Organizational Development and the Role of Human Resource Management - Essay Example

The Broadening Role of Job Designs in Managing Human Resources The success of managing an organization cannot occur, at least not within a reasonabletime frame, without some form of strategic human resources management imbibed within their operations. Although the human resource agenda has been incorporated in the principles of strategic planning, an understanding of the applicability of these processes in organizational management is relatively new. Today, as more companies recognize the benefits that organizational development and the role of human resource management could provide to the implementation and outcome of their operations, the need for strategic planning in formulating appropriate job designs has been identified as a high priority. From the technological perspective, the workplace is defined through the production processes, which take place in a discrete area of production. Essentially, the hierarchy of managers, supervisors, and workers defines the workplace organizationally. The orientations of workers and managers to the particular area define the social limits of a workplace. Such a definition need not be limited to manufacturing. The workplace can also be a department in a bank or university or a school within an education system. What is important is that the work area is discrete, has some technological or production unity which marks it off from other workplaces, and it is recognized as such by workers and managers. Therefore, it is evident that the field of Human Resource Management has evolved into a strategic, technical, and measurement-oriented area in the past few years. Predictably, this field will continue to grow in sophistication and complexity as a reflection of the world in the 21st century, presenting solutions to difficult dilemmas that could affect the workplace massively. Designs for Strategic Management in Human Resources An organization's core values are manifested by its culture; that is, in the basic ways that business is handled, such as how decisions are made and how rewards are distributed. Employees learn these ways of doing business through observing co-workers and leaders. If no expectations are established and effectively communicated, employees will "make it up" as they go along when faced with ethical dilemmas. Thus, management strategies are essential in human resource management, organizational behaviour, or organizational design because it could specify its own model or framework of the key elements. In determining the appropriate job designs for a specific company, all models and theories could be deemed as one consolidated set of behavioural elements. In building the working framework, four elements had been identified to underlie most work behaviour models: 1.) Capability - The skills, knowledge and abilities necessary to execute an action associated with the objectives of the organization. 2.) Opportunity - When individuals are provided or encounter situations in which actions can be executed with the desired effect. 3.) Motivation - The drive to execute those actions, created by a perception that they are linked to desired outcomes and rewards. 4.) Understanding - Knowledge of how an individual's actions affect the system and overall goal achievement. The first three components are derived from a long research tradition suggesting that individual performance is a multiplicative function of ability and motivation (Cummings and Schwab 1973), critiques of the simple model (Campbell and Pritchard 1976) that suggest that the environment determines the expression of ability and motivation (Dachler and Mobley 1973), and recent work suggesting that situational constraints and opportunity (e.g., advances in technology and changes in the political, social, and economic environment) are key to a theory of work performance (Campbell 1999, Howard 1995, Ilgen and Pulakos 1999). The fourth component was incorporated to help describe organizational management and HRM practices. These and other human issues have the potential to "move the needle," that is, to materially change the output of a process (Boudreau et al., 2003). In addition, simplification is an essential part of all modelling, and organisational management researchers and managers are aware that their models involve simplified representations of human behaviour. But they may not always be aware of the consequences these simplifications can have on decision making. To gain insight into this issue, it is proper to begin by listing some of the most common assumptions used to represent people in organizational management models (Boudreau et al., 2003). The following assumptions are commonly used to simplify human behaviour in organizational management models: 1.) People are not a major factor. (Many models look at machines without people, so the human side is omitted entirely.) 2.) People are deterministic and predictable. People have perfect availability (no breaks, absenteeism, etc.). Task times are deterministic. Mistakes do not happen, or mistakes occur randomly. Workers are identical (work at the same speed, have the same values, and respond to same incentives). 3.) Workers are independent (not affected by each other, physically or psychologically). 4.) Workers are "stationary." No learning, tiredness, or other patterns exist. Problem solving is not considered. 5.) Workers are not part of the product or service. Workers support the "product" (e.g., by making it, repairing equipment, etc.) but are not considered explicitly as part of the customer experience. The impact of system structure on how customers interact with workers is ignored. 6.) Workers are emotionless and unaffected by factors such as pride, loyalty, and embarrassment. 7.) Work is perfectly observable. Measurement error is ignored. No consideration is given to the possibility that observation changes performance (Hawthorne effect). While assumptions such as these simplify modelling and mathematics, they can omit important features. For example, consider the situation in 1985, at a plant that was a joint venture between Yokogawa Electric and Hewlett Packard (YHP) where electronic circuitboards were "stuffed" manually with a wide variety of components. Although this plant had less automation and greater product variety than other HP plants, it nevertheless had the highest level of productivity in its category. The reasons had to do with the workers and their "talents." In using the term "talent" broadly, it refers to the potential for workers to affect organizational processes and outcomes. Talent pools are often formally described in job titles, competencies, knowledge, and certifications, but many worker talents are less obvious. For example, a call centre operator's job description may say very little about effectively handing off work to co-workers, yet this talent may be one of the most pivotal in enhancing the effectiveness of the lining up process (Boudreau et al., 2003). Bringing up Organisational Change The role of good human resource management practices can be a determinant for building a strong ethical foundation to eventually change a culture that has some of the indicators of a weak ethics system in an organization. With the recent changes going on in employee relations, tackling the workplace requires a new form of human resources management based on the following building blocks (Barzelay, 2001): Strategy - What is the public value the organization is really trying to create' Answering this question forces the managers to figure out their policy goals and exactly what role their agency should play in fulfilling those goals. Workplace design - Like a good roadmap, a sound design helps managers reach its ultimate policy and operational destination. Connecting the network - Technology is the glue that can hold networked company together, allowing employees to share knowledge, business processes, decision making, client information, workflow and other data. Ensuring accountability - Ensuring accountability in a networked arrangement is a matter of getting the following four things right: incentives, measurement, trust, and risk. Human capital transformation - In addition to knowing about planning, budgeting, staffing, and other traditional company duties, networked management requires becoming proficient in a host of other tasks, such as negotiation and mediation. Manufacturing methods in the workplace excited particular interest and, during the 1980s, wide-scale implementations of practices such as just in time production, total quality control and team-based work organizations (Voss and Robinson, 1987). The strong Japanese identity of many of these practices ensured that issues of the feasibility and desirability of the transfer of these practices attracted widespread debate about the "Japanization" phenomenon (Elger and Smith, 1994; Oliver and Wilkinson, 1992). This debate was extended by the publication of the influential 'The Machine that Changed the World' (Womack et al., 1990) which coined "lean production" to describe management practices found in their purest form among Toyota and its suppliers in Japan, but allegedly transferable anywhere in the world. Several authors have argued that the successful operation of Japanese production systems depends on human resource policies, which deliver "willing co-operation" rather than mere compliance on the part of the workforce (Pil and MacDuffie, 1996). Whether the net result of such policies is one of mutual gain for management and workers, as argued by commentators such as Womack et al. (1990) or one of increased subordination (Dohse et al., 1985), where workers are denied an independent voice and "locked" into the firm, is a debated point (Delbridge et al., 1992). The basic human resource elements of the model include: shared destiny relations between employee and employing organization; team-based work organization on the shopfloor, including labor flexibility and multi skilling; opportunities for shopfloor workers to improve the production process, via suggestion schemes and problem solving groups; and much greater responsibility for front line operators for a range of activities on the shopfloor, including quality monitoring and improvement, maintenance and personnel issues such as the selection of new members for work groups (Oliver et al, 1998). In view of globalization, several authors have praised the successful operation of Japanese production systems depends on human resource policies, which deliver "willing co-operation" rather than mere compliance on the part of the workforce (Pil and MacDuffie, 1996). Whether the net result of such policies is one of mutual gain for management and workers or one of increased subordination (Dohse et al., 1985), where workers are denied an independent voice and "locked" into the firm, it is still a debated point (Delbridge et al., 1992). However, the basic logic is fairly simple; if production operators are required to take responsibility for a wider repertoire of tasks, such as problem solving and continuous improvement activities, then a closer, more co-operative climate is needed within the firm (Wickens, 1995). Human resource practices change as the strategy of the organization changes, and strategic changes themselves are being orchestrated more frequently by human resources in response to external change (Duening, 1997). To survive effectively, organizations require a reasonable amount of predictability and order. Individuals bring their personal needs to the organization in which they work. These needs are partially material and economic, and partially social and psychological. The personal needs of employees can have significant effects on organizations, particularly in a rapidly changing environment. Many conditions in organizations are responsible for a low quality of work life and decreased job satisfaction. The work stress, burnout, and related performance and efficiency problems that is precipitated by changing environments and organizational change is significant. Rapid change is widely understood as one of the major factors associated with job stress in organizations. The costs of work stress to organizations can be divided into direct and indirect costs. Direct costs to organizations include absenteeism, work stoppages, work quality and quantity, grievances, accidents, and inventory shrinkages. Indirect costs to organizations include low motivation, dissatisfaction, communication breakdowns, distrust, animosity, poor quality of work relations, and low morale. These direct and indirect costs have a significant impact on the human resource management responsibility of organizations. The tasks and responsibilities of human resource managers are changing rapidly as companies downsize and reorganize in the 1990's in reaction to dynamic external environmental changes. Strategic responsibilities of the human resource manager include assessing staffing needs, training and development, and developing a manpower plan for effectively implementing strategies. Any strategic management system can fail if insufficient attention is given to the human resource dimension. According to Lenz and Lyles (1986), human resource problems that arise when businesses implement strategies can usually be traced to three causes: (1) disruption of social and political structures, (2) failure to match individuals' aptitudes with implementation tasks, and (3) inadequate top management support for implementation activities. According to Penezic (1993) and Markowich (1992), human resource managers in the 1990s should help plan and implement changes in organizational structure or management practices such as: 1.) Staffing changes resulting from downsizing, restructuring, mergers, or acquisitions. 2.) Increase innovation, creativity, and flexibility necessary to enhance competitiveness. 3.) Manage the implementation of technological change through improved staffing, training, and communicating with employees and managers. 4.) Promote internal changes in relations with unions, particularly those that will enhance cooperation, productivity, and flexibility. 5.) Anticipate and influence the management impact of changing legislation, court decisions, and related developments. The Communications Initiative Model The role of good communication in a certain organization or company is definitely beneficial in promoting understanding and maintaining good working atmosphere among employees. This makes communication and employee participation is a critical component of any strategic plan implementation. In constructing a model to guide human resource managers in dynamic environments, a focus on communications should be considered essential. The Communications Initiative Model (CIM) is designed as a complement to the functional human resource process of planning, staffing, development and evaluation, and maintaining effective workforce relations (Anderson, 1995). The CIM is intended to help guide human resource managers in managing human resources in turbulent environments. This model, like virtually all organizational initiatives, depends critically on top management support for accomplishment of its intended objectives. The Communications Initiative Model employs the following components: 1.) Communication - Communication affects how people in organizations relate to each other. Without effective communication, managers can accomplish very little, especially in an environment of rapid change. Managers must communicate strategy effectively and in a timely manner in order for the proposed strategy to be successful. 2.) Participation - Organizations meet with less resistance to change when they foster employee participation and involvement. When potential resisters are involved in the design and implementation of the strategy or change, they are less inclined to oppose the change (Brett, Cron, & Slocum, 1995). 3.) Ownership - Participative leadership leads to ownership and commitment to the strategy or initiative by members of the organization. Strategy and change that is characterized by consulting with subordinates, encouraging their suggestions, and carefully considering their input when making decisions gives members an sense of ownership and personal involvement in the change or proposed strategy (Evans, 1970). 4.) Implementation - The transition from strategy formulation to strategy implementation requires a shift in responsibility from strategists to functional managers. Managers and employees are normally motivated by perceived self-interest than by organizational interests. 5.) Facilitation - Following implementation, the CIM Model employs facilitation as a means of preventing entropy, or loss of momentum, loss of commitment, and loss of leadership for the strategy or change. In connection with this, businesses today have struggled to successfully imitate Toyota in their efforts to implement Toyota Production System (TPS) principles and techniques. The remarkable results, in the research of Rooney (1990), observed transformation to become a model of sustainable change founded on the principles and tools of the TPS executed through the application of Large Scale Change (LSC) and organizational development approaches. This is just a historically command-and-control environment that shifted to a culture of operator engagement that created ownership of the change at the appropriate level of the organization. The operators completely redesigned the manufacturing line and their work in order to improve the overall performance of the line. They built the house in which they would live and they were proud. The performance improvement results exceeded the initial expectations and the initial skeptical reactions had changed (Rooney, 1990). Toyota's success in its transformation relied mostly on developing their organizational culture. The key ingredients that gelled throughout the organization as a result of this effort were: Leadership, Communication, Learning environment, Ownership, Reward and Recognition. The leadership provided a vision and we focused on communicating extensively throughout the flow path system using open dialogue. With an effective learning environment through experiential learning, it transitioned learners to teachers and then to coaches throughout the process. Ultimately the ownership of this flow path was transferred to the operators who run the equipment. The reward for the operators came in two forms. The most obvious was the visibility of the results that they created. They received verbal compliments that were as simple as saying "thank you" from local and distant leaders. To change the fundamental culture of this organization, the management found out that it must blend the technical aspects of the Toyota Production System with the processes of Whole System Transformation within Organization Development. Only then will we be able to surpass the quick-hit results focus and derive fundamental cultural change that will sustain the immediate results long into our future (Rooney, 1990). Conclusion As various trends in globalization, technology, diversity, e-business and work ethics are continually enhanced for the benefit of both the managers, workers and the whole corporation, the human resources department has a gargantuan task in an organization to unite all of these developments taking place. To be a globally competitive company, HR professionals should take the helm at leadership roles by virtue of their visibility and influence, if not always in terms of title. Employees look to the leadership as role models to guide their own behaviour. This is especially true when organizations are weathering difficult times, such as mergers or acquisitions. A good organizational job design cannot be institutionalized unless organization leaders show their respect for individuals and the organization by engaging in legal and moral behaviours. Employees will learn to trust and respect each other and managers only if they observe characteristics that merit that trust and respect (Gravett, 2000). Thus, in developing new development strategies, it is significant to consider not only organizational culture as a concept but also the internal and external factors that affect organizational behaviour and what motivates your employees. The key ingredients for improvement are good leadership, effective communication, healthy learning environment, ownership, reward and recognition, all of which are basically imbued in basic human resource development strategies. Bibliography Anderson, M. 1995. Managing Change, Diversity, and Emotions. 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