Human Resources Management and Technical Changes - Case Study Example

? Managing under Uncertainty Managing under Uncertainty Executive Summary Quite factually, organizations operate by individuals making decisions. An effective organization environment is rich in the following three key attributes; leadership direction and support, human resource capacity, and infrastructure support. The system should be in charge of human resource plans, policies, procedures, and best practices. The attributes are interconnected and together they shape the foundation of an organization’s capacity to perform. The effectiveness and quality of the set decisions determines how successful a manager or organization will be. The aim of this paper is to explore the formulation and implementation of a strategic approach to Human Resource Management (HRM), especially in times of uncertainty. HRM represents a principal element of an organization’s modernization agenda and is critical to the organization’s performance and productivity. The case offers a unique and unstructured situation in which the new CEO is expected to make a decision under uncertainty. The core problem in the case details low motivation among staff, high staff turnover, and increasing complaints regarding the delivery of the organization’s services and the urge to restore confidence in the system. The organization should invest in its employees and pursue the strengthening of their capabilities to deliver. The proposed human resource system must evolve to collect, develop, and deliver the expected competencies, notwithstanding the fact that the capability of the existing system to accomplish this is doubtful. The new CEO should also embark on creating a job design that allows flexibility of working and accommodates team-working and information provision. The cross cutting issue should be to guaranteeing an effective module, which is accommodative to the change process. The underlying aim of the human resource system is to oversee human resources concurrent with the set organizational goals. Introduction The critical task facing Tim (the new CEO) centres on implementing a fresh organizational structure and human resource system that matches the organization stature. On top of the low pay to its staff, the club also experiences lack of a concise organizational structure. This is manifested by confusion stemming from directors who overstep their mandate and give work instructions that contradict those given by the immediate supervisors or managers. Moreover, there is substantial factional tension between staff at various operational departments coupled with reported incidences of bullying and discrimination. The organization faces critical problems manifested by low staff morale and motivation, which impact on behaviour, efficiency, effectiveness, and role performance of most staff. The situation within the organization demands an overhaul of the human resource system pertaining to position descriptions, job specifications, systems and procedures guides, as well as human resource policies and operational policies, all of which are absent. Tim’s proposed solution lies in engaging the employees in the creation, development, and implementation of an all encompassing set of position descriptions, job specifications, system and procedure guides, and human resource policies and operational policies. The CEO believes that staff involvement in all of the processes will aid them to take ownership of their positions and subsequently the resultant operational policies. The inclusive programs are designed to aid the staff in deriving enhanced sense of reward from their future employment with the club. In addition, the adoption of competency based succession planning grounded in position descriptions, job specifications and systems and procedures guides avail staff with a tangible incentive to adhere to the new documentation and process as a mechanism designed to enhance their wages via internal promotions. Executives are frequently required to implement decisions so as to solve challenges or problems. Decision making and problem solving are ongoing processes critical to evaluating situations or problems, considering alternatives, and making choices (Monahan, 2000). Decision making process mainly encompasses several steps such as defining the problem, identifying limiting factors, developing potential alternatives, analyzing alternatives, selecting the best alternative, implementing the decision, and establishing a control and evaluation system. Strategic decision making under uncertainty is explored from the perspectives laid out in the theories of decision making, creativity, psychology, and management. In the decision making process, emphasis is laid on innovative decision making under ambiguous and uncertain circumstances. Various Decision Making Perspectives and Techniques Dichotomous classifications of decisions encompass structured versus unstructured decisions. Structured decisions encompass clear, unambiguous and easily definable decisions, while unstructured decisions detail unclear, ambiguous, and complex to define. Decision making should be an integrative process that adopts an interdisciplinary framework. In using the model, the decision maker is faced by three states of reality; certainty, risky, and uncertainty (Smith, 2003). Tim should utilize quantitative discipline in the decision, which utilizes mathematics, statistics, and economics in making the decision. The choices made in the decision making process should be conceived in terms of maximization of utility.  The uncertainty in the case demands that the decision making factors in risk, which can be managed through subjective probability. The employment of simulations can aid the manager to experiment, evaluate, and predict change devoid of the accompanying risk of implementation (Teal, 2011). Decision Making Models Decision making models, which can be mathematical, social, or philosophical, identify a number of prominent causal variables and seek to give meaning to a real-world phenomenon. There are diverse typologies of decision making models such as Teale’s typology, encompassing normative and descriptive approaches and Harrison’s typology, encompassing classical, organizational, political, and process. Other approaches include rational model and bounded rational model. The normative model mainly assumes a rational person, while a descriptive model usually assumes a non-rational person. The rational model, which is normative in nature, is grounded in quantitative disciplines (Montana & Charnov, 2000). The CEO should employ normative model, which encompass situations in which the decision maker has a single objective. The objectives of the decision maker should tie with those of the entire organization. In addition, there is concise well ordered and stable set of preferences from which the decision maker is expected to choose. The best solution in this case details one with the highest quantifiable utility or optimal output. The implementation of the preferred human resource system ought to be guided by the expected output from the new human resource system. The rational approach to decision making is essential as it enables maximizing behaviours to attain the maximum possible output. Other appropriate decision making models to the case include incrementalism (Monahan, 2000). This is a model that is predominantly behavioural and employs a “concession or bargaining decision making strategy.” The strategy is directed at attaining an outcome that is acceptable to the many external stakeholders. This model is intrinsically not an outcome model, but a process one. Strategic HR implies utilizing HR policies and procedures, which aid in attaining the set business objectives. Articulating a HR strategy is critical to the institution of HR strategy that fuels staff commitment and motivation. There is a need to re orient the prevalent human resource system, which promotes devolution of enhanced autonomy and responsibility in the control and management of personnel resources. Employee retention is one of the chief challenges facing the club. Besides enhancing the employee’s morale, retaining them is a crucial concern since the capability to hold on highly talented employees can be crucial to future survival. There are various factors that influence employee retention and which influence the decision of core employees to stay (Ayyub, 2011). These are HR factors such as personal organizational fit, training and career development, and organizational factors such as leadership behaviour, company culture and policies, teamwork relationship, and satisfactory work environment. The new CEO should utilize a conceptual framework for strategic decision making in instances where uncertainty reigns, which takes into consideration creativity context (incremental decisions, skills and experience, and previous discovery), psychological context (looks into past events, present conditions, and future outlook), and managerial context (which utilizes stage processes of decision making such as goal formulation, alternative generation, evaluation and selection, and problem identification). There is no source of written guidelines by which to evaluate strategic decisions under uncertainty, which means that the conceptual framework for decision making must be represented within the confines of bounded rationality (Smith, 2003). The decision to be arrived at should be subjected to certainty effect, whereby the preferred alternatives should not just be merely probable, but the expected value should be higher compared to a decision that is not certain. The case demonstrates a need to implement a change management process, which requires readiness assessments, communication planning, employee coaching and manager training for change management. The implemented HR strategy should enhance the effectiveness, commitment, and retention of employees by comprehensively understanding their behaviour. In addition, strategy should not mere rest on monetary and material needs, as well as finding internal drives. It is essential to enhance human resource planning and development in organizations, besides minimizing the effect of uncertainty and organizational transition on employee commitment and productivity (Ahmad, 2004). The CEO should set a strong course for the club, inspire workforce and keep employees focused on business objectives in times of turmoil and instability. Decision rights should not rest solely with the board and senior management team. The adopted system should allow some autonomy (decentralization) between managers and workers. Tim should focus on aspects such as the organization’s policies and culture, working environment, influential and sensitive leadership style, effective dispute resolution, and organizational loyalty and pride. The implementation of the collaborative HR strategy focuses on internal development of employees’ competencies and outcome control. The organization should focus on development of competencies and process based controls (Ayyub, 2011). The adopted strategy should avail learning opportunities and internal promotion to employees for their demonstrated compliance to the set mechanisms. Organizations HR strategy is closely related to its competitive strategy. Tim should ignore the traditional HR strategy, since there is no certainty over how the proposed inputs will be transformed into outcomes, as well as how employee performance can be closely monitored or appraised. The new CEO should employ technology to control the uncertainty inherent within the proposed HR policy. Human resource information systems are critical in attaining efficiency with respect to scheduling, access to information, and employer regulatory conformity. Human resource information systems in this case infer integrated user-machine systems designed for providing information to support operations and management and decision making utility. The CEO should implement a commitment HR strategy that avails an effective approach in confronting the prevalent problems faced by the club. This approach is effective to the case as the management do not have full knowledge to all aspects of the labour process, and cannot effectively monitor or evaluate the efficacy of the worker behaviours in executing their work. It would be easier to monitor and evaluate the outcomes of work and empower the employees to cope with the uncertainties inherent in the proposed HR management system (Ayyub, 2011). The aim of the HR strategy should be to develop highly committed and flexible workforce, which rewards commitment with promotion and job security. The adopted HR system and policy should incorporate a participative leadership style that structures a commonality of interest and mobilizes consent to the organization’s goals. As a result, the employees do not need to be overtly controlled as they can effectively control themselves (Mahapatra, 2010). The proposed decision should have a process, initiation, goal, means and comprehensiveness in order to succeed. Conclusion The development of a strategic HR enhances staff motivation and commitment, which in turn, leads to increased productivity. Whereas the implications of such an approach may be wide-ranging, the core focus should be implementing effective people management policies (Armstrong, 2007). Nevertheless, in order to prove successful, implementation of a strategic HR, while reinforced by the HR function, cannot remain within the domain HR. Senior management should lead by example and must be committed to and accountable for the strategic HR agenda. Every stakeholder in the club should be responsible for the delivery and effectiveness of the HR policy. There is a necessity to draw and retain high quality staff as it impacts on performance, and is critical to survival in the modern business environment. As a result, the organization should develop effective policies in respect to career development, training, job influence, challenge, appraisal processes, work-life balance and involvement. The aforementioned factors are central to the organization commitment and productivity of its members. Recommendations First, the new CEO should recognize that issues are cross cutting; thus, the solutions should be multifaceted and multi layered. The human resource function should be professionalized to reflect the stature of the organization. Another essential aspect of managing change under uncertainty is assigning the right resources and addressing the policy issue at hand. The new CEO should communicate on critical parameters accompanying the proposed human resource management system. In addition, the HR unit should address the lack of clarity within the departments in relation to the function of every department. The core aim should be boosting organization performance. The paper concludes that in order to prove successful in the implementation of the strategic HR policy, HR function cannot be left exclusively in the realm of the top management. Senior management such as CEO and board of management should lead by example and must be committed to and accountable for the HR agenda. Strong leadership is required to the various senior managers, who are motivated and capable of meeting the high performance demands. Similarly, the decision makers should use a distributed, collaborative, information-rich environment to plan, coordinate and execute the proposed system. A key objective and characteristic in the implementation of a new HR policy should be the movement towards a decentralized system of implementation. In order to reflect the situation, the club needs to consider the dilemma of how to restructure human resource policies and operations to meet the ever increasing knowledge and skill demands and guarantee a professional and efficient delivery of services. The management should assume a hands-on approach with regard to overall HR strategy. The new CEO should take responsibility for managing HR assets and liabilities. Putting in place appropriate HR policies and procedures will bring the needed cultural change. References Ahmad, S. (2004). Human resources management and technical changes. New Delhi, India: Kalpaz. Armstrong, M. (2007). A handbook of human resource management practice. London, UK: Kogan Page. Ayyub, B. (2011). Vulnerability, uncertainty, and risk: Analysis, modeling and management. Reston, VA: American Society of Civil Engineers. Mahapatra, P. (2010). Operations management. New Delhi, India: PHI Learning. Monahan, G. (2000). Management decision making: Spreadsheet modeling, analysis, and application. Cambridge, UK: Cambridge University Press. Montana, P. & Charnov, B. (2000). Management. New York, NY: Baron’s Education Series. Smith, N. (2003). Appraisal, risk, and uncertainty. London, UK: Thomas Telford. Teal, E. (2011). Strategic decision making under uncertainty from the foundations of creativity, Psychology, and management research: An examination and synthesis. Journal of Business Administration Online 10 (1): 1-21. Read More