Human Resources: Aspects of Policy Making - Assignment Example

HUMAN RESOURCES: ASPECTS OF POLICY MAKING of the of the Table of Contents Table of Contents 2 Introduction: 3 1.0 Policy making process: 3 2.0 Policy Analyses: Stack Ranking Policy of Microsoft Corp. 425 each 5 3.0 Five models of Policy Making: 6 4.0 Course content overview: 9 5.0 Use of Knowledge gathered for policy development in isolated communities: 10 Conclusion: 11 References: 12 Introduction: Human resource management processes has evolved with the nature of the business and the demands of the organizations. The growth in the internal functions of the business houses has brought in greater complexity in managing the human resources of a firm. As opined by Baines (2007), human resource is no longer a tool for people management rather it has transformed into one of the major competitive advantage gaining techniques for the business. With the changing times, companies are now trying to streamline their operational functions with their human resource management by developing specific policies. Cascio (2006) defined human resource policies as the process of organizing the resource planning, performance management, employee relations and supporting administrative roles. This report will focus on identifying the process and importance of human resource policies within in the organizational framework. The researcher will also try to evaluate the effectiveness of these policies within the organizational context. 1.0 Policy making process: The process of developing human resource policies depend on the specific needs of a firm and its employees. Most of the firm try to develop their human resource polices by relating them to their organizational objectives which provides an explicit direction to the workforce (Adeniji & Osibanjo, 2012). The influence of the policies can either be negative or positive based on the effectiveness of implementing them. For instance, Microsoft Corp.’s HR policy of stack ranking is criticized as one of the worst policies (Burstein, 2013). The policy was focused on ranking the employees based on their performance which took an ugly form and emerged in the form of organizational politics and decreasing productivity (Burstein, 2013). Focusing on the process of policy making, the basic aspects of policy framing and drafting will be referred in the report. The first step for policy making is to identify the need. This step involves all the HR personnel of the company. The line managers will collect the data on the progress, performance and productivity of the employees and forward it to the senior managers (Cascio, 2006). The senior managers analyze the data and identify the gaps in the work culture and work structure. Based on this, a basic framework for the policy is developed and further forwarded to the higher management of the company. This is where the policy framework is compared and aligned with the strategic decision making process (McKenzie & Wharf, 2010). The second step is to assess the scope of the policy. The senior managers of the firm decide upon the influence of the policy, factors governed by it, the direction of the policy, etc. The opportunities and disputes within the policy will also be identified in this step. Often a team or an individual is appointed to lead the policy drafting process. The assessment of the policy for achieving the identified goals is judged in this step by reverting back to the line managers. The third step is the drafting of the policy. The line managers review the policy formulated and try to evaluate the factors considered in the policy. The feedback of the line managers is considered for assessing the potential effectiveness of the policy in achieving its goals (Guest, 2001). This stage also facilitates extensive communication among the different levels of employees which clarifies their needs and requirements. The senior management also identifies the potential of the HR personnel to monitor the implementation process and utilize the policy in the appropriate manner. The fourth step is the confirmation of the policy launch. The draft policy is forwarded to the top authority of the company such as CEO and the Board of Directors for reviewing (Cascio, 2006). After the review process is completed, a letter of approval will be forwarded to the HR department which signifies the improvements needed in the policy and the authority for implementing the policy. The implementation process is mainly featured with number of meetings and briefings regarding the policy rules and frameworks to the employees. Once the policy is implemented regular monitoring is done to assess the effectiveness of the policy. 2.0 Policy Analyses: Stack Ranking Policy of Microsoft Corp. 425 each The policy analysis forward has been directed towards evaluating the effectiveness, aims and objectives of the Stack Ranking policy implemented in Microsoft Corp. This policy was nullified in the year 2013 for introducing a new internal work culture within the company (Mathew, 2007). The stack ranking policy has been criticized by the employees of Microsoft for hampering the organizational culture and reducing the productivity of the employees. Microsoft Corp introduced the stack ranking policy in their organizational culture mainly to enhance the performance level of the employees. This can be considered as the primary aim for establishing the policy of stack ranking. The policy aimed to achieve organizational excellence by increasing the employee productivity. Cascio (2006) opined that the concept of comparing employees with each other brings in a competitive feeling that drives the workforce to perform higher. However, in case of Microsoft, the desired results could not be achieved. In context of performance management process, Microsoft focused on reducing discrimination and favoritism within the work structure (Nisen, 2013). Stack ranking processes forces the HR managers to rank the employees according to their performance. The complexity of rating employees with similar performance levels was also reduced with the stack ranking policy. The implementation of stack ranking process helped Microsoft in identifying their top performers and retains them for future sustainability (Nisen, 2013). On the other hand, employees with lower performance level can be motivated and focused upon. Microsoft aimed to incur these benefits by implementing the stack ranking system and develop a performance based work culture in their organization (Kaplan & Norton, 2011). However, they did not consider the negative impacts and thus had to suffer decrease in the performance level. The stack ranking process was not in achieving the organizational goals as it develops a tendency of individual competition among the work forces and hampers team work. Although, Microsoft focused on enhancing their performance level but they forgot to consider the team work based work structure of the company (Wulf, 2007). This resulted in disputes among the lower level employees and also hampered their performance. Initially, the stack ranking process achieved success in enhancing the productivity of the employees but gradually the policy converted into a tool for rank achievements rather than improvement and growth. Microsoft being a technology firm needed constant innovation for maintaining their high performance shares (Nisen, 2013). However, their performance in the last decade reflects lack of innovation and wants to grow in the competitive business environment. The human resource policy of Microsoft lacked the balance to motivate the employees in enhancing their performance in a collective manner (Nisen, 2013). The existing work culture and the policy were misaligned and it gave rise to authoritative management style. 3.0 Five models of Policy Making: Numerous models of policy making have been developed by scholars over the years to improve the decision making process of the organizations. These models reflect the necessary aspects for decision making and differ in their approach towards a specific policy formation (Cascio, 2006). In this segment, the researcher has considered to frame a policy for performance management that is one of the most crucial and complex human resource management tasks. The policy will be framed by following five different models and judge the viability of the models. Rational Economic Model: The rational economic model is based on the process of making a decision based on the appropriateness of the policy in achieving the desired goals (Schein, 2003). According to the rational economic model, the decision maker should have access to other alternatives and aims to achieve a safe outcome (Chenhall, 2005). In order to develop a performance management policy under the rational economic model, the researcher has to ensure that the outcome of the policy is safe and secure, the basic assumptions are to develop a policy in the means end sense, the policy should be based on a chain of suitable alternatives, the organization is aware of all the possible solutions and alternatives available. Schein (2003) considers that the policy making process with rational economic model is slow but accurate and the risks are limited. The performance management policy with rational economic model will be: To enhance the performance level of the employees by proper training, monitoring, resource utilization and communication with the organizational level. Bounded Rationality Model: The bounded rationality model is a contradictory model for the rational economic model. The bounded rationality model is also known as administrative model of decision making (Chenhall, 2005). It is focused on developing fast and competitive decisions based on the requirements of the business. It is one of the most commonly used decision making processes used in the business segment. The performance management policy with the bounded rationality model will be: To assess the relationship between the employees and the managers and create a performance based work culture. Social Model: The social model of decision making is based on the psychological aspects of the concerned group. The social model contradicts the rational economic model for decision making; the model focuses on the human feelings driven by their subconscious mind (Mathew, 2007). The performance management policy under social model will be based on wider implications not only on the concerned group of employees but on the international work culture of the business segment (Chenhall, 2005). The policy will be: To develop a mutually beneficial work culture by promoting employee welfare to enhance employee commitment. Intuitive decision making model: Intuitive decision making models are based on the importance of making emergency decisions during crisis conditions. It is similar to the bounded rationality concept of decision making (Kaplan & Norton, 2011). In case of intuitive decision making, the rational process of assessing the alternatives is not followed. It is based on what the leader or the decision maker thinks is right (Wulf, 2007). The performance management policy in this case will be based on a precise scenario and will vary according to the perception of the decision makers. Considering the decision making process in context of enhancing production level, the policy will be: To introduce and utilize monetary incentives for increasing the production level of the firm and monitor the level of commitment of the employees. Normative Decision making model: The normative decision making model was developed by Victor Vroom and is mostly used for selection of the decision making style rather than the decision making process itself (Kaplan & Norton, 2011). The normative decision making process is a customized process that reflects the usefulness of the various decision making styles such as individual decisions, consultative decisions, delegation, etc. A normative decision generally has an overall approach and encompasses most of the factors related to the decision making (Mathew, 2007). The policy framed with normative decision will be: To develop employee productivity with optimal resource utilization and appropriate managerial tools that will help in mutual growth by establishing a sustainable work culture. 4.0 Course content overview: With the help of this course one can learn about the various aspects of policy making and the factors that dominate the human resource management practices. The development of knowledge base by assessing the practical situation and comparing it with the theoretical process has been applied in the course. The role of HR in the organizational functions has been focused up on while developing the course. The course mainly consists of eight modules that are directly related to the primary functions of HR. Subjects such as leadership management and development strategy, research methods for HR professionals, managing employee relations, etc are important to learn in the contemporary scenario of HRM (Armstrong et al. 2010). The role of HRM have changed in the last few years rapidly, the HR professionals are not only responsible for managing the employee compensation and other administrative tasks but also have to contribute in the strategic decision making process of the companies (Armstrong et al. 2010). For knowing the various roles and responsibilities of a HR, it is essential to understand and learn the course contents as it has been developed in accordance to the changing role of HR managers in the business segment. The subject of this research paper is based on the aspects of policy making for managing human resource practices of a firm. The policy making process influences the work culture and the work structure of a company and helps in directing the performance of the employees towards fulfillment of the organizational objectives. Conducting this research has helped in understanding what factors are considered in policy making and how can policies be effective in enhancing the operational excellence with optimal human resource management in the desired manner. The course is enriched with knowledge and the tutors have vast experience which creates the perfect opportunity for students who wants to pursue human resource management as their career choice. 5.0 Use of Knowledge gathered for policy development in isolated communities: Most of the policies developed or decisions made on a collective level focus on mutual contribution and growth. The policies focus on improving the outcomes of an activity in a sustainable manner rather than gaining short-term benefits. The process of developing policies in these scenarios should be based upon a collective decision process that will reflect the scope of the policy and the various factors that can influence the operations as suggested by the policy. Furthermore, it can be stated that the policy development process should include a crisis management process which will nullify the risks (Kaplan & Norton, 2011). Rational economic decision making is suitable but the results take time to reflect and may not serve the purpose. Thus, it is better to customize the rational economic model with the bounded rationality. Bounded rationality has been considered as this will help in understanding and identifying the approaches of different individuals involved in the decision making process. Another aspect related to the bounded rationality model is the use of intuitive decision making which can influence the policy making in both positive and negative manner (McKenzie & Wharf, 2010). For instance, the stack ranking policy of Microsoft portrayed potential for performance based and an unbiased work culture but it resulted in hampering the work environment. Such case studies will help in understanding the factors that can manipulate the policy outcomes and help in updating the policy making knowledge. Conclusion: The study focused on the process of policy for managing the human resource activities of a company. Human resource polices are developed with a view to streamline the activities of the workforce and direct them towards the organizational goals. The development of a human resource policy is based on the organizational requirements and employee capabilities. Many models have been developed over the years for increasing the efficacy of the human resource policies such as the rational economic model or the bounded relativity model. The case of Microsoft’s stack ranking policy has been highlighted and analyses as how policies can have negative influence on the business environment. The course developed by the respected university for pursuing the human resource activities has included both practical and theoretical aspects of the subject. Overall, it can be concluded that for developing an effective human resource policy, it is essential to identify the needs of the organizations and employees, the business culture and structure, the potential risks that can arise and the benefits that be derived from the policy. References: Adeniji, A. A., & Osibanjo, A. O. (2012). Human Resource Management: Theory & Practice. Lagos, Nigeria: Pumark Nigeria Limited. Armstrong, M. A., Martin, M., El Komos, M. & Taylor, K. (2001) Notes on the Preparation of Essays in the Arts and Sciences, 5/e. Peterborough: Trent University. Baines, D. (2007). Doing anti-oppressive practice: Building transformative politicized social work. Halifax, NS: Fernwood. Burstein, J. (2013) Microsoft kills its hated Stack Ranking. Does anyone do employee reviews right? Retrieved from: http://www.businessweek.com/articles/2013-11-13/microsoft-kills-its-hated-stack-rankings-dot-does-anyone-do-employee-reviews-right Cascio, W. F. (2006). Managing Human Resources: Productivity, Quality of Life, Profits. New York: McGraw-Hill/Irwin Chenhall, R. H. (2005). Integrative Strategic Performance System, Strategic Alignment of Manufacturing, Learning and Strategic Outcomes: An Exploratory Study. Accounting, Organizations and Society, 30(5), 394-420. Guest, D. E. (2001). Human Resource Management: When Research Confronts Theory. International Journal of Human Resource Management, 12(7) Kaplan, R. S., & Norton, D. P. (2011). The Strateg y-focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. Boston, MA: Harvard Business School Press. Mathew, J. (2007). The Relationship of Organizational Culture with Productivity and Quality: A Study of India Software Organizations. Employee Relations, 29(6), 677-697. McKenzie, B. & Wharf, B. (2010). Connecting policy with practice in the human services, 3/e. Don Mills, ON: Oxford University Press. Nisen, M. (2013) Why Stack Ranking is a terrible way to Motivate Employees. Retrieved from: http://www.businessinsider.in/Why-Stack-Ranking-Is-A-Terrible-Way-To-Motivate-Employees/articleshow/25840360.cms Schein, E. M. (2003). Organizational Culture and Leadership. San Fransisco, CA:Jossey-Bass. Wulf, J. (2007) Authority, Risk and Performance Incentives: Evidence from Division Manager Positions Insider Firms, Journal of Industrial Economics, LV(1), 169-186. Read More