Role of the HRM as a Strategic Partner in an Organization - Coursework Example

Institution xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Instructor xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Date Abstract In recent times, companies have been put on their toes by stiff competition, technological advancements and innovation. They are further faced with uncertainties regarding the economic climate, limited resources, competition between priorities, strategies with uncertain outcomes and management complexities due to their hesitation when it comes to strategically adopting the practice of human resource management. The worth of Human resource management is therefore fast changing to suit the new organizational cultures & structures. HR is becoming a core part of company strategy very fast having previously been just a mere support function. In the current economic climate, for an organization to survive, it needs to discover ways of reducing costs, increasing quality of its products and services; increasing its performance and creating new products. This can only be achieved by the wholesome contribution of employees in executing and implementing the business strategy. HR is therefore fast becoming a strategic partner by pointing out the skills that employees need and providing them with training and structures to develop, deploy and enhance such skills. This paper assesses the role of the HRM as a strategic partner in an organization which is experiencing change. Contents Contents 3 1.0 Introduction 4 2.0 Human resource Strategy 5 3.0 Developing an HR strategy integral to an organization 7 4.0 The strategic HR planning model 8 5.0 Strategic direction 9 6.0 Designing the management system for HR 10 7.0 Planning the total work force 11 8.0 Generating the required human resources 12 9.0 Investing in HRM development and performance 12 10.0 Assessing and sustaining the competence and performance of an organization 13 11.0 Developing an ethics and cultural program 14 11.0 Conclusion 16 1.0 Introduction According to a research, 70 percent of the initiatives to change conducted by organizations fail because managers fumble on a number of techniques hence making them drown in confusion (Boxall & Purcell, 2003). Effecting successful change can be explained using two theories; theory O and theory E. Theory E lays emphasis on economic value which is only measured by economic returns. It boosts returns through economic drastically laying empoyees off, performance incentives, and restructuring an organization while theory O lays emphasis on the development of corporate culture and human skills while patiently building trust and emotional commitments to the company through promoting teamwork and effective communication (Marler, 2012). Despite a few selective successes, transition remains a difficult stunt to pull off, hence only a few companies manage to handle the process as they desire. The most popular change initiatives include installing new technology, downsizing, restructuring and changing the corporate culture of an organization. O strategies develop long term, commitment based psychological contracts with employees and this is what this paper will focus on in the development of strategic HRM plans and policies that facilitate a potential change in the HR profile of an organization. O strategy further develops the capabilities of an organization, encourages participation from the bottom to the top, builds a rich corporate culture based on employee attitudes and behaviors, motivates through commitment and finally consults management in supporting their own solutions (Beer & Nohria, 2000). We shall constantly keep referring to the case study of the Department of Technical Services. 2.0 Human resource Strategy Developing a human resource strategy which is comprehensive plays an important role towards the achievement of the overall strategic goals and objectives of an organization. It also clearly highlights how the human resource function completely understands and supports the direction towards which the organization is moving. This comprehensive strategy also supports the objectives undertaken by IT, finance, marketing and operations departments (Marler, 2012). A good HR strategy aims to capture the ideal manpower element of what the organization is aiming to achieve in the short-term, medium-term and long term by ensuring that; It assigns the correct people to the right area, it possesses the perfect mix of skills, the desired behaviors and attitudes are displayed by employees, and the development of employees is done using the correct techniques (HR Conference Paper Abstracts, 2010). Davidson who was the director of headquarters management at the Department of Technical Services asks himself questions such as whether the right people had been picked for the survey therefore indicating a lack of a clear HR strategy that would have put such questions to bed. A good strategy adds value to an organization because it clearly articulates some of the most common themes behind the achievement of other previous strategies and plans that had not been fully identified before and also identifies the fundamental issues hence it must be addressed by any organization or business for its people are to be motivated and committed for effective and efficient operations (Pingping et al., 2011). The first art of HR planning is the development of plans and strategies that can identify and draw attention to the common themes and implications which had not been made explicit previously (Hood, 2001). The second bit is identifying which among the selected plans and strategies are so fundamental that there has to be clear measures to address them before an organization can dream of achieving any of its objectives and goals which may include: Planning issues regarding the workforce Issues relating motivation and fair treatment of employees Issues that impact the recruitment process of staff, retaining and motivating them Succession planning with regards to the leadership Developing management framework inclined towards consistent performance and designed to meet the standards of all sectors of an organization including human resource management (Pingping et al., 2011) Payment terms which are engineered to attract, motivate and retain employees A fair assessment and remuneration system designed to issue deserved rewards for contributions made Frameworks for career development so that employees can easily cope with frequent changes in employer and employment terms and trends Policies and frameworks to ensure the systemic addressing of manpower development issues (Boxall & Purcell, 2003) This comprehensive strategy must articulate that careful planning of human-capital issues makes it easier for the organization to achieve its strategic and operational goals. It must also ensure that the concerned organization takes into account and is prepared for the changes in the external environment (Pingping et al., 2011). This is likely to have impacts such as changes in demographic composition and remuneration rates in the overall employment market, changes in culture which may impact on future employment trends, changes in the way employees relate, changes in the legal environment regarding employment and new flexible work practices (Hood, 2001). It is quite prudent for the HR department to identify the right moment to present a case for developing a strategy so that this initiative gains support and its importance is recognized by the whole organization. Being practical about the proposed strategy will certainly help it gain some support. This can be done by focusing on best management practices and building quick wins for the new strategy. Other opportunities that may present the ideal moment to encourage development of a new HR strategy include; a major new initiative or project such as a restructuring exercise, corporate acquisitions and takeovers, merger exercises or joint ventures, or a new externally inspired initiative such as the black economic empowerment, and in some instances negative news such as dissatisfaction of employees or industrial action expressed through a market survey (Hood, 2001). 3.0 Developing an HR strategy integral to an organization The HR strategy must be in tune with the broader organizational objectives and goals and above all, the HR practitioners must ensure that the rest of the strategy is accepted by the whole organization(Boxall & Purcell, 2003). This can be achieved through means such as:- Consulting all the relevant stakeholders on the nature of the strategy at hand Attracting willing allies of the strategy during the consultation stage Making the benefits of the strategy known to the employees by giving them concrete examples of how it will help them Ensuring that all departments of the organization are focused and committed to the strategy Issue regular feedback on the implementation of the strategy to employees by using newsletters and exhibitions Attempt to quantify the outcomes of the strategy so that these results can be monitored and compared easily to highlight the effects of the strategy Make the strategy mandatory during the orientation process for new employees, especially managers (Boxall & Purcell, 2003). This bit seemed to be lacking in the Department of Technical Services because there was a lot of resentment and complaints about how Al Pitcher was handling the survey. The criticism was so much that David tried to ignore some of it by terming it as a rejection of change. This should have alerted David that the HR strategy had not been accepted as an integral part of the organization. 4.0 The strategic HR planning model This comprehensive HR strategy will shape the strategic direction and desired outcome of the organization, it will also shape the HRM direction and point it towards success, and it will determine the number of personnel and skills required by the organization. It will also assess the progress of the organization towards its desired outcomes and make the necessary adjustments to the strategic system (Pingping et al., 2011). Finally, it will bring on-board the required human resources by attracting, accessing and assigning the needed additional workforce, and developing performance and competence indicators in the individual teams and groups within the organization (Hood, 2001). This strategy consists of three steps of planning and three others for execution. The steps involved in the planning explain why an organization must determine its strategic direction and the expected outcomes. The planning process follows a formal top to bottom sequence and is employee driven. If the planning process is agile, rather than being predetermined, changes in plans will be frequent and driven by events. If it is more pro-active, the organization must also be pro-active in shaping its environment to maximize its effectiveness (Ployhart & Moliterno, 2011). The planning process must also ensure that employees own the plan since the best business Intel may at times come from employees at the bottom of the organizational protocol (Boxall & Purcell, 2003). The strategic planning process should therefore be more management driven and less reactive. After the planning is complete, the organization undertakes a process to streamline the HRM policies and practices which will ensure organizational success. The rest of the strategic system will be guided by the development plans, policies and practices. 5.0 Strategic direction This bit lays focus on the alignment and streamlining of human resource policies and practices which catalyze the accomplishment of the organization’s mission, vision, goals and strategies. Most organizations view the human element as their competitive edge therefore they adopt and identify creative human resource policies and practices continually to keep that advantage alive (Ployhart & Moliterno, 2011). They therefore carry out performance management, work restructuring and design training, and use payment and reward policies to keep staff motivated so that the organization can be successful in achieving its desired results. In a nutshell, the HRM policies and practices are aligned and integrated in such a way so as to reinforce employee behaviors and attitudes that can best realize the strategic intention of the organization’s leaders (Marler, 2012). The recommendations when it comes to strategic direction include; scanning the external environment and determining its impact on the organization, evaluating the legislation effects on the organization, consulting the relevant stakeholders, highlighting an organization’s mission, vision and guiding principles ad finally identifying the mission and strategic outcomes of the organization (Hood, 2001). 6.0 Designing the management system for HR This stage focuses on designing and aligning HRM policies, plans and practices. A lot of options are open to an organization ranging from the use of IT, business process outsourcing, and adopting flexible work practices such as telecommuting, and other minor functions. Other policies include intelligence rewards, administration policies, organization rule book and employee code of conduct (Ployhart & Moliterno, 2011). Not just any industry trend is compatible with a specific organization, therefore it is prudent that a cost-benefit analysis is conducted before the new policies and practices are put to practice. Identification of policies which suit an organization and its HR’s strategic needs can be done through conducting a survey on HR best practices which are commonly available in the industry and therefore the best and most cost-effective practices can be embraced (Boxall & Purcell, 2003). Recommendations for the best approach in selecting HRM procedures, policies and practices include; conducting a frequent systems audit and review regarding the employment procedures, identifying the relevant human resource practices and identification of the most suitable and appropriate human resource policies, plans and practices that can ensure an organization is able to attain its objectives (Hood, 2001). 7.0 Planning the total work force One of the most challenging tasks that is facing human resource practitioners in this unpredictable environment is the determination of future business needs of an organization especially those relating to manpower requirements (Boxall & Purcell, 2003). Developing the appropriate workforce plan is therefore quite critical in a comprehensive human resource strategy. Despite this importance, manpower planning has just started gaining popularity recently and this is because it has been prompted by the need for the development of employment equality and setting measurable employment equity targets (Ployhart & Moliterno, 2011). Manpower planning is therefore a process of identifying workforce skills required to achieve a company’s strategic goals, and for the development of strategies to achieve these goals. Knowledge of the required workforce enables the managers to make HR decisions based on an organization’s strategic plan, its budget and available resources, mission and the manpower competencies desired. It is an ongoing process that involves taking actions and making decisions that ensure the desired workers are attracted and retained. Recommended actions pertaining to workforce planning are; developing a workforce plan that supports the strategic goals and objectives of the organization, re-structuring the skills, tasks and job-related activities around core organization activities, determination of an appropriate organizational structure that will be able to support the organization objectives and compilation of the desired workforce profiles, inventories, competencies, required skills and skill-gaps in the organization(Ployhart & Moliterno, 2011). 8.0 Generating the required human resources This bit focuses on hiring, recruiting, training, classifying and assigning employees based on the strategic priorities of an organization’s workforce plan. A comprehensive skill-set plan identifies the appropriate training priorities which are based on the skill-gaps of an organization at present and in the future. New staffing plans may need to be adopted to propel the representation in particular groups and secure desirable skills within the confines of an organization (Ployhart & Moliterno, 2011). Including an intern in such a sensitive survey was a clear indication that the Department of Technical Services had not invested in enough manpower. Recommended actions with regards to generating human resources include; re-assessing the recruitment and selection procedures and practices, and ensuring they are in line with the organization’s strategic goals and objectives, adopting and implementing a good learnership strategy, and the development of desirable skills through thorough training and analysis of employees (Ployhart & Moliterno, 2011). 9.0 Investing in HRM development and performance This process is aimed at increasing the business skills, application of these skills, and behavioral and attitude components, all of which contribute towards an organization’s effective efficient performance (Angel del Brio et al., 2008). This recent legislation has forced many organizations to re-structure their development techniques and practices. By introducing new concepts such as a lifetime learning means that hey have recognized learning as a core part in the process of investment in employees. In case an organization projects that there is going to be very little growth in career development, it will employ completely different strategies to achieve employee retention compared to organizations which are experiencing considerable growth and expansion in this sector (Ployhart & Moliterno, 2011). It is very important that on an individual level, the senior staff to feel that their development needs are being agreed upon and, they are provided with the necessary skills to perform as expected. At a collective level, it should define the ability of a person to flexibly work with others and align individual and team competencies towards the business goals. Reward strategies are aimed at providing the necessary incentives and motivation to employees. These strategies can be a combination of bonuses, share options and sharing profits, depending on market norms and an organization’s financial capability (Hood, 2001). The DTS did not seem to have invested properly in human resource development and performance no wonder the director, Walter Drummond had taken an early retirement signifying that the department might not have been doing enough to retain its valuable employees. Recommendations with regards to investing in HR development include; rewarding performing employees, employee skill development and learning, performance appraisals, promotions andecial job assignments (Boxall & Purcell, 2003). 10.0 Assessing and sustaining the competence and performance of an organization This entails quantifying an organization’s progress towards attainment of its desired achievements and accordingly adjusting the outcomes. Only a few organizations are able to measure how well their inputs affect the outcome, because most of them fail to put measures in place for quantifying the contribution of people towards organizational outcomes or more importantly for assessing how changes in policies and practices affects that contribution. Measurement of performance is important because it amplifies the results of the HR plan and assists the organization to fine tune the strategic plan itself (Begley & Boyd, 2000). Recommended actions with regards to this assessment include; revising and reviewing the HR strategy, evaluating an organization’s culture and climate, implementing a succession planning accordingly and finally evaluating the HR strategy performance using quantifiable measures (Kaifen et al., 2012). 11.0 Developing an ethics and cultural program Ethics is another important component of the HRM strategy since it shapes the organization’s professional integrity, its legal and social responsibility and finally its human resources role. Most companies fail to offer a comprehensive ethics program in their strategies because they either can’t access expert ethical advice or they simply succumb to the pressure of compromising on the set ethical standards (Begley & Boyd, 2000). An organization’ integrity is very important in building a trusted reputation and the HR department has to step in because it is responsible for development, maintenance and marketing of an organization’s image and reputation before the public eye (Boxall & Purcell, 2003). The core principles of the HRM ethical and professional standards are; ethical leadership, professional responsibility, professional development, equality and justice. The legal and social responsibility consists of laws relating to employment and industry specific regulations. Social responsibility entails the obligation of an organization to minimize its negative impact and maximize its positive impact on the society and stakeholders. The human resource role involves interpreting laws and strategic policies to employees, and the assessment of risks relating ethical lapses and disasters (Deckop, 2006). An ethics program is divided into three bits; ethics vs. business ethics, ethical issues and decisions, and explicit vs. implicit messages. Ethics are beliefs about whether something is wrong or right while business ethics refers to the standards that determine an acceptable conduct within the business premises (Hood, 2001). An ethical issue is one that gives options of a choice between several actions that may be viewed as right or wrong, an ethical decision is one that would be deemed reasonable by stakeholders because it aids them or it is legal, while an unethical decision is one that may bring gain to the organization at the expense of society, or it is illegal. Explicit messages encourage inquisitiveness within an organization while implicit messages are more action based (Ployhart & Moliterno, 2011). It is very prudent that ethical leadership originates from the top of the organization while the HRM department simply plays the coordinator role.. This is because the HRM department cannot design or model the culture of the company but simply guide and control it. It can only manage to do so with the cooperation of the senior management (Deckop, 2006). Pitcher is uninterested in DTS’s culture which is the core of its ethics and code of conduct yet he has been picked to spearhead the survey. This way he is missing the whole point of leadership originating from the top. Recommendations regarding development of an ethical program are; developing a comprehensive employee code of conduct, providing a continuous and comprehensive ethics training to employees, reinforcing and rewarding ethical behavior, and having the top management and other role models behave ethically (Deckop, 2006). 11.0 Conclusion A human resource strategy must therefore be developed in such a way to enable it support the attainment of an organization's goals and objectives. Developing HR strategies without considering the existent goals and objectives of an organization is a fatal error because these are the driving forces behind the organization (Pingping et al., 2011). Another common mistake is the development of workplace skills and plans which are not related to any strategic objectives or goals. Corruption and poor business ethics may also lead to organizational failure, economic inefficiencies, and making ineffective management decisions (Boxall & Purcell, 2003). References: Deckop, J. R. 2006. Human resource management ethics. Information Age Pub Incorporated. Beer, M., & Nohria, N. 2000. Cracking the code of change. If you read nothing else on change, read thesebest-selling articles., 15. Boxall, P., & Purcell, J. 2003. Strategy and human resource management. Industrial & Labor Relations Review, 57(1), 84. Begley, T. M., & Boyd, D. P. 2000. Articulating corporate values through human resource policies. Business Horizons, 43(4), 8-12. 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