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2011 International Conference on Sociality and Economics Development

IPEDR vol.10 (2011) (2011) IACSIT Press, Singapore

The Strategic Objectives for Restructuring HR and Significance

of Strategic Role for Future Leaders
Ali Muslim Bin Aqeel 1, Aamna Shakeel 2 and Ali Naseer Awan 3

Tele: +92-3445470534, E-mail: alimuslimbinaqeel@hotmail.com

E-mail: aamna.shakeel@hotmail.com
E-mail: maliknali@hotmail.com

Abstract. The paper reflects the concept of long term objectives made by the hr managers to
redesign the functions and operations of an organization. The success relies on the effective
implementation of these objectives but also on the motivational power of the employees. Paper also
discusses the reasons for which organizations go for restructuring but the core is to attain profit and
sustainability. We cant deny the fact that to achieve success the organization management should be
efficient and employees must be trained. Certain organizations to achieve success in implementing
strategies starts downsizing that affect the loyalty of employees which results in organizational crisis.
Therefore role of strategists is to keep an eye on the external environment of business and forecast
new techniques to reorganize and improve business. Furthermore the paper exemplifies about new
hired talent and how strategists help them in increasing their vision and enable them for carrier
development. Finally it concludes that restructuring of the organizational culture and strategies help
the organization in gaining competitive advantage.

Key Words: strategic objectives, organizational success, employees loyalty, restructuring,

competitive edge.

1. Introduction
Role of hr has always been vital for the development of an organization. As competition is
increasing among rivals, organizations are spending more finances on hr department to make the
organizational structure and its operations more efficient and effective. Today hr managers are much
more concern in building such action plans that can lead the business towards profitability, growth,
diversity and increase the tendency of the firm to extend its sales, ownership and manufacturing to
new markets. They prefer to innovation by keeping in view their competitors. Change in technology
brings different modes to carryout organizational operations, hr strategists aim to adopt these changes
in order to keep the firm surviving. Hr strategists motivate their employees to perform their best
potential and to align their objectives along with the objectives of an organization to provide
maximum benefit to the business. The foremost responsibility of hr manager among these is to hire
right individual for right post, provide orientation to new employees and mentor them, provide
trainings, improve job performance, create working environment, generate policies according to
competition, control labor cost, polish skills and abilities, provide secure environment, and health

2. Literature reviews
As restructuring is considered to be the key to develop the power of an organization consistent
and strengthen its structure there are various researches conducted on restructuring hr, as it performs
core functions and on developing future leaders. (Plesis, 2007) paper reflects the importance of
change in culture, and to develop organization by successful leadership and accurate decision making.
They suggested increasing the budget on training that could bring surety in employees success. (Hitt

et al., 2007), a mulltifunctional factor that assists

the organizations
s survive witth the chang
ge which
appears to be essenntial in todayys global buusiness landscape (Hueyy, 1994); Nooble 1999;Bo
ossidy &
d that the
Charan 2002; Kaplaan & Nortonn 2004; Hrebbiniak 2005. In additionn it is widelyy recognized
major hurdles
in thhe area of sttrategic mannagement arre related to strategy im
on not to
strategy formulationn (Flood et al., 2000) and strategic imp
plementationn is the drivinng force and
d the vital
ment for effective and bettter-quality performance
of the organnization (Kapplan & Norto
on 2000).
Thereforre a lack in strategic
leaddership speciifically at thee top of the organization
is identified to be the
biggest barrier
and hurdle
in efffective Strateegic executio
on (Alexandeer, 1985; Beeer & Eisenstat 2000;
Hrebiniaak 2005)

Fig.1. Conceptual
moodel of organiizational deveelopment and its
i entire restru

3. Imp
portance of restructuring and
a strategists challlenges
As technology
in new
w methods of
o achieving success it allso provides solutions to doctoral
ms. Comparisson to previoous ways to conduct org
ganizational operations, sstrategists ad
dapt new
techniquues to carryoout businessses successfuully. Advanccing to new techniques is always visible
strategissts and admitts as a strongg challenge, somehow th
hey fail to im
mplement or develop poliicies that
help in carrying
outt the operatioons in new manner.
We tend to listeen about the failure of su
organizaations but the basic factoors due to whhich any org
ganization faails are unideentified. The fact due
which any
businesss fails depeends upon the
strategies, objectives, policies and their in
executioon. To make organizationnal structure and operations sustainabble, restructuuring its dep
is the fiirst step tow
wards its growth. The most
nt of all is the
t renovatioon, maintenaance and
reorganiizing of hr deepartment annd its functioons, because recruitment of an employee initializee from hr
ment, their traaining, devellopment andd performancce comes unnder hr and iif these funcctions are
not perfformed effecctively than whole of thhe organizational structurre would coollapse. Reorrganizing
makes organizations
s growth connsistent and brings consstructive blooom in emplooyees talentt so they
could annalyze their area
of weakkness and geet appropriate trainings. We
W could deeem employeees as an
asset off an organizaation and it is
i mandatoryy to develop their skills for future joobs by using
g training
need anaalysis (TNA)) timely.


4. How Restru
Therre are variouus methods for
fo restructuriing, dependiing upon the nature of ann organization as well
as it deppends upon the
t criteria set
s to achievve the vision and missionn. Although it is very diifficult to
reorganiize the policcies, operatioons, functionns, framewo
orks, plans, designs
and whole of th
he entire
structuree, their requuires a clearr path for which
the organization develop its strength as well as
professioonal strategists who caan fabricate the contextt of businesss. Most grrowing organ
keeping in view the needs of em
mployees and its vision maake strategicc plans and oobjectives, no
ot only to
mpetitive eddge but alsoo stimulate motivationaal level of employees to achieve success.
get com
Dependiing upon thee necessitatioon certain obj
bjectives musst be formulaated by any oorganization to fulfill
its ambiition and resstructuring. 1.
1 Organizations must orriginate a keey plan to seend its emplloyees to
successfful organizations for mutuual trainingss and practicees. By this viision of empployees get broader to
work wiith competenncies and theey can utilizee their best to
o develop orrganizationall sustainabiliity. Plans
must incclude only thhose employyees who worked in the culture
of orrganization ffor more than
n 5 years
and loyaal to the orgaanization. Moostly it happeens when any organizatioon send it em
mployees to any
a other
organizaation, the othher one hire that employyee providin
ng much inceentives and base salary, so loyal
employeees must signn a detail coontract that includes
h section thhe employee or an emplo
oyer will
not leave the organizzation as if he
h will be offfered by any other organiization until hhis contract time will
not end. 2. Managgement mustt develop thhe feeling in
n employeess as they are the ownerrs of the
organizaation that willl help to enhhance their performance.
. Employees must feel freee to come with
w such
ideas thaat help in suuccess of an organizationn and must be
b appreciateed for their innvolvement as it will
develop interest to work
for the betterment of the firm. 3.Considerinng employeees as an asseet for the
firm there must be certain
compeensation pacckages, bonuses, incentivves apart from
m the base saalary that
too be much loyal
to the organizationn. 4. After pperforming survey
help in motivating employees
external markets the basic salaryy must be fixeed according
g to the pay given
to the eemployee at the same
position in other orrganizations. As incentiives are paid on the peerformance of individuaal so the
attractivve package could bringg and enhannce the mottivational faactor to worrk, to achieeve such
compenssation. 5. Orrganizations must link peerformance management
with organizzational goalls; means
the feeliing of an em
mployee to work
should not only to work for him
m or to get his objectives but to
align hiss goals with the goals of an organizattion. 6. TNA
A must be connducted on ddaily bases so
o that the
ment could know the strengths
of an employeee, his weakkness as weell as to identify the
improveement or poositive changge acquire by him. Beenefit of TN
NA is to eevaluate the existing
performance of empployees and creating waays to improv
ve it. The performance may get imp
prove by
providinng training or
must originaate a way to
o mentoringg or by counnseling. 7. Management
o provide
professioonal traininggs with the help
of hr connsultancy. Professionals must be hireed from out sourcing
to manaage the operaations in mucch effective way as they are much aw
ware of the eexternal environment
and com
mpetition andd train the em
mployees acccordingly. 8. Senior manaagers must pperform theirr roles by
making such decisiions that coould help em
mployees to provide traaining and development (T&D)
a provides a way to prrepare themsselves for
feedbackk. The feedbback helps inn grooming employees
future joobs. As succcession plannning is the most importtant functionn of hr its ppurpose is to
o prepare
future leeaders, so byy providing T&D
feedbacck the person
n on higher joob will train the person on
o the job


one step down. As when the person on higher jobs shifts to any other post, the coming employee
would be train for the tasks he need to perform on the new job.

5. Significance of Human Resource Development (HRD)

We can consider hr as the solution for the development of organization as well as the trade and
industry. In HRM humans are the driving force to bring in success by utilizing their internal skills and
abilities. As restructuring the hr department and its functions, management comes with new ideas to
originate more effective and impressive designs that help in accomplishing the goals of organization.
When hr develops organization develops similarly when employees are provided with trainings and
tests so they prepare themselves not only for the future jobs but also develop core competencies that
help them to complete assigning tasks in future. HRD helps in increase the productivity as the skills
improved than resources are also efficiently utilized. When organizations develop their structure with
support of hr than it is also significance for the country as it is known when human resource develops
nations develop. The basic purpose of HRD is to focus acquisition of attitude, behavior, skills and
knowledge of employees. Skills and knowledge are enhanced as provision of trainings conducted but
the attitude builds in organizational culture. Apart from talent required for certain job the most
important thing is to understand the culture of the organization. Most of the people prioritize salary or
other incentives but later on unable to set and feel uncomfortable to adjust themselves in the
environment or culture of the organization so the culture values also impact the work of employees.
Furthermore HRD provides with carrier planning and carrier development. When employees get the
sense how to perform their jobs they go for carrier planning whereas carrier development is when
employees get trainings and shift from jobs is carrier development. As employee has a personal vision
and goal on the other hand organization has its own goals and when the employee plus organization
vision align together, shared vision help both in development to success and carrier planning. When
new talent is hired usually organizations spend much finance on conducting trainings and developing
them for future positions. Successful organizations plan their career by themselves. As performing a
strategist role hr managers provide maximum tasks, conduct trainings, organize workshops to polish
the skills of the new hired talent. Consultants and hr professionals from other organizations when
provide trainings the vision of the hired talent also becomes broader but the question is how strategic
role significant for future leaders? As a strategist there exists many responsibilities and one of the
basic is to provide mentoring as well as counseling to employees. On initial stage the new hired talent
is oriented with the culture of the organization and provides training as an internee. When he learn the
tasks, become able to perform and know the job description than mold himself accordingly. All the
stages are been mentor by hr strategists so that new hired employee can utilize the hidden talent and
use skills effectively for providing quality work. This all help an employee to boost his motivational
strength, plan and develop his carrier. Strategic role is not only significantly beneficial for the new
hired employee but also beneficial for the strategist as the strategist develop the employee for future
he also develops himself for higher posts. This was been discussed in the paper earlier that if we
contemplate of succession planning, it helps in developing future leaders for the higher posts having
competent leadership quality. This all come through tasks, coaching, guidance and all an individual
learn from the culture of an organization. So in order to make organizations successful, to achieve its
aim and to generate maximum profit the management must involve itself in making objectives that
brings effective succession planning because the future of any organization depends on its employees
and dependability of leaders is on the output that organizations give them in the form of compensation.
Those organizations who dont restructure themselves according to external competition can never
survive for long so if they want success they must involve a collaborative team of executives with
lower management to listen the issues and their perceptions to fabricate and mold organization

6. Conclusion

Strengthening the organizational hierarchy and maximum utilization of employees competencies,

keeps the organization running. As the future rely on the strategic objectives and strategists decisions
that how they formulate the objectives for restructuring the entire organization, there must be
involvement of top, middle and lower management to present their theme to improve the system.
Organizations must analyze the external environment to align their employees accordingly by
providing professional trainings as well as orient new modes that are much reliable and helpful for
employees in performing operations. Furthermore organizations must change the compensation plans
so that the employees motivate themselves, and work by keeping in view the vision of the
organization. If organizations will able to develop the feeling in employees that it will be responsible
to secure their future and plan their carrier than the employees make assure the companys success
and when objectives are clear, restructuring done for the betterment of employees not only to gain
profit, and new hired talent is prepared through proper counseling and mentoring to turn out to be
leaders of the future than success is no doubt certain.

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