organizations undergo in response to internal and external forces. Often the external forces are beyond the control of the company, though an organization can choose their response to these forces. Examples include competition, economic factors, social and demographic factors, political and legal factors, and changes in technology. Other sources or other forces of change are internal to the organization. Some are company initiatives to improve the organization.

Others are in response to external factors or are the result of a major organizational event such as a merger, acquisition, or impending legal action. Additional examples include a change in organizational strategy and goals, organizational development and restructuring initiatives, introduction of a new technology, and corporate governance and regulatory compliance related changes. So these are the forces of change. There are some external and internal factors that force change. Some internal forces include strategic forces, organization development, customer market and product and corporate governance and compliance. Some external forces include global forces, competitive forces, technological forces, economic force.

7. Managing Organizational Change (2)

Change is an inevitable part of modernday organizations. Regardless of the cause, the reality is managing change is a key function of management. One reason HR professionals should be involved in all aspects of organizational change is because managing change involves managing people. It is about supporting employees transitioning from the current state to the future state. There are a number of reasons why properly managing change is important for the organization.

First, change can happen at an incredible pace, so organizations need a structured approach to help individuals impacted by these changes. Next, change management focuses on the human side of change and ensures that employee participate, ensures empowerment, and that their engagement in the change process is real. This approach is more effective than the standard top down enforcement of change. And finally, in today’s business environment, speed and agility are valuable. A strong change management model to quickly and effectively implement change by using change management as a tool can provide a great competitive advantage. However, poorly managed organizational change can result in reduced productivity, strong employee resistance, confusion, and even financial loss.

And managed organizational change can negatively affect employees psychologically, emotionally and physically, leading to stressrelated, illnesses, loss of productivity, damage working relationships, and the loss of good employees as they search for employment they believe is more secure. Employees and people in general often resist change because they perceive change as a threat to their comfort zones. Not knowing what to expect and consequently expecting the worst creates stress, confusion, anxiety and uncertainty.

This can lead to employees withdrawing, becoming skeptical and distrustful, and shifting into such protection or even survival mindset. Resistance to change can be open for example, launching an organization drive or more subtle such as presentation or even intentional destruction of company property, often viewed as a loss. People handle change in the same way they handle significant loss in their life. First there is shock and denial, then anger, followed by discussion and negotiating, then depression and detachment, and then finally acceptance. HR professionals should anticipate these stages and manage them effectively. Believe.

8. Managing Organizational Change (3)

Organizational change management is a systematic approach and involves applying knowledge and resources to effectively manage the process. There are several guiding principles of change management. First, communicate the need and vision for change. Employees are more likely to accept change when they unlock understand the reason that make it necessary. Communication should be regular and timely and done through several different channels. Also, creating and communicating a vision of the future helps set the change in the employees’minds, making it more familiar and acceptable and making the perceived loss less painful.

Second, involve employees at every level of the organization in the change process from the very beginning. This will help entrust and acceptance and create a sense of ownership among the employees rather than a positive acceptance of what is being done to them. Third, facilitate the change, removing obstacles like uncertainty and fear that can lead to resistance. Leaders should support the desired behaviors by modeling the desired changes. Employees also must understand exactly what is expected of them. Fourth, you need to motivate employees, for example, by celebrating shortterm wins in the change process.

The change process can be long and hard, and periodic motivation and reward can help keep everyone focused on the goal. And finally fifth, incorporate a change into your culture. An organization’s culture is made of the collective values, beliefs and behaviors of its employees at every level. Incorporating the desired behaviors into daily activities helps make the change an accepted part of everyday work life. The ultimate goal of change management is to adapt and make changes quickly, effectively and economically with as little negative impact as possible on customers, employees, suppliers and the community at large.

HR should be involved from the very beginning. In any new change initiative, HR professionals should realize that there are three actions which taken during their corresponding phases help the change management team successfully plan for and implement change in the organization. First is preparing the organization for change. This is called the pre change phase. Next, managing the change or the change phase. And finally, reinforcing the change, which is the post change phase.

9. Managing Organizational Change (4)

The prechange phase involves identifying issues which are causing the need for change, creating a vision for the change and assessing the organization’s readiness for that change. Then, keeping the vision in mind, a change management plan and communication plan are prepared to make the change happen. Possible resistances to change are identified and strategy to overcome the resistance is also worked out in this phase. Now, there are a few general steps to help prepare the organization for change. First, determine what needs to change. Next, assess readiness and define your change management strategy. Then, prepare your change management team and finally, develop a change management plan, including a communication plan. Implementation of change is only appropriate when the organization is prepared and ready for the change.

There are four steps necessary in a strong change plan and again, communication is key. Communicate a vision and plan for change by communicating the need and the risk of not implementing the change and answer any questions honestly. Linking answers to operational requirements whenever appropriate. Gain commitment by accurately describing the effects of the change as they are currently known. Resolve and perceive fear and uncertainty associated with the change clarify the goals and benefits of the change as it applies to the organization and the employees.

Involve people in the change process by mentoring and coaching them through the process and develop individual action plans to help employees own the change and then take action and implement your plans by communicating and managing implementation schedule, providing necessary training, identifying and removing any remaining barriers and finally, reinforcing the change by recognizing and celebrating shortterm wins.

10. Managing Organizational Change (5)

Once implemented, change should be reinforced. Managers should regularly monitor and evaluate the change process. This helps identify improvement opportunities in the process and helps make necessary adjustments. This can be done by checking for success success through post implementation review, collecting data on the change process, and analyzing employee feedback.

Also, be aware that employees may reverse the always very quickly support and sustain the change by ensuring you have leadership support, adapting the structure of the organization, and implementing and enforcing a system of accountability. When change becomes part of the organization’s culture, it becomes part of the organization.

This can be accomplished by clearly communicating the connections between the new way of working and organizational success, encouraging the new way of working by providing financial and nonfinancial incentives, and reinforcing the new culture with every employee at every opportunity.

Now, as I have said before, HR professionals should be involved in the change process from the very beginning, and they often provide advice and support the leadership team in a number of areas before, during and after a change. In addition to strategic support and advice on how the change may affect employees, HR professionals help manage, support and communicate change by using a number of effective strategies.

For example, implementing a new wellness plan involves communicating with employees on increasing healthcare costs, educating them in the personal cost of chronic conditions caused by smoking, obesity, and the lack of exercise and encouraging them to adopt a healthier lifestyle both inside and outside of work. HR should help create an organizational culture that welcomes change and is flexible enough to incorporate change whenever necessary.

HR professionals also play an important role in organizational change management by exhibiting a personal commitment to the change and positively supporting the change helping develop an organizational change management strategy and incentives plan, educating employees about the need and various aspects of the change. Also, ensuring regular communication with employees and management throughout the process and ensuring senior management visible support for the change. Anticipating resistance and finding ways to deal with it is also very important. Promoting employee participation in the change process and ensuring their buying is vital to success and finally, advising senior management about their expectations of the change process and supporting them with data and facts.

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