The Role of Human Resource Management in Organisations

Question 1

1.1 Summarise the organisational objectives that the HR function is responsible for delivering and how these are evolving in contemporary organisations.

Today, businesses are faced with a number of challenges that involve environment pressures such as high competition, rapid technological change, and increased globalisation. There are also structural changes that require new hierarchies, arrangements, and alliances. Forsyth (2012, p.19) adds that there are changes in the priorities, capabilities, and demographic characteristics of the workforce. The HR function plays a crucial part in ensuring that a firm can navigate and remain relevant in the highly competitive corporate world. Stewart and Rogers, (2012, p.40) explain that researchers, practitioners, and academicians have recognised the significance of human resource management in the achievement of organisational objectives and improvement of business performance. The HR plays a crucial role in all industry sectors where they perform a wide range of functions. Dessler (2017, p.33) states that the HR practitioners must increase their real and perceived value to play their role appropriately. In recent years, the part of human resource has significantly evolved as the value of employees is recognised more as an essential resource. The team of HR professionals has expert understanding in coming up with solutions in areas such as talent management, employee learning and engagement, and establish a reward system. These developments are crucial for any business as they provide a competitive business advantage. The HR function is to develop an appropriate connection with leaders and administration of business in order to contribute significantly to decisions made within the enterprise, create the value of the employees, and advice on critical transitions. According to Espedal (2017, p.157), the HR professional plays a role in driving the strategy for a business forward.

1.3 Evaluate the business case for managing HR in a professional, ethical and just manner.

The HR specialists are expected to implement practices that are most suitable to growing the business strategy where they use their unique skills and knowledge to drive and support a change in people management practices. In the past the HR function involved generalist, but this has shifted to business partners. Today, they possess more freedom, and they are mandated with the duty of recruiting individuals with the correct levels of credibility and skills to accomplish the part of business partners. HR professionals are well positioned to support administrators in considering the impact of strategy and policy changes on people. They also work with line managers on talent management planning issues and on longer-term people resourcing. Stewart and Rogers (2012, p.68) list another HR function as gathering intelligence and understanding quality human management practices both externally and internally in order to enable business cohorts to highlight issues which managers may be unacquainted with. Hodges (2016, p.40) states that a substantial number of HR specialists have embraced the shift to a more strategic role.

Question 2

2.1 Explain the different ways in which HR objectives can be delivered in organisations.

There exist a considerable debate on the approaches that can be employed to deliver HR objectives in institutions. In this section, two main techniques in which HR functions can be organised and conveyed in institutions are discussed which are the three-legged stool model that combines centres of expertise, shared services, and business partners and the traditional approaches that involve a single team of administration, specialists, and generalists. Dessler (2017, p.78) explains that many businesses employ a conventional structure of HR services that are focused on delivering managerial objectives. The arrangement has an integrated HR team that concentrates on groups of employees operating in different and specific units within an enterprise. Forsyth (2012, p.47) states that within the teams there may be a specialisation that is based on employee group or grade or by work area depending on the size of the group. The personnel working under these structures are mandated with looking after clerical and administrative staffs or technical specialities. The arrangement is conventional among small and medium-sized enterprises where they employ the model to deliver HR objectives. Forsyth (2012) explains that it is prevalent in this business because the companies have resource constraints. Furthermore, the HR teams in the small and medium-sized enterprises (SMEs) have to be adaptable and handle both operational and strategic responsibilities. On the other hand, organisations that are considered to be small and less complex utilise HR staff who are assigned a wide range of tasks.

The Ulrich’s model of human resource service delivery is another standard way that is employed to achieve corporate objectives. The practice model is commonly referred to as the three-legged stool approach. Stewart and Rogers (2012, p.99) explain that the model is based on the three tools that are crucial for service delivery that involves shared HR services, HR centres of expertise, and HR business partners. The HR practitioners work in collaboration with business leaders and line managers with the aim to achieve a shared organisational objective. In addition, key HR professionals have been embedded in the business unit to steer and influence strategy implementation through working in partnership with operational managers. However, the achievement of objectives is affected by business priorities, company culture, and corporate size as these factors determine how roles are carried out. This model allows HR professionals to become contributors to the business as they gain increased focus and become more engaged with line managers.

2.2 Analyse how the HR function varies between organisations in different sectors and of different sizes.

Quiros (2014, p.15) argues that the HR function varies from organisation to organisation where they are dependent on the sector that the business operates in and the size of the enterprise. The author explains that a small company may have one designated HR person who has broader responsibilities and combines other duties while large multi-national institutions have several smaller specialist departments that operate under the HR function and emphasize on individual regions of specialised knowledge. Other companies have the HR function performed by an outsourced HR group, and they may have a small HR dedicated function performed in-house that operates in collaboration with line managers on HR forecasting, planning, and strategy. There exist businesses that have concentrated on offering HR solutions to companies where they perform recruitment and selection, corporate development, performance management, health and safety, occupational welfare, talent management, learning and development, employee relations, and equality and diversity.

Question 3

1.2 Explain the major theories of effective change management and how these are implemented and evaluated.

In recent years there has been the emergence of new business opportunities across different sectors. Enterprises operating in both private and public quarters are forced to accept the phenomenon of change in order to remain operational. Successful businesses must be willing to admit the concept of change management. However, achievement of full change within an institution is a difficult task. Umble (2014, p.17) states that a significant number of enterprises have had little or no success in realising the expected change as the senior personnel within their structures tend to rush the initiatives in their teams, and they lose focus. Therefore, to achieve an effective change, it is vital that businesses in both private and public sectors employ the dominant theories of change management. Hodges (2016, p.29) argues that there exist a variety of models that are applied in implementing change in institutions operating in both private and public sectors. There exist a new approach to organisational change that is referred to as the Kotter’s model of change and the Kurt Lewin’s model of change. The Kotter model stresses change as an endless practice of adaptation to the shifting conditions and circumstances, and that begins from the bottom to the top.

Lewin’s model presents some advantages over the Kotter, change model. The Kurt Lewin’s model of change is very rational, plan, and goal oriented and provides a visual summary of all the various factors opposing and supporting a particular idea. However, the model lacks a consideration of the human experiences and feelings which has a negative consequence of the process. The staff in an organisation may be excited with a change in their workplace that they may not consider their attitudes, feelings, and experiences. On the other hand, the Kotter model of change provides some advantages as it is a straightforward step-by-step approach that offers clear guidelines to monitor the change process. Therefore, the method also provides a smooth transition. Some disadvantages have also been linked to the Kotter model such as it comprises of strict steps that cannot be skipped and the process takes an extended period to achieve significant change. In cases where some stages are not put into consideration, it may lead to frustrations among the workers of a company.

The Kurt Lewin’s model of change is one of the most important and most commonly used approaches that relate to social change, implementation, and group decision-making. According to this model, the behaviour of individuals who interact with a group differs as people become part of a team with different reasons. However, where the members share a common objective, they have a higher chance to act together and achieve the goals. Lewin adds that it is necessary to alter the conduct of a group to ensure that it does not degenerate to the old ways which can be achieved by resolving social conflict such as in industrial, marital, racial, or religious issues. Hodges (2016, p.54) explains that the Lewin’s change model is based on the fact that strategic change that takes place by way of learning enables people to reframe and understand their opinions on how to decide social conflict. The approach views change as a process that incorporates three essential steps of unfreezing, initiating the change, and refreezing.

In the unfreezing step, the staff moves away from how they are used to doing things within an organisation. Hodges (2016, p.63) suggests that to achieve an effective change, the employees need to embrace new work practices where they are encouraged to step away from their comfort zones that they have been accustomed. Through this, they can adjust to new work practices despite the anxiety and risks linked with uncertainty. Umble and Umble (2014, p.17) explain that workers tend to become anxious whenever they are expected to perform new tasks, especially where they understand the outcomes of the change. The change management process moves to the next step that involves initiating change where the staff is engaged in actions that recognise and implement new approaches to doing things. They undertake new accomplishments that are focused on bringing change. In this step, the administration must guarantee that all crucial stakeholders are given a chance to be part of the problem solving and decision-making process. According to Quiros (2016, p.16), workers who have been involved in the process are more likely to consent to the change, and they become dedicated to making it successful. There is an enhanced understanding of the benefits and needs of change which results in little or no resistance. The final step in the Lewin’s change model involves refreezing where the emphasis is placed on reinforcing the new tasks and processes in the business. Umble and Umble (2014, p.17) recommend that here the employees must be acknowledged through a reward system which is crucial in achieving behaviour modification. They are recognised where they have changed behaviour, and they have accepted and embraced the change. The new behaviour is now valued, and the previous one is prevented from reoccurring.

Question 4

3.1 Discuss the main criteria and methods used to evaluate the contribution of the HR function.

According to Ungemah (2015, p.26) evaluation is an established strategy that is applied to provide an assessment of the impact and advancement of a change effort among those responsible for change management. Ungemah (2015, p.27) explains that evaluations of the human resource functions are an essential process that organisations must undertake. The author holds that HR function assessment helps reward workers who are putting efforts to grow the firm while correcting those who are not. Mclean (2005, p.24) lists several benefits of evaluating HR function as help improve HR processes, support the company in keeping staff productive and motivated, ensure accountability within an institution, and reflect and improve the work environment in a firm. Mclean adds other importance as identify alignment of HR with the strategies of business, enhance the image of the HR department by revealing how it contributes to the success of the company, and determine future investments in HR. There exist a number of evaluation systems that can be applied and it is vital that an appropriate HR evaluation method that is suitable for the organisation be selected.

One of the most appropriate and commonly applied criteria and method used in HR function evaluation is the balanced scorecard. This approach is strategic and helps evaluate the usefulness of HR function to a firm as it focuses on the implementation strategy within a company and on human capital that makes a significant company value. For a strategic formulation and evaluation of the HR function, this criteria begins from the financial performance of the organisation, to the customer service offered within the premise, then the internal business processes, and finally innovation and learning perspectives. Appropriate questions must be asked and answered from each of the four categories in order to understand the effectiveness of HR function. The four areas will help identify key performance indicators that the report will focus. The financial perspective reflects on how the HR function impacts the activities of the company and how they contribute to improving long-term and short-term financial performance.

The report will analyse the HR function from a customer service perspective which assists in measuring how clients view the businesses. Furthermore, this viewpoint helps understand the retention and satisfaction levels that are present among the customers. The next criteria involve business process indicators that mainly focuses on operating statistics and production. The final vantage point is the ability of the human resource to learn and grow. This perspective helps understand how well human capital and resources are utilised and managed by the enterprise for its growth. The balanced scorecard criteria reveal the present performance of the firm and indicate the triggers for future accomplishment. In addition, the CEO will be able to align the HR function to the overall strategy of the company as well as the physical, human, and financial resources. Stredwick (2015, p.70) advised that the HR function evaluations should involve a wide range of dimensions and not be limited to the needs of the employees. The HR professionals operating with the organisation must be held accountable for all the aspects of the scorecard.

Another important method of evaluation is benchmarking that involves the staff learning and adopting the best practices from more successful organizations. They study the HRM practices that are employed in competing firms and then evaluate and compare their own practices with those learned. This method is also important to HR managers as they are able to learn and adopt effective HR strategies from the other firms. Gabcanova (2012, p.119) adds that an organization that employs the benchmarking approach is able to identify its needs and timely initiate the change process in its structure and its HR strategies relative to well-established companies. The method involves a number of steps that commence with identification of HR practices for benchmarking. A project team is constituted to identify the benchmarking partner organization and handle the process. The team then collects appropriate data from the partners and proceed to analyse and interpret it before they prepare a comprehensive report that would be used to develop actions plans to improve the company’s HR practices and strategy.

Question 5

Article selected:

Alfes, K., Shantz, A. D., Truss, C., & Soane, E. C., 2013. The link between perceived human resource management practices, engagement and employee behaviour: A moderated mediation model, International Journal of Human Resource Management, no. 24, pp. 330-351. DOI: 10.1080/09585192.2012.679950. [Online] Available at: https://www.researchgate.net/profile/Amanda_Shantz/publication/241725516_The_Link_Between_Perceived_Human_Resource_Management_Practices_Engagement_and_Employee_Behaviour_A_Moderated_Mediation_Model/links/544519dd0cf2dccf30b89d70/The-Link-Between-Perceived-Human-Resource-Management-Practices-Engagement-and-Employee-Behaviour-A-Moderated-Mediation-Model.pdf

[Accessed 01/07/2018].

This section uses the article The link between perceived human resource management practices, engagement and employee behaviour: A moderated mediation model

to understand the link between HR practices and organisational outcomes. In the study, Alfes et al. (2013, p.331) argue that there is no direct link between engagement, organisational citizenship behaviour (OCB), and turnover intentions. The authors hold that employees who are engaged in their workplace are enthusiastic and they readily invest in the job. However, this is not a guarantee that they will uniformly participate in ways that ensure they have a positive business outcome. There are specific factors within a work setting that impact workers and how they engage in the positive corporate behaviour. The study examined the proposition that positive exchange relationships reinforce the connection between employee behaviour and engagement. The article focuses on the importance of positive exchange relationships regarding both leader-member exchange (LMX) and perceived organisational support (POS). According to Alfes et al. (2013, p.331), the two frameworks represent various levels of social exchange relationship between an employer and employees.

The POS exemplify the relationship a worker holds with the institution while the LMX characterises the relationship that has been established between a leader and their follower. The study has successfully built and tested a model that has linked different perceptions of the human resource management practices with two critical behavioural outcomes, intentions to turnover and OCBs. The authors argue that employee engagement is crucial as it triggers these essential relationships. They rely on a sample that was collected from a section of a large UK company that provides business solutions for customers from transport, local government, defence, and education sectors. They reviewed the HRM strategy employed in the team and also interviewed with the HR director. The sample involved 540 employees where 328 questionnaires were completed. Only 297 employees who had completed the surveys satisfied the inclusion criteria where 6 percent were professionals, 41.7 percent were administration, 40.7 percent represent senior officials or managers, 8.6 percent personal services, customer, and retail, and 3.0 percent represent machine operators (Alfes et al., 2013, p.337).

The authors used the 9-item scale developed by Gould-Williams and Davies to measure the perceived HRM practices (Alfes et al., 2013, p.337). They reveal that in firms where staff have a positive perception towards the HRM practices, turnover intentions are significantly reduced, and the citizenship behaviour is enhanced. Therefore, there exists a link between positive organisational outcomes and HR practices. The study used a good representation of the majority of workplace present in the contemporary corporate world. The survey covered an appropriate period and gave proper attention to ethical considerations. Therefore, the results of the study are convincing as the research conducted links HR practices to positive structural outcomes such as reduced employee turnover. Furthermore, I agree with the findings of the survey as HRM practices have an impact on the behaviours of employees. Persons with a favourable opinion towards the HRM practices within their company are more promising in the work environment and remain attached to the enterprise.

4.2 Explain how high-performance working and investment in human capital impact on organisational practice.

Kroon et al. (2013, p.71) define high-performance working as practices employed in the human resource management that are focused on motivating employees and improving organisational performance. Kroon et al. (2013, p.72) list employee training, high pay levels, group-based performance pay, and self-directed teams as some of the modern staff management practices that firms utilise to increase the performance of their workers. Therefore, improved implementation of these methods guarantees positive corporate performance in terms of employee and financial outcomes. On the other hand, human capital relates to the skills, capabilities, know-how, and expertise that is present among the members of a company. In recent years, more companies are focused on advancing on the human capital aspect where they have made investments in on-the-job education and training of their employees.

According to Russ (2014, p.88), human capital has both a direct and indirect impact on staff practice as their skills, behaviours, and attitudes are shaped to improve performance. Furthermore, there is an impact through the creation of operational and structural efficiencies as businesses utilise the human capital to add their economic value and as a source of competitive advantage. Finally, people make up an essential part of an enterprise hence corporate practice employed must put into considerations the human capital. Therefore, HRM has been revealed to have a potential economic significance and managers and employers strategically fit best practices as this helps define and transmit an organisational culture that promotes the objectives of the firm and helps communicate the strategic direction of the company to staff.

References

Alfes, K., Shantz, A. D., Truss, C., & Soane, E. C., 2013. The link between perceived human resource management practices, engagement and employee behaviour: A moderated mediation model, International Journal of Human Resource Management, no. 24, pp. 330-351. DOI: 10.1080/09585192.2012.679950. [Online] Available at: https://www.researchgate.net/profile/Amanda_Shantz/publication/241725516_The_Link_Between_Perceived_Human_Resource_Management_Practices_Engagement_and_Employee_Behaviour_A_Moderated_Mediation_Model/links/544519dd0cf2dccf30b89d70/The-Link-Between-Perceived-Human-Resource-Management-Practices-Engagement-and-Employee-Behaviour-A-Moderated-Mediation-Model.pdf

[Accessed 01/07/2018].

Dessler, G., 2017. Human resource management. Boston: Pearson Higher Education.

Espedal, B., 2017. Understanding how balancing autonomy and power might occur in leading organisational change, European Management Journal vol. 35, no. 2, pp. 155-163.

Forsyth, P., 2012. Managing change. London: Kogan Page.

Gabcanova, I. (2012). Human Resources Key Performance Indicators. Journal of Competitiveness. 4, 117-128.

Hodges, J., 2016. Managing and leading people through organisational change: The theory and practice of sustaining change through people. Philadelphia, PA: Kogan Page.

Kroon, B., Van De Voorde, K., & Timmers, J., 2013. High-performance work practices in small firms: a resource-poverty and strategic decision-making perspective, Small Business Economics: An Entrepreneurship Journal, no. 41, pp. 71-91.

Mclean, G. N., 2005. Examining approaches to HR evaluation: The strengths and weaknesses of popular measurement methods, Strategic HR Review, no. 4, pp. 24-27.

Quiros, E., 2014. Leading people through change, Strategic Finance, vol. 96, no. 5, pp. 15-16.

Russ, M., 2014. Management, valuation, and risk for human capital and human assets: building the foundation for a multi-disciplinary, multi-level theory. New York: Palgrave Macmillan.

Stewart, J. and Rogers, P., 2012. Developing people and organisations. London: Chartered Institute of Personnel and Development.

Stredwick, J., 2014. An introduction to human resource management. London: New York, Routledge.

Umble, M. and Umble, E., 2014. Overcoming resistance to change, Industrial Management, vol. 56, no. 1, pp. 16-21.

Ungemah, J., 2015. Misplaced talent: a guide to making better people decisions. Hoboken, New Jersey: Wiley.