Friday, October 16, 2015

Corporate Organisation

The global competition and fast changing market conditions force companies to be more competitive and innovative else they go out of business.

The companies are made of employees. Therefore who is currently working for the company is very important for its future.  The firms need adequate number of employees who are criticizers.  If this number is not enough one should not expect ground breaking innovation from the firm. These criticizers should be in all levels including the upper management.

Starting from the lowest corporate hierarchy, there should be employee surplus. At the lower end, the surplus should be low and at the very top it should be the highest. These excessive human resources are necessary for the following reasons:

-  Employees need time to develop innovative ideas, ideas that would improve current processes and procedures. There should be enough time for them to make analysis.

- As you move upper in the corporate hierarchy developing strategies become more important. Every employee can contribute to the strategy. The upper management has advantage because they usually have broader vision as well as more experience.  Therefore they need more time to develop strategies as well as lead process and procedure improvement projects.

- The companies need continuous improvement on their processes and procedures. This requires relevant employees spending time on analysis of current conditions and improving them. Most companies have limited number of employees with good knowledge of the work. This limitation coupled with under employment results poor analysis of internal projects. Experienced people are usually overloaded, which makes the inexperienced people making the analysis for the project. Reducing the project effectiveness. This can be overcome by adequate excessive human resources.

- The problems need root cause analysis which is time and labor intensive. A company with overloaded people can hardly spare time and resources for this. Therefore inappropriate solutions to the problems cause other problems and increase the stress level within the company.

- Most work environment stress is a result of overloaded people. Which effects employee health  and reduce their efficiency.

Excessive human resources approach does not mean the companies should not develop projects to reduce work force. Such projects are important for companies competitiveness. The idea is that even after work force reduction there should be some excessive force left for doing the extra work stated above.

Finally, employees make up the company therefore the companies should pay attention on hiring them as well as firing them. Firing as well as hiring is important for the firm. One rotten tomato can spoil the hole basket.