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DIPLOMA PART 2
HRM(Dip)
(b) What are the likely barriers that could prevent many
organisations from applying HPW practices? (10 marks)
(Total 25 marks)
Note: These answers are produced in the form of key points which students
would be expected to incorporate into their answers if they were to be awarded
satisfactory marks. It would not normally be acceptable for actual examination
answers to be written in this way, though the Examiners do require answers to
be presented systematically, with each part of the response clearly headlined
and recommendations (if any) properly signalled.
Such is the nature of Human Resource Management that it does not lend itself to
answers that are either definitively right or treatments that are universally
wrong, because many of the views expressed on this subject can be defended
as legitimate, provided that (a) there is some evidential basis on which such
views are founded, and (b) the HRM practices described are convincingly
associated with the achievement of relevant corporate goals and purposes.
INTRODUCTION
The rationale for Human Resource Management is that if HRM policies and
practices are properly designed and applied in an organisation, then the
organisation will be more likely to (a) recruit people who will fit the desired
culture, (b) motivate them not only to perform their roles adequately but also to
undertake discretionary behaviour of the kind which will bring benefit to the
organisations results, and (c) retain its people over long periods of time,
thereby gaining the advantages that arise from continuity, continuous learning
and occupational experience. In other words, Human Resource Management
may be about people, but it is emphatically not just about people welfare, job
satisfaction, and people benefits. Human Resource Management, properly
understood, is actually about turning all employees into contributors so that
individually and collectively, through their own efforts and those of the teams
or functions to which they belong, can make an added-value difference to the
business.
The HRM policies and practices that could deliver the benefits of HPW
HPW, as the title suggests, is concerned with the strategies, policies and
practices deployed by organisations in an effort to secure the engagement,
commitment and loyalty of their employees. HPW therefore goes beyond the
mere requirements of the employment contract the fulfilment of the strict
guidelines provided in job descriptions, for example and concerns itself with
so enthusing people that they are prepared to go the extra mile, to supply
positive discretionary behaviour, and to act in ways that help the organisation
to attain its goals.
There are several different models for HPW, and two of them are presented
here for purposes of critical evaluation and analysis.
In his research for the CIPD, Professor John Purcell [Understanding the people
and performance link: unlocking the black box, CIPD, 2003] listed eight factors
associated with high-performance working. These factors were found (in
varying degrees) among the best-performing companies within his sample of
case-study organisations:
Employment security
Careful recruitment
Teamwork and decentralisation
High pay with an incentive element
Extensive training
Narrow status differentials
Lots of communication
Although there are differences between these two recipes, there are also many
similarities. Both researchers emphasise teamwork, training, communication
and job design. They each understand that to get the best out of people
requires a combination of hygiene and motivator elements: high pay and
work/life balance on the one hand, and leadership and job satisfaction on the
other.
The likely barriers preventing some organisations from applying HPW practices
3. Another possibility is that some organisations believe they are already HPW
environments, and therefore take the view that HPW arguments are not
appropriate for them.
The distinction between policy and practice is crucial here. A policy on, say,
performance management is likely to be clear-cut and written down, but the
practice of performance appraisal the crucial doing bit is much more
behavioural. In this arena we need to look at wider issues, like organisational
culture and the respect shown to people. If we ask employees for their views on
a policy, such as performance appraisal, what influences them is not the
existence of an elegant policy but the way it is applied to them by their boss
which may be very different.
The extent to which line managers and team leaders give a proper priority to
their people management accountabilities is discretionary, and reflects what
they are allowed and encouraged to do. Often managers will complain because,
in their view, good people-management skills are not rewarded or even
recognised in their firm. This may be because senior managers do not give a
lead and/or because they reward other behaviours, especially those that are
easy to quantify, like budget compliance or wastage rates or employee
absenteeism and turnover.
Ways in which organisations can ensure that front-line managers perform their
role more effectively
Some of the solutions to the problem are themselves suggested by the answer
to the first part of Question 2 given above.
Question 3
The acquisition of new skills to meet the labour market demands of the
future
Evidence that supports the argument for new skills in the foreseeable
future
Clearly the major point to make in this context concerns the rapid
progression of technological change, leading to the elimination of some
skills and their replacement by others.
An equal issue concerns the disappearance or slow/rapid decline of some
industries (e.g., cycle manufacture in the UK) and the emergence of new
ones (e.g., call centres).
In several instances, the nature of a national economy has altered as work
has shifted away to other parts of the world because of a more globalised
approach to the organisation of industry. Thus shipbuilding has moved
from the UK to countries like Japan and Korea.
Because of economic liberalisation, Japanese car manufacturers have
commenced operations in the UK (notably Honda, Toyota and Nissan), and
this has had an enormous impact on the nature of the UKs car industry, to
say nothing of manufacturing businesses in other sectors.
Evidence that suggests that skills in the future will not be distincitively
different from those already required
The rate of change in any economy tends to be much slower than the more
radical observers of society predict and so many jobs continue to enjoy
impressive levels of demand even if one might have expected them to
decline or disappear.
Some of this persistence is attributable to resistance to change in the
economic environment: if organisations have invested in a training,
learning and development infrastructure for their people, they may be
reluctant to adapt it to any radically different set of circumstances, even if
there were evidence to justify such a change.
Also, individuals entering the labour market may be influenced in their
career and vocational choices by their elders, who to some extent are likely
to reflect past requirements rather than those apparent today or for the
foreseeable future.
Question 4
Advantages
Disadvantages
Once the core competents have been identified, they may be given special
project assignments to resolve as team members.
Some of these projects can be artificial and deliberately manufactured for
training/development purposes, but others may be genuinely related to the
organisations declared needs, e.g., to improve its competitive position, to
investigate the potential transfer of its customer-service processing
facilities to low-cost economies, and so forth.
They should be required to undertake a series of rotational assignments in
different parts of the business, so that they become familiar with, and
acquire the skills linked to the successful performance of each function.
They may be encouraged to acquire external management/business
qualifications.
Core competents should be given exposure to senior-level thinking
through acting as personal assistants to the Chief Executive.
Accelerated opportunities for growth should be supplied.
To ensure that core competents learn how to work with others, and
achieve results in a teamwork environment, they ought to be required to
perform as line managers with clear accountabilities for continuous
improvement and transformational change.
Should the business be large enough, some core competents can be made
responsible for specific business units, especially those which require a
turnaround strategy.
Question 5
How can a strong culture create HR practices which ensure that the
organisation remains flexible and dynamic?
Question 6
2. In the discussion, it will be necessary for the manager to make clear that
Davids attitudes are causing some resentment among his colleagues, a
resentment that could ultimately be disruptive to the work flow and
productivity of the entire unit. Much depends on whether David is the sole
smoker: if he is, then others may dislike the fact that he can disappear for
minutes at a time, whereas they have no equivalent freedom.
3. The outcomes from any face-to-face meeting between David and his
manager should comprise the following:
1. Many features of this situation arise from the weak management practised
by Davids manager. There has been (apparently) little attention given to
ways of encouraging higher levels of motivation from David, or to
monitoring his performance, or intervening at an earlier stage to ensure
that the matter does not get out of hand.
Question 7
Strategic partner:
The HRM function should act as a partner in strategy execution, not in the
making of (business) strategy, but in ensuring that it is developed and put into
effect. The HR function should define the organisational architecture, carrying
out audits and renovating those aspects of the organisation in need of repair. In
short, the HR function plays (or should play) a significant part in creating the
systems and processes that help deliver organisational success.
Change agent:
Administrative expert:
The HR function and the HR professional act as experts in the way that work is
organised and executed, and deliver administrative efficiency both in terms of
the HR function itself and for the whole organisation, typically through
information technology. This happens in call centres and shared service
operations that deal with the transactional aspects of work such as salary
administration and personnel records.
Employee champion:
Strategic partner:
Ulrich only visualises the HR function as a strategic partner in the sense that
it assists with the execution of strategy, and not its design. Marchington and
Wilkinson (Human Resource Management at Work, CIPD, 2005, p. 136) are
quite scathing about this stance: if the business partner is (only) an architect
within an already constructed building, perhaps he or she will be confined to
doing little more than choosing the right wallpaper! For many senior HR
practitioners, the ultimate goal is to occupy a central position in the
formulation of strategy, and to ensure that the performance and contribution of
the people in the organisation is placed at the forefront of any strategic
initiatives emerging from the company or business as a whole.
Change agent:
Theoretically, the role of HR as a change agent the grit in the corporate oyster
is an enticing prospect, but the reality may be rather different. Conventionally
a change agent is a person or unit which does not actually execute change or
play a major role in the strategic decision-making process, but which oils the
wheels of change, as it were. Seen in this light, the prospect of becoming a
change agent is less attractive.
Administrative expert:
Ulrich argues that success in this role can help HR to gain higher status:
improving efficiency will build HRs credibility which, in turn, will open the
door for it to become a partner in executing strategy. Of course, this may
happen, but it seems more plausible to believe that if someone becomes an
administrative expert, they will be retained in their administrative capacity
especially as truly ambitious people in an organisation will want to occupy
themselves with genuinely added-value activities.
Employee champion:
As Marchington and Wilkinson point out [see source cited above], the employee
champion is tasked with jobs that trade unions ordinarily do in most large
organisations in Britain, and the idea that HR should act as the workers voice
smacks of paternalism rather than organisational justice. It is believed, on the
other hand, that with the decline of trade unionism (certainly in the UK), there
is an emergent role here for the HR function to act as protector of employee
interests. At the same time, if senior HR practitioners want to be taken
seriously (by their businesss directors) as strategic partners, then it will be
hard for this to be attained should they simultaneously be undertaking an
employee champion role. It is not inevitable that the two roles pull in opposite
directions, but to many external observers they appear to do so.
Question 8
Understand and clarify the purpose of the meeting both you (as the
Chair) and your members need to know why you are there but for some
meetings, with a long agenda, the purposes may vary as you progress from
one item to the next.
Fit your objectives into one of the classic purposes of meetings:
(i) To inform
(ii) To exchange information
(iii) To make decisions
(iv) To produce recommendations
(v) To create ideas
(vi) To persuade and influence
Prepare the agenda so that the sequence of topics is logical, progressing
from the more complex to the less important; consider whether to allow
Any Other Business and whether to insert the expected duration of each
item
Prepare the environment the room should be well-ventilated and lit;
seats should be so arranged that everyone has eye contact with everyone
else; the Chair in particular must be able to see what is going on all over
the room
At the start, introduce the meeting and, if necessary, explain the
ground rules these may be:
(i) Only one person speaks at a time
(ii) Strict adherence to the time limits for each item as specified on the
Agenda
Encourage member contributions by asking open-ended questions, by
deliberately bringing in silent members, etc
Create a balance between control and participation by cutting short
any speakers who stray from the point
Try to avoid polarised positions and voting because voting merely
ensures there are winners and losers with the result that the
organisation becomes divided
Summarise the discussion and the conclusion once it appears that
everyone has had their say
Ensure that any decisions are clearly spelt out and recorded so there
can be no scope afterwards for debate about what was agreed
Select an objective. You must know what you are trying to achieve, and
broadly there are four possible objectives for presentations:
(i) To inform
(ii) To persuade
(iii) To motivate
(iv) To entertain