Strategic HRM Application: The University of Sydney - Term Paper Example

Strategic HRM Application: The of Sydney A. Introduction Strategic HRM emphasizes human resource that aims for the success of the organization’s mission and objectives. It is a combination of HRM and business strategy, maximizing human potential through staffing whilst optimizing skill, talents, and capabilities of human resource for the fulfillment of the organization’s objectives. In line with maximizing human resource potentials, HRM enhances these skills and capabilities through training, performance management, and other human development programs for the strategic advancement of the organization. It deals with recruitment, selection, appraisal, formal human resource policies, and such other human resource philosophies. Strategic HRM is linking people to the strategies of the firm. HRM involves management of the organization’s most valued asset, the people who are working as a team. It is the responsibility of management to motivate the employees to allow them to work as a team. Armstrong (2006, p. 13) argues that: “The concept of strategic HRM is based on the important part of the HRM philosophy that emphasizes the strategic nature of HRM and the need to integrate HR strategy with the business strategy.” Human resource policies should be integrated with strategic business planning (Legge, 1989, cited in Armstrong, 2006, p. 13). But Sisson (1990) suggests that a feature increasingly associated with HRM is a stress on the integration of HR policies both with one another and with business planning more generally. Strategic Human Resource provides a playing field for the effective management of the staff, to enhance retention and turnover processes, selection of employees that fit with both the organizational strategy and culture, and cost effective utilization of employees through investment in identified human capital. As an outcome, the organization can have an increased performance, enhanced customer and employee satisfaction and shareholder value. Characteristics of good HRM: careful and extensive systems for recruitment, selection and training formal systems for sharing information with the individuals who work in the organization clear job design local-level participation procedures monitoring of attitudes performance appraisals properly functioning grievance procedures promotion and compensation schemes that provide for the recognition and financial rewarding of high-performing members of the workforce. (Harris et al, 2003, p. 56) This paper aims to provide a background and concept of strategic HRM in relation to the application of HRM practices of the University of Sydney. First, we will provide some literature review on recruitment, selection, staffing, and performance management and relate this with the University’s HRM policies and practices. 1.) Recruitment Recruitment and selection are an integral part of an organization’s overall HRM strategy. HRM emphasizes the integration of traditional personnel functions including recruitment and selection and their management towards the strategic goals and objectives of the organization. (Compton et al., 2009, p. 2) “HRM emphasizes that employees are critical to achieving sustainable competitive advantage; that human resources practices need to be integrated with the corporate strategy, and that human resource specialists help organizational controllers to meet both efficiency and equity objectives.” (Bratton, 1999, p. 11) The method and effective ways of recruitment and selection will determine the kind of human resource the organization will be able to attain. With efficient and effective personnel, the organization will surely outperform its rivals. The first step in recruitment is planning. It involves ongoing environmental scanning and an analysis of organizational objectives, strategies and policies in order to ascertain the right quantity and quality of employees when and where necessary. This means forecasting HR needs to ensure that the organization has the right amount of human resources when they require them. According to Armstrong (2006, p. 363), human resource planning is important to the organization’s achieving its strategic goals. Bulla and Scott (1994, cited in Armstrong, p. 363) defines human resource planning as ‘the process for ensuring that the human resource requirements of an organization are identified and plans are made for satisfying those requirements.’ Human resource relates to people and planning involves people; thus it follows that people play a strategic role and are the most important asset in the organization. Human resource planning is concerned with identifying resources to the business needs of the organization. It meets human resource both in quantitative and qualitative approach by answering the questions: how many are needed in the organization and how many are needed for a particular project or business, and what particular skills and capabilities do the people (or employees) should have? (Armstrong, 2006, p. 363) Moreover, top management plays a significant role in staffing: it should be concerned with identifying and selecting persons capable of implementing the organization’s plans. The CEO should maintain the employee morale and performance, to nurture customer goodwill, and to control costs. The assignment of managers considered to be organizational failures or who are superfluous to oversee the divestment of a business unit has been a common staffing decision when, in fact, the opposite approach should be taken. Benefits for human resource planning include: The provision of clear linkages between human resource functions and organizational objectives Effective demands on labour markets Cost-effective recruitment and selection strategies, and Systematic and responsive human resource policies and practices in all areas. (Compton et al., 2009, p. 9) Good planning takes time. Plans may be subject to a large number of unpredictable variables (employment levels, demographic aspects, skill variations, economic factors demanding multiple contingency strategies. (Compton et al., 2009, p. 9) The need for recruitment is determined by forecasting the number of employees needed in the future and making allowance for labour turnover rates during that period. The technique of recruitment as a means of closing supply / demand gaps must be compared for effectiveness with other alternatives, such as increased human resource development, more rapid promotions, automation and (where there is difficulty obtaining suitable employees) the feasibility of reviewing plans to consider whether it is possible to operate without certain employees. Compton et al. (2009, p. 9) says that when determining recruitment needs, it may be beneficial to use three separate categories of recruits: Those needed to account for labour turnover Those needed for short-term growth, and Those needed for long-term growth of the organization. After determining the appropriate numbers and types of employees required to meet organizational goals, the next step is to determine where the labour supply should come from. Existing employees can be trained, developed, redeployed, transferred or promoted for future skill needs. New recruits will need to be sought out, attracted and carefully selected to ensure suitability for future positions. 2.) Staffing Successful staffing means getting the right people on the right spots at the right time. A lofty staffing contributes to the manager’s hoarding people at the expense of the organization; this may foster promotions from within a manager’s own department or network of acquaintances without consideration of organization-wide candidates. These practices which display the traditional culture of cronyism and parochialism need to be overcome in order for the staffing process to be successful. The organization’s objectives play a critical role in the staffing process. Qualifications should play an important role in the selection of the right staff for certain job vacancies. Specification of the qualifications, identification of persons possessing those skills, and moving people into the jobs should be emphasized in the organization’s staffing strategy (Miller, 1984, p. 58). Management should maintain employee morale and performance in order to nurture customer goodwill and to control costs. According to Miller (1984, p. 68), ‘Approaching the staffing process from a strategic perspective requires an integrated interpretation of the relationships between the various levels of human resource concerns in the planning process. Identifying and choosing people who will best run the organization and its businesses in the long run requires a broad set of programs and activities required to find those people.’ Apart from the need to closely link an organization’s recruitment plan with its business strategies, it is also important that the methods chosen to select the best applicants from its attracted labour pool are effectively linked as well. Selection techniques ensure that investments made in job design, advertising, career fairs and other recruitment activities bear fruit in the form of qualified, skilled and well-motivated new employees who will be able and willing to contribute to the objectives of the organization. (Compton et al., 2009, p. 12) 3.) Training and Development Strategic training and development focuses on the design and implementation of training systems to successfully impact organizational performance. The strategic process begins with identifying the business strategy, and the strategic learning imperatives (strategic training and development goals) to support the strategy are identified. The strategic learning imperatives are then translated into specific training and development activities. These may include formal and informal training. The final step involves evaluating whether training helped contribute to the goals of the organization utilizing appropriate metrics. Training should be carefully planned, designed, and evaluated in support of organizational goals and objectives. With respect to needs assessment, the emphasis is on aligning training systems with an organization’s business strategy and operating constraints. The strategic process begins with identifying the business strategy; the strategic learning imperatives (strategic training and development goals) to support the strategy are identified. These learning imperatives are then translated into specific training and development activities, that may include formal and informal training. The final step involves evaluating whether training helped contribute to the goals of the organization utilizing appropriate metrics. Training should be carefully planned, designed, and evaluated in support of organizational goals and objectives. With respect to needs assessment, the emphasis is on aligning training systems with an organization’s business strategy and operating constraints. 4.) Performance management Performance management has been introduced in organizations’ HR practices “as a means of providing a more integrated and continuous approach than was provided by previous isolated and often inadequate merit rating or performance appraisal schemes” (Armstrong, 2000, p. 214). Performance management is a strategic and integrated approach that aims for the success of the organization by improving the performance of the organization’s employees. This is focusing on their capabilities and individual talents that should contribute to the entire performance of the organization. Performance management also aims to provide the means through which the staff involved in such an undertaking can provide better results in such a way that the customer or the community will be benefitted in the end. The organization’s role here is to provide the framework, including planned goals, standards and competence requirements. As a whole, the organization’s function is full support for the entire undertaking to make it a success. Armstrong (2000, p. 214) stresses that performance is strategic in nature in that it concerns with broader issues of the organization such as its functions and role in the community or environment to which it serves. The four features of integration of performance management are: 1. Vertical integration – this pertains to the organizational set up which links or aligns business team and individual objectives; 2. Functional integration – this links functional strategies; for example in the education set up, it links the organization’s role with that of the individual employee in delivering education to the masses. 3. HR integration – this links the different aspects of HRM to the individual’s development. 4. The last is integrating individual needs to the organization. (Armstrong, 2000, p. 214-215) The concept of performance management focuses on the role of employees and people within the organization and how to deliver better results to the community or customers to whom the organization serves. “It involves the development of processes for establishing shared understanding about what is to be achieved and an approach to managing and developing people in a way that increases the probability that it will be achieved in the short and longer term. It is owned and driven by line management” (Armstrong, 2000, p. 215). Performance management strategy is concerned with: 1.) performance improvement in order to achieve organizational team and individual effectiveness. Organizations, as stated by Lawson (1995, cited in Armstrong, 2000, p. 215) have ‘to get the right things done successfully’. 2.) employee development because performance improvement is not achievable unless there are effective processes of continuous development. This addresses the core competences of the organization and the capabilities of individuals and teams. Performance management should really be called ‘performance and development management’. (Armstrong, 2000, p. 215) 3.) satisfying the needs and expectations of everyone in the organization including the owners, management, employees, customers, suppliers and the general public. Performance management treats employees as equal partners whose interests are respected and who have a voice on matters that concern them, whose opinions are sought and listened to. Performance management should respect the needs of individuals and teams as well as those of the organization. 4.) communication and involvement wherein a continuing dialogue between managers and the members of their teams take place to define expectations and share information on the organization’s mission, values and objectives (Armstrong, 2000, p. 215). Performance management is managing within the context of the business. The organization has to let every employee know that performance management strategy concerns everyone in the business – not just managers. (Armstrong, 2000, p. 216) Performance management also focuses on targets, standards and performance measures or indicators. But it is also concerned with inputs – the knowledge, skills and competencies required to produce the expected results. It is by defining these input requirements and assessing the extent to which the expected levels of performance have been achieve by using skills and competencies effectively, that developmental needs are identified. (Armstrong, 2000, p. 220) One of the first explicit statements of the HRM concept was made by the Michigan School (Fombrun et al, 1984, cited in Armstrong, 2006, p. 4), which specifies that HR systems and the organization structure should be focused on the organizational strategy. The human resource cycle consists of four generic processes or functions that performed in all organizations, which are: selection, appraisal, rewards and development, and managing people. Selection Methods and Criteria The areas of concern related to selection methods are: reliability, validity and legality. a.) Reliability – refers to the degree to which interviews, tests and other selection procedures produce comparable data over a period of time and the degree to which two or more methods produce similar results or are consistent. Reliability is even more important in qualitative (i.e. words) work than in quantitative (i.e. numbers) work because words are open to interpretation and there is a higher risk of error due to subjectivity. b.) Validity – refers to the extent to which something measures what it claims to measure. c.) Legality – a selection method should also be assessed against current employment legislation, particularly to employment opportunities legislation. (p. 287) B. Policies of the University of Sydney The University has for its HRM strategy the Performance Management Development (PMD) as a strategy geared towards development and advancement of human resource management and for the success of the University’s goals and objectives. Performance evaluation features probation, confirmation (for academic staff), incremental progression, performance progression (for general staff), and performance bonus scheme. This evaluation of the staff uses specified performance objectives and ratings under supervision of well-trained personnel and staff who attend training in PM&D processes before conducting PM&D reviews with their staff. The PM&D program applies to all staff on probation, whether part-time or full-time or staff on fixed-term contracts of a period greater than 12 months, or staff on contracts of less than 12 months, but it does not apply to casual staff, or to staff on fixed term contracts of 12 months or less with the exception of probation reviews. The program evaluates or assesses the staff’s achievements in the last 12 months, performance objectives for the forthcoming 12 months, and a development plan for the forthcoming 12 month period (attached University Policy document). PMD data and information are processed through the Human Resource Management System (HRMS). This is the application of Information Technology to the processes of University. A Human Resource MIS (HRMIS) records data and information related to “previous, current, and potential employees of the organization, and plays a valuable role in ensuring organizational success through workforce analysis and planning, hiring, training, job and task assignment, and many other personnel-related issues” (Stair & Reynolds, 2010, p. 414). The whole process of the PMD is well planned and assignments are being carried out by the different responsible personnel. The job of the supervisor is assigned to the Head of School and has the big responsibility and authority in overseeing the entire process of PMD. The reviewer is assigned to a Level C/HEO 8 or higher and has the leadership role or supportive relationship with the staff member, and also conducts reviews of staff. Key Performance Areas (KPAs) refers to the areas of performance or the subject areas which are being focused on by the staff: these contribute to the University’s goals and achievements. These are the main subject of concern, and for the academic staff these concern the teaching and learning, research and innovation, leadership/management, and community, professional and industry engagement. The general staff have to gear their attention on client focus, learning and innovation, resource management and quality, and teamwork and leadership. Staff members’ performances are rated for each relevant KPA using the following assessment ratings: Outstanding (OS) = the staff member demonstrates very high level of performance and achievement for the previous 12 months; Superior (SU) = demonstrates higher than expected levels of performance and achievement; Satisfactory (SA) = demonstrates expected levels of performance and achievement; Not meeting performance objectives (NM) = performing marginally and not meeting the performance expectations. (University Procedures Document attached) The University’s Staffing In line with the principle of getting the right people on the right spots at the right time, the University recruits and selects the best possible candidates in a timely and cost effective manner for positions at all levels within the University. The Recruitment and Selection Policy (the Policy) provides a framework and structure for all University staff engaged in the recruitment and selection process. (The University’s Recruitment and Selection Policy document attached) The process of recruitment is systematic and well planned; the University has a Hiring Manager who is charged of the overall unit staff and resourcing. He/she first consults the Dean/Principal Officer and the relevant staff to assess the hiring need. A Recruitment Professional from SydneyRecruitment advises the Hiring Manager throughout the recruitment process, whilst HR Relationship Managers/Advisors will also assess. A strategy in recruitment includes careful coordination between the Recruitment Professional and the Hiring Manager on matters pertaining to position including sourcing methods, costing and screening; advertisements and duration of advertising period and closing date; and timeline for the recruitment process. (Recruitment and Selection Policy document attached) On the other hand, the composition of the Academic Selection Committee is one of the most select group committees. The selection panel is represented by: Provost and Deputy Vice-Chancellor (or nominee); Dean or Nominee Nominee of the Academic Board Head or Nominee Internal School Member External Member nominated by Head Other members. (Recruitment and Selection Policy attached) C. Discussion There is a concept in HRM known as the traditional approach which focuses on the organization and environmental factors, and wherein almost all activities and events are geared towards the advancement of the business organization. Here the personnel are left behind. The alternative motive known as the contemporary approach focuses on competencies and the employees’ commitment to the organization. The contemporary approach is more focused on the employees or the workforce. If the employees are happy, the organization progresses too. There is a link between the needs of the employees and the organization. Capabilities, to include talent or skill, of the employees are maximized and linked to the goals of the organization. The contemporary approach is also based on competence of the individual employees which are integrated into the organization. It is also based on the principle that the people are the organization’s greatest asset. Human Resource Planning serves as the link between the strategic business planning and strategic HRM of the organization. HRP is part of the HRM cycle; thus it cannot be separated from business strategies. HRP specifies recruiting and selection goals, including the number and type of individuals to be employed. It also includes appraisal of performance and productivity. (Gold, 1999, p. 167) This paper was aimed to present the strategic HRM applications and practices of the University of Sydney. In our study of strategic HRM, we focused on selection and staffing and optimizing skill, talents and capabilities of human resource to respond to the needs of the organization. HRM is maximizing human resource potentials. As mentioned, recruitment and selection are an integral part of an organization’s overall HRM strategy. The University’s recruitment and selection process is a systematic process that ensures qualified and competent personnel are selected for a successful HRM functions and in line with the objectives of the University. It does not take hiring for granted. It has a Hiring Manager who is charged of the overall process of recruiting the right people for the right job, whilst a responsible staff coordinates and assesses the Manager. Responsible people are working together to get the right personnel. The University’s effective staffing ensures HRM functions to get the right people for the right spots. The PMD strategy is an effective tool for the development and advancement of HRM functions and the University’s goals and objectives. References Armstrong, M., 2006. A handbook of human resource management practice. London: Kogan Page Limited. pp. 4, 13. Armstrong, M., 2000. Strategic human resource management: a guide to action (2nd ed). London: Kogan Page Limited. pp. 213-217. Bratton, J. , 1999. Human resource management phenomenon. In J. Bratton and J. Gold, Human resource management: theory and practice. London: MacMillian Press Ltd., pp. 3-8. Compton, R. et al., 2009. Effective recruitment and selection practices (5th ed.). Australia: CCH Australia. pp. 2-3. Gold, J., 1999. Human resource planning. In J. Bratton and J. Gold, Human resource management: theory and practice. London: MacMillian Press Ltd., pp. 165-167. Harris, H., Brewster, C., and Sparrow, P., 2003. International Human Resource Management. London: Chartered Institute of Personnel and Development. p. 56. Hitt, M. A., Ireland, R., and Hoskisson, R. E., 2009. Strategic management: Concepts and cases. OH, USA: South-Western Cengage Learning. Miller, E., 1984. Strategic staffing. In C. Fombrun, N. Tichy, & M Devanna (Eds.), Strategic human resource management. United States of America: John Wiley & Sons. pp. 56-59 Stair, R. & Reynolds, G., 2010. Principles of Information Systems: a managerial approach. United States of America: Cengage Learning. p.414. Storey, J.,1995. Human resource management: a critical text. New York: Routledge. Read More