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Planning in HRM
Integrated approach to design and implementation of HR system
Matching HRM policies and activities with the business strategy of the organization
Viewing people as a strategic resource for the achievement of competitive advantage
Best fit:
a model of HRM that focus on connection (alignment) between HRM, BS and the external context
of the company
Based on the idea that HR strategies flow from business strategy
The success depends on its ability to:
HR practices
Flexible patterns of work
Recruitment of highly motivated and committed
employees
Little formality
No unions
More sophisticated recruitment and selection
Training and development
Performance management processes
Reward system
Focus on high commitment
Developing stable employee relation
Growth
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Control compensation
Attention to the control of labour costs
Focus on increasing productivity
Strained employee relations
Control compensation
Emphasis on rationalization of workforce and
downsizing
Abandoning some longstanding practices to cut
costs
Trade unions have a marginalized role
Retaining and career consulting services
Maturity
Decline
Advantages:
Disadvantages:
For example: Conducting a Make Versus Buy Evaluation for a Best-Fit HR Sourcing Model
A Top 5 Canadian bank wanted to evaluate the optimal sourcing model for its human resources (HR)
function. It engaged Everest Group to conduct a make versus buy assessment, and when the decision
was made to outsource HR services, Everest Group developed the specifications, prepared the RFP,
and crafted the necessary service level agreements (SLAs) for the third party relationship. Everest
Group also assisted in the evaluation of potential service providers, and supported the negotiation and
contracting phases. The client achieved C$30 million in savings, significantly improved services, and
improved time to market
Best practice:
Enhance organizational performance by the potential of HM practices. Usually categorized as high
commitment, high involvement or high performance
Pleffer (1994) list of seven practices:
1. employment security 2. Selective hiring 3. Team working 4. High pay contingent on company
performance 5. Extensive training 6. Reduction of status difference 7. Information sharing.
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Johnsons (2000) : the best practice or the high performance work practices are describe as HR
methods and system that have universal, additive and positive effect on organization performance.
This relates to the fact that the best practices that the organization employs, each will add to previous,
thus compounding the resulting performance of the organization.
Difficult arise here, as best practice models vary significantly in their constitution and in their
relationship to organizations from research and empirical data difficult.
For example:
Develop academic and business plans that address university objectives as well as changing
economic, industry, and regulatory environments.
Clearly define areas of responsibility. Assign responsibility and delegated authority to deal
appropriately with the organization's goals, objectives, operating functions, and regulatory
requirements.
Establish performance objectives and provide regular appraisals to all employees. Specify the level of
competence needed for particular jobs in requisite skills and knowledge requirements. Communicate
clearly to all personnel the responsibilities and expectations for the unit's activities.
Establish open communication channels to facilitate the flow of information across all activities and to
those who need the information. Consult with individuals who have the expertise to make informed
decisions.
Provide the appropriate training, cross-training, and resources to help personnel perform their duties
successfully. Assign duties to individuals who have been properly trained, can make sound judgments,
do not have conflicting duties, and fully understand what is expected.
Protect the university's assets by establishing procedures that properly dispose of, and secure
sensitive and/or private information. Document key controls that provide evidence that various
reconciliation and tracking functions are being adequately performed on a regular and periodic basis.
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Getting closer to the business or diluting HR intent
Type A, Type B, Type C
Outsourcing:
Passsing activities previously carried out by HR
New role for HR, base on cost or service criteria, taking it back in house or outsourcing everything
Torrinton, Ulrick and Schule
Challenges for HRM today
Diversity in the workforce
Result of changes in government requirements
Organisational structures
Technology
Management approaches
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Help others see the need for change and they will be convinced of the importance of acting
immediately. E.g.:
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Bridges Transition model
The ideas of Bridge (1991) on transition provide a good understanding of what is going on when an
organization change take place
He differentiates between change and transition:
Change is situational and happened without people transitioning and transition is psychological and is
a three phase process where people gradually accept the detail of the new situation and the changes
the come with it.
People need to transition through change. They do this through three stages:
Ending: people need to let go of the past first before the can embrace the new.
Neutral Zone: people begin to explore their comfort with the new change
Beginnings: people begin to embrace the new change
All of us go through these stages. But some of us may move through them quickly while other very
slowly. And some people will not make the transition at all.
Change (is fast) is situation and happens without people transitioning
Transition (is slow) is psychological and is a 3 phase process where people gradually accept the detail
of the new situation and the changes that come with it.
HR development
A set of systematic and planned activities designed by an organization to provide its members with
the necessary skills to meet current and future job demand.
HRD defined as any activities contributing to the development of people working for an organization
HRD focus on theory and practice related to training, development and learning within organization,
both for individual and in the context of business strategy and organization competence formation
Gourlay (2000)
Nature of HRD
A behavior of science
HRD is a system
Quality of life
Addition in productivity
Human Resources has become an essential part of any organization. The Human Resource department or wing is
multi-functional. HRM or Human Resources Management and HRD or Human Resources Development are two parts
of HR.
The HR in an organization look to increasing the productivity of the employees, enhancing the quality of their work,
fostering innovation, fulfilling other of the HR objectives, and bring in change into the organization with their activities.
With these aims in view, the functions of the HR are categorised into HRM (Human Resources Management)
activities and HRD (Human Resources Development) activities.
The functions that the HR undertakes in its management aspect include activities like HR planning for recruitment and
staffing of the organization, managing the performance appraisals of the employees, recruitment, selection and
appointment of staff, determining the compensations and benefits that are due to the employees, assisting the
employees whenever there is any problem, maintaining relations with the union and labor organizations, research into
the information systems deployed in their department, Training and Development of the employees in their individuals
and group capacity, development of the organization with regard to the Human Resource efficiency, Helping the
career development of employees and designing of the organizational and job requirements for better staffing
solutions.
Out of these, the first seven are management oriented and concerned with the primary functions of personnel
recruitment and its connected activities and labor relations. The last four functions belong to the development of the
employees and the organization. McLagan defined these activities of the HRD in 1989. There have been a spate of
HRD activities in organizations in the last decade when the management realized the need for the training and
development of the employees that will ultimately reflect in the general and overall development of the organization
and its business activities.
HRD is the adding of value to the human resources or employees through training and developmental activities to
enhance their skills, knowledge, talent and vitality. This training is need based and should be focussed on the
objectives of the organization if it is to be effective.
Competence Model
Boyatzis (1982): an underlying characteristic of and employee (i.e., motive, trait, skill, aspect of ones
self-image, social role or a body of knowledge) which results in effective and superior performance
Core competence in organization
An unique capability the organization that create high value and that differentiates the
organization from its competition.
Core competencies are seen as giving and organization its competitive edge, and in many case
is viewed as essential to its survival
5 competence models:
Hanunel and Prahaled (1994)
Nordhaug (1993)
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WH Smith
Learning Organisation
Pedlar et al (1991) An organization which facilities the learning of all its member and continuously
transform itself
Burgoynee (1999) 7 features
Company aware of internal politics and question existing practices and beliefs
Managers aware of collective learning process and knowledge reside, in peoples heads,
technology or archives.
Strategies are required to enable collective learning, and centralization answered.
Organisation create own development tools
Stakeholder interest not in conflict.
Issue of ownership of competence and intellectual property addressed.
Processes needed to deal with interaction between tacit and explicit knowledge.
Formal training
Learn from teams
Coaching or mentoring
Observation
University programs
Individual development plans
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Job rotation
Objective setting
Ongoing review of objectives
Develop personal improvement plans linked to training and development
Formal appraisal with feedback
Pay review
Competence based organizational capability review
1: Objective setting
2: Formal appraisal
3: Personal development plan, training plan and career plan
4,5,6: organizational capability and competence review
Categories of management techniques: work study, critical path analysis, operational research,
planning and review, cost benefit analysis, job evaluation, statistical manpower planning management
by objects.
The people approach (degree of competence)
Categories of management techniques: selection test techniques, training needs analysis, training
techniques, joint consultation, industrial democracy, merit rating, quality circles, human resource
planning, performance related pay.
Short term, specific occupation/skills, ensuring organizations with SKF to fulfill objectives
specific to job orientation
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Purpose:
Productivity, labour turnover (keep up to date skills), customers complaints, motivation (gap,
catalyst for change, complement HRD for integrating business planning with human capacity
and combining individual need with organization need in development)
Development/Education
Long term, broader in scope, grow with SKE, career rather the job orientation
Forms of training/learning:
Introduction training:
o Rule, policies, historical nature, etc
Apprentice training:
o Induction, skills (basic, application), etc
Operative training:
o Task, standard, instruction, process, feedback, etc
Supervisory training:
o Recording, process, behavioural studies, etc
Management training:
o Team building, strategic retreat, leadership, etc
Type of training/learning:
For developmental activity to be deemed strategic organizations need to shift the focus
from a training to a learning approach. Discuss this proposition in the context of
development activity supporting individual and organizational change
Purpose of learning and development:
Employees require:
a Formal learning
b Self-development orientation
To engage in flexible, high performance organizations
Processes of learning:
c Learning as the formally designed process of staff development
d Development as a wide range of individual and collective activities for developing skills
and personal abilities
e Vocational (career) and educational training (VET) continues the development of
knowledge and skill for current and future work
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Strategic purpose of learning:
Defined in four ways:
f
Addressing skill gaps for individuals and organizations involving the development of
skills for new forms of work organization
g Using human resource development (HRD) as a catalyst for change
h Using HRD as a basis for competitive advantage in terms of the HRD content and the
way it is delivered
i
Creation of learning environment as a way of focusing individual learning needs
towards organizational learning objectives on a continuous basis
HRD in the context of organizational development:
An increased focus on organizational development in the quest for (to seek for) a highperformance culture
Organizational development is undertaken:
j
To achieve a flexible and creative organization
k To constantly seek to improve and reinvent the way it carries out its business, and
serves its customers
Organizational development is long term effort to improve the organizations visioning,
empowerment, learning and problem-solving processes
If HRD is strategic, it needs to be promoted and embraced at the top and be cascaded to every
part of the organization
The role of learning:
Central process in achieving an SHRM approach
Organizations want to improve performance, need to develop capacity to change
learning
is essential to capacity
The management of learning and of performance are closely associated because of some
important points:
The concept of learning organization
The practice of managing learning and overcoming barriers
The process of learning to meet requirements of integrated approach
Need to focus more on demand and supply from an external and internal perspective
of the organization
Value of using scenario planning to model the fit with future business environment
HR planning needs to alter the way work is performed where securing the supply of some
skills is important.
HR planning is a basis for looking at achieving flexibility in the workforce to meet cost
requirements and to create environment, work and authority structures to encourage
retention of highly skilled employees
Stages of HR planning:
Considering and applying HR policy so as to have an impact upon the flows of human
resources in an integrated way
Assessing the effectiveness of the HR policies in accessing, creating and using human
resource capability
HR planning process:
The internal environment and labor market (the age and gender balance of the
workforce, the number of employee)
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Recruitment
Redundancy
Outsourcing
Development
Performance management
Professionalism in HR planning:
Procedures must ensure that managers do not limit the promotion prospects of particular groups or
minorities, or discriminate in the selection of new recruits
You have been asked to address a regional audience from a management institute on the
subject of Getting the most from your Human Resources function A cost effective value
added service for the 21st century. What would you recommend and how you go about
implementing this?
Human resource functions:
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objectives; job related objectives; person related objectives and the link to corporate
objectives
Reward strategies and systems can support the achievement of organizational objectives by
focusing employee behavior toward the following goals:
What issues do organizations face in managing complex change? How can organizations
maximize the success of change management programs?
Organizations are increasingly focusing on creating a high-performance culture to compete
effectively in the knowledge-based and globalized business environments they operates in.
Creating such culture often involves a paradigm shift in organizational thinking, working
practices and in the behavior of people.
The extent to which organization understand how different people react to change, and design
multifaceted and flexible policies to deal with this is important in designing effective change strategies.
Not all employees rationally accept or indeed rationally resist. Understanding this complexity is the key
to successful change
Change is a complex process. Organizations need to try to make sense of change for
management and employees, so it is frequently programmed into a series of steps or stages
Three stages of change process for organizational development: determining the future state,
diagnosing the present state and managing the transition
Determining the future state (where do we want to be?): agree organizational purpose and
mission
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Diagnosing the present state (where are we now?): assess outer and inner context, gather
data, gain involvement
Managing the transition: targets for change, implement change and developmental activities,
evaluate and reinforce change
Recognize factors for the facilitation of successful change management: top level commitment,
widespread acceptance of the need to change, early success well communicated, long term sustained
view, considerable pressure for change internal and external, accepted crisis, multiple methods of
change; multi-faceted approach, well-informed staff, clear change goals and clearly communicated
culture and competence, careful performance monitoring and use of HR policies to reinforce changes,
external facilitator to enable performance issues to be fully surfaced and evaluated, developmental
orientation and provision of employee support to cope with change
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How would you present the case for an organization to adopt a strategic approach to the
management of people? What would be the potential advantages and disadvantages that
an organization might face? Please use case illustrations to support your argument.
Strategic approach asks different questions and requires different levels in the diagnosis of
requirements (culture and behavior)
Not only the content of HR policies
Also the process of management, creating the right climate or culture through leadership style, and
at the way the organization influences how employees interact.
Three challenges facing organization in gaining the competitive advantage:
Managing intangible assets: the ability to access scarce skills and to cope with the
implications of new forms of organization
Managing strategic change: including trends towards flexibility in organizations and in job
design, break up of bureaucracies and of traditional structures of employment
Innovation in terms of what organizations produce by way of goods and services, and the
way to approach the task: development, innovation and creativity become core intangible
assets
A strategic approach to HRM involves new ways of operating in organizations and demands new skills.
These include the need to understand tacit knowledge, recognize core competence and attend to
stakeholder views, to ensure that all aspects of the organizational resources are engaged. (More detail
on page 5 and 6)
Approaches to the strategic management of people: the best practice view, the best fit view and the
resource-based approach
Potential advantages and disadvantages that an organization might face:
Advantages:
Disadvantages:
Advantages:
Disadvantages: the success of a best fit model depends on its ability to:
Advantanges:
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Look first at the organization and its potential, and develops ways to exploit or enhance the
available resources
It is the coordination of activities and integration of various skills, technologies and business
processes to provide competitive advantage
It allows the integration of the intangible aspects of work alongside other more visible areas
such as patents, trademarks and other intellectual property
Disadvantages:
Although this model recognizes many aspects of capability which can be formally defined in skill terms
and developed accordingly, the truly distinctive aspects are often hard to define and are formed
through informal processes of learning in the workplace. The challenge for SHRM is to define ways to
support the process of learning, knowledge and skill development alongside more formal practices
which do not confine or destroy bottom up learning.
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