Statement of Opportunity
Nexus Training Academy is determined to provide, career oriented and community welfare, ‘Special Apprentice Training’ program to all the individuals who have completed eight and above, years of education.
Organization Structure: Impact and role in organization development
The primary role of any organization structure must be to promote necessary co-ordination across decisions which are interdependent, hence it is important that the model which is selected and implemented is good enough to permit and promote decomposition, hierarchical connections and genuine performance based employee engagement. In the interest of sustained operations, it is important that the basics of organizational configuration are kept in mind and therefore it becomes a need, to assess the impact of the various organization structures on a particular setup[ CITATION Sig01 \l 1033 ].
The key deciding factor here will be, whether we would want a decentralizing or a centralized structure to support the organization, however with the kind of staffing options available a centralized pattern looks most feasible. If we look at making a selection from an executive director’s point of view, it will be very interesting to see that the initial setup needs to have a formal design which will primarily enhance the flow of communication, increase structural links, maximize co-ordination across departments and promote quick decision making as all these will be the pillars of support in developing the regular operations of the organization within short time[ CITATION Sig01 \l 1033 ].
Now, that we have assessed the primary requirement of this setup, we may proceed to analyze the various organization structures available, which will help us to select the most appropriate option.
The first and the most simple organization structure that we can consider is ‘Decomposition’, the best part of this structure is that the decision making is independent and departmental, which helps to catalyze the operations. The problem with this kind of structure is that, there is too much reliability on individual decision making and hence the risk is higher which is not advisable for a new setup. The other two options that we may consider are Firm-Level Incentives and Managerial Ability, now there are multiple reasons behind them not being appropriate options however the primary reason is that these are decentralized structures and therefore will not suit a setup where an executive director plays the primary role.
Hence we are left with the option ‘Vertical hierarchy’, where pyramid based functionality will be present and the flow of information, decision making and departmental approvals, will be under the supervision of the executive director. If there are two departments D1 and D2 in this setup, both of them with ensure that any decision that impacts them individually or together is taken only after an approval from the executive director and similarly the flow of information will also be parallel and will come from the top of the pyramid, which means directly from the executive director.
Factors related to Community and Environment: A risk and benefit analysis
The initial setup of Nexus Training Academy will have high financial requirements; however the initial operations will start with base funding of $1.6 Mn and post that it will be a requirement of the organization to reach a break-even point so that the cost of operations and further investment can be generated by the organization itself. As a part of the setup planning, the risks and benefits must be discussed and necessary recommendations must be made for any high risk factors which are involved.
Considering that the organization type is non-profit and the primary goal is public and community welfare, competition will not make a lot if difference and the primary reason for the same is the pricing of the training programs which will be subsidized and will only include operational cost however no profit component will be a part of the same. Secondly, although the initial funding may prove to be a little tight according to the expected level of operations, there are various other channels of cost management and return enhancement which will help to neutralize the adverse impact. As an example we may consider the benefits drawn by giving an internship opportunity to the students and use their learning in a professional environment, the earning done due to the work during internship period will help to further raise funds for organizational development.
Employment opportunities will make one of the most important factors and is definitely a high risk area, hence it is required that there is a dedicated department which will contact employers and will work as an internal placement agency simultaneously along with the training which will take place. Lack of employment opportunity will also lead to a sudden decline in the number of students, who would be interested in taking a part in the training program, hence there must be a consistent effort in this area and should be promoted well as it will attract more students to join.
Human Resources: Key Goals and setup strategy
As we have discussed that this organization will concentrate on vocational training and development of individuals and we will be operating on a low budget initially, it is interesting and challenging to create a Human Resource management system that can effectively handle talent management and talent acquisition. The key responsibility areas of the HR department in this setup initially will be to do a selective hiring of good talent available in the market in a tight cost scenario, ensure that there is an employment security which attracts talent, management of appraisals and incentives strictly based on performance so that it motivates the employees, reduce and check malpractices like discrimination on the basis of cast, creed, language, religion and sex, however these are very basics and in order to drive the operations in a challenging environment more complex and advanced application will be required as discussed further.
In the above figure, we can see that how long term business plan is supported and impacted by the kind of HR plan in place and based on a study done by [ CITATION Boy08 \l 1033 ], it is clearly stated that there is a clear interlinkage between the strategy in place for the organization and HR management. If we look at the stepwise role and initiatives that the HR department will have to take, workforce planning will be the primary responsibility of the team. In this step there will be a dual approach which will be required; on one hand the staffing solution has to be created for the initial pilot run and at the same time the inventory of resources has to be managed to that there is minimum wait time. Forecasting will be the next most important role of the HRM team, and they will need a clear approach and understanding of the kind of talent and the number of resources which will be required according to the growth numbers[ CITATION Boy08 \l 1033 ].
Apart from the above, the HR team has to be very strict with performance issues in the organization, considering this as a new setup it will be really important for the employees to ensure honest contribution from their side and therefore, a robust feedback mechanism will help to maintain optimum level of performance by all employees[ CITATION Tad05 \l 1033 ].
Budget and Finance: Management and Forecast
As we have discussed in the above sections that the initial funding is done keeping in mind the minimum setup cost and therefore all the departments will be running under a tight financial boundary initially and it will be an immediate goal to achieve self-sufficient output as quickly as possible.
Hence according to the above calculations the total cost of operations will be 24, 00,000 per year, if we consider as the number of students to be stable. As discussed the exceeding amount of the budget can be recovered partly from the participating students and party from the production that they will provide during their internship period.
Moreover, in order to calculate total costs per high school student dropout in year one, we must divide the total operations cost by the number of students. The operating cost will remain the same and is only a one time expense hence we will not include it while calculating the per student cost.
Boyd, M. (2008). HUMAN RESOURCES PLANNING: The Long and the Short of it . New Jersey: Boyd Associates.
Siggelkow, N., & Rivkin, J. W. (2001). Choice Interaction and Organizational Structure. Boston: Harvard Business Publications.
Tadinen, H. (2005). Human resources management aspects of Enterprise Resource Planning (ERP) Systems Projects. Sweden : Swedish School of Economics and Business Administration.