Human Resource Management in the Service Sector

Review of the course

Overview
Course examines the HRM challenges in the knowledgeintensive service sector 1. Introduction: characteristics of the service sector and identifying the knowledge-intensive section of this sector (1 week) 2. Develop theoretical frameworks and perspectives for analysing the HR challenges (2 weeks) 3. Investigation of HR challenges in four types of organisations in this sector: call centres, management consulting, law and creative (8 weeks) Summary and review (second half of final week)
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Course design
Characteristics of the service sector HRM Call challenges centres theory Theory Management Law consultancies Firms: theory Theory and case Creative Firms: Theory and case

Managing Call knowledge centres workers Case

Management Law consultancies Firms: theory Case and case

Creative Firms: Theory and case

Summary and revision

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Literature focus for the course

HRM & knowledgeintensive services

Services sector

Professional Services

Week 1: Introduction to the service sector: objectives

Outline the importance of the service sector in modern economies Identify the key characteristics of service work and the areas of the sector for detailed study: knowledge intensive work Outline the research in the area Introduce the HRM challenges posed by knowledge based service sector working

Converting Human Capital into Intellectual Capital

Human HumanCapital Capital
Employee Knowledge Skills Experience Conversion Process

Intellectual Capital
Products and services which have market value

Role of HR practices in this conversion process

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Implications for HRM

Nature of Work Intangible
Knowledge based Customised

Managerial problem Measurement

HRM issue
Performance management/reward Training and Development Staff allocation

Renewal

Standardisation Organisational commitment

Professional

Recruit and retain

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(Drawn from Suddaby and Greenwood (2006) Maister (2003) and Batt (2006))

Week 2: HR practices in knowledge intensive firms: objectives

To understand the distinctive characteristics of knowledge intensive service firms To identify the key resources (forms of capital) that knowledge intensive firms draw on for their success To identify the challenges for managing people and managing knowledge faced by knowledge intensive firms To explore the ways in which HR strategy, structure, delivery and practices can be used to create valuable products and services
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Pressures on knowledge intensive firms

Product market Customers and clients

KIF

Financial success short and long term

Employment market needs of employees

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(Maister, 2003)

Forms of Capital
Knowledge of and relationships with network members

Knowledge skills and experience of staff

Human capital Network Capital Intellectual Capital Social capital

Knowledge embedded in values, culture and relationships

Knowledge of and relationships with clients

Client Capital Organizational Capital

Procedures, policies and processes

Structural capital
Ways of structuring work

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The HR Wheel

Resourcing

Human capital Network Capital

Intellectual Capital

Social capital

Client Structural Capital capital Organizational Capital

Pay and Reward

Kinnie et al 2006
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Delivery

Week 3: Managing knowledge workers: objectives

Define a knowledge worker Identify the characteristics of knowledge workers and understand the human resource management challenges presented by them Explain how knowledge workers are managed Identify and discuss the dilemmas associate with the management of knowledge workers Understand how social identity can resolve some of the tensions involved in the management of knowledge workers

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Managerial challenges
How can organisations retain and develop their professionals? Presents three dilemmas that sit between the employee and the organisation
Multiple Identity perspective

Retention

Employability

Organisation specific

Transferable

Value capture

Ownership of value
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Multiple sources of identity

Organisation
Professional

EE

Team

Client

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Weeks 4 and 5: Call Centres: objectives

Define call centres and understand the reasons for their growth Identify the key characteristics of the nature and management of call centres Analyse their forms of human capital and consider the implications for HR especially recruitment, selection and retention Examine recent changes in call centres especially the moves towards outsourcing and off-shoring Apply the 4 ID model to gain insights into the nature of work in call centres with reference to the Norwich Union case
(Refs: Deery and Kinnie, 2004; Korczynski, 2002, Frenkel et al, 1999, Homan, 2004)

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Weeks 6 and 7: Management Consulting: objectives

To understand the characteristics of the management consulting industry
History Types of organisations Types of consultancy activities

Typology of human capital

According to the client interface process Career structures within management consultancy The role of consultants as knowledge brokers

Typology of client capital

The consulting firm client relationships

Human capital Network Capital Social capital

The HRM practice focus:

Recruiting human capital Managing across boundaries

Client Structural Capital capital Organizational Capital

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Using external facilitators poses a challenge to many forms of intellectual capital flows

Clients

Facilitators

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Facilitator network: HC viewpoint

HC boundary
External pool of facilitators External Externalskill skillexperts experts

Clients

Facilitators within clients

Clients

Focal Regions Practice Group Other

Practice Groups Clients

External skill experts Clients

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Weeks 8 and 9: Law Firms: objectives

Understand the basic characteristics of the sector Identify the traditional model of organising and management of HR Consider some of the key changes in the sector and the responses of law firms Identify the challenges this presents for HRM and for knowledge management Focus on the key issue of remuneration and reward, especially variable reward Analyse a practical case drawing on our knowledge of theory

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High reward for equity partners

Traditional HR practices Up or Out

Partner in 6 years or leave the firm

Apprenticeship model Elite recruitment

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High Trust
Local law firm - medium sized and growing fast Strong emphasis on culture and values inclusive and mutual respect building social capital sharing work and knowledge Issue of how to reward their staff who contribute to the success of the firm while reinforcing their values

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Weeks 10 and 11: Creative Firms: objectives

Understand the basic characteristics of the sector and establish our focus on advertising/marketing agencies Identify the key forms of capital present in these firms Identify the challenges this presents for HRM especially the development and retention of staff Draw contrasts between two practical cases on the way they manage these HR challenges
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Building network capital

Client

Agency Marketing manager

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Key challenges and tensions facing HRM in marketing agencies

External Resourcing
Attraction and retention of staff valuable to the firm and to existing and potential clients Recruiting for internal development recruiting experienced staff Promotion and career building efficient allocation of staff Rotation of staff - building and maintaining client and network relationships Developing human capital - developing client capital Importance of coaching, feedback and development importance of serving client needs Intrinsic rewards linked to development extrinsic rewards linked to client success Longer term rewards through promotion shorter term linked to targets

Internal Resourcing Training and Development Reward

Our focus: the interaction between the need to develop employees, serve the needs of clients and achieve financial success

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Revision
Essential to understand the basic theoretical frameworks underlying the course (weeks 2 and 3 especially) Need to be able to apply these to the four sectors studied (eg how does the reactor model apply to creative firms) Facility to move between theory and practice (to understand the theory in practice and the practice in theory)
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Revision continued
Cases studied in class are important along with other cases and your own experience Key is to build up your understanding of the issues at a sector level and at a macro/cross sector level Use the frameworks and models to guide your analysis to help you understand the issues/problems/cases
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Examination structure and rubric

Unseen paper in 2 hours no additional materials 6 questions one from each sector studied plus two others Answer three questions

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Sample questions
What are the most important external pressures on the managers of knowledge intensive firms? How might HR strategy and practice help to manage these pressures? How might the concept of multiple identities help managers of HR contribute to the creation of organisational value in professional service firms? With reference to the High Trust case study discuss the problems associated with designing a variable reward system in law firms. How might these problems be resolved?
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Expectations
Demonstrate your learning and your understanding of the theory and the practice Answers which directly focus on the question (basic descriptive answers will get a low pass) Explicit references to previous research (you will get credit for this) Good use of practical examples to illustrate points (credited) Highlight conflicts and tensions where they exist Develop an argument which is supported by theory and evidence (illustrates higher level understanding)
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Advice
All the basics apply: plan your answer/focus on the question/refer to relevant theory and examples/pull it together Thorough revision understanding not rote learning test yourself out use the models to analyse cases; use the cases to ask: what is this an example of? See links between the models and sectors Use contemporary examples if you can shows engagement with the material
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