Challenges HR Specialist May Face - Essay Example

As a HR specialist, what are the challenges you may face and what HR intervention mechanisms would you consider using in an attempt to drive individual and organizational performance in a multinational company? 1. Introduction Years ago, the primary focus of a Human Resources Management (HRM) was to foster a sense of leadership, loyalty, and vision for the organization in question. Although these core fundamentals are still a primary focus of HRM to this day, the fact of the matter is that an evolution has taken place in the way that organizations engage their HRM to differentiate and hone their advantages. For instance, as opposed to previously, HRM currently has a high level of focus upon the social aspects of creating a positive environment, administering to the needs of the individual, and seeking to refine and hone the goals of the individual as well as that of the organization to achieve a greater degree of synergy and symbiosis. Accordingly, there has been much debate about the relationship between Human Resources (HR) practices and organisational performance. Hiltrop (1996) concluded that there existed links between HR practice to organisational performance although the evidence was weak. Other authors have made contributions to the body of knowledge by attempting to explain the nature of this relationship. For example, Becker and Huselid (1996) proposed a causal model that suggested that HR practice impacts on employee behaviour while Wright and Snell (1998) posited that HR practise impacted employee skills and behaviours. However, common to all the models proposed by the various authors, is a linearity in the relationships, for example the model of HR and firm performance proposed by Becker et al., (1997). Conversely, Wright and Gardner (2000) suggested “reverse causation” which suggests that as organisations perform better, they invest more in their HR practices. Their argument seems to suggest that performance may not necessarily be driven by HR practice but is nevertheless linked to it. The same authors also proposed the “implicit theory” hypothesis which suggests that the observed relationship between HR practices and the organisation’s performance stems not from any true relationship but rather from the implicit theories of organisational survey respondents, i.e. to say it is due to subject bias and not true relationships. This paper examines four different HR practices that are proposed as part of the overall HR toolkit and are key in enhancing organisational performance. The thesis presented in this paper is that all four approaches have merit and when they are used together they have synergistic qualities that make them all bring the best performances out of individuals and organisations. However, it will also be highlighted that most of these practices are carried out in organisations that are rich in context and so the concept of best practice cannot be utilised lightly. It is therefore not guaranteed that HR practices successful in one context will be successful in a different context. 2. HR Practices This shift in the way in which HRM has been affected within the firm has meant that the means by which Human Resources attempts to engage with the organizational structure has also become slightly more nuanced. For instance, where before a singular approach of team spirit was indicative of a HRM team that was in lock step with the needs, goals, and desires of management, a far more differentiated entity has emerged that has helped to show a level of balance between the needs and desires of leadership and the individual needs and desires of the component individuals that makes up the organization (Hoefstede 1983). As such, it is necessary for the researcher to bear this fundamental shift in mind when attempting to categorize and/or analyze any particular component part of the HRM process. 2.1. Appraisal Performance management, HR measures and appraisal are referred to in the same breadth because the process of appraisal in many ways measures output against an established standard (Zornitsky, 1995). Although the process of appraisal is supposed to involve the individual being appraised by collaborative goal-setting, there are some issues with appraisal as a process. For example, there is difficulty in identifying what is useful during the process and the objectivity of managers has been called into question in several studies. As noted by Kearns (1994) there is a need to know if a function is productive. Coupled with the lack of clarity on performance measures, performance management and the process of appraisal has been viewed with a degree of scepticism within and without the profession. For example, measures have been described as being too focused on history, that they only provide a snapshot analysis of an individual’s or organisation’s performance and also the emergence of creative accounting creates problems with credibility of the process (Hendry et al., 2000). Accusations of cronyism and favouritism are common in organisations that use appraisals as a form of performance management. Because appraisal is linked to many other HR aspects such promotions, rewards, succession planning etc, the positive motivational dimension of appraisals can help an organisation to be more productive. Yet the opposite is used to as a criticism of appraisals in that they are potentially a control mechanism through which management induces fear into employees with the threat of reprisal if targets are not met (Townley, 1990). The obvious linking of appraisal and reward in the organisation can have a negative effect on employee attitudes towards their chances of receiving a reward at the end of a period. Vroom’s (1964) expectancy theory suggests that an employee needs to feel as though the target performance is achievable in order for them to be motivated to work towards the goal. Also, the incentive that is tied to the achievement of the goals needs to appeal to the employee. Egan (1995) went on to point out the negative role of culture on the identified faults of appraisal systems claiming that the faults stem from unproductive assumptions, values and beliefs. One would expect the importance of performance appraisal in cultures that place a high value on individual achievement (the so-called masculine cultures such as the American and Japanese cultures) (Hofstede, 1983). The key argument that needs to be emphasised here is that there will be variations to the manner in which appraisals are implemented within the organisation. These variations often lead to the accusations of lack of consistency and the ambiguity of practise in HR literature and (Becker and Gerhart (1996). It is the position of this paper that this ambiguity shall always be a feature of HR practise within a multi-national context. This ambiguity arises out of the need to adapt to contextual issues that affect an organisation’s practise at its various sites and it should be considered by HR specialists. Such ambiguity also affects comparative analyses of HR practises across industries and organisational types because other aspects of the organisational context such as its vision and strategy may affect its perspective on measurement of performance (Kaplan and Norton, 1992). The appraisal determined that there was at least a degree to which the multinational company exhibited the same traits of comparative analysis and levels of adaption that domestic and/or non multinational firms do. The appraisal itself is helpful in understanding the complexities of how firms/organizations of different size and scope behave with relation to the same stimuli and inputs that cause other firms to behave differently. Moreover, it is the understanding of this author that the performance level exhibited by multinationals, based upon the aforementioned metrics, has been raised. 2.2. Recruitment Although the terms recruitment and selection are usually used together, HR literature makes a distinction between the two. Recruitment is defined as the process of attracting appropriately qualified candidates for a particular position from which it is possible and practical to select and appoint a suitable candidate (Pilbeam and Corbridge, 2002). The recruitment process can either be reactive or proactive, in response to an employee leaving the organisation or due to a recognised future requirement within an organisation (Torrington et al., 2002). It requires first an understanding of the job to be carried out then the attributes of the person that may be best suited to carry out the job. The job analysis takes the form of a job description, person specification and competencies. Job description, as the name suggests, is a work-oriented descriptor of the tasks that an individual employed would perform. It is therefore work-oriented while person specification is more descriptive of the psychological and behavioural aspects that the job requires and is therefore a description of the personal attributes that a person must possess in order to do a job to the best of abilities and enhance organisational performance. Competencies go beyond personal characteristics because they are descriptive of effective individual behaviours that result in enhanced organisational performance (Boyatsiz, 1982). Although the process of recruitment is well documented, it is quite clear that there is no best practice that has been identified in the HR literature. Research conducted by Huo et al., (2002) concluded that the notion of best practice was not quite achievable due to the differences in selection methods across the world. These are some anticipated challenges that a multi-national organisation would experience when trying to establish standard practices of recruiting employees across all its sites (Anderson, 1995). Firstly, this may raise questions of fairness or consistency in the process and also implications for the competence of the recruited employees and hence performance on the job. The obvious disparities in site performance can become a difficult issue for HR to resolve as these may or may not be tied to reward and incentives (Hendry et al., 2000). Although the notion of best practice (see Pfeffer, 1994) may not entirely be achievable, areas of convergence have been identified which may help to establish common practices, for example, in terms of recruitment methods, Czerny (2004) found that internet and e-recruitment are used by 82% of organisations. Indeed Huo et al., (2002) found that the convergence was partly due to technological developments. Technology transcends culture and historical differences and can be a platform for multi-nationals to establish consistent HR practice. In terms of the personnel qualities sought in recruited employees, the apparent expatriate failure as it is referred to by Anderson (1995) has de-emphasised the focus on technical abilities and knowledge that are tested cognitive tests. Instead there if a shift towards softer skills such interpersonal skills, the ability to work in teams and organisational fit which are tested by psychometric tests and other forms of selection conducted within the interview process. The idea is that a person with the right organisational fit will be more able to contribute to the overall performance of the organisation in a manner which is deemed appropriate to the strategic and competitive vision of the organisation. According to the analysis which has been performed, it is clear to see that there has been a measurable increase in the use and application of the so called “soft” approach to HRM. 2.3 Training Knowledge management literature highlights the fact that in the new economy, the achievement of sustained competitive advantage depends on an organisation’s capacity to develop and deploy its knowledge-based resources (Rodriguez Perez and de Pablos, 2003). This relationship between knowledge, organisational learning and performance was investigated by Spicer and Sadler-Smith (Spicer and Sadler-Smith, 2006) who found that a relationship exists between small-firm performance (both financial and non-financial) and organisational learning indeed exists. One of the many ways to increase knowledge and learning within the organisation is through training (CIPD, 2010). It is one of the techniques that an organisation can use to foster a culture of learning and productivity (CIPD, 2010; 2011). Training has often been divided between on-the-job and off-the-job training. On-the-job training may entail short courses, apprenticeships, observation and learn-as-you-do projects. On the other hand, off-the-job training may entail classroom learning, e-learning and other forms of vocational study. Furthermore, Ashton et al., (2005) noted that there emerged a broad range of informational mechanisms which were intended and designed to help promote training and learning within a growing organization. It has been noted that the larger an organization is, the more likely it will be that the process itself becomes more systematised and seemingly “objective”. This objectification has the direct effect of making each stage in the process concentric around a number of key stages or steps from the point in time that the issue is noted to the point in time that the requisite training requirements are denoted and provided. As a way to accomplish such a goal, formal techniques for training needs analysis are developed and become part of the specialist knowledge of the trainer (Ashton et al, 2005). Conversely, a general lack of training among SMEs has been noted throughout the United Kingdom Learning and Training at Work surveys which have been conducted. Says one author, “Work surveys. In the UK in 2002, 48% of enterprises with 5-24 employees offered training leading to a formal qualification, a figure that increased to 60% for organisations with 25-99 employees, 74% for those with 100-199 and 80% for those with 200-499 employees (IFF, 2002 pg. 72). The same pattern followed for other forms of off the job training, most of which do not lead to formal qualifications. Given that training courses are perceived by both academics and policy makers to be the manifestation of organisation and individual investment in human capital and therefore motivational” (Spicer and Sadler-Smith, 2006). Therefore, this technique becomes a powerful tool that can drive organisational performance. However, it is also worth noting that small organisations that tend to use informal on-the-job training methods are forced into such situations because of a lack of resources. At the operational level, as the size of an organization grows, there arises a clear and prescient need to define and develop a clear and relevant training system in order to achieve the goals of a broader and more productive entity (Spicer and Sadler-Smith, 2006). The problem associated with training within the context of a multi-national company is the fact that many contextual factors need to be considered from the viewpoint of establishing a best practice. One would expect several issues not least cultural and competitive environmental issues to come to the fore when considering training approaches. For example, Boxall (2003) emphasised the importance of segmentation and differentiation in competitive strategy which renders the notion of “best practice” in HR models and training moot. Instead, the notion of “best fit” is proposed and exemplified by the differences in approaches in HR investment strategies between organisations that target a high value niche and those that target low value-add and/mass markets. Conclusion The paper has shown that there exists considerable literature in support of HR practice as a viable solution towards improving the organisation’s performance. The paper has also demonstrated how some of the HR practises are complimentary in nature and feed into each other. However, it is quite clear that although some evidence exists on the merits of using HR practice, there are some challenges that need to be considered and overcome in order for the HR practise to effective. Particular focus has gone towards the cultural influences that make best practice in HR difficult to implement similar practices across several sites. Such influences have been clearly tracked and denoted with relation to multinational HR practices as compared to those exemplified by non-multinationals. Naturally, some of the very same core components are exemplified in both; however, due to the level of cultural influence accepted within multinationals, there appears to be a strong correlation between the level of cultural interaction and the degree to which multinationals exhibit a different HR approach. Lastly, the issue of HR training as indicative of the needs and desires of the organization can now be seen to come to the more salient issues that can be defined across the business spectrum. The issue of beliefs values and norms within certain cultures make it necessary to adopt localised HR strategy which is best described as best fit. For the purposes of the thesis presented in this paper, it is considered that the arguments made are sufficient to draw the conclusions presented. 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