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Human Resource Management Essay, Research Paper Assignment

Human Resource Management Essay, Research Paper

Assignment One

Table Of Contents

Introduction
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HRM Defines

Traditional Approach

Contemporary approach to HR

Change Management

Murrindindi Shire Council Experience

Back Ground
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Human Resource Roles

Organisational HRM

Conclusion

Introduction

Human Resource management (HRM) has been seen as either having a traditional
or contemporary approach. This paper will define both approaches.

The HR aproach undertaken by the Murrindindi Shire Council (MSC) which was my
organisation up to three months ago will be reviewed in this context as well as
identifiable costs or opportunities that exist.

HRM Defined
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Human Resource Management is the management of an organisations

staff/personnel to meet the needs and achieve the purpose of the business in an
efficient and effective manner.

HRM is defined by Kramer McGraw Shulder (1997,p.10) as having having three

purposes being

? To improve productivity

? To ensure quality of worklife and

? To ensure legal compliance

It has been observed in particular that organisations tend to be very good at the
legal compliance as it is legislated as it has some serious consequences if not
adhered to. What is generally overlooked is the financial implications of dot points
one and two.

Effective human management can contribute to not only product output but also
product quality.

HRM managers are operating at three distinct levels as explained by Kramer

McGraw Shulder (1997,p.30) strategic, managerial and operational
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- Operational levels (short term) can be disseminated down to lower level

management or team leaders as they involve straight forward and traditional levels
of HR

- Staff Recruitment

- Monitoring Systems

- Wages, benefits packages

- Annual appraisal systems

- Training etc.

- Managerial Level (short term)

This level and following tend to be the levels of strategic importance to the
organisation

- Recruitment marketing plans

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- Long term compensation plans

- Validation systems

- Management development programs

- Strategic (long term)

- to gain competitive advantage

- link functions to organisational strategies

Strategy as a process is defined by (Shaun Tyson 1997 p. 278) is ?a mechanism for

achieving a desired objective?. It can then be said that the Human Resource
Strategy needs to be aligned with the organisations ?business strategies? or
corporate objectives. In effect one of the mechanisms to be used is that of Human
Resources.

Miller defined strategic HRM as ?those decisions and actions which concern the
management of employees at all levels in the business and which are related to the
implementation of strategies directed towards creating and sustaining competitive
advantage (Miller, 1987 p.352).
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HRM will aid the organisation through the change (responsive) process via its long
term and medium term HR strategies.

The Change theory for Organisation Development (Robbins 1994, p.813) defines
Organisational Development as ?a planned long-range improvement process,
based on humanistic ? democratic values. It uses change interventions grounded in
behaviour science knowledge, which seeks to improve organisational effectiveness
and employee well being?. He is in effect advocating the same long-term objectives
as Kramer McGraw & Shulder to ensure the organisations effectiveness, which will
in turn effect the organisation's bottom line.

Traditional Approach

Traditionally HRM departments have had limited opportunity to be involved in the

strategic functions of the organisation. HRM was refereed to as

?Personnel management? and is noted by Kramer McGraw Shulder (1997,p.18) as

dealing with activities such as recrement selection, compensation, and training.

It could be said that traditionally HRM has revolved around process rather than
strategy. With the growing knowledge in the field and recognition that effective
management of this vital resource can effect the bottom line ?human resource
management? is now an important part of the total Organisations management.
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Contemporary approach to HR

This has been explained by Kramer McGraw Shulder (1997,p.7) as ?..

Contemporary thinking on HRM tends to see it more broadly distributed
organisational competence, including line managers, rather than just a group of
specialists in an HR department.?

In essence Kramer McGraw Shulder is arguing that HR is an organisational

responsibility that should be filtered down through all levels of management. It is
broader than simply compliant to process but should be strategic, evolving and
responsive to change.

I agree with this statement, as many operation functions are process driven in that
providing the process is well defined the basic HR functions below can be very
simply implemented either by line managers or general operational staff.

The basic HR functions common to most organisations are as follows Kramer

McGraw Shulder (1997,p.7,

? Planning for Human Resource needs

? Staffing the organisation?s personnel needs

? Performance Management and review

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? Improving Employees and their work environment

? Establishing and Maintaining effective working Relationships

Change Management

Change in simplistic terms is defined (Robbins 1994,p.885) as ?making things

different?. Change management in the context of HR could therefor be defined as
contributing to making things different through human resources.

Changing the way people behave is the core of change management with the
purpose of maximises the organisation's efficiency.

The goals of the organisation can be achieved through the link between the external
environment, internal environment; organisations make up, culture, management
and human resource policies.

Buchannan & Boddy (1992) explained three competencies in relation to change

which are reinforced in Kramer McGraw Shulder (1997,p.25). It is suggested that
there is a Technical, Controlling (traditional) and a process agenda.

The third competency is where the HR skills are required in communication,

leadership, team building, negotiation and leadership.
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It is important to align the organisations strengths and internal capabilities to that of

the external market (Kramer McGraw Shulder (1997,p.53) ie strategies including
that of Strategic Human Resource Management.

A number of models are discussed by Kramer McGraw Shulder (1997,p.56).

The model most aligned with change at BMSC through the amalgamation of
Councils process undertaken in 1995 is that best described by Dunphy and Stace
(1992; 1994). Their model suggests that the human resource strategies and policies
used will determine to what degree an organisation will ?change? to bring it back
into align with the into strategic fit within its environment.

The four approaches are defined, Kramer McGraw Shulder (1997,p.62) as

1. Development transitions

2. Task-focused transitions

3. Charismatic Transformations and

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4. Turnarounds

Murrindindi Shire Council Experience

Background

MSC had a strong CEO who entered a very unstable environment. The State
Government had a wide range of performance indicators and measures that were to
be adhered to and thus the CEO in this instance was very task orientated which not
only served to meet the high level of requirements set but also required staff to be
rewarded appropriately and to have a lead part in a new system and way of
delivering Local Government.

Human Resource strategies were predominantly traditional with a major amount of

effort put into position description development, performance appraisal etc.

As the Council was required to adhere to strict business principles to meet the
requirements of legislation the organisation was carved into a number of Business
Units and put to open tender.

As could be imagined the service delivery sectors are quite diverse ranging from
statutory functions through to Road Maintenance and delivery of meals. The time
lines were short and the human dynamics and emotions were extreme through this
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process.

Personnel welfare was not therefor high on the agenda and the driver for process
improvement was competitive costs. The fear of losing your job was extreme as
there was no fall back position, you specialised in one delivery of service and the
market was not big enough when you were relying on 100% of your market being
with council.

It is worth noting that Murrindindi Shire Council (Employment 120 people, Budget of
$12 Million) did not have a HR department and won an award in 1996 for HRM from
the Australian Institute of human Resource Management).

Human Resource Roles in Murrindindi

Policy

MSC employed a Director of Organisational Development which oversaw many of

the HR initiatives developed by the senior executive of which policy development
was a key role.

Detailed staff satisfaction surveys were undertaken which resulted in policy

formulation to address concerns or initiatives raised. By addressing staff satisfaction
productivity was observed to increase. Initiatives that resulted were improved
working conditions, staff newsletters and meeting to address communication
problems. saving were made in regards to efficiency improvement, reduced re-work
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and a general overall productivity or output increase.

In Murrindindi?s case staff as well as management developed the initiatives and

policy that was ultimately refined by management and approved by the Chief
Executive.

This is similar to the model as described Kramer McGraw Shulder (1997,p.32). The
broad consultation in this case ensures ownership and commitment to the policy by
staff.

Provider Delegator Role

As noted the HR function at MSC was coordinated by the senior executive therefore
the functions as described by Kramer McGraw Shulder (1997,p.32) of selection,
interviewing, training, evaluating, rewarding, counselling, promotion and firing were
disseminated throughout the organisation. The chasing up of information and
interpretation of information was therefore left up to the managers including
organisation of appointments, preparation etc. In this case I believe money was
wasted by paying up to $50 per hour for managers to undertake where one person
could probably keep a tab on the total operations.

Training is noted by Kramer McGraw Shulder (1997,p.467) as having a positive

impact for the individual, the organisation and the nation. He goes on to explain that
it increases the earning and career development opportunities for individuals.

MSC saw training as an important part of the change management process and the
setting up of its staff for success. The senior executive developed a strategy/policy
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to skill up staff throughout the organisation in Total Quality Management, Strategic

Planning and business planning to prepare them for open market. Directors , line
managers and select staff were trained appropriately and were able to use their
skills to achieve massive operational savings and still deliver the same outcomes.
These were achieved through process improvement and work re-design. Savings
were measured at up to 20% in the first six months after the training policy was
introduced.

Financial gains were also gained via linking salary increases to productivity
improvement through enterprise bargaining agreements.

Training in general is coordinated centrally to address computer skill needs,

occupational health and safety or more generally organisation deficiencies. This
does produce savings in course costs and more importantly staffing efficiencies.

Auditing Role

Payment and performance appraisal coordination is undertaken centrally with

reporting through systems to senior management and the Chief Executive via
structured reports and key indicators. Such things as absenteeism are monitored
and reported. Staff surveys are undertaken annually and any change is measured
against the systems/processes that were put in place top measure cause and effect.
Savings to the organisation can be measured via staffing hours, budgets, casual
labour required and in some cases outputs.
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Innovation

Innovation is one of the most powerful ways in which an organisation can either get
a competitive advantage. HR innovation was undertaken by senior management
and although no new innovations were introduced many systems such as QA,
process improvement, safety mapping system etc were introduced through the
training strategy and then implemented through the workforce with significant
savings.

Adaptor

Kramer McGraw Shulder (1997,p.34) highlights the need for HR staff not to
overburden line managers with paperwork and administration. It therefor must be
lean and reduce costs themselves. MSC by not having a HR department is able to
do this however there is a tendency to put off or not implement organisational
policies in lieu of what is seen as more urgent works. This therefore has to be
watched closely by directors in order not to ?drop the ball? so to speak.

Organisational HRM

Although in Murrindindi?s case the HR functional role is dispersed throughout the

organisation the direct reporting of organisational HR is undertaken by the
Organisation Development Director. This enables the Chief Executive to be fully
informed and for the Director to take on a strategic approach to HR. The Director is
also responsible for customer surveys and internal surveys which allows him to
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have a clear sense of whether the organisation is achieving is corporate objectives

and community obligations. Positive and negative comments are then fed back to
the executive team.

It is also worth noting that as Local Government the driver for meeting the
communities needs is not entirely the bottom line but is also the services we deliver
and the way or quality in which we deliver them. HR initiatives and policies are
therefore directed to words outputs and efficiencies within to reach those outputs ie
delivering ?value? to the community.

Value of service =Quality+Cost

Conclusion

Kramer McGraw Shulder (1997,p.35) notes that more and more human resource
management is pushed down to line managers, it is suggested at least one fifth of
time is spent of HR issues. In my position as Director Infrastructure Services at
Murrindindi and now Bendigo at least 40% of my time would be spent on HR
management. My role includes motivation, reinforcing, training and development of
staff. The remainder of time is spent on organisational strategy development and
implementation.
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Employees also play a role in HR through self-managing teams and decision

making.

The five roles as described being Policy, provider, auditor, innovator and adaptor
were seen by Kramer McGraw Shulder as being needed to show the value of a HR
department. I have explained that in MSC?s case these functions are disseminated
throughout the organisation with the exception of the duties of the Organisational
Development Director.

Human Resource management is a necessary function within an organisation both

traditionally but more importantly strategically in being a key tool to the shaping of
Human Resources into being able to deliver long term strategic goals.

This is summed up quite nicely by Kramer McGraw Shulder (1997,p.252) as

?Human Resource planning by definition? is a derived function. That is, before an

organisation can plan for its needs, it must know something about its organisational
goals and strategy. Thus, Human resource planning takes on strategic importance
because it requires that that human resource strategy and objectives be linked to
organisation strategy objectives?.

In other words they are saying that Human resource management and
organisational management are intertwined and a systemic approach must be
taken.
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References

Kramer , McGraw Schuler 1997.

Huamn Resource Management in Australia.

Longman

Tyson ,S. (1997)

Human Resource Startegy: A process for manageing the contribution of HRM to

organizational performance

Robbins S.P. , Water-Marsh T, Cacioppe R, Millett B (1994)

Organsiational Behaviour Concepts , Controversies and Applications

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Prentice Hall

Buchannan,D & Boddy,D (1992)

The expertise of the change agent: Public performance and Backstage Activity,

Prentice-Hall, International Series.

Dunphy,D & Stace, D. (1992)

Under New Management

McGraw-Hill Book Company Sydney.