People & Organization : Introduction to Human Resource Management

ROLE OF HR MANAGER IN 21ST CENTURY ORGANIZATION

In the 21st century organization, there are number of demands on organization which created through globalization, technological changes and tough competition among competitors etc. Most of the organizations which survive on the same industry may generally consist with same materials and facilities -based resources. Therefore it’s quite difficult to create a competitive advantage based on them. 

Human resources considered as one of the key factor of creating competitive advantage. If an organization is capable of having a human resource well equipped with recent techniques and technology and managing them successfully than their competitors do , there is grater chance to being successful than competitors. Therefore in the 21st century organization, HR Manager play a key role as a business partner and strategic thinker, who make the decisions to navigate the organization toward  the success.

Strategic view of HRM

“an approach to the development and implementation of HR strategies that are integrated with business strategies and support their achievement” (Armstrong, 2014)

21st century approach of HRM is to utilize the knowledge and expertise of people efficiently and effectively to meet organizational targets (Wong & Sell ,2003)

David Ulrich’s HR Model

• David Ulrich –The greatest HR Management Guru has identified 04 key HR roles, which makes the organization effective and friendly to employees.
• According to Ulrich (1996) defined new strategic agenda for HR and a strategic role of HR in the organization.
• He proposed to change the Structure of HR functions and build HR around roles.

Figure 1 : Dave Ulrich’s model of HR Roles

Strategic partner – HR build a strategic partnerships with dedicated internal clients .They influences positively the organization design and identified key top talents. Shares business objectives with the internal clients and incorporate HR goals in to daily agenda.

Change agent - HR participates in the change management teams and take the responsibility to communicate changes internally and gain the trust employees.

Administrative expert - HR implements all requirements evolving from the changes in the legislation, regulation, work & safety rules.

Employee advocate – HR represents employees, protects their interest and make sure that strategic initiatives are well balanced Eg; Training & development session to develop skills and competencies of employees.

Recommendation

Role of HR manager has been changed with evolution of the HRM. In the current context they need to be thoroughly expertise and be capable to play the HR role to gain the competitive edge over others (Nasir , 2017).

In order to respond the challenges in the 21st century organization, HR managers have to ;

• Become a strategic partner of the organization by attracting and retaining talented employees and train & develop them to meet the ultimate objectives of the organization.
• Implement modern ways of effective talent acquisition to attract and retain the best people.
• Support changes in the organization by leading and guiding the employees to live in the organization under the changing environment. Eg: Plan training sessions, update job descriptions etc..
• Run the organization as a productivity centre that enhances the profitability of the organization through enhancing productivity of the peoples in the organization.
• Conduct training & development session to develop skills and competencies of employees as this will incur the organization a competitive edge over others.

References

Armstrong , M., 2014. Armstrong’s Handbook of Human Resource Management. 13th ed. London: British Library.

Nasir , S.Z., 2017. Emerging Challenges of HRM in 21st Century:A Theoretical Analysis. International Journal of Academic Research in Business and Social Sciences, 7(3), pp.216-22.

Ulrich, D., 1996. Human Resource Champion : The next agenda of adding value and delivering results. Boston: Harvard Business School Press.

Wong,Y. L., & Snell, R.S., 2003. Employee workplace effectiveness : implications for performance management practices and research. Journal of General Management, 29(2), pp.53-69.

People & Organisation : The Global Context for HRM (Lecture 8)

Impact of globalization on the Role of HR Manager 

Human Resource professionals typically handle the recruiting, interviewing, hiring, training and developing the employees that business needs to achieve their business goals. In the domestic management of HR, the situation is somewhat simple and easier for managed because all the works and processes are made in one special area in a special culture and specific business environment.

HRM model consists of four roles associated with HR managers such as Strategic partner, Change agent, Administrative expert, Employee champion (Ulrich, 1996).Kapoor (2007) identifies impact of globalization HR managers role under basics of Ulrich's model.

Strategic Partner role

Globalization stimulates the organisation to look for opportunities beyond its national borders. Therefore HRM can contribute to organisational effectiveness by being involved in the merger and acquisition processes. The strategic role of the HR manager is to properly communicate the reason for merge and proper organisational staffing and HR planing after the integration process since HR Planning is one of the strategic activities. HR managers should have the ability to implement the best practices in a way that is acceptable in a local situation and create alignment across different cultures and business environments.

Change Agent Role

Globalization typically results in doing business across different cultures in different languages and different legal environments. The companies do businesses globally should have the ability to respond quickly in a dynamic environment to manage their human resources effectively. As a change agent, the HR manager should have a clear understanding of the competencies required to effectively lead change. Change agents perceived to have high expertise & skills to predict changes ad make an informed decision at the operational and strategic level.

Administrative Expert Role

Advocacy includes expertise in how to create a work environment in which people will choose to be motivated, contributing and happy (Ulrich 1996). Motivated employees do their best for the betterment of themselves and the organisation. With the emerge of globalization, workplace flexibility is expected to be enhanced. Interaction through employer and employee through face to face meetings will be replaced by virtual meetings.

Employee Champion Role

Human resource personnel helps to develop a global mindset in its employees.Having a global mindset implies recognition of benefits to the whole organisation from encouraging and valuing cultural diversity in people. Globalization is increasingly adding one more thing to low-cost labour and high power technology. That is highly innovative and creative capabilities (Friedman, 2005)

  

Conclusion

Under proper leadership, companies will be able to attract and retain high performing employees by adapting human resource practices to the changing global labour market conditions. Therefore it is important for companies Not only familiarise with local ways of doing business and but also develop a global mindset among their employees. 

References

Kapoor, , 2007. Impact of Globalization on Human Resource Management. Employee Response Rights , pp.157-71.

Ulrich, D., 1996. Human Resource Champion : The next agenda of adding value and delivering results. Boston: Harvard Business School Press.

People & Organisation : The Ethical Context of HRM

CORPORATE SOCIAL RESPONSIBILITY (CSR) OF BANKING SECTOR IN SRI LANKA

Today the banking industry is concerned as one of the key contributing sector behind economic stability and growth. Therefore stakeholders have high expectations on the responsible behaviour of banks.

CSR is concerned with treating the stakeholders who are existing both within a firm and ethically or in a socially responsible manner. Social responsibility aims to create a higher and higher standard of living while preserving the profitability of the firm (Hopkins, 2007).

CSR is an evolving business practice that incorporates sustainable development into a company's business model. It has a positive impact on social, economic and environmental factors (Schooley, 2019).

According to Murphy (2019) Companies are increasingly ramping up their focus on Corporate Social Responsibility to get the following benefits.

Engaging Customers

Implement socially responsible policies is important to attract new customers as well as retain existing customers and ultimately it is essential for long term success of the organization. Eg: Banks can disburse the loan to entrepreneurs to enhance their businesses.

Retaining Top Talent

Socially responsible companies tend to attract employees who are eager to make a difference in the world. A pool of top talented employees increase workplace morale and boost productivity and direct the company to achieve substantial results.

 

Brand image

The world’s largest companies spend billions of marketing dollars each year to improve the way customers think about them. There’s no faster way to do that in a memorable and lasting fashion than to be seen as a company with a social conscience.

 

Helping Companies stand out from the Competition

 

Community-oriented companies often gain a competitive advantage over others by attracting customers toward their business with the help of CSR projects. 

 

Serve the Bottom Line

Socially responsible companies cultivate positive brand recognition, increase customer loyalty, and attract top-tier employees. These elements are key to achieving increased profitability and long-term financial success.

Corporate Social Responsibility in the Banking Sector in Sri Lanka

It is important to note that corporate sustainability for banks is much more than mere charity. In this context, banks are encouraged to improve the future of the people in all communities they operate through CSR programs, which in turn will sustain their business in the future.

Today, banks operate in a market including groups who are not yet fully integrated with society, and not dealing with banks such as low-income families and micro-businesses operating in poor areas of the country. Therefore banks need to introduce a new range of products targeting new customer segments. This situation represents banks a challenge in terms of designing suitable products for these distinct segments, and the opportunity to develop a new type of business benefits to all.

As the team at Sampath Bank always strives to ensure that the activities are in concurrence towards the needs of the society and well-being of the country. ‘Sampath Saviya’, is an entrepreneurship development programme, launched by Sampath Bank PLC to empower and uplift the livelihood of Micro, Small and Medium entrepreneurs in Sri Lanka (Sampath Bank PLC, 2019). The programme offers technical and financial assistance for start-ups as well as existing business ventures that lack necessary and vital resources to begin and expand their businesses.

References

Hopkins, , 2007. Corporate Social Responsibility and International Development: Is Business the solution ? London: Earthscan.

Murphy , C.B., 2019. Why Social Responsibility Is Important to Businesses. [Online] Investopedia Available at: https://www.investopedia.com/ask/answers/041015/why-social-responsibility-important-business.asp [Accessed 01 October 2019].

Sampath Bank PLC, 2019. www.sampath.lk. [Online] Available at: https://www.sampath.lk/en/news/entry/267-sampath-saviya [Accessed 01 October 2019].

Schooley, S., 2019. What Is Corporate Social Responsibility? [Online] Business News Daily Available at: https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html [Accessed 01 October 2019].

People & Organisation : Employee Engagement (Part 02)

EMPLOYEE SATISFACTION VS. EMPLOYEE ENGAGEMENT

Employee engagement has emerged as a critical driver of business success in today's competitive marketplace where employee engagement relates to the level of an employee's commitment and connection to an organisation. High levels of engagement promote retention of talent, promote customer loyalty and improve organisational performance.

Employee Engagement

Employee engagement is the passion and energy that employees have to give to their best to the organization to serve the customers (Cook, 2008). In other words, it is about the extent to which employees feel passionate about their jobs and are committed to the organization’s success.

Federman (2009) defined Employee engagement as that the degree to which a person committed to an organization and the impact that commitment has on how deeply they perform and their length of tenure.

Employee Satisfaction

Employee satisfaction is the indicator used to understand whether the employees are happy, contented and their desires and needs at work are fulfilled (Saxena, 2019).

Today, many managers mistakenly think that employee satisfaction can increase employee motivation (Rogel, 2018). According to Frederik Herzberg's Mivation - Hygine Theory proposes that people are influenced by two factors: 

Hygiene factors determine a person’s level of satisfaction with their job. This strongly influences on employee retention. Employees who are not satisfied with their jobs look for better opportunities elsewhere. However, the addition of more or better hygiene factors over a certain baseline will not increase job satisfaction or performance. Hygiene factors consist of pay and benefits, supervision, working conditions, and job security (among others).

Motivation factors influence how a person performs on the job. Motivated employees invest more of themselves in their work and strive to do better. Merely being satisfied does not cause an employee to work harder. Motivation factors include challenging work, recognition, and responsibility.

There may be some employees who are highly motivated but not satisfied with the job. They might find the work interesting and challenging, but if they worry too much about job security or think they can be paid more at a different company, they will not be satisfied.

However above described Both factors can be considered as key components of employee engagement. Basic hygiene factors required to ensure employee satisfaction and retention and they are easy to identify and improve. On the other hand, an employee must also feel motivated to perform at a high level. But the motivation factors differ for each employee and are most influenced by the employee’s supervisor. Therefore the managers need to understand what drives each of his or her employees and create the circumstances for them to perform at their best.

Most organisations conduct employee satisfaction surveys each year and employees do give positive responding indicating employee satisfaction”. But is has been observed that satisfied employees may be happy enough to attend the office but not put any extra effort to work hard which means such employees are satisfied but not engaged?Organisations with genuinely engaged employees have higher retention, productivity, customer satisfaction, innovation, and quality. 

References

Cook, S., 2008. The Essential Guide to Employee Engagement: Better Business Performance through Staff satisfaction. 1st ed. London: Kogan Page Limited.

Federman, , 2009. Employee Engagement : A Roadmap for Creating Profits, Optimizing Performance and increasing loyalty. San-Francisco: John Wiley & Sons Inc.

Rogel, C., 2018. decisionwise.com. [Online] Available at: https://decision-wise.com/job-satisfaction-vs-employee-engagement/ [Accessed 30 September 2019].

Saxena, V., 2019. Employee Engagement: A recipe to boost Organisational Performance. Chennai: Notion Press.

People & Organisation : HRM and the Design of Work (Lecture 05)

"CROWD WORKING " : NEW FORM OF EMPLOYMENT

It is worth to think about what will happen to the growing surplus of labour if the technology displaces the human in the workplace with the emerge of advance technology. According to Berg et al. (2018) one of the major transformations in the world of work over the past decade has been the emergence of an online digital labour platform. This includes:

• Web-based platform (Crowd work): work is outsourced through an open call to a geographically dispersed crowd
• Location-based application: Individuals are allocated to work in a specific geographical area.

Crowd working

Crowd work emerged in the early 2000s with the growth of the Internet and the need for human input in tasks needed for the smooth functioning of the web-based industries.

“Employment that uses an online platform to that enable organisation or individual to access an indefinite and unknown group of other organisation and individual to solve a specific problem or to provide specific services or products in exchange for payment” (EurWORK, 2018).This is also known as crowdsourcing and crowd employment.

Crowd workers or micro task workers are a group of people who work on micro tasks. These usually pay per task kind of work which will vary according to the company. They do not need any expertise for this kind of work as it based on the guidelines provided by the employer and which are not hard to follow.

The companies which offer this kind of work are Amazon’s Mechanical Turk (MTurk), Lionbridge Crowd Worker, Appen Butler Hill, Clickworker.

View more on : Crowd working 

Crowd working has both advantages & disadvantages to the workforce and Risk and rewards to the market.

According to Berg et al. (2018) advantages & disadvantages of crowd working to the workforce are as follows.

Advantages	Disadvantages
Provide the opportunity for workers to perform the best suited job from any place at any time.	Able to perform work under Reliable internet connection only
flexible working hours	Lack of social protection
Work is flexible, interesting, and enables to work from home	Lack of clear employment relationship
offers new opportunities for workers to earn income	Insufficient availability of work

Chandler et al. (2013) describe Reward of Crowdsourcing market place and it can be summarised as follows.

Rewards

• Transaction Cost Effectiveness - Marketplaces make crowdsourcing accessible to requesters with limited financial and technical resources.

• Efficient Matching and Task Completion- Each worker proceeds at their own pace and receiving new work only when old work is completed.

• Low Market price - Apart from a minimal payment to the web service, the only cost faced by requesters to crowdsource their tasks is worker.

• Flexible recruitment - Crowdsourcing marketplaces allow requesters to specify that workers possess certain attributes in order to complete a task.

Conclusion

Online marketplaces have developed rapidly in the past few years and it is too difficult to predict what will happen in the future. Another thing that needs to think is what tasks online labour markets will be used in the future. As machine perception and language processing improve, it is likely that the demand for human and human-machine hybrid computational solutions will no longer be needed for these tasks. However, will software replace crowds, for some tasks?

Finally, a larger sociological question that remains to be answered is how these changes within crowdsourcing marketplaces may impact other labour markets and society at large.

References

Berg, J. et al., 2018. Digital labour platforms and the future of work Towards decent work in the online world. Geneva : International Labour Office International Labour Organization.

Chandler, , Paolacci, G. & Mueller, , 2013. Risks and Rewards of Crowdsourcing Marketplaces. Handbook of Human Computation, pp.377-92.

EurWORK, 2018. Euofound. [Online] Available at: https://www.eurofound.europa.eu [Accessed 28 September 2019].

People and Organisation : Managing Performance (Lecture 06)

PERFORMANCE MANAGEMENT & EMPLOYEE MOTIVATION

The organisation's success and growth largely depend on their team members’ contribution. To facilitate effective contribution, team members must know what is expected of them and how they are measured up to those expectations. On the other hand, companies must create a work environment that empowers employees to perform to the best of their abilities by providing continuous development opportunities.

Performance management in an HRM process concerned with getting the best performance from individuals in an organisation, from the team, and the organisation as whole (Dransfield, 2000).

According to Leonard & Cardy (2011) Performance management is a crucial and important component for both individuals and organisational effectiveness. Therefore real gain in performance required a thoughtful and committed process of evaluation and feedback.

What Performance appraisal do ?

According to Lloyd (2009) well-designed and well-executed performance appraisal have a strong motivational impact on team members of an organisation. The following are the benefits that are interconnected with motivated employees.

Demonstrate the need for improvement - It gives a clear understanding of how should be performed and clearly express the issues with performance.It motivates the employee to do

Self-improvements. 

Higher-level psychological need - It is an opportunity for an employee to get formal, significant and enduring recognition from their Manager.

Build a sense of personal value - Managers takes time and effort to carefully review and discuss the performance and it gives a sense of value to the employee.

Enhance personal development - Performance appraisal is an effective tool for employees who are looking to enhance their learning and development.

Increase satisfaction - Effective performance appraisal creates satisfied employee through self-improvement and personal recognition.

Performance appraisal at Sampath Bank PLC

In Sampath Bank, a high level of performance, commitment, and results from team members are expected at all levels. They strive to create an environment where all team members understand the impact of their contribution towards the achievement of the bank’s vision and are provided the opportunity for personal growth.

The bank endeavour to provide necessary tools, training, guidance and a conducive work environment to create a performance-based work culture where team members are rewarded based on their achievement of expected results and deliverable. 

The bank considers the performance management process as a continuous communication process between team members and their immediate supervisors as they plan, manage, review and reward performance. Therefore Managing performance is a mutual responsibility of team members and the respective supervisors.

During the performance appraisal process, Formal assessment should take place regularly; preferably twice a year. Both the positive and negative aspects of an individual performance should be frankly addressed. Its purpose is to provide feedback on past performance and future potential as well as on other relevant aspects concerning a team member’s work including the development of his/her skills and competencies. 

Assessment of performance is based essentially on agreed objectives and their level of achievement. Adequate time should be dedicated to the monitoring and follow-up of the progressive achievement of objectives during the year. 

Further supervisors are requested to provide written evidence of such feedback sessions. The focus should be essentially on continuous improvement, identifying appropriate training measures and also to create a stimulating working environment. 

References

Dransfield, R., 2000. Studies in Economic and Busiess - Human Resoure Management. Bristol: Heinemann Eucational Publishers.

Leonard, B. & Cardy, R.L., 2011. Performance Management : Concepts, Skills and Exercise. 2nd ed. New York: M.E. Sharpe.

Lloyd, K., 2009. Performance appraisals & phrases for Dummies. Hoboken ,NJ: Wiley Publishing Inc.