LOOKING BACK, MOVING FORWARD:

THE HR JOURNEY TO TRANSFORMING

ORGANISATIONS

By Andrew Jemedze

HISTORICAL DEVELOPMENTS OF HRM

The employer had to develop new ways of dealing with

these large groups of people.

However the industrial revolution is said to have brought changes in the employer/ employee relationships – from

servant/master relationship to situations of industries and mass employment of people

Hamurabi the law giver has been cited as one of the

earliest propounders of HRM.

There is no universal agreement as to when HRM

started.

HISTORICAL DEVELOPMENTS OF HRM

MANAGEMENT THEORIES

•Macgregor

•Peters

•Rosabeth Kantor

•Magaret Whitley

•Kurt Lewin

JAPANESE COMPETITION.

STRATEGIC HRM The emergence of the flexible organization and non standard

employment

HISTORICAL DEVELOPMENTS OF HRM

(Cont’d)

DARWINISM THEORIES

(SURVIVAL OF THE FITTEST)

The employer was merely employing as the fitter

Employees were at his mercy being the weaker

It was by divine right that they found themselves at the mercy of the employer – so employees were made to believe.

There were however some employers who felt that the foregoing was wrong so they employed social workers who dealt with the relations.

They provided free housing, fairer rewards, better working relations- this was not by the agitation of the workers but by the generosity of employers.

However bringing together of large numbers of employees brought about the creation of TRADE UNIONISM hence, the voice of the employees to fight for better working conditions.

The concern by some employers about improving productivity also played a part – hence a number of studies were done – the important ones being those done by Frederick Taylor which period came to be called Scientific Management.

There were however some employers who felt that the foregoing was wrong so they employed social workers who dealt with the relations

They provided free housing, fairer rewards, better working relations- this was not by the agitation of the workers but by the generosity of employers.

However bringing together of large numbers of employees brought about the creation of TRADE UNIONISM hence, the voice of the employees to fight for better working conditions.

The concern by some employers about improving productivity also played a part – hence a number of studies were done – the important ones being those done by Frederick Taylor which period came to be called Scientific Management

DARWINISM THEORIES (SURVIVAL OF

THE FITTEST) Cont’d There were however some employers who felt that the foregoing was wrong so they employed social workers who dealt with the relations

They provided free housing, fairer rewards, better working relations- this was not by the agitation of the workers but by the generosity of employers.

However bringing together of large numbers of employees brought about the creation of TRADE UNIONISM hence, the voice of the employees to fight for better working conditions.

The concern by some employers about improving productivity also played a part – hence a number of studies were done – the important ones being those done by Frederick Taylor which period came to be called Scientific Management

Believed in one best way of working by studying people at work and recording which culminated in to “time and motion studies”

A process where work is broken down into smaller tasks and finding best ways of carrying them out.

People were trained to work that best way as we would presently refer to as “star/high performers”

People were motivated according to F Taylor solely by rewards – hence his assertion that output be tied to rewards

The social niceties at work were unknown

There is still a lot of this in today’s work processes.

SCIENTIFIC MANAGEMENT

Believed in one best way of working by studying people at work and recording which culminated in to “time and motion studies”

A process where work is broken down into smaller tasks and finding best ways of carrying them out.

People were trained to work that best way as we would presently refer to as “star/high performers”

SCIENTIFIC MANAGEMENT (Cont’d)

People were motivated according to F Taylor solely by rewards – hence his assertion that output be tied to rewards

The social niceties at work were unknown

There is still a lot of this in today’s work processes.

Other researchers started looking at other ways of improving production and these studies are collectively called Human Relations.

HUMAN RELATIONS

They held that rewards are not the sole motivators

Employees need much more for them to be motivated

• Hawthorne studies – Elton Mayo

• Maslow

Some of the notable studies were:

HUMAN RELATIONS (Cont’d)

Some of these studies were started by engineers who wanted to investigate the ideal illumination levels to improve output. The amount of light did not change productivity.

• People are motivated by the desire to belong to a specific group or collegiality and

• Desire to contribute and recognition by the bosses

• The need for achievement

However, they concluded that human beings are gregarious animals which means:

Therefore, jobs must meet the above needs for employee motivated.

SOCIO TECHNICAL STUDIES – TAVISTOCK

STUDIES

Disbanded the digging of coal and shovelling it and

introduced a conveyor belt after experiencing high levels of absenteeism and

health problems.

TOTAL QUALITY MANAGEMENT

One of the features of business is building quality into products and systems rather than inspecting

quality into products.

There is need to recognise the employee an important element

who must be treated as a customer because it is through them that you produce quality products for your customers

One of the features of business is building quality into products and systems rather than inspecting quality into products.

There is need to recognise the employee as an important element who must be treated as a customer because it is through them that you produce quality products for your customers

Another key element of TQM is employee empowerment with responsibility to take decisions related to their work as they are the ones who deal directly with customers. (moments of truth)

MANAGEMENT THEORISTS

• There is a recognition that people are eager to achieve set goals and people will be eager to achieve them

McGregor, Peters In search of excellence

• Believes in breaking the glass ceiling as she writes about her achievement and success both in business and academia. (study of the response of share price to a change in CEO)

Rosabeth Moss Kantor

• Believed in presence of order in the apparent chaos that we see and therefore, man’s ability to live in the chaos and achieve results.

Margaret Whitley –

• Well known for teams, change and strategy.

Kurt Lewin

THE JAPANESE COMPETITION

They have outperformed the western in many ways

This has generated lots of interest to find out how the Japanese do it.

• In Japan people are employed into an organization than into a job – does the person fit into the culture of the company?

• Psychological contract of employment is very strong in Japan to the extent that there was once no employment turnover

• There was very high use of work teams

• There was high level of investment in employee training and development

• There was extensive job rotation

They found the following:

HRM Is like other elements of management and is an ever developing discipline which borrows its principles and theories from a number behavioural science disciplines in particular:

• Psychology

• Medicine

• Sociology

• Economics

• Social anthropology

IS HRM THE SAME AS PERSONNEL MGT?

HRM vs. Personnel Mngt Personnel management activities tend to be disconnected and conducted as independent processes whereas

stresses that each activity should form part of the whole process of people management.

Within HRM there is greater stress on the role of line managers in managing their

personnel management is viewed as a specialist function.

Traditional

interest to the most senior managers.

Traditional Personnel mgt is operational,

personnel focused on managers tend to technical skills and have little power or functions whereas

own people – prestige whereas HRM approaches HRM in perspective whereas traditional HRM is of strategic relates all

employee matters to business strategy in a comprehensive and organized way.

HMR is aimed at achieving competitive advantage of an organization

HRM is proactive through the and TPM is reactive development of a

highly committed skilled workforce while TPM focuses on status maintenance.

WHAT IS STRATEGIC HUMAN RESOURCES

MANAGEMENT (SHRM)?

In doing so you accordingly transform the HR department into a consultant department.

Modern HR believes in devolving HRM competences to the line managers

Line managers can make or break the HR strategies as they are always with the people – they should therefore have the skills/competences in HR management

Specific terms when talking about strategic HRM are:

Integration – to what extent are our HR practices and competences considered in the strategic direction of the organization.

Devolvement – to what extent are HR practices competently carried out by line managers.

Beliefs & Assumption of HRM

It’s the HR which gives organizations their sustainable competitive advantage.

The AIM of HRM is not mere compliance with

rules but building employee commitment

Employees are carefully selected

and developed

Strategic Qualities of HRM

Because of the above beliefs and

assumptions HR decisions are of

strategic importance

Top management involvement in HRM

is necessary.

HR policies should be integrated into the business strategy

(external integration)

There is need to achieve internal

integration which is the extent to which

there is complementarity

among the HR functional areas

FLEXIBLE LABOUR AND NON STANDARD

EMPLOYMENT

Towards a more poorly compensated insecure workforce

Strategic positioning

standard The emergence of non employment arrangements.

The emergency of non standard reward systems and Employee Value Proposition

FLEXIBLE LABOUR & NON STANDARD

EMPLOYMENT

FL – often thought as:

•Part time

•Temporary and self employment

Also includes:

•Freelancing

•Sub contracting

•Outsourcing

•Home working

•Franchising

•Zero hours contracts

•Fixed Term contracts

•Seasonal working

•Flexi time

FLEXIBLE LABOUR & NON STANDARD

EMPLOYMENT

The common feature here is uncertainty is HIGH

FL – give the employer scope to make rapid short term adjustments to the supply of labour in response to changes in demand.

Over the years saw the proliferation of the flexible organization – core and peripheral staff (the resourcing strategy is changing)

The common feature here is uncertainty is HIGH

Can be referred to as Precarious employment

FL – give the employer scope to make rapid short term adjustments to the supply of labour in response to changes in demand.

Over the years saw the proliferation of the flexible organization – core and peripheral staff (the resourcing strategy is changing)

FLEXIBLE LABOUR & NON STANDARD

EMPLOYMENT

FL – is mainly used by management as part of forward looking plan which relates labour use patterns to business objectives

Characteristics: - certain social groups are over represented – women with dependent children, young workers, those nearing retirement, ethnic minorities

Quality and choice ; - others argue both workers and employers enjoy benefits of FL

The trend is non standard employment is on the increase

3 day working week

Increase use of artificial intelligence and ICT related jobs

LABOUR MARKET REGULATION

Differences between countries concerns their labour market regulation both legal and voluntary

Managers must influence both the legal and voluntary conditions

MANAGERIAL STRATEGIES AND ISSUES OF

CONTROL

NSE have undermined and eroded formal and rule bound modes of recruiting, mobilizing and disciplining labour.

There has been an increase in outsourcing, s u b c o n t r a c t i n g , networking

Such developments weaken Standard forms of employment

How them management maintain control in the face of this new dispensation

SOCIETAL CONTEXTS – THE NEW HR

PHILOSOPHY

Social processes within labour and work places are shaped and influenced by relationships between economic institutions and the wider social systems.

These provide frameworks for entitlements and obligations which explains why certain NSE flourish in one country than the other.

This is changing the face of EVP

Social processes within labour and work places are

shaped and influenced by relationships

between economic institutions and the

wider social systems.

The major movements are influences from

welfare systems, family structures

and gender relations.

These provide frameworks for

entitlements and obligations which

explains why certain NSE flourish in one country than the

other.

This is changing the face of EVP

RESTRUCTURING EMPLOYMENT RELATIONS

The standard economies of time- working week, day etc are now being challenged and employment relations are changing

Wages are paid for the duration of employment rather than for the duration of the performance

The wage is usually paid for non working periods eg. Sick p e r i o d s , h o l i d a y s , interruptions etc

It follows therefore three

Generally employees are paid for both working time and non working time

One is paid for both to work and not to work

The standard economies of time- working week, day etc are now being challenged and employment relations are changing

Most wages are time based

What in ‘normal’ about normal working time?

Wages are paid for the duration of employment rather than for the duration of the performance

The wage is usually paid for non working periods eg. Sick periods, holidays, interruptions etc

All these suggest a normal working arrangement

Therefore it is exchange of employment time as opposed to actual working time.

It follows therefore three scenarios are possible in managing labour:

• Normal working time

• Abnormal working time

• Non working time

Generally employees are paid for both working time and non working time

One is paid for both to work and not to work

VIRTUAL WORK PLACE

People who perform paid work at a distance relying on technology

The indian ICT case and the C h i n e s e manufacturing case

The externalization of professional work

TOWARD A MORE POORLY COMPENSATED

WORKFORCE

Family friendly work places

There is an increase in dual earner couples, female headed households bringing to the fore work/family conflicts.

Employers are responding with friendly working arrangements

The factory clock is in the process of becoming aligned with the cycles of workers personal lives

FL – provide a JIT arrangement of resources and in other economies it is the employers pushing for it

As we have JIT inventory management, product so is the concept of JIT personnel management

TOWARD A MORE POORLY COMPENSATED

WORKFORCE (CONT’D)

Long term employment are eroding and the “disposable employee’ is becoming more

common

Long term employment are eroding and the “disposable employee’ is

becoming more common

Workers are feeling more insecure in their jobs

Quite a lot of workers are happier with the NSE despite paying lower

but it gives them the independence they need in their lives

Employers are extending labour control through increasing

insecurity

ORGANIZED FLEXIBLE PRODUCTION (THE

ASIAN MIRACLE)

Issues like demand and supply of labour,

Research in the winning formula for their success

In addition to other reasons for the success was the organization of production in these economies

Research in these economies has focused on issues outside the organization like economic growth etc and has neglected the prime issues of their competitive advantage

Issues like demand and supply of labour,

NEW MANAGERIAL STRATEGIES

Seeking more flexible employment

• Divide labour into three groups

• Group A – regular employees with long term employment based on the long term accumulation of job ability. Have job security and promoted to supervisory and managerial positions.

• Group B : Professional specialties valued for immediate use but without expectation of long term employment.

• Group C: employees with more flexible patterns of employment

Moving towards performance related pay

• Aligning labour costs to company performance

• Eliminating the risk of labour costs going out of sink with company performance

• Wage system based on performance and effort

• Performance contracting arrangements

Seeking to diminish Group A employees

• Transfer policy

• Labour optimization initiatives

• Job design and redesign

• Mechanization

• Multi skilling and up-skilling

• Group cooperation's employment – shared labour

NEW MANAGERIAL STRATEGIES

Moving towards performance related pay

• Aligning labour costs to company performance

• Eliminating the risk of labour costs going out of sink with company performance

• Wage system based on performance and effort

• Performance contracting arrangements

Seeking to diminish Group A employee

• Transfer policy

• Labour optimization initiatives

• Job design and redesign

• Mechanization

• Multi skilling and up-skilling

• Group cooperation's employment – shared labour

BEWARE

Retention Membership

pay Excess labour

QUESTION A N D ANSWER

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