Aphri Shahad Alnouri - Organization Strategy, HR Metrics & Organizational Structure

Aug 25, 2026

Uploaded by Aurelia

Organization strategy content explains how vision and mission statements guide an organization’s direction and purpose, while emphasizing budgets’ roles in coordination, integration, motivation, and control. The document defines key HR metrics and derived calculations, including revenue and labor-based ratios, human capital ROI and value added, HR expense factor, absence and turnover rates, hiring cost, time to fill, and training and benefit investment measures. It also covers HR operational approaches such as outsourcing and HR portals, and reviews organization design decisions, structures, coordination methods, and culture concepts with change steps.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages14

Reading Time35 min

AccessFree to download

Vision and Mission Statements

Budgets and Purposes

HR Metrics and Calculations

Revenue and Labor Ratios

Human Capital Measures

Absence and Turnover Rates

Hiring and Training Metrics

HR Practices and Service Models

Outsourcing and HR BPO

HR Portals

Organizational Structure and Design Decisions

Departmentalization and Authority

Matrix and Functional/Product Structures

Coordination Methods

Span of Control and Organizational Height

Culture and Climate

Values and Shared Assumptions

Culture Maintenance Forces

Steps for Changing Culture

organization strategy determine the direction it will go and serve to coalesce the energies vision statement imagine in detail what the company will become if successful mission statement explains why an organization exist. (NOT MEASURABLE) Budgets have three major purposes: coordination and integration, motivation , control and evaluation Metrics: Revenue factor: revenue / total number of FTE ( full time employee) Revenue per labor cost: revenue / total labor cost Human capital ROI: [ revenue –( operating expense –( compensation cost + beneﬁt cost )) / compensation cost + beneﬁt cost) Human capital value added : [ revenue –( operating expense –( compensation cost + beneﬁt cost)) / total number of FTE HR expense factor : HR expense / total employee !"\#$%& () *+,- +$-%!. /! .0% Absence rate = ~~ ~~ ∗ 100 +1%&+2% !"\#$%& () %\#34(,%%- *"&/!2 .0% \#(!.0 !"\#$%& () -%3%&+./(! *"&/!2 .0% \#(!.0 Turn over rate= ~~ ~~ ∗ 100 +1%&+2% !"\#$%& () %\#34(,%%- *"&/!2 .0% \#(!.0 Cost per hire = %5.%&!4"6\#($-%.-&7(/)!.%0/&&!%~~ ~~6(-.-~~ ~~ ( measure only the cost of hiring new replacement and not the current employee) Turnover cost per employee = -%3&+./(! 6(-.-7&%34+6%\#%!. 6(-.-7.&+/!/!2 6(-.-74(-. 3%&)(&\#+!6% !"\#$%& () &%34+6%\#%!. Time to ﬁll = .(.+4~~ ~~*+,-~~ ~~%4!$\#-%$*%&.0(/)&/%44*&%8"/-/./(!~~ ~~ Training investment factor = total training costs / headcounts Employee beneﬁt as a percent of payroll= .(.+4~~ ~~%\#3(4,%&4~~ ~~2&$(%--!%3/,.&-3(4+4,\#%!.-~~ ~~--- Human outsourcing can be a cost eUective method because: 1-outside expert can use economies of scale to perform HR functions 2-outside expert can use their expertise and broader perspective 3-outside expert are better prepared to keep abreast of technological advances -- Some companies outsource all of their HR function to a single vendor called HR business process outsourcing ( HR BPO) -- HR portals allow employee to access their own personal information -- Advantage of voice mail, text, and email message is that they can be transmitted to a list of individuals -- The employers can’t prohibit the use of social media because that would abrogate their employee’s right of free speech. -- Organizational structure: the ﬁxed relationship among the jobs in the organization Design decision involve organization design: 1-departmentalization 2-delegation of authority 3-coordinating mechanism 4-division of labor 5-span of control - Matrix structure is usually a combination of departmentalization with function and product. - Functional departmentalization advantage that it promotes skill specialization. the disadvantage it reduces communication and cooperation between department. - Product departmentalization combine job that produce similar product. Advantage: create great interdepartmental coordination and focuses on producing eUective product. Disadvantage: the skill are not fully utilized unless the company is very large , also it may lead to increase costs because of the duplication of activities -- Five method to achieve coordination: 1-direct supervision : designed supervisor who tell what to do 2-standardization of work process: routine jobs can be coordinated through standard operating procedures 3-standardization of output: when product must be produced according to technical speciﬁcation 4-standardization of skills: highly skilled and trained employees can typically coordinate their own activities 5-mutual adjustment: mutual adjustment refers to a constant interchange of informal communication - Specialization is low when employee perform a variety of diUerent tasks and high when each person perform only a single task - Organization that use a broad span of control are ﬂat. If each manager supervises a few subordinate the span of control is narrow, and there’s a tall organizational structure - Large span of control depends on 4 situational: 1-contact required: jobs that requ

FAQs

How do vision and mission statements work in organizational strategy?

The vision statement imagines in detail what the company will become if successful, while the mission statement explains why the organization exists. The document notes that the mission is not measurable.

What are common HR metrics and how are they derived?

The document lists metrics such as absence rate and turnover rate (both expressed as percentages), revenue factor (revenue divided by total FTE), revenue per labor cost (revenue divided by total labor cost), HR expense factor (HR expense divided by total employee), and training investment factor (total training costs divided by headcounts).

Which organizational structure and coordination approaches are discussed?

It covers organizational structure as fixed relationships among jobs and outlines design decisions like departmentalization, delegation of authority, coordinating mechanisms, division of labor, and span of control. Coordination methods include direct supervision, standardization of work process/output/skills, and mutual adjustment, and it distinguishes functional vs product departmentalization and matrix structures.

Aug 25, 2026

Uploaded by Aurelia