The HR Manager in the Strategic Planning Process - Essay Example

HR and the Organizational Context Keywords: HRM, Organizational, Culture, Organizational Communication Company Discussed: Acumen Pvt. Ltd., Botswana - representative firm of Arthur Andersen 0.0 Introduction Managing the expectations and motivations of a skilled workforce has brought with it attendant complexities in terms of the need for robust HR practices and organizational procedures. Earlier considered a support function for any business, HRM today is required to take on a more strategic role in order to align itself with the organization's business strategies. Hence, the HR manager is expected to take on the mantle of a business partner along with managers of other line functions, in driving the firm's strategies. Competitive advantage for an organization lies not just in differentiating a product or service or in becoming the low cost leader but in also being able to tap the company's special skills or core competencies and rapidly respond to customer's needs and competitor's moves. HR management can play a role in identifying and analyzing external opportunities and threats that may be crucial to the company's success. It is in a unique position to supply competitive intelligence that may be useful in the strategic planning process. The HR function needs to be treated as a line function. HRM first reared its head in the 1980's with increased globalization of markets and intensified competition (Sisson, 1989, 1990; Blyton and Turnbull, 19941). The globalization of markets was facilitated by an IT- induced communication system and the diversification of the labor market. The international division of labor coupled with the rise and growth of multinational companies saw the emergence of Human Resource Management as a new and key factor in organizational success (Nolan and O'Donnel, 1991)2. HRM is an offshoot of Personnel Management and deals with the practice of identifying and placing the 'right people' people into the 'right' into jobs. Thus the basic gist of HRM lies in tying individual employee empowerment with organization development (Glueck, 1974). 3 According to Henry and Pettigrew, 1986, 4 HRM can be described as: people are a valued source, a critical investment in the organization current performance and future growth. HRM means- the use of planning a coherent approach in the design and management of personnel systems as an employment policy and manpower strategy, and often underpinned by a philosophy matching welfare and management activities and policies to an explicit business strategy, and seeing the people of the organization as a strategic resource for achieving competitive advantage. Guest in 1987 5outlined the main components of HRM: The main dimensions of HRM involve the goal of integration (i.e. human resources can be integrated into strategic plans, if human resource policies cohere, if line managers have internalized the importance of human resources, and this is reflected in their behaviour and if employees identify with the company, and then the company's strategic plans are likely to be more successfully implemented), the goal of employee commitment, the goal of flexibility/ adaptability (i.e. organic structures, functional flexibility), the goal of quality (i.e. quality of staff, performance, standards and public image. In a nutshell, HRM encompasses all the essential nitty- gritty details which build the foundation of an organization. But HRM should not be considered in a 'stand alone context.' According to Rao, 2001, HRM today ought to be taken in conjunction with external market, labor and media forces. HRM is heavily influenced by socio- economic and political policies shaping the industrial workplace. In addition, HRM also has to consider internal organizational corporate climate. Thus, HR executives don many hats dealing effectively with many influences to get the best performance from employees. Thus, HRM is not only about profits and productivity. It is about understanding employees. HRM in today's global society is concerned with employee empowerment to extract the best performance for optimal organizational performance. 0.1 The Company - Background - Acumen Private Limited is a management consulting firm located in Gaborone, Botswana. It is a sister concern of Arthur Andersen in Botswana with branches in South Africa, Maldives, Mauritius, Singapore and China. Acumen is a diverse company. It was initially established as an accounting firm in the 1970s. The company has gradually evolved into a learning organization management consulting company. Acumen can be described as a 'people- oriented' firm where a strong emphasis is given to HR and its integration into company strategic policy. Problem Identification: Acumen's various divisions of Financial Accounting, IT and Business Consulting were facing grave problems in terms of performance and consequently output. In such a climate, it fell upon the HR core team to analyze the situation and come up with possible solutions. In order to develop a comprehensive feel of the awry situation, it was imperative to go back to the basics. It was necessary to grasp the facts that successful organizational performance was dependent on good HR policies. Thus, the HR executive drew up a plan identifying the influences on organizational performance. The plan also threw light on the HR functions performed, its role in organizational performance and its effective assimilation by employees. In short, the HR executive was looking for any evidence of 'internalization' of company policies and strategies. HR Functions: Recruitment and selection: Recruitment and selection processes are free from direct and indirect discrimination or bias and are reviewed regularly. Executive search firms and interview panels are advised to produce a gender-balanced field of appointable candidates. Family-friendly workplace: Family-friendly policies and practices are in place, accessible to all staff, and their use by staff is monitored. This includes informal staff meeting, knowledge presentations and round-table discussions. Employees are encouraged to attend these informal sessions. The policies underlie the philosophy that a happy and secure employee is able to contribute willingly and optimally in organizational performance. But, the HR also has to view the other side. It does not force employees to attend company functions and parties. Attendance is left to the individual. The HR team does its best to include the employee in its endeavors. Flexible work practices: A variety of options for flexible work practices are offered to all staff, and their use by staff is monitored. The HR team has to consider individual cases. It encourages flexible work timings to extract the best out of an employee in terms of productivity. It believes that an employee can contribute more for a longer duration if allowed to work at his/ her pace. Thus, the HR team encourages part time flexible work options of working at home. Training and development: All staff has equitable access to training and development opportunities and their access is monitored. The HR team provides access to workshops, academic short courses and management technical conferences. It believes in a constant learning continuum by each employee. Grievance process: There is a widely published grievance or mediation policy and practice that is agreed to and accepted by staff. In addition, the HR team is responsible for functions of Evaluation, Performance Management, Employee Welfare and Regular Monitoring. Financial Accounting and IT divisions - The problem lay with the lack of internalization of the employees in both these divisions. Employees did not see themselves as part of the division and the organization as a whole. They failed to offer compliance with organizational policies and corporate culture internally. On the surface, they did obey but this compliance seemed to stem from fear. They did not respect and regard the organization as an extension of their work being. Thus, a primary goal of HRM was not being fulfilled. There was no internalization leading to a lackluster performance. It was up to the HR team to help employees understand company philosophy and integrate this internalization with company goals. In a nutshell, HRM now had to wear a line manager's hat and steer the organization onto the path of organizational performance. Factors Affecting Employee Development: In a management conference at IIT-Madras, Rao claimed that employee development is synonymous with organizational performance. Clarifying further, he explained that a secure and developed employee is able to push organizational performance onto a higher plane. However employee development is subject to some forces: External Market Forces - Since the 1980s, market forces have been dictating workplace practices. They influence political policies and economic conditions. These have an adverse consequent impact on work attitudes. It has given rise to flexible work practices, employee empowerment philosophies and the concept of the learning organization. Corporate Culture and Communication-Every organization has a corporate culture composed of organizational objectives, management philosophies, departmental goals, HR functions and leadership styles. Acumen has a corporate culture based on the 'soft' HR version of employee empowerment. Corporate culture forms an important chunk of organizational success. Organization communication at Acumen follows an 'open door' policy where employees are free to voice their opinions. Another vital aspect includes feedback. This takes the form of performance appraisals and exit interviews. Effective communication in the workplace is essential to the delivery of successful organisational strategy and change, employee commitment, and ultimately competitive advantage. An organisation's ability to engage stakeholders through excellent communication strategy and action is an essential skill. Without it the chances of organisations ever achieving their strategic objectives are reduced. Organisational Communication offers practical tools, techniques and a model for developing a straegic business plan. Acumen's communication policy entails: external communication and how HR should be involved - communicating with the labour market, the City and the media internal communication and HR's contributions to this area - employee engagement, communicating with the board and senior managers 0.1 Solutions Increase the amount of time spent on training and development Making employees understand the relationhip between culture and organizational performance Having a one- on- one feedback interactionn with each employee to assesswhere the organization is failing Selecting and recruiting new employees who fit in with the company image and are able to imbibe the corporate culture Making HR a line management tool. Every manager and employee ought to be responsible for the correct implementation of communivccsation strategies - Upward - from management to shopfloor Downward - from shopfloor to top management and board Among peers/ colleagues Within departments With clients and market forces Works Cited 1. Legge, K Human Resource Management: Rhetorics and Realities, 1995. Macmillan Business Word Count: 1,100 words (excluding introduction) Read More