Introduction to employee sourcing

8/12/2019 Introduction to employee sourcing

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Key concepts and terms

National School of Business ManagementModule Name Strategic Human Resource ManagementGajaba Perera-Gunawardena-Management Consultant

People Resourcing Strategy

Session Objectives

Session Objecties

!ntroduction

Objectie o" resourcing strategy

!ntroduction to t#e practice o" HRM in organi$ations

%#e strategic HRM approac# to resourcing

!ntegrating business and resourcing strategies

%#e components o" employee resourcing strategy

&undling and resourcing strategy

Introduction%#e concept t#at t#e strategic capability o" a "irm depends on its resource capability in t#es#ape o" people 't#e resource-based iew( proides t#e rationale "or resourcing strategy) *se+plained by Grant ',,(.

"The firms most important resources and capabilities are those which are durable,difficult to identify and understand, imperfectly transferable, not easily replicated, andin which the fi rm possesses clear ownership and control. These are the firms crownjewels and need to be protected; and they play a pivotal role in the competitive strategywhich the fi m pursues. The essence of strategy formulation, then, is to design a strategythat makes the most effective use of these core resources and capabilities."

Strategies are "ormulates/d wit# t#e objectie to create a Competitie adantage "or t#ebusiness0 People resource strategy is no di""erent0 t#e objectie #ere is to create en#ancedbusiness per"ormance t#roug# its people0 proiding t#em 1nowledge0 opportunities andresources t#at would ma+imi$e t#e people2s potential and would result in a better per"ormingorganisation) !t not only about people wit#in t#e organisation but also about attractingpro"essionals and s1illed wor1"orce "rom t#e mar1et0 t#roug# better image creation0 Strategys#all "ocus on better utilisation o" s1ills o" people so t#at business prospers and leads t#emar1et)


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3mployee retention strategies s#all be employee centred rat#er t#an business centred- do notlose on an asset t#at #as deeloped wit# t#e business oer a period o" time0 Retention #asmany ways some o" t#em include proision o" better opportunities and rewards t#an ot#ers andby deeloping a positie psyc#ological contract t#at increases commitment and creates mutualtrust) Plus ma1ing sure t#at t#ere are rig#t people at t#e rig#t time "or t#e rig#t job wit# t#e rig#tresources0 t#is would not just #elp in motiating employees but will also #elp in creating a senseo" mutual respect wit# in t#e business and would result in a more conducie and betterorganisational climate)

The aimo" t#is strategy is to ensure t#at a "irm ac#iees competitie adantage by

attracting and retaining more capable people t#an its rials and employing t#em more

e""ectiely) %#ese people will #ae a wider and deeper range o" s1ills and will be#ae in

ways t#at will ma+imi$e t#eir contribution) %#e organi$ation attracts suc# people by

being 4t#e employer o" c#oice2) !t retains t#em by proiding better opportunities and

Resources Vs. Capabilities

A distinction, made by Amit & Schoemaker (1993), is that the encompassing construct previouslycalled "resources" can be divided into resources and capabilities !3#n this respect, resources are

tradable and non$speci%ic to the %irm, hile capabilities are %irm$speci%ic and are used to engage the

resources ithin the %irm, such as implicit processes to trans%er knoledge ithin the %irm ('akadok,

1, p3**$3*9+ oopes, 'adsen and -alker, 3, p*9) .his distinction has been idely adoptedthroughout the resource$based vie literature (/onner and 0rahalad, 199, p2+, p33*+ 4arney,

'akadok (1) emphasi5es the distinction beteen capabilities and resources by de%ining

capabilities as 6a special type o% resource, speci%ically an organi5ationally embedded non$trans%erable%irm$speci%ic resource hose purpose is to improve the productivity o% the other resources possessed

by the %irm7(p3*9)

68esources are stocks o% available %actors that are oned or controlled by the organi5ation, and

capabilities are an organi5ations capacity to deploy resources7:!3 p 3;


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rewards t#an ot#ers and by deeloping a positie psyc#ological contract t#at increases

commitment and creates mutual trust)

5urt#ermore0 t#e organi$ation deploys its people in ways t#at ma+imi$e t#e added alue

t#ey create)

*n organi$ation2s employee alue proposition consists o" w#at an organi$ation #as to

o""er t#at prospectie or e+isting employees would alue and w#ic# would #elp to

persuade t#em to join or remain wit# t#e business) !t will include remuneration 6 w#ic#

is important but can be oer-emp#asi$ed compared wit# ot#er elements) %#ese non-

"inancial "actors may be crucial in attracting and retaining people and include t#e

attractieness o" t#e organi$ation0 t#e degree to w#ic# it acts responsibly0 respect 6

diersity and inclusion0 wor16li"e balance and opportunities "or personal and

pro"essional growt#

Box 2

the employer of choice !mployee Bran"#%#e employee alue proposition can be e+pressed as an employer brand0 de"ined by7al1er '899:( as 4a set o" attributes and ;ualities 6 o"ten intangible 6 t#at ma1e anorgani$ation distinctie0promise a particular 1ind o" employment e+perience and appeal to people w#o will t#rie

and per"orm t#eir best in its culture2)3mployer branding is t#e creation o" a brand image o" t#e organi$ation "or prospectieemployees) !t will be in"luenced by t#e reputation o" t#e organi$ation as a business orproider o" serices as well as its reputation as an employer)

The strategic $%M approach to resourcing

Strategic HRM emp#asi$es t#e importance o" #uman resources in ac#ieing

organi$ational capability and t#ere"ore t#e need to "ind people w#ose attitudes and

be#aior are li1ely to be congruent wit# w#at management beliees to be appropriate

and conducie to success) !n t#e words o" %ownley ',


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but is no longer appropriate in t#e "ace o" new c#allenges 'as Pascale0 ,90 e+claims0

4not#ing "ails li1e success2()

%#e HRM approac# to resourcing t#ere"ore emp#asi$es t#at matc#ing resources toorgani$ational re;uirements does not simply mean maintaining the status quoand

perpetuating a moribund 'declining/likely to fail( culture) !t can and o"ten does mean

radical c#anges in t#in1ing about t#e s1ills and be#aiors re;uired in t#e "uture to

ac#iee sustainable growt# and cultural c#ange) !t also means using a systematic

approac#0 starting wit# #uman resource planning and proceeding t#roug# recruitment0

selection and induction0 "ollowed by per"ormance management0 learning and

deelopment0 recognition and reward)

&ntegrating business an" resourcing strategies

%#e p#ilosop#y be#ind t#e strategic HRM approac# to resourcing is t#at it is people w#o

implement t#e strategic plan) *s =uinn Mills ',( #as put it0 t#e process is one o"

4planning wit# people in mind2) %#e integration o" business and resourcing strategies is

based on an understanding o" t#e direction in w#ic# t#e organi$ation is going and t#e

"ollowing considerations)

Considerations affecting the integration of business and resourcing strategies

? %#e numbers o" people re;uired to meet business needs)

? %#e s1ills and be#aior re;uired to support t#e ac#ieement o" business strategies)

? %#e impact o" organi$ational restructuring as a result o" rationali$ation0

decentrali$ation0 delayering 'reduction in t#e number o" layers o" a management

#ierarc#y(0 ac;uisitions0 mergers0 product or mar1et deelopment0 or t#e introduction o"

new tec#nology0 "or e+ample0 cellular manu"acturing)

? Plans "or c#anging t#e culture o" t#e organi$ation in suc# areas as ability to delier0

per"ormance standards0 ;uality0 customer serice0 team wor1ing and "le+ibility t#at

indicate t#e need "or people wit# di""erent attitudes0 belie"s and personal c#aracteristics)

%#ese considerations will be strongly in"luenced by t#e type o" business strategies

adopted by t#e organi$ation and t#e sort o" business it is in) %#ese may be e+pressed in

suc# terms as Porter2s ',


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Resourcing strategies exist to provide the people and skills required to support

the business strategy, but they should also contribute to the formulation of that

strategy) HR directors #ae an obligation to point out to t#eir colleagues t#e #uman

resource opportunities and constraints t#at will a""ect t#e ac#ieement o" strategic

plans) !n mergers or ac;uisitions0 "or e+ample0 t#e ability o" management wit#in t#e

company to #andle t#e new situation and t#e ;uality o" management in t#e new

business will be important considerations)

The components of people resourcing strategy

' $uman resource planning'o"ten re"erred to0 especially in t#e public sector0 as

wor1"orce planning( 6 assessing "uture business needs0 deciding on t#e numbers and

types o" people re;uired and preparing plans "or obtaining t#em "rom wit#in or outside

t#e Organi$ation)

? (reating an employer bran"6 deeloping t#e organi$ation2s employee alue

proposition

%#e employee alue proposition can be e+pressed as an employer brand0 de"ined by

7al1er

'899:( as 4a set o" attributes and ;ualities 6 o"ten intangible 6 t#at ma1e an organi$ation

distinctie0 promise a particular 1ind o" employment e+perience and appeal to people

w#o will t#rie and per"orm t#eir best in its culture2) 3mployer branding is t#e creation o"

a brand image o" t#e organi$ation "or prospectie employees) !t will be in"luenced by t#ereputation o" t#e organi$ation as a business or proider o" serices as well as its

reputation as an employer)

%etention strategy6 preparing plans "or retaining t#e people t#e organi$ation needs0The turnover of key employees can have a disproportionate impact on the business. The people organizations

wish to retain are often the ones most likely to leave. It was claimed by Reed (200! that" #$very worker is fi

ve minutes away from handing in his or her notice% and &0working hours away from walking out of the door

to a better offer. There is no such thing as a 'ob for life and todays workers have few )ualms about leaving

employers for greener pastures. #*oncerted action is re)uired to retain talented people but there are limits to

what any organization can do. It is also necessary to encourage the greatest contribution from e+isting talent

and to value them accordingly.

)bsence management strategy6 planning "or t#e control o" absence ,bsence

management is the development and application of policies and procedures designed to reduce levels of

absenteeism. The *I- (200/c! report on absence management revealed that on average employers lose eight


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working days for each member of staff per year and average sickness absence costs employers 111 per

employee per year. omething has to bedone about it. This means understanding the causes of absence% and

adopting comprehensive absence management (or more positively% attendance management! policies%

measuring absence and implementing procedures for the management of short3 and long3term absence.

? *lexibility strategy6 5le+ibility planning inoles ta1ing a radical loo1 at traditional

employment patterns) %#is means considering t#e scope "or more "le+ible wor1ing

based on multi-s1illing0 deeloping a 4"le+ible "irm2 by identi"ying and employing core and

perip#eral employees0 including t#e use o" sub-contracting and outsourcing0 and

introducing more "le+ible wor1ing arrangements including job s#aring0 #omewor1ing and

telewor1ing0 "le+ible #ours0 and oertime and s#i"t wor1ing) %#e aim o" "le+ibility

planning is to proide "or greater operational "le+ibility0 improet#e utili$ation o"

employees2 s1ills and capacities0 increase productiity and reduce employment

? Talent management strategy6 ensuring t#at t#e organi$ation #as t#e talented

people it re;uires to proide "or management succession and meet present and "uture

business needs)%#e term 4talent management2 may re"er simply to management

succession planning and management deelopment actiities0 alt#oug# t#is notion does

not really add anyt#ing to t#ese "amiliar processes e+cept a new0 alt#oug# admittedly

;uite eocatie0 name) !t is better to regard talent management as a more

compre#ensie and integrated bundle o" actiities0 t#e aim o" w#ic# is to secure t#e "low

o" talent in an organi$ation0 bearing in mind t#at talent is a major corporate resource)

? %ecruitment an" selection strategy6 planning t#e approac#es used to obtain

people)Recruitment is t#e process o" "inding and engaging t#e people t#e organi$ation

needs) Selection is t#at part o" t#e recruitment process concerned wit# deciding w#ic#

applicants or candidates s#ould be appointed to jobs)

Bun"ling resourcing strategies an" activities

* person resourcing is not just about recruitment and selection) !t is concerned wit# any

means aailable to meet t#e needs o" t#e "irm "or certain s1ills and be#aiors) *

strategy to enlarge t#e s1ill base may start wit# recruitment and selection but would

e+tend into learning and deelopment to en#ance s1ills and modi"y be#aiors0 and

met#ods o" rewarding people "or t#e ac;uisition o" e+tra s1ills) Per"ormance

management processes can be used to identi"y deelopment needs 's1ill andbe#aioral( and motiate people to ma1e t#e most e""ectie use o" t#eir s1ills)

Competency "ramewor1s and pro"iles can be prepared to de"ine t#e s1ills and be#aiors

re;uired and used in selection0 employee deelopment and employee reward

processes)


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%#e aim s#ould be to deelop a rein"orcing bundle o" strategies along t#ese lines)

%alent management is a 4bundling2 process t#at is an aspect o" resourcing)

Summary

Objective of resourcing strategy+

%o ensure t#at a "irm ac#iees competitie adantage by attracting and retaining more

capable people t#an its rials and employing t#em more e""ectiely)

,- The strategic $%M approach to resourcing

Strategic HRM emp#asi$es t#e importance o" #uman resources in ac#ieing

organi$ational capability and t#ere"ore t#e need to "ind people w#ose attitudes

and be#aior are li1ely to be congruent wit# w#at management beliees to be

appropriate and conducie to success)

2- &ntegrating business an" resourcing strategies

? %#e numbers o" people re;uired to meet business needs)

? %#e s1ills and be#aior re;uired to support t#e ac#ieement o" business

strategies)

? %#e impact o" organi$ational restructuring)

? Plans "or c#anging t#e culture o" t#e organi$ation)

?

.- The components of employee resourcing strategy

Human resource planning includes creating an employer brand0 retention

strategy0 absence management strategy0 "le+ibility strategy0 talent management

strategy0 and recruitment and selection strategy)

/- Bun"ling an" resourcing strategy

Resourcing strategy s#ould include t#e bundling o" di""erent aspects o"

resourcing to gat#er so t#at t#ey can be mutually supportie)

Re"erences


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Grant0 R M ',,( %#e resource-based t#eory o" competitie adantage. implications "or

strategy "ormation0 California Management Review0 .. '>(0 pp ,A6>@

Miles0 R 3 and Snow0 C C ',:

Introduction to employee sourcing

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