HR should not be defined by what it does but by what it delivers, Essays (university) of Human Resource Management

Download HR should not be defined by what it does but by what it delivers and more Essays (university) Human Resource Management in PDF only on Docsity! HR should not be defined by what it does but by what it delivers MASTER OF BUSINESS ADMINISTRATION ESOFT METRO CAMPUS - KANDY MODULE NAME PEOPLE AND ORGANISATIONS: PRINCIPLES AND PRACTICE IN GLOBAL CONTEXT (MN 7181) LECTURER’S NAME DR. MOHAMED RAZI BY JANITH LIYANAGE LMU ID - 19029994 ESOFT ID - KAN/A-011770 Acknowledgement I would like to thank Dr. Mohamed Razi for guiding us with the lectures of People’s Management - Principles and practice in Global Context while guiding us to gather practical knowledge and with all learning materials. Further, my appreciation goes to E-soft Metro Campus academic staff who supports and guides throughout all the academic stuff in this study. i List of figures Figure 1: Ulrich Model..............................................................................................................5 Figure 2: HR as strategic partner theoretical framework...........................................................8 iv List of Tables v 1. Introduction Throughout many decades the concept HRM is being tried to define using number of factors and features. Since the concept can be broadly discussed, we find many literatures introduced by researchers establishing their definitions with sufficient research evidences. This discussion is principally based on the delivery model introduced by Ulrich, (1998) that emphasize the definition of HR by way of what it delivers. With the evolution of HR concept, new parameters were introduced which can be diversified in various organizations in many ways. Traditionally, the human resource function has been viewed as primarily, administrative, functioning at the level of the individual employee, the individual job, and individual practice (Brecker et al, 2001). But in the modern context, HR runs an operation in assisting the organizational excellence. HR delivery model demonstrates the roles of HR as a strategic partner, an administrative expert, an employee champion and as a change agent. The features of these four roles emphasize the definition of HR based on what it delivers. The business environment of today’s organization is very challenging. The characteristics of the delivery model shows the path to overcome such challenges in positive ways. Each component of this delivery model plays different roles in different stages in organizations but what common here is, the vision of all four component is to achieve the organizational success. Ulrich, (1998) has highlighted why HR is more important than ever and how HR professionals should transform themselves from traditional structure to a new mandate. David Olsan Ulrich is a university professor, author, Speaker, Management coach and consultant. He is a professor of business at the Ross School of Business university of Michigan and co- founder of RBL group and he published his article with relevant theories as “A new mandate for Human Resources” in Harvard Business Review in 1998 Jan-Feb issue. 1 All the empirical evidence now strongly suggests that human resource management influences organizational efficiency very positively. Alignment with the strategy of the organization has become a key component of effective human resource management and working toward that can drive the organization to accomplish its objectives. Accordingly, HR should not just focus on traditional activities but on results which can be obtained through the organizational excellence which enrich the organization’s value to its stakeholders (Ulrich, 1998). 3. How does HR function? As we previously discussed, the primary objective of HR is to deliver HRM services. But in the modern business environment, the responsibility of HR is identified as more business- aligned and a contributor of gaining an established competitive advantage. In simple words, HR contributes to achieve the organizational success and effectiveness. Mainly, HR creates a relationship between the management and the employees. Moreover, they play a leadership role, they provide advice and services on issues related to management, they reward, taken care of employees’ well-being, they clear the path for employees to learn and develop and climb the ladder, they do recruitments. All these can be considered as functions of HR. 3.1 Does HR really deliver? HR functions can be scoped in a delivering aspect when it enables the organization and its managers to get works done through people by providing suitable advice and services and HR delivery model explains how these services are provided. 3.1.1 Three-legged stool model Ulrich, (1997) firstly developed the three-legged stool model describing the notion of delivering HRM through three principle areas. Centers of expertise, Strategic business partners and HR shared service centers were identified as the three legs which can perform the delivery of HRM. 4 Centers of expertise – Which undertakes an enhanced advice and services on key HR activities such as training and development, recruitment, reward and employee relations. Strategic business partners – Formulating and executing effective strategies by the line managers in order to assist in achieving the set goals. HR Shared service centers – This is where handling all the day-to-day transactional services within the organization such as, absence monitoring, advising on dealing with employee issues, recruitment. However, this model found difficult and hard to implement. Most organizations were able to establish only one or two legs and according to the survey done by CIPD, (2007) only 18% has respondents had implemented all three legs. 3.2 Most acclaimed delivery model Ulrich, (1998) introduced the delivery model as he stressed that HR should not be defined by what it does but what it delivers. As we already discussed, he described four main ways which HR can perform delivering & how effective they are in improving the organizational values. 5 Figure 1: Ulrich Model Source: Managing HR Roles: David Ulrich’s HR model by TonmoyShingal 3.2.1 Becoming a strategic partner Ulrich, (1998) divulged the importance of HR becoming a strategic partner in the business. We all know what are the traditional HR functions and how does a regular HR department operate within an organization. But It has become more important than ever to integrate HR with the business. The competition has increased. Customers demand more quality and better service at lower cost. For almost any organization, resource management and regulatory compliance have become challenges. Effects of globalization require the HR capabilities to be stronger. Just carrying out the traditional activities will not satisfy the contribution of HR toward the organizational success as it’s not a simple task to contest with these challenges. Accordingly, HR is supposed to be a companion at most of the levels in organizations where strategic decisions are being taken and acted. The functions of HR should be aligned with the company’s decision-making process. Barney and Wright, (1998) distinguished that Excluding HR in strategically important issues or the process and design of business strategy, companies risk missing important insights, opportunities and constraints, resulting in both costly and non-competitive advantages. 6 Figure 2: HR as strategic partner theoretical framework Source: HR as Strategic Partner-How to make it happen: by Andreas Jansson and Alexander Rozenbachs Ulrich, (1998) divulged that becoming a strategic partner is not a simple task for HR as it’s an entirely new thing. Acquiring new skills and capabilities through the enhanced knowledge and the experience will direct HR to add values to the business with confidence. 3.2.2 Administrator to administrative expert Administrating is the best traditional way to determine the basic role of HRM. For ages, HR professionals are being called as administrators as they engage in the traditional HR processes such as staffing, appraising, rewarding, promoting and providing trainings. Ulrich, (1998) expressed in his delivery model the importance of becoming an administrative expert by overcoming the traditional HR activities, which enable the organization to ensure the implementation or the development of HR practices cost effectively and with improved efficiency. The role of an administrative expert is not restricted to HR processes, it can also impact on other business processes align with the organizational missions and objectives. Ulrich and 9 Brockbank, (2005) explained the ways to reduce the costs and increase the efficiency using this theory by gaining a competitive advantage where employees are considered as costs. Therefore, this HR function adds value in its operation and can show clearly its importance to the company. Increasing the efficiency of basic HR functions of an organization can be mainly done through applying the new technology. We see most of today’s organizations performing their employee management activities such as recruitments, benefit management, pay rolls, absence management etc. using enhanced technological systems. Comparing to the state sector, most of the private sector companies in Sri Lanka are transforming to technological driven systems to enhance the process efficiencies. Not only focusing on reducing the costs in existing practices, the HR department discovers new ways of performing their activities as administrative experts in enhancing the effectiveness of the organization’s business objectives. The involvement with other business units has to be carried out strategically and the HR professionals then able to identify the ways of making effective decisions to support the relevant business units to improve the productivity levels. Another result of the administrative evolution of HR places it at the center of strategic planning for the organization. HR focuses on its administrative experts to provide the required number of people with the necessary skills, knowledge and experience the organization needs to function productively and profitably. Ulrich, (1998) further suggested that HR can establish centers of expertise that gather, coordinate and disseminate adequate information about market situations, competitions or organizational processes. Such groups can perform as consultants and that will lead the companies to improve its competitive situations. 3.2.3 Role as an employee champion To be successful in the competition, the employee engagement toward the organizational objectives is utmost important and HR has to play a vital role in it. In common, employees of most of today’s organizations are being asked to or forced to do more with less which is a reason for employees to get demoralized. This can create organizational failures. The position 10 of employee champion helps to enhance employee contribution and dedication by reacting to employee concerns and offering employees opportunities to increase their skills aligned with organizational objectives (Ulrich, 1997). This process is basically about the employee well- being and the psychological contract between company and employee. HR has to be the voice of employees to the management. Employees have the opportunity to communicate their requirements to the management through this HR’s role. HR further has to perform in an integrating way which coincide the set targets and the employee competencies. The incongruities need to be addressed using relevant strategies to develop employee skills and the engagement, or communicating the mismatches to the top levels in order to reengineer the goals or the processes. Hence, the role of HR as an employee champion can also determine in the view of performing advocative activities. Pay equity, requirement for adequate employee benefits, harassment free work place, safety and job satisfaction are some salient concerns of employees which can be addressed positively through the HR’s role as an employee champion. HR can help employees to develop their competencies and to contribute more to the organization by providing effective trainings, timely developmental experiences, career planning and mentoring employees with opportunities to grow. Further, becoming an employee champion is a role which is people centered and operational oriented. As we discussed this may include listening, advising, supporting and guiding employees in par with the management’s requirements. The HR professionals who can orientate to employee champion role, emphasize opportunities for employees to benefit from valued practices, and will tend to mitigate the impact of unpalatable demand by top management. As HR is involving in representing employees in decision making process, employees can keep their confidence that when decisions are made which affect them since the HR will support their rights and reflects the employees’ views to the management (Ulrich, 1998). 3.2.4 Role of an agent of change 11 The competencies of HR professionals become important when the top management is expecting more from them. Highly skilled HR staff must be recruited by the management or the people within the organization who has required skills can be trained and developed to gain the expected competency levels. A highly skilled HR professional should have a proper idea about the business, knowledgeable about the practices of HR, able to manage the culture and should have personal trustworthiness. 4. Conclusion Providing definitions for Human Resource opens a window with a broader way of thinking as this concept is that much debatable. Many researchers, scholars and authors have provided number of definitions based on features and factors of human resource concept. In this discussion, the attempt was to define the HR not by what it does but what it delivers. Meaning, HR is playing a new role comparing to its traditional practices by being an unavoidable constituent in modern contexts of organizations. Discussion evidences that how does HR performs delivery and it confirms the importance of focusing not on the HR activities but on the outcomes. As a strategic partner, an administrative expert, an employee champion and an agent of transformation, HR delivers its competencies to different levels within the organization and helps them to drive the businesses toward the success. 14 Moreover, rather than performing the usual HR practices, implementing these new HR roles backbones the organizations and make them stronger to face many modern market challenges. In every aspect, what HR delivers is all about the employees and these delivery models concrete the relationship between the employer and the employee. HR’s responsibility of generating effective outcomes should be over viewed by the management. Management’s involvement in enhancing the delivery levels of HR is required as it helps the organizations to continue with positive effects on objectives. 15 5. References Angrave, D., Charlwood, A., Kirkpatrick, I., Lawrence, M., and Stuart, M. A. (2015) HR and Analytics: Why HR is set to fail the big data challenge. Human Resource Management Journal. Armstrong M. (2001) ‘A Hand Book of Human Resource Management Practice’, 8th edition, Kogan, UK. Bakke, E. W. (1967) ‘The human resources function’. In E. W. Bakke, C. Kerr and C. W. Anrod (Eds.), Unions, management, and the public (pp. 197-201). New York: Harcourt Brace. Barney, J. B., and Wright, P. M. 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