CIPD Ch L 5 Org Dev And Reward.pdf

8/22/2019 CIPD Ch L 5 Org Dev And Reward.pdf

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Intermediate textbooks publishedby CIPD in September 2012


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Introduction

These three titles cover the content of the CIPD intermediate level core units in human resource

management and development. The books are written and edited by CIPD accredited experts and

offer a wealth of experience in teaching, writing and examining, whilst covering the unit learning

outcomes. They also include a wide range of learning features such as reflective activities,

annotated further reading, and case studies.

Reviews

Studying Human Resource Management

Through the successful collaboration of thecore modules of the intermediate qualification into one

text, a valuable resource to both learners and tutors has been created. It enhances the continuing

alignment of educational objectives and the CIPDs professional development framework to deliver

and develop outstanding HR professionals.

Ian Chapman, CIPD course leader, Warrington Collegiate

This is a clearly written text which successfully bridges the gap between theory and practice.

Coverage of the core modules of the CIPD Intermediate qualification is comprehensive and is a

welcome addition to assist students in studying at this level.

Dr. Margaret Inman, Head of Postgraduate and Professional Studies, Swansea Metropolitan

University

Developing People and Organisations

'With its clear overview of contemporary debates and rich in case material, this accessible book will

help close the theory-practice gap with respect to people and organisation development and will be a

source of valuable insight for students and practitioners.'

Linda Holbeche PhD, Adjunct Professor, Imperial College, London

'This new text book is an ideal resource for both tutors and students of HRD. Concepts and theoretical

approaches are clearly explained and combined with activities to allow application of theory to

practice.'

Nicky Small FCIPD, Lecturer, Solihull College

Managing People and Organisations

'The editors have brought together a team of experts who have produced a book eminently suitable

for the Certificate in HR Management. Each chapter covers its subject in sufficient depth for this level

of study and there are clear links to modules and their learning outcomes, which will be appreciated

by students and lecturers.'

Tony Hewling, CIPD Courses Team Leader, City College Plymouth


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'At last, a book that has been written for students studying CIPD at an intermediate level, that

identifies and supports the core subject areas by introducing students to key models and theories and

directing students to other resources to further support specific subject knowledge.'

Linda Coles, Fellow CIPD, Northampton University

'A very readable, practical and informative text which will be a valuable study aid to both students

undertaking the HRM intermediate qualifications and to general business degree students wanting to

understand more about managing people in organisations.'

Sally Rumbles, Senior Lecturer and Course Leader for HRM Degree programmes, Portsmouth

University


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Publication information

1. Studying Human Resource ManagementBy Stephen Taylor, and Carol Woodhams

ISBN: 978 184398 312 5

Pub Date: September 2012

Pages: 256

Price: 44.99

Student Price: 35.99

Stephen Tayloris a Senior Lecturer in Human Resource Management at the University of Exeter

Business School. He is also a Chief Examiner for the CIPD.

Carol Woodhamsis a Senior Lecturer in Human Resource Management at the University of Exeter.

Carol is CIPD National Examiner for the topic Designing and Delivering Training.

2. Developing People and OrganisationsByJim Stewart and Patricia Rogers

ISBN: 978 184398 313 2


Pages: 256

Price: 44.99


Jim Stewartis Professor of HRD. He is also Chief Examiner of Learning and Development for the CIPDas well as Visiting Panel Chair and External Moderator.

Patricia Rogersis Head of Human Resource Management and Organisational Behaviour at Coventry

University.

3. Managing People and OrganisationsBy Stephen Taylor and Carol Woodhams

ISBN: 978 184398 314 9


Pages: 256

Price: 44.99


Stephen Tayloris a Senior Lecturer in Human Resource Management at the University of Exeter

Business School. Stephen is also a Chief Examiner for the CIPD.

Carol Woodhamsis a Senior Lecturer in Human Resource Management at the University of Exeter.

Carol is the CIPD National Examiner for the topic Designing and Delivering Training.
http://www.cipd.co.uk/publicsites/cScape.CIPD.BookstoreRedesign/Templates/ProductDetail.aspx?NRMODE=Published&NRNODEGUID=%7bE9A76A5F-CA80-4BC0-998D-4534568D0CCD%7d&NRORIGINALURL=%2fBookstore%2f_catalogue%2fHRPractice%2f9781843983132%2ehtm&NRCACHEHINT=Guest#tab_2_panelhttp://www.cipd.co.uk/publicsites/cScape.CIPD.BookstoreRedesign/Templates/ProductDetail.aspx?NRMODE=Published&NRNODEGUID=%7bE9A76A5F-CA80-4BC0-998D-4534568D0CCD%7d&NRORIGINALURL=%2fBookstore%2f_catalogue%2fHRPractice%2f9781843983132%2ehtm&NRCACHEHINT=Guest#tab_2_panel


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CONTENTS

TABLE OF CONTENTS

LIST OF FIGURES

BIOGRAPHIES

ACKNOWLEDGEMENTS

1. STUDYING HRMStephen Taylor and Carol Woodhams

Studying HRM at Levels 5 and 6

What is HRM?

Evidence-based HRM

Core HRM debates

2. MANAGING AND CO-ORDINATING THE HR FUNCTIONStephen Taylor and Krystal Wilkinson

Purpose and key objectives of the HR function

How HR objectives are delivered in different organisationsHow the HR function can be evaluated

The HR contribution to change management

Ethical HRM

HR and organisational performance

3. BUSINESS ISSUES AND THE CONTEXTS OF HUMAN RESOURCESStephen Taylor and Krystal Wilkinson

HRM in different sectors

Developments in the external environmentForming organisational and HR strategies

4. DEVELOPING PROFESSIONAL PRACTICETed Johns and Graham Perkins

The HR contribution

The 'Thinking Performer'

HR professionalism

Self-management at work

Team-working


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5. USING INFORMATION IN HUMAN RESOURCESCarol Woodhams and Graham Perkins

Identifying an area of research

The research project: a roadmap

Types of data

Sources of data

Research approaches and designs

Collecting data

Analysing data and drawing conclusions

Presenting information in a business case

Understanding the needs of stakeholders

6. DEVELOPING THE KNOWLEDGE AND SKILL OF THE HR PROFESSIONAL Carol Woodhams, Graham Perkins and Krystal Wilkinson

The CIPDs HR profession map

The principles of continuing professional development

The theory of CPD: reflective practice

Managing your CPD

CIPD membership and career progression

Further resources to support your learning

Glossary

Index


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chapter 1

Studying HRMBy Stephen Taylor and Carol Woodhams

CHAPTER CONTENTS

Studying HRM at Levels 5 and 6

What is HRM? Evidence-based HRM

Core HRM debates

LEARNING OUTCOMES

Appreciate the requirements necessary to gain the CIPDs intermediate-level qualifications.

Define the term human resource management and explain how it has evolved in recent years.

Distinguish between nuts and bolts HR activities and those which have a more strategic

character.

Understand the importance of using robust third-party evidence when making HR decisions andjustifying arguments.

Access significant research findings in the HR field.

Explain the key ways in which thinking about HR is influenced by different frames of reference

and sets of assumptions.

Tis is the first in a series o three textbooks that the Chartered Institute o Personnel andDevelopment (CIPD) is publishing or students who are studying towards achieving its

intermediate-level qualifications in Human Resource Management (HRM) and HumanResource Development (HRD). Whether you have enrolled on a discrete programmeprovided by a college or are looking to gain your CIPD award as part o an undergraduatebusiness degree, you will find that these books provide you with a sound introduction toyour studies.

Tis first book covers the learning outcomes or the our core units that everyone aimingto achieve the intermediate diploma must successully complete. Te second and thirdbooks in the series, entitled Developing People and OrganisationsandManaging People andOrganisations, cover the learning outcomes that make up the optional units, at least our owhich you will be studying in order to complete your qualification.


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Studying HRM2

Our aim in this chapter is to introduce you to the study o HRM at undergraduate level,defined by the Quality Assurance Agency or Higher Education (QAA) as being at Levels5 and 6. We start by explaining exactly what Level 5 and Level 6 study involves and whatyou will need to do in order to achieve it. Afer this we discuss the meaning o the termhuman resource management beore going on to explain how effective HR managers basetheir decisions and their thinking on solid evidence. Finally, we introduce you to a range o

tensions and differences o perspective which underlie the study and practice o HRM andwhich you will find helpul to understand as you embark on your programme o study.

studying hrm at levels 5 and 6

Te UKs QAA for Higher Educationhas the role o setting definitive, generic standardswhich all awarding bodies and institutions o higher education must observe whendeveloping courses, as well as teaching and assessing their students. Tis is thereore a goodplace to start understanding what you will be expected to achieve on your programme.Te CIPDs intermediate-level awards are set at Level 5, but i you are studying them aspart o a bachelors honours degree programme you will be required to meet the Level 6expectations. Te Level 5 standards are set out in Box 1 and the Level 6 standards are set

out in Box 2.

Box 1

Descriptor for a higher education qualification at Level 5: foundation degree

The descriptor provided for this level of the FHEQ is for any foundation degreewhich should

meet the descriptor in full. This qualification descriptor can also be used as a reference point for

other Level 5 qualifications, including diplomas of higher education, higher national diplomas,

and so on.

Foundation degrees are awarded to students who have demonstrated:

knowledge and critical understanding of the well-established principles of their area(s) of

study, and of the way in which those principles have developed ability to apply underlying concepts and principles outside the context in which they

were first studied, including, where appropriate, the application of those principles in an

employment context

knowledge of the main methods of enquiry in the subject(s) relevant to the named award,

and ability to evaluate critically the appropriateness of different approaches to solving

problems in the field of study

an understanding of the limits of their knowledge, and how this influences analyses and

interpretations based on that knowledge.

Typically, holders of the qualification will be able to:

use a range of established techniques to initiate and undertake critical analysis of

information, and to propose solutions to problems arising from that analysis

effectively communicate information, arguments and analysis in a variety of forms to

specialist and non-specialist audiences, and deploy key techniques of the discipline

effectively

undertake further training, develop existing skills and acquire new competences that will

enable them to assume significant responsibility within organisations.

And holders will have:

the qualities and transferable skills necessary for employment, requiring the exercise of

personal responsibility and decision-making.


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Studying HRM 3

You can see rom this that a great deal o emphasis is placed at both levels on being able todemonstrate knowledge and understanding o core, well-established principles across thestudents field o study. However, the standards go beyond this, requiring students also todemonstrate the ollowing:

an ability to analyse these principles critically an ability to apply the principles in the workplace a capacity to evaluate the evidence on which the principles are ounded, including

academic research

Box 2

Descriptor for a higher education qualification at Level 6: bachelors degree withhonours

The descriptor provided for this level of the FHEQ is for any bachelors degree with honours

which should meet the descriptor in full. This qualification descriptor can also be used as areference point for other Level 6 qualifications, including bachelors degrees, graduate diplomas,

and so on.

Bachelors degrees with honours are awarded to students who have demonstrated:

a systematic understanding of key aspects of their field of study, including acquisition of

coherent and detailed knowledge, at least some of which is at, or informed by, the forefront

of defined aspects of a discipline

an ability to deploy accurately established techniques of analysis and enquiry within a

discipline.

Conceptual understanding that enables the student:

to devise and sustain arguments, and/or to solve problems, using ideas and techniques,

some of which are at the forefront of a discipline

to describe and comment upon particular aspects of current research, or equivalent advanced

scholarship, in the discipline

an appreciation of the uncertainty, ambiguity and limits of knowledge

the ability to manage their own learning, and to make use of scholarly reviews and primary

sources (for example, refereed research articles and/or original materials appropriate to the

discipline).

Typically, holders of the qualification will be able to:

apply the methods and techniques that they have learned to review, consolidate, extend and

apply their knowledge and understanding, and to initiate and carry out projects

critically evaluate arguments, assumptions, abstract concepts and data (that may be

incomplete), to make judgements, and to frame appropriate questions to achieve a solution

or identify a range of solutions to a problem

communicate information, ideas, problems and solutions to both specialist and non-specialist

audiences.

And holders will have the qualities and transferable skills necessary for employment requiring:

the exercise of initiative and personal responsibility

decision-making in complex and unpredictable contexts

the learning ability needed to undertake appropriate further training of a professional or

equivalent nature.


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Studying HRM4

an appreciation o the limits to our knowledge in any area o study an ability to communicate the principles to a variety o audiences the capacity to undertake urther proessional development independently in the uture skills associated with effective decision-making, problem-solving and exercising personal

initiative in your field o study.

what does all this mea n as far as studying hrm is

concerned?

First o all, it means that you will need to study how HR managers apply the principleso their management discipline across a wide range o settings. I you have studied HRMpreviously, it is likely that you were encouraged to ocus your attention primarily on yourown organisation, perhaps evaluating what it did and discussing what improvements itmight make. You now need to widen your perspective very considerably. A key point aboutstudying HRM at this level is the way that it requires you to gain a good understanding othe variety o different approaches that are used to manage people in different organisations,industries and also in different countries. Secondly, it means that you must be able not just to advocate an approach to use or to

take a decision in the field o HRM, but also to justiy your approach or decision with good,robust, evidence-based arguments. Te same is true o practical problem-solving. So youneed to become amiliar with the most important and influential contemporary researchstudies that have been published in the field o HRM. It also requires you to develop a goodunderstanding o the business environment in which HRM is carried out and o ways inwhich this is changing and evolving. Tirdly, it means that you need to develop a good understanding o the majorcontemporary, proessional debates that exist in HRM, and to be in a position to engagein these debates yoursel. Tis means thinking beyond some o the rather simplisticprescriptions o good practice HRM that are ofen advanced and to develop a moresophisticated appreciation o the complex and sometimes messy realities o practical peoplemanagement in a workplace. Finally, you need to be able to communicate your ideas, together with the evidence

that underpins them, effectively to a variety o potential audiences. Tis presents a rangeo challenges. Communicating to a specialist audience with a significant understanding oHRM is straightorward insoar as a lot o prior understanding and amiliarity with termscan be assumed, but sophisticated arguments must be developed, backed up by credibleevidence i you are to be persuasive. By contrast, a non-specialist audience which does nothave extensive understanding o HRM ofen requires as much (i not more) convincing,but will only be persuaded i you can communicate the more basic ideas and argumentseffectively.

structuring your studies

A key to successul study at all levels and across all subjects is the ability to organise yoursel

and to plan your course effectively. Studying HRM is no exception. Your tutors will helpyou to do this by guiding you through a structured course o study that they have designed,step by step. At each point readings will be recommended, learning exercises provided andkey points underlined.

However, there are also additional things you can do to help structure your studieseffectively. Tese involve making use o two key documents that have been published by theCIPD and also, more generally, exploring the wealth o resources that are available to youon the CIPDs extensive website (www.cipd.co.uk). Te first o the key documents is the CIPDs guide to its intermediate-level qualifications.Hard copies are widely available, but you can also download the contents rom the


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Studying HRM 5

qualifications area o the Institutes website. Here you will find, or each unit o study (coreor optional) a summary o the main learning outcomes that you need to work towards beingable to demonstrate, together with short summaries setting out what each encompasses inpractice. Te document also sets out the CIPDs rules o combination, which allows you tosee which core units and which optional units can be combined to make up a programmeo study.

Te second key document you will find it useul to reer to when structuring your studiesis the CIPDs HR Profession Map. Tis can also be ound in a prominent position on theInstitutes website in the section called CIPD and the HR proession. Te Map is an extensivetool which can be used or many purposes. It sets out the ollowing in a user-riendly ormat:

eight behaviours that HR proessionals need to develop in order to carry out their roleseffectively in the contemporary business world

ten areas o proessional practice which help define the typical boundaries aroundgeneralist and specialist career paths in both HRM and HRD

our bands and transitions which provide broad guidelines or career development acrossthe HR field, rom delivering undamentals (band 1) to Leadership colleague, clientconfidante and coach.

You will read more about the CIPDs HR Proession Map in Chapter 6, Proceeding withyour Learning about Human Resource Management.

what is hrm?

Te term human resource managementwas first coined in the early 1960s in the USA. For anumber o years beore this, academics and policy-makers had been using the term humanresources alongside natural resources when talking about a nations economic assets (seeGinzberg 1958), but the word management was only added later. An academic journalentitled Human Resource Managementwas launched in 1961 at Michigan University, but itwas not until the 1980s that the term became widely used all over the world in the contexto employment in organisations.

At first HRM signified a new way o managing people that was clearly distinct rom

traditional personnel management: more strategic, less reactive and more firmly ocusedon achieving organisational objectives. However, beore long, at least or most people,HRM started to be used simply to describe a body o management activities rather thanany particular approach to carrying them out. During the 1990s in particular, people whohad previously been called personnel directors, personnel managers, personnel officers,personnel advisers and personnel assistants re-labelled themselves as human resourceproessionals. At the same time organisations tended to rebrand training activities underthe banner o human resource development. Industrial relations became employmentrelations, while pay and benefits tended to be renamed reward management.

HRM has thus now come to be the most commonly used label or a group o activitiesthat are all, one way or another, related to the management o an organisations relationshipwith the people who work or it. Tese people may be employees working under contracts

o employment, but they are also increasingly sel-employed persons, casual staff, agencyworkers and employees o partner organisations.On one level, thereore, proessional HR managers are concerned with the nuts and

bolts o day-to-day people management. Alongside line managers they design jobs andorganisational structures, recruit and select new staff, issue contracts, lead inductionprocesses, ensure that everyone is paid correctly and on time, run training courses, developsuccession plans, reward good perormance, seek to improve poor perormance, negotiateand consult with staff representatives, develop management careers, discourage absence,administer retirements and resignations, and, as and when necessary, ensure that dismissalsare carried out legally.


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Studying HRM6

Increasingly, however, HRM is becoming a strategic activity. HR managers are not justconcerned with achieving the nuts and bolts tasks efficiently; they are also both integral tothe delivery o an organisations longer-term strategic objectives and leading figures in thedevelopment o business strategies. Central to this side o their work is active involvementin the management o both structural and cultural change. Tey help ensure that the crucialpeople management side o change is given proper attention alongside its legal, financial

and technical aspects. HR managers help to plan change management episodes and tocommunicate the need or them, as well as being centrally involved in their implementationand subsequent evaluation.

In order that an organisations strategic objectives can be achieved, supportive anddeliverable HR strategies need to be developed, communicated and implemented.Remuneration arrangements have to be designed so that they reward behaviours whichincrease the chances that the organisation will meet its objectives and diminish the chancesthat it wont. Te same goes or resourcing, development and employee relations strategies,all o which also need to reinorce one another. Another aspect o strategic HR activity is the management o an organisations reputationas an employer. Here we increasingly see the use o marketing language (or example,employer branding, segmentation, employee value propositions) being used as organisations

seek to position themselves strategically in the labour market. Central to this developmentis a keen understanding that recruiting and retaining effective perormers is a highlycompetitive business, and that there is a need to differentiate what we offer potential recruitsrom that which our chie competitors offer. Reputation-building is a long-term project which managers can influence, but cannotcontrol. Te same is true o other strategic HRM initiatives, such as organisation development(OD), the development o effective knowledge management systems, the promotion oemployee well-being and other activities that one way or another involve building up anorganisations human capital. Developing an actively and positively engaged workorcewhich demonstrates initiative and discretionary effort is another crucial HR activity thatcan neither be achieved overnight nor introduced by management diktat.

Importantly, all o this both the nuts-and-bolts activities and those which are morestrategic in character has to be carried out against the backdrop o an increasingly volatile,unpredictable, competitive, highly regulated and complex global business environment.Effective HR managers thus have to keep more than hal an eye on the uture, alwaysseeking to ensure that their organisations are better placed than others to meet comingchallenges. More ofen than not this means thinking about multiple, alternative, possibleuture scenarios and planning or as many as possible. A premium thus has to be placed ondeveloping organisational agility, along with a capacity or flexible working and or the swifand productive implementation o change.

evidence-based hrm

A key part o studying HRM seriously as part o a degree-level qualification involves gettinginto the habit, wherever you can, o justiying your views on the subject using robust and

credible evidence. Tis approach is called evidence-based HRM. Tis will not only help youto secure your qualification, but it should also mean that you carry your habit over into theworkplace. In the uture you will take decisions, develop policies and, when debating withcolleagues, take up positions which are inormed by robust evidence.

You may think it strange that this point has to be made at all. Surely all successulmanagers base their decisions on robust and credible evidence? O course many do, orat least take account o it. But decisions, policies and debating positions are also ofeninormed by hunches, limited anecdotal evidence, singular personal experience, widelybelieved myths o various kinds and sometimes by raw prejudice. Even quite seniormanagers with successul careers behind them ofen dismiss published research on human


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Studying HRM 7

resource management matters as being overly theoretical and largely irrelevant to their lineo business. More ofen they are simply disinclined to take account o it because they preerto manage by instinct, or take on board rom the research only the points which match theirown pre-existing belies. Peffer and Sutton (2006, pp112) coined the phrase the knowingdoing gapto describethis phenomenon. All over the world, including in major public sector organisations and

international corporations, they ound examples o managers implementing policies thatofen clashed with, and at times were the opposite o what we know about organisations andpeople. Instead o basing thinking and decision-making on evidence, there is a preerenceor casual benchmarking, doing what seems to have worked in the past and ollowingdeeply held unexamined ideologies. Te result, at best, is sub-optimal perormance in thefield o HRM and, at worst, business ailure and wholly avoidable job losses. In other fields o proessional endeavour this casual approach to evidence would neverbe tolerated. Imagine how we would react i a doctor was to prescribe treatments whichwere not wholly inormed by robust scientific research or i an engineer built a bridgeusing hunches and myths when drawing up the designs. Government policy also has to beinormed by robust research as well as by the results o consultation exercises, and is onlyimplemented afer regulatory impact assessments have been carried out, not to mention

extensive scrutiny by Parliament and the media. Yet or some reason the same philosophyhas yet to permeate ully into the realm o management decision-making. A major aim o the CIPD is to actively encourage evidence-based management in theHR field. It does this partly by undertaking and sponsoring major research projects andthen disseminating the results as widely as possible, and partly by promoting good practicethrough its proessional education activities.

making use of robust evidence

When studying at undergraduate level you are not going to be expected to gain an in-depthunderstanding o contemporary research that has been published in your field o study. Youare, however, going to be expected to justiy any arguments that you make in assignmentsand when answering exam questions, and to do so reasonably convincingly. While you may

well sometimes want to justiy a point o view with an ethical argument or with reerence toyour own experience, you will also need to tap into published research when it is available.Moreover, especially when debating contentious proessional issues, you will need toevaluate pieces o published research that reach different conclusions about the same issue.

academic research

Academic writers publish the findings rom their research projects in books, but morecommonly in learned journals. Tese are excellent sources o research data because, inorder to get published, any article is first subjected to peer review. Tat means that it mustfirst be scrutinised anonymously by reviewers who are specialists in the field. Tey typicallysuggest that amendments must be made beore publication is possible. As a result, beoreyou read an account o any research findings, the article concerned will have been rewritten,resubmitted to the journal and re-reviewed, ofen extensively and on a number o occasions.You will find a list o recommended journals providing credible evidence in Chapter 6. It is important, however, not to restrict yoursel to findings that are published inUK-based HR or HR-related journals. Most o the most important recent research has beenpublished in international HRM journals, in those which have a more general managementocus and, sometimes, in journals that are not management-ocused at all. Tis isparticularly true o developments in the wider business environment which are o generalsignificance, but which happen also to be important rom a practical HRM perspective.

Indeed, one o the things that makes studying HRM interesting is the way that in doing


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Studying HRM8

so we draw on research findings that come rom a wide variety o fields. Te ollowing arethe main examples:

occupational psychology sociology o work labour market economics employment law business ethics human geography.

People who specialise in each o these disciplines have a tendency to come at their subjects

with different sets o assumptions, diverse perspectives and, in some cases, widely divergentviews on the appropriate approaches to use when carrying out research. While this makestracking down and evaluating research o relevance to practical HRM ascinating, it alsocomplicates matters (see Coyle-Shapiro et al 2004). Sometimes, or example, research willhave great potential relevance or practical HRM, but this will not be apparent rom theconclusions reached by the author, whose ocus is elsewhere.

Edited books provide good summaries o recent academic research, setting out the keyfindings and debating different interpretations.

Finally, o course, textbooks written or students, such as this one, aim to provide goodintroductions to and overviews o key findings rom the academic research. Following up

Activity 1.1

An example of an academic journal article that has had considerable influence on thinking among

HR professionals in the UK was published in 2007 in The Review of Economics and Statistics,

an economics journal published by the Massachusetts Institute for Science and Technology. The

authors were Maarten Goos and Alan Manning and their article was called Lousy and lovely

jobs: the rising polarization of work in Britain. This took forward research that they originally

published a few years earlier and an analysis that they subsequently applied across the EU (see

Goos and Manning 2003; Goos et al 2009).

In their article Goos and Manning demonstrate, using detailed statistical analysis, that over

three decades in the UK there has been strong growth both in the number of jobs which are

highly skilled in nature and in the number of lower-paid, low-skilled jobs in the service sector.

By contrast, the proportion of jobs that fall between these two stools skilled manual work and

clerical jobs, for example has been in long-term decline. They conclude that the major cause

of this trend has been the development of technologies which can carry out the jobs in the

disappearing middle more cost-effectively than people can. Their article was published in an

American journal whose readership consists mainly of economists, while the conclusions are

aimed primarily at government policy-makers. The findings are, however, hugely relevant to HRM,

not least because they strongly suggest that further polarisation of our labour market is likely inthe future. This means that organisations are likely to struggle to recruit higher-skilled people in

the coming decades, labour markets tightening as demand for the relatively few appropriately

qualified people increases. By contrast, recruitment for people to do less skilled work will

become less problematic. Finding people to do these jobs will get easier, but in many cases

people seeking and holding these jobs will be overqualified.

Questions:

1How would you go about accessing copies of Goos and Mannings articles on the polarisation

of labour markets?

2Based on your reading here, consider the following: what is the significance of their findings

for managers who are charged with undertaking long-term human resource planning (HRP)

activities for their organisations?


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Studying HRM 9

the reerences that the authors o textbooks cite is ofen the best starting point when seekingout robust research on key contemporary HR issues.

other sources of robust research

Academic research published in peer-reviewed journals is generally the most authoritative.

But it is sometimes written in an inaccessible style and ofen assumes a great deal o priorknowledge on the part o its readers. Te ocus can also be overly theoretical or studentswho are just starting their studies at Level 5 or Level 6. Moreover, it is the case that someareas o HRM activity which have a great deal o practical significance or organisationshave not attracted much interest rom academic researchers. Te field o recruitment andselection provides a good example. I you are researching methods o selection (interviews,personality tests, aptitude tests, assessment centres, and so on), their relative utility andtheir capacity to predict uture job perormance, you will find hundreds o peer-reviewedarticles o a very high quality reporting research findings rom all over the world. Employeeselection is a very well-researched field. By contrast, the process o recruitment (thatis, actively encouraging applications rom would-be employees), despite being just assignificant practically, has never been the ocus o much academic research internationally,and almost none at all o any serious value in the UK. You will also search in vain or any

robust academic research on company car schemes, or example, or on the practical impacto much recent UK employment law. Fortunately these gaps are filled pretty effectively by other sources o published research.You will, or example, find a great deal o highly relevant HR-related research publishedon the CIPDs website. Te Institute has a substantial HR Capability division, which bothcarries out its own research projects and sponsors research rom leading teams o academicsand consultants. Indeed, some o the most significant and influential UK-based research hasbeen carried out under the auspices o the CIPD. Examples are the well-known black boxstudiescarried out by John Purcell and his colleagues (see Purcell et al 2003) and mucho the most important recent research on the state o the psychological contract in the UKpioneered by David Guest and his colleagues (see Guest and Conway 2001). Government departments also commission and publish excellent research which has

considerable practical relevance or HRM. A great deal is reely available to download romwebsites, while the number o publications that is made available increases each year. Someo the best examples are the ollowing:

Workplace Employment Relations Survey:a huge nationwide study that is carried outevery ew years into many aspects o employment practice in UK workplaces, includingthe very smallest. Summaries o the findings are published on the Department orBusiness, Innovation and Skills (DBIS) website.

Leitch Review:a comprehensive government-sponsored investigation into the state oskills in the UK, carried out between 2004 and 2006, which has inormed governmentpolicy since. Te final report is published on the HM reasury website along with mucho the research which inormed its key findings.

Macleod Report on Employee Engagement:published by the BIS in 2009, it has been

hugely influential (see Macleod and Clarke 2009). Te Office for National Statistics (ONS) publishes a vast amount o data on employment

matters on its website. Tis includes regularly collected statistics alongside articles andlarger research reports on particular topic areas.

And you will find other examples listed in Chapter 6. Finally, you will also find that some commercially produced research is also relevant anduseul to you. Companies such as Incomes Data Services (IDS) and Industrial RelationsServices (IRS) are both well-established and very well-respected publishers o HR-relatedresearch whose publications are widely available both in libraries and, at a ee, online. Major


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Studying HRM10

consultancies such as PricewaterhouseCoopers, owers Perrin and Hay also undertakeimportant research which is published online.

core hrm debates

Aside rom the need to develop a capacity or evidence-based thinking about HRM, in

order to succeed in your Level 5 or Level 6 study o HRM, you also need to grasp the ideathat HRM is a heavily contested field. Tat is to say that different people have very differentideas about it and, in particular, approach its study with different perspectives and differentsets o assumptions. In short, there are competing schools o thought about HRM whichtend to give rise to considerable tensions between people. In act, it is ofen the case thatneither side in a debate is either wholly right or wholly wrong. Both hold positions whichare readily deended and entirely credible.

From a students point o view the key is not to take up one position or another, butsimply to appreciate the different perspectives and to be aware o how they necessarilyinuse what you read on the subject o HRM. In this final section o the chapter we aregoing to introduce you to some o the major rival sets o perspectives. Some are o greatestrelevance to HR practitioners looking to improve the effectiveness o their unctions

activities; others tend more to preoccupy the thinking o researchers.

best practice vs best f it

Underlying many contemporary debates about the contribution made by HR to theachievement o organisational objectives is the ever-present division between best practicethinkingand best-fit thinking.

Tis division at root concerns the extent to which it is ever really possible to identiy aclear best way o carrying out HR activities which is universally applicable. Adherents o abest practice perspective argue that there are certain HR practices and approaches to theiroperation which will invariably help an organisation in achieving competitive advantage.Tere is thereore a clear link between HR activity and business perormance, but the effectwill only be maximised i the right HR policies are pursued.

While there are differences o opinion on questions o detail, all strongly suggest that thesame basic bundle o human resource practices tends to enhance business perormance inall organisations, irrespective o the particular product market strategy being pursued.

Te main elements o the best practice bundle include the use o the more advancedselection methods, a serious commitment to employee involvement, substantial investmentin training and development, the use o individualised reward systems and harmonisedterms and conditions o employment as between different groups o employees. Te alternative best tschool also identies a link between human resource managementpractice and the achievement o competitive advantage. Here, however, there is no belie inthe existence o universal solutions. Instead, all is contingent on the particular circumstanceso each organisation.

What is needed is HR policies and practices which t and are thus appropriate to the

situation o individual employers. What is appropriate (or best) or one will not necessarilybe right or another. Key variables include the size o the establishment, the dominantproduct market strategy being pursued and the nature o the labour markets in which theorganisation competes.

taylorism vs humanism

wo distinct traditions to the management o people in organisations, based on totallyopposing principles, can be identified.

Te first is known as the scientific management, or Taylorist, approach (the two termsare used interchangeably), afer Frederick W. aylor, who pioneered these principles when


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Studying HRM 1

designing jobs in the first actories to make use o large-scale production lines. Te secondis ofen reerred to as the humanist approach, pioneered by managers who saw that aundamental flaw in aylorist principles was their tendency to dehumanise work. Te scientific management approach is systematic and very logical. It involves examiningin great detail all the individual tasks that need to be carried out by a team o workers in

order to achieve an objective.Te time it takes to accomplish each task is calculated and jobs are then designed so as tomaximise the efficiency o the operation. In short, an analyst works out on paper how manypeople need to be employed, carrying out which tasks and using which machinery. Waitingtime and duplication o effort is minimised to reduce costs.

Principles o scientific management, or aylorism, allow tasks to be designed so as tominimise the number o more-skilled people the organisation requires. Tis is done bypackaging all the specialised tasks to orm one kind o job, which is then graded morehighly than others made up o less specialised, lower-skilled tasks. Te workorce is thusdeployed with machine-like efficiency. Each plays a careully defined role in a bigger processthat is overseen, supervised, controlled and maintained by managers.

While originally developed or use in engineering and car assembly plants, the principleso aylorism live on and are still widely deployed. For example, call centres are very muchorganised along aylorist principles, each employee having a tightly defined role and beingresponsible or hitting targets o number o calls made or answered in each hour o work.As a result, it is planned that costs are kept as low as possible given the expected throughputo work.

Te public sector also makes heavy use o aylorist principles in designing andredesigning jobs so as to maximise efficiency. In recent years many skill mix reviews havebeen carried out in hospitals, schools and in the police, the aim being to allocate dutiesbetween staff by seeking to ensure that highly qualified (and highly paid) staff spend 100%o their time carrying out duties that only they can perorm. Lower-skilled activities arethen packaged together into jobs carried out by support workers.

Activity 1.2

Some fields of HRM practice are dominated by best practice thinking, while others broadly accept

best fit assumptions.

A good example of the former is employee selection. Academics and consultants who

undertake research in this field overwhelmingly share a best practice perspective on their work.

They often disagree about exactly which method of selection is best and about how much better

than its rivals it is, but they agree that there is out there, somewhere, a method which is more

effective than all the others. The idea that some approaches to employee selection are most

appropriate in one setting while others are best in other settings is only very rarely articulated in

their work.

By contrast, research in the field of reward management has long been dominated by best-fit

thinking. Whether or not there is a single, universal approach to the management of pay and

benefits which trumps all the others never seems to be considered. The idea of even asking such

a question does not seem to occur to those who research in this field. Instead the aim is always

to establish what set of reward practices, used in combination, is most appropriate in different

types of settings.

Questions:

1Why do you think that the frame of reference used by researchers focusing on employee

selection and reward management varies so much?

2Do you tend towards best fit or best practice when thinking about HRM practices? Why do

you think that is the case?


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Studying HRM12

Te major criticism made o scientific management is that it is dehumanising and,thereore, ultimately bad or business. Te adoption o aylorist principles leads to thecreation o jobs which are tedious, repetitive and unpleasant to perorm. Te result isa disengaged workorce and, hence, absence, high staff turnover and the developmento adversarial industrial relations. It also ofen creates resentment among people orcedinto workplace straight-jackets, which leads to low motivation, low commitment and low

perormance.Moreover, because o this, more supervisors are needed than would be the case i people

are positively motivated by the content o their jobs. aylorism can thus be criticised orbeing a relatively inefficient approach over the long term. An alternative humanistapproach evolved in the middle o the twentieth century thatdraws on notions o intrinsic motivation and involves designing jobs and managing workin ways which engage and even excite people.

Te alternative principles start with the idea that employees achieve higher levels omotivation, satisaction and perormance i the jobs they do are made more interestingand challenging. Te key is to maximise the enjoyment, satisaction and well-being that

job-holders derive rom their work. While it must be accepted that many jobs are nevergoing to be highly enjoyable, it can be argued that managers should nonetheless try

to design them and manage people in such a way as to maximise the satisaction thatjob-holders derive rom their work. Tis then in turn leads to:

an organisation which is able to attract and retain good perormers reduced levels o absence, stress and burnout a high-trust industrial relations environment highly motivated and engaged staff discretionary effort.

Humanism is associated with HR practices that seek to enrich jobs, to reward hard work,to manage perormance positively and to involve people in the management o their areaso work. In recent years there has been a particular ocus placed on teamworking, onpartnership approaches to management and on the development o emotionally intelligentleaders. A key tool used in this approach to management is the staff survey. Tis enables

organisations to measure levels o work satisaction, to identiy areas o under-perormanceand to track progress over time.

pluralist vs unitarist

Tis difference in perspective is particularly associated with the management o employeerelations in organisations and inuses much o what is written about employee relations.Te implications are proound because those who come at issues with unitarist perspectivesinvariably advocate different managerial approaches than those whose outlook is pluralistin nature. Put simply, a unitaristassumes that, or the most part, employers and employees sharethe same undamental, long-term objectives as ar as their relationship with one another

is concerned. Both, or example, have an economic interest in the financial success otheir organisation: the employer in order to maximise profit and the employee in order tomaximise job security and career opportunity. It ollows that any conflict between staff andmanagement is solvable and short term in nature. Once the correct policies and practicesare put in place, a good relationship can be restored and maintained. Harmonious relationsbetween employer and employee is the norm, conflict is abnormal.

None o these assumptions are held by pluralists. Pluralists believe that not only doemployers and employees have different interests; they have multiple different interests. Whatemployees seek (high wages, limitations on hours, control over their work, maximisationo health and saety, generous benefits, job security, and so on) are an inevitable source


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Studying HRM 1

o conflict. Tis is because employers are looking or something rather different rom theemployment relationship (flexibility, low labour costs, a high degree o management control,improved productivity, and so on). Te result, inevitably, is tension between two sides oindustry. A situation in which, or example, trade unions maintain a low-trust relationshipwith management is seen by people with a pluralist perspective as being entirely normaland expected. Pluralists see HRM as a process by which two parties with divergent interests

continually negotiate the terms o their relationship.

bureaucratic vs pragmatic

In some organisations HRM is characterised by the presence o bureaucracy. Te HRunction tends to direct people management activities through the issuing o writtenpolicies and by requiring line managers to complete documentation to demonstrate thatthey are putting policies into action. Such approaches have the advantage o ensuring that people are treated equally and thatthe rule o law effectively applies across an organisation. Tis helps to reduce perceptionso unairness, which is a major source o demotivation in organisations. At its worst,however, it means that process replaces thought in the way that people are managed. For

example, completing perormance appraisal documentation can become more importantthan actually managing individual perormance effectively. Te alternative approach, known as pragmatism, is to cut back as ar as possible onrules, orm-filling and written policies. Managers are able to treat good perormers moreavourably than poor perormers and are ree to manage their teams by gut instinct. Teresult can be considerable diversity o practice across an organisation. Tis may work wellor some, but also tends to lead to inequity.

centralised vs decentralised

Te way the HR unction is organised always seems to be a problem in organisations,changes occurring regularly as senior managers search in vain or the ideal situation.

Te traditional approach is centralised, with an HR director to whom all other HR staff

report directly or indirectly. Some aspects o HR work are carried out by officers who carryresponsibility or the people in particular departments, while others (typically payroll,recruitment and training) are managed centrally by specialists on behal o the wholeorganisation. By contrast, the decentralisedapproach locates most HR staff in departments, reportingto local managers and making the effective management o their teams the priority.

In recent years the so-called three-legged model associated with Dave Ulrich (1997)has become ashionable. Tis involves the creation o three distinct types o HR specialist.Much administrative work is carried out in call-centre-type, centralised teams who provideshared services across the whole organisation. Te second group are specialists in areas oHR work who provide advice as and when necessary to managers. Tey will typically coveremployment law, training and development and all strategic HR issues. Te final, third

group are labelled business partners. Tey tend to be generalists who work alongside linemanagers and are concerned primarily with the management o case work and dealing withindividual employee issues in departments. Te three-legged model thus seeks to blendcentralisation with decentralisation so as to maximise both efficiency and effectiveness.

internally focused vs externally focused

Tis division in approach relates primarily to the relationship an organisation has with itslabour markets a crucial aspect o effective HRM. Externally ocused approaches involve looking outside the organisation when newpeople are required, hiring people who have gained their experience and skills in other


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Studying HRM14

organisations. Tis approach requires that pay rates are set at or above the going market rateand that the organisation spends plenty o money advertising jobs and promoting its imagein the labour market as a desirable employer to work or. Te benefits derive rom the widefield o talent the organisation has to choose rom when recruiting staff and the diversity oproessional experience that tends to inuse senior management teams. By contrast, the internally ocused approach involves developing internal labour markets.

People tend to be hired early in their careers, ofen as school-leavers or graduate recruits,and brought into organisations with a strong commitment to HRD. Tey are then developedinternally and promoted up the organisation when they are ready or new challenges andresponsibilities. It is relatively rare in such organisations or senior people to be recruitedrom outside the organisation. Pay rates are primarily set with reerence to internal airnessand the need to maximise effort among staff who are invited to compete or promotion upan organisational hierarchy. Te approach has the advantage o being highly motivating to existing staff, butinevitably it also means that the range o talent that the organisation has to choose romwhen filling senior posts is both limited and lacking in diversity.

stakeholder vs stockholder orientations

Tis is another undamental difference o perspective that can be observed in differentorganisations. An organisation that is heavily stockholder-oriented is one which is managedalmost entirely in the interests o its owners. Shareholder value is the only really significantmanagement target, and this increasingly means short-term shareholder value. In otherwords, the organisations sole purpose (in its own managers eyes) is to gain or its ownersa quicker and more substantial financial return on their investment than their competitorsare able to achieve. As ar as employees are concerned, this perspective tends to beassociated with job insecurity, the intensification o work and approach to management thatis sometimes described as asinine in its approach. Tis means that people are treated inan unsophisticated manner, being motivated via the use o financial incentives on the onehand and tight discipline on the other. I you work really hard and deliver the stockholdersobjectives, you are well rewarded. I you dont, you are likely to be dismissed rapidly without

sentiment. Te alternative stakeholder orientation is ar more pleasant rom an employee perspective,but can mean that the organisation is less competitive and financially successul at leastin the short term. Stakeholder thinking recognises that a number o groups o people havea legitimate stake in an organisations long-term success and that there is thereore a sharedinterest between owners, managers, staff, suppliers, customers and the wider community.All will pull together and work collaboratively in the organisations interests i they areall treated airly. As ar as employees are concerned, this stakeholder perspective meansthat managers are interested in their long-term development, in retaining their skills inthe organisation and in providing them with the opportunity to thrive. Not only will theybenefit, but the organisation will too. Our aim in this chapter has been to introduce you to the area o human resource

management at Level 5. We have reviewed what constitutes a Level 5 approach to the areao study and how this is integrated with the CIPDs ramework o proessional development.One o the requirements o HR proessionalism is that we are well prepared to offer the bestadvice and on the basis o the most solid evidence available. Tis necessitates having theskills, knowledge and sufficient curiosity to keep up to date with developments in the field,critically evaluating their application in practice. o this end we introduced the discipline ohuman resource management, exploring as we did so its development and some o its keydebates. We trust that we have given you sufficient understanding o the field that you areable to embark on the rest o your programme o study rom a solid base.


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Studying HRM 1

references

COYLE-SHAPIRO, J., AYLOR, S., SHORE, L. and ERICK, L. (2004) Commonalitiesand conflicts between different perspectives o the employment relationship: towards aunified perspective. In: COYLE-SHAPIRO, J., AYLOR, S., SHORE, L. and ERICK, L.(eds) Te employment relationship: examining psychological and contextual perspectives.Oxord, Oxord University Press.

FAYOL, H. (1949) General and industrial management[translated rom the French edition(Dunod) by Constance Storrs]. London: Pitman.

GINZBERG, E. (1958) Human resources: the wealth of a nation. New York: Simon &Schuster.

GOOS, M. and MANNING, A. (2003) McJobs and MacJobs: the growing polarisation ojobs in the UK. In: DICKENS, R., GREGG, P. and WADSWORH, J. (eds) Te labourmarket under New Labour. Basingstoke: Palgrave.

GOOS, M. and MANNING, A. (2007) Lousy and lovely jobs: the rising polarization o workin Britain. Te Review of Economics and Statistics. Vol 89, No 1. pp11833.

GOOS, M., MANNING, A. and SALOMONS, A. (2009) Job polarisation in Europe. TeAmerican Economic Review. Vol 99, No 2. pp5863.

GUES, D.E. and CONWAY, N. (2001) Public and private sector perceptions on thepsychological contract. London: CIPD.

MACLEOD, D. and CLARKE, N. (2009) Engaging for success: enhancing performancethrough employee engagement. A report to government. London: Department orBusiness, Innovation and Skills.

Activity 1.3

Questions:

1Think about an organisation you, your friends or relatives have worked for. Would you say that

the approach to management was characterised more by a stockholder or by a stakeholder

perspective?2Why might it be in the long-term financial interests of an organisation to move towards a

stakeholder perspective and away from a stockholder perspective?

3In what circumstances might the reverse be the case?

CIPD. (2010) Next generation HR: time for change towards a next generation for

HR. This is the outcome of the CIPDs futurefocused research that examines the

future of the role. It positions HR leaders as building sustainability and equity by

being insight-driven provocateurs who are assured and confident in influencing.

PURCELL, J., KINNIE, K., HUTCHISON, S., RAYTON, B. and SWART, J. (2003)

Understanding the people and performance link: unlocking the black box. London:Chartered Insitute of Personnel and Development. The CIPDs seminal study that

examines the nature and contribution of people management to organisation

performance.

TYSON, S. (2006) Essentials of human resource management. 5th ed. Oxford:

Butterworth Heinemann. Chapters 3 and 4. Reviews the development of the

profession, the goals of specialist HR professionals and how the function assists

in the achievement of organisation goals. Also explores in more depth the debates

aired in this chapter.

fu

rth

er

rea

d

in

g

N

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W

S


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Studying HRM16

MAYO, E. (1933) Human problems of an industrialised society. New York: Harpers.PFEFFER, J. and SUON, R.I. (2006) Hard facts: dangerous half-truths and total nonsense:

profiting from evidence-based management.Boston: Harvard Business School Press.PURCELL, J., KINNIE, N., HUCHINSON, S., RAYON, B. and SWAR, J. (2003)

Understanding the people and performance link: unlocking the black box.London: CIPD.ULRICH, D. (1997) Human resource champions: the next agenda for adding value and

delivering results. Boston: Harvard Business Press.WEBER, M. (1947, reissued 1964)A theory of social and economic organization. New York:

Free Press.


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CONTENTS

TABLE OF CONTENTS

1. ORGANISATIONAL DESIGNGary Connor, Michael McFadden and Ian McLean

What Are Organisations?

The Evolution of Organisational Design Theory

Common Forms of Organisational Structure

Factors Influencing Organisational Design

Organisational Design Models and Tools

The Role of HR in Organisational Design

Case studyGuide to further reading

References

Glossary

2. ORGANISATION DEVELOPMENT

Sophie Mills, Amanda Lee, Krish Pinto and Kirsten Stevens

Introduction

Historical basis of organisation developmentThe role of the organisation development practitioner

Understanding the organisational development process

Practises, models and approaches

The role and purposes of OD interventions

Concluding comments

Case study

Guide to further reading

References

Glossary


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3. MEETING ORGANISATIONAL DEVELOPMENT NEEDS

Jim Stewart and Dalbir Sidhu

Learning Outcomes

Establishing learning needs and learning activitiesGeneral Approaches to Meeting Development Needs

Roles and Responsibilities of Learning

Evaluating Learning Outcomes

Summary and conclusion

Case study


References

Glossary

4. DEVELOPING COACHING AND MENTORING WITHIN ORGANISATIONS

Jill Ashley-Jones, Terrence Wendell Brathwaite and Rosalind Maxwell-Harrison,

Learning Outcomes

Coaching and Mentoring Definitions

Coaching and Mentoring in a Global Context

Coaching skills for Managers

Coaching models, philosophies and practice

Some ethical considerations

The Manager as a Coach and Mentor

Evaluating Return on Investment

Conclusion

5. CONTEMPORARY DEVELOPMENTS IN HUMAN RESOURCE DEVELOPMENT

Jim Stewart and Sharon McGuire

Introduction

Perspectives on HRD

External trends influencing HRD

Approaches to HRD

Some additional contemporary developments

Summary and conclusion

Case study


Glossary

References


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6. KNOWLEDGE MANAGEMENT

Graham Perkins and Carol Woodhams

What is knowledge?

Tacit and explicit knowledgeThe knowledge perspectives

Single and double loop learning

Defining organisational learning

The learning organisation

Approaches to knowledge management

Barriers to knowledge management

7. IMPROVING ORGANISATIONAL PERFORMANCE

Patricia Rogers, Michelle McLardy, Raymond Rogers and Susan Barnes

Introduction

The Development of HRM and Links with Performance Management

High Performance Working Organisations (HPWO)

The External Environment

The Involvement and Commitment of line managers in improving performance

Reviewing Performance

HRM Practices Supporting the Performance Appraisal Process

Organisation Culture

Creating a sustainable high performance culture

Summary


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LIST OF TABLES

Chapter 4

Table 1.1 Definitions of Coaching

Table 1.2 Definitions of MentoringTable 1.3 The Manager as a Coach: Coaching Skills for Managers

Table 1.4 Development Coaching vs Executive Coaching

Chapter 6

Table 1.1: The Differences between Tacit and Explicit Knowledge

Chapter 7

Table 1.1: High Performance Working Practices

LIST OF FIGURES

Chapter 1

Figure 1.1 - A typical functional organisational structure

Figure 1.2 - A typical geographical organisational structure

Figure 1.3 - A typical product based organisational structure

Figure.1.4 - A typical customer/market based organisational structure

Figure 1.5 - A typical matrix organisation

Figure1.6An Iterative Approach to Organisational StrategyFigure1.7 - A typical Static Organisational Design Model

Figure 1.8 - A dynamic organisational design model

Chapter 2

Fig 1.0: Kurt Lewins Force Field Model

Fig 1.1: Lippitt. Watson and Westley Change Model incorporating Lewins Model of Planned

Change

Fig 1.2 A Simple Action Research Model

Fig 1.3 The 5-D Model of Appreciative Inquiry

Fig 1.4 Single-Loop and Double-Loop Learning

Fig 1.5 Quantitative and Qualitative Performance Measurement Methods

Chapter 3

Fig 1.1 Alignment of learning needs


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Chapter 4

Figure 1.1 Coaching: Suggested Similarities & Differences

Figure 1.2 The Sankofa Bird (Traditional Design)

Figure 1.3 The Sankofa Context of Coaching & Mentoring

Figure 1.4 Example Organisation model of Coaching & Mentoring InterventionsFigure 1.5 Stakeholders and relationships with the wider enviornment

Chapter 6

Table 1.1: The Differences between Tacit and Explicit Knowledge

Figure 1.2 Two: Single and Double-Loop Learning

Figure 1.3: Knowledge Communities at Nokia

Chapter 7

Table 1.1: High Performance Working PracticesFigure 1.1: HR Practices developed for Line Managers

Figure 1.1: HR Practices developed for Line Managers


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chapter 1

Organisational DevelopmentSophie Mills, Amanda Lee, Krish Pinto and Kirsten Stevens

CHAPTER CONTENT

Introduction

Historical basis of organisation development

The role of the organisation development practitioner

Understanding the organisational development process Practices, models and approaches

The role and purposes of OD interventions

Concluding comments

Case study


References

Glossary

LEARNING OUTCOMES

Analyse the underpinning history, theories and principles of organisation development.

Describe and explain the organisation development process.

Evaluate various organisation development practices, models and approaches.

Discuss the value of organisation development interventions to business performance and

productivity.

overview and learning outcomes

Tis chapter introduces and examines the concept o organisational development (OD)and its role within the management o organisational change. It commences by introducingthe concept o OD and includes definitions o its characteristics and those required o ODpractitioners. Te chapter then moves on to provide a historical insight into the emergenceo OD, the role o the OD practitioner in greater detail and considerations relating to theplace o ethics within OD interventions. Subsequently, the chapter offers a breakdown oa typical OD process, including contracting, issue diagnosis, intervention planning andevaluation. A series o theoretical approaches and models are included to help demonstratethe operation o the OD process. Finally, the chapter then reflects upon the overall purposeo OD and the importance o the incorporation o perormance measurement methods tobe able to gauge its overall impact.


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Organisational Development2

introduction

Progressively, organisations find themselves needing to respond and adapt to ever-changingexternal environments, whether these changes are associated with customers, suppliers,competitors, legislation, challenging economic conditions, government initiatives/interventions, or a combination o any or all o these. OD can be used to support the

management o organisations through change in order to enable them to introduceprocesses that will optimise their ongoing adaptability and flexibility.OD, as defined by French and Bell (1999, pp2526), is a long term effort, led and

supported by top management, to improve an organisations visioning, empowerment, learningand problem-solving processes, through an ongoing, collaborative management o organisationculture o intact work teams and other team configurations using the consultant-acilitatorrole and the theory and technology o applied behavioural science, including action research. Cheung-Judge and Holbeche (2011) used French and Bells definition, above, andthose provided by a number o other authors (Margulies 1978; Beckhard 1969; Schein1988; Lippitt and Lippett 1975; Rainey olbert and Hanafin 2006) in order to identiy theollowing set o OD and OD practitioner characteristics:

OD practitioners are process experts that aim to improve organisational processes.

OD practitioners ocus upon the total organisational system, even i only a specific issuehas been identified. OD practitioners work towards improving organisational problem-solving and renewal

processes. OD practitioners support organisational leaders. Applied behavioural science technology is used to help the organisation strive or healthy

development. Te OD process is theory based, process ocusedand value driven.

(Adapted rom Cheung-Judge and Holbeche (2011, p11))

According to Cheung-Judge and Holbeche, the ocus o OD is, thereore, on the support oorganisational leaders in taking a holistic approach to organisational process improvementand renewal using behavioural science technologies. Te incorporation o behavioural

science technology is considered a key component o all OD interventions. Behaviouralscience is a wide-ranging term used to describe the study o peoples behaviour in thesocial sciences. It is ofen related to issues o management and organisations within a workcontext. Te study o behaviour within behavioural science is predominantly consideredusing the ollowing disciplinary perspectives: sociology (the study o social behaviour);psychology (the study o human behaviour) and anthropology (the study o mankind and thestudy o social behaviour as a whole) (Mullins 2005, pp2930).

historical basis of organisation development

Te emergence o OD as a concept tracks back to the 1940s and 1950s. During this time,American psychologists began to ocus their attentions on group dynamics. Exploringthe interactions amongst group members, early researchers discovered that individualsresponded avourably to participation, resulting in changes in attitude, positive interpersonalrelations, increased perormance and personal growth.

Stemming rom research conducted in the United States o America in the late 1940s,Kurt Lewin developed a leadership workshop, known as the -group (a orm o sensitivitytraining), that provided participants with eedback on their behaviour. Lewin and his teamo researchers discovered that the provision o such eedback resulted in a rich learningexperience. Owing to the success o these initial -groups, and with financial backing,national training laboratories (NLs) were ormed in 1947. Te NLs were expanded in1950 to include business and industry, allowing individuals to learn more about themselvesand their reactions to given situations. Te term organisation development began to emerge


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Organisational Development 3

as internal proessionals and academic scholars applied these participative techniques toorganisations (McGregor 1960; Beckhard 1969) to change management styles and overallorganisational perormance.

Gaining a greater understanding o the impact o management styles on perormance,McGregor (1960) discovered two different approaches to management. Based on assumptionsmade about employees, Teory X managers believe that employees need to be controlled

as they avoid responsibility, are inherently lazy and cannot be trusted. In contrast, TeoryY managers assume that their staff will accept responsibility, are committed and willco-operate given the right conditions. Blake and Moutons (1981) managerial grid also ocused upon management perormance,asking managers to pinpoint on the grid their priority or employee or task needs(sometimes reerred to as people or production needs). Blake and Mouton concluded thatthe most effective managers in their roles are those who do not avour production overpeople and vice versa. Paying the same level o high attention to each aspect (employee andtask needs), effective managers inherently promote a higher level o employee participation,as communication is greater and employees understand what is being done and why.

Te need to be open with staff and provide opportunities or involvement and recognitionalso orms part o much theory on motivation, most notably Maslows Hierarchy o Needs

(1954). When designing jobs, working conditions and organisational structures, Maslowsuggested that organisations need to bear in mind the ull range o needs detailed in hishierarchy, namely those o physiological, saety, social, esteem and sel-actualisation needs.Maslow suggested that people seek to satisy lower-level needs first (such as ood andshelter) beore moving up the hierarchy to eventually reach sel-actualisation at the top.Maslow argued that as one need is satisfied, it is no longer a motivator. While Maslowshierarchy was and still is held in high regard in management education, the theory has beencriticised. Whetton and Cameron (2005, p318) state that the problem with the hierarchicalneeds theories is that although they help us to understand general development processes,rom adult to child, they arent very useul or understanding the day-to-day motivation levelso adult employees. Other authors (Kogan 1972; Wahba and Bridwell 1976; Salancik andPeffer 1977; Rauschenberger et al 1980) concur with the view that there are some problemsrelating Maslows theory to the workplace. Te main criticisms are that people can satisytheir needs through other areas o their lie, not just work; individual differences meanthat people place different values on the same need; some rewards or outcomes may satisymore than one need; and people on the same level o the hierarchy may not have the samemotivating actors.

reflective activity

To what extent do you agree with the contention that organisations spend too much time

focusing on the lower-level needs of Maslows hierarchy rather than providing employees with

the opportunity to satisfy other higher-level needs?

Given the potential diversity of staff working within an organisation, what can HR practitioners do

to ensure they match job requirements with the individual needs of their staff?

Following concerns that traditional approaches to job design, such as aylors scientificmanagement (1947), lacked attention to human needs, job design research evolved,giving rise to what became known as the quality o working lie (QWL) studies. Te QWLprogrammes worked with managers, unions and staff to design work that offered increasedtask variety and discretion, higher levels o involvement and the opportunity to gaineedback upon individual perormance and contribution. owards the end o the 1970s,


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QWL programmes increased in popularity as organisations began to realise the potentialor redesigning work flows, reward systems and improved working conditions in order toimprove worker productivity. Building on the initial eatures o QWL programmes, coupledwith the emergence o a growing body o excellence literature (Peters and Waterman1992; Kanter 1983), and the emergence o total quality management (QM) and humanresource management (HRM) literature, many organisations started to support the notion

that employees are an organisations greatest asset. During this period, contemporarymanagement practice, in post-bureaucratic organisations, sought to utilise more acceptablemeans o control as workers became more aware o their rights (supported by a plethorao legal instruments now regulating the employment relationship) and sought to ulfiltheir own needs rom the employment relationship. Empowering staff, employers beganto provide their employees with greater control over how they achieved their targets.Individual work activities were introduced that aimed to increase job satisaction and loyaltywhile at the same time improving the profitability and perormance o the organisation. Inthe early 1990s it was not uncommon or organisations to implement sel-managing teams,whose members were responsible or determining their own ways o working within theboundaries set by management. As a consequence o this reedom, employers sought toimprove job satisaction, reduce absenteeism and reduce costs. However, Kundas research

(1992) demonstrates that the added pressure induced to conorm to the rules o the teamcan become ar greater and ultimately lead to employee burnout, which can arguably beconsidered as somewhat sel-deeating or management.

Continuing to concentrate on the potential value o involving staff in decisions at work,HR practitioners recently began ocusing their attention on engaging staff that go theextra mile and surpass the traditional levels o employee satisaction and commitment.Tey have aimed to achieve this by introducing employee involvement schemes, improvedcommunication strategies and a culture based on transparency and trust. Tese initiativesare some o the steps an organisation can take to actively promote high levels o employeeengagement.

reflective activity

In an attempt to measure the levels of engagement amongst their workforce, organisations may

decide to distribute an annual satisfaction survey. Identify 510 questions that you think would

be appropriate to include in such a survey. When thinking about the questions, remember to

firstly consider what it is you are trying to measure and why.

What can organisations do to maintain morale during challenging economic conditions?

the role of the organisation development Practitioner

Te OD practitioner can be a specialist, thereby concentrating solely on OD, or OD canorm part o a more generalist management role. Cummings and Worley (2005, p450)suggest that many managers and administrators have gained competence in OrganisationDevelopment and thereore apply it to their own work areas. OD practitioners can alsobe external consultants whose expertise is sought when this does not exist in-house.One distinct advantage o employing an internal OD practitioner is that they are veryamiliar with the culture o the organisation and the people working within it. However,there is an increased likelihood o bias as such practitioners may find it hard to detachthemselves rom their predetermined attitudes and assumptions. Conversely, an external


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Organisational Development 5

OD practitioner may be better placed to make more objective judgements but take longerto orm relationships with those with whom they will be working.

Challenging previous and existing organisational behaviours, the OD practitioner cansometimes ace opposition as managers and staff may eel threatened or perhaps they maymisunderstand the purpose o the OD practitioners role and contribution. As with much o

organisational lie, it is essential that lines o communication are kept open and everyone isinormed o the nature and likely duration o the OD practitioners work, so as to optimisetransparency and reduce resistance.

Adopting humanistic principles, traditional OD practitioners promoted opencommunication, employee involvement and personal growth and development. However,criticised or sitting on the periphery o an organisation (Bradord and Burke 2005, p19),OD practitioners have since had to expand their skill sets to demonstrate an interest inorganisational effectiveness and bottom-line results. Moving rom a client-centred to aconsultant-centred role, OD practitioners now seek to adopt a more central and strategicrole as organisations ace increasing change.

Illustration of Practice

Department for Work and Pensions

In 2008, the Department for Work and Pensions (DWP) implemented an efficiency challenge

that involved reducing 30% of its workforce over a period of three years, while streamlining and

modernising services to customers.The DWPs 2008 employee engagement survey highlighted that 18% of staff were disengaged.

This equated to approximately 20,000 employees, most of whom were holding junior grades

in front-line delivery roles within Jobcentre Plus offices or contact centres. In response, DWP

outlined a series of engagement priorities which looked at increasing the capability, motivation

and accountability of first-line and middle managers and the visibility and impact of all

senior managers. These engagement priorities were aimed at putting tools in place to involve

employees in discussing the vision of DWP and how it could deliver an excellent customer

service.

In order to realise these priorities, DWP introduced a number of engagement initiatives,

including the Making a Difference programme for first-level leaders and the Back to the Floor

programme for senior leaders.

The Making a Difference programme was designed as the catalyst to enable participants tobetter engage with, lead and deliver business direction. It emphasises that leadership is not

just about senior managers; it is about those that have the greatest influence on people within

the organisation. Full implementation began in February 2009 and up to 10,000 people are

expected to take part in the process. Stephen Hanshaw (Jobcentre Plus Manager) believes his

Making a Difference journey has better equipped him in engaging people in change. We had

lots of opportunities to discuss the barriers which can affect our ability to lead our team through

change, and share ideas for overcoming these.

Back to the Floor gives senior leaders the opportunity to experience a customer-facing role

for up to a week, working with staff and discovering first-hand the issues they face in delivering

to the organisations customers. Katherine Courtney (Director of DWP Customer Insight) believes

the insights she gained from her Back to the Floor experience have enabled her to influence

change for the better. In my role it is important for me to see things from the customers

perspective. I try to walk in the staffs shoes. Seeing the real help we provide customers when

they need it most reminded me why I joined DWP in the first place. I was able to influence issues

arising from lone parent customers transitioning from Income Support to Job Seekers Allowance.

The DWPs recent survey results show some positive movement in their engagement scores.

Source: www.bis.gov.uk/files/file522.15.pdf


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ethical considerations

Te role o an OD practitioner is to promote the change that is needed within theorganisation that they work in or or. Accepting this proessional responsibility, ODpractitioners will need to inspire trust and quickly identiy and ascertain organisationalnorms and values. Needing to orm close working relationships with staff, OD practitioners

can potentially ace a myriad o ethical dilemmas. Cummings and Worley (2005, p58) statethat ethical issues in organisation development are concerned with how practitioners perormtheir helping relationship with organisation members.

In order to promote a positive working relationship and reduce the possibility o anymisunderstanding, it is essential that both parties are honest with each other rom theoutset. When working with an organisation, the OD practitioner is responsible or clearlyexplaining, both verbally and in writing, what it is they will be able to deliver and thetimescales to achieve this. Similarly, the client (or organisation) must ensure that it iscompletely honest with the OD practitioner about the current situation and how the ODpractitioner is envisaged to be able to assist them. Under these circumstances it would beconsidered unethical or the OD practitioner to claim that the adoption o a particularintervention would solve all o the organisations problems i this were not likely to be thecase. Te OD practitioner should be clear about the work they think they would be able tocarry out within the specified time period and return to the client i this does not turn outto be the case. rust is an important aspect o the OD practitioners role as they will invariably haveaccess to confidential inormation. It is likely that employees may seek to elicit thisinormation rom the OD practitioner as they work on their assigned role. It is thereoreimperative that confidentiality is maintained and agreements are made between the clientand the OD practitioner in terms o any announcements that are made and access to thesensitive inormation be

CIPD Ch L 5 Org Dev And Reward.pdf

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Transcript of CIPD Ch L 5 Org Dev And Reward.pdf