Definition: What is an Organization?
An organization is a structured entity that brings people, processes, and resources together to achieve a specific set of goals and objectives.
For instance, a company or an institution that employs individuals.
Your role, as HR, is to ensure that the organization you serve is well-structured, efficient, and aligned with its goals.
Table of Content
- Definition: What is an organization?
- What is the Process of Organization
- Key Components of the Organizational Process
- What are the Characteristics of an Organization
- Importance of Organization in Human Resources
What is the Process of Organization
The organizational process involves is about strategic structuring and managing both human and non-human resources of the organization. This is done to facilitate the smooth operations of the entity that’s doing it.
It begins with setting clear objectives, defining the roles and responsibilities of, establishing multiple communication channels, and creating a strategy for decision-making.
Key Components of the Organizational Process
Goal Setting
This process involves setting clear, measurable, achievable objectives for the organization. These goals give a direction and a purpose for where the organization is led.
Structure and Hierarchy
A proper hierarchy of authority and responsibility is a sign of effective organization. It defines all the reporting relationships of teams, who will have the decision-making power, and what will be the flow of information within the company.
Resource Allocation
This is another thing to understand. An effective organization has a proper system for resources allocation, including financial, human, and material resources. It helps in achieving organizational objectives effectively. Plus, it involves budgeting, workforce planning, and resource optimization.
Processes and Workflows
To ensure the tasks and activities within the organization are carried out efficiently, the entity needs to ensure that they define their processes and workflows. Such operating procedures promote and ensure consistency and quality in the final work results.
Communication Channels
The organization needs to establish clear communication channels because they’re important for sharing vital information and collaboration. When the communication channels are effective, it fosters a sense of belonging and keeps everyone in the organization aligned with the organizational goals.
Performance Evaluation
One of the most important parts of the organizational process is to regularly assess the performance of set goals and standards. That way, you can identify areas for improvement, while recognizing achievements.
What are the Characteristics of an Organization
Several key characteristics define an organization. Let’s go over them one by one.
Structure
The first and foremost is an organizational structure. It means an organization with a clear and defined structure that has outlined their hierarchy, reporting relationships, and division of labor. It helps employees to understand their roles and responsibilities within the organization. That, eventually, makes it successful.
Goal-Oriented
Any organization that exists, their major goal is to achieve specific objectives.
Now, HR plays an important role in ensuring the all the human capital they have aligns with the organization’s overall goals and objectives.
People Centric
People make or break an organization. They’re an integral part of it. And you, as an HR professional, are responsible for recruiting and retaining then, and developing the workplace. So, you’re one of the most important parts of an organization and so is selection of other HRs under you.
Culture
Every organization works differently. Similar to that, the culture of every organization is also unique. It defines their values, norms, and beliefs. As an HR, you have to shape and maintain this culture because it directly impacts employee engagement and satisfaction.
Continuous Improvement
The market conditions and customer needs keep evolving. So, in that case, the organization must adapt and evolve in response to it. So, your role here is to identify areas of growth and development and foster a culture of continuous improvement.
Importance of Organization in Human Resources
Human Resources are important in an organization. However, this is often overstated. Here are some of the key reasons why an organization wouldn’t work without HR.
1. Efficient Resources Utilization
A proper organization with a purpose of succeeding makes sure that each of their resources, including human capital, are always used efficiently. So, your job, as an HR, is to allocate talent effectively to maximize productivity and achieve organizational goals.
2. Compliance and Risk Management
Labor laws and regulations are a variable factor and may change depending on the government. So, you have to play a critical role here to make sure that your organization remains compliant. A proper organization has minimum risk of legal issues and financial penalties.
3. Employee Engagement
A good organization has a well-organized HR department. It creates an environment where employees feel supported and valued. That way, you can increase job satisfaction and lower turnover rates.
4. Talent Acquisition
When you work for an effective organization their recruitment and selection process is always streamlined. It promotes faster hiring, and you’re able to attract top talent, which is vital for an organization’s success.
5. Development and Growth
Your organization should support employee development as it will contribute to the growth of your organization in return. However, to ensure this happens in your organization, you’ll have to figure out your training needs and career progression opportunities. HR plays an important role in helping employees reach their full potential.