LEARNING UNIT 1.docx

LEARNING UNIT 2: ROLE WITHIN HUMAN RESOURCE DEPARTMENT AND THE ORGANISATION INTRODUCTION The HRD plays a very important role in performance management in an organisation, to the extent that it is very often regarded as the function and responsibility of HRD only. Although individual performance im...

LEARNING UNIT 2: ROLE WITHIN HUMAN RESOURCE DEPARTMENT AND THE ORGANISATION INTRODUCTION The HRD plays a very important role in performance management in an organisation, to the extent that it is very often regarded as the function and responsibility of HRD only. Although individual performance implies that it is the human resources (people) whose performance is managed, we will see that the HRD pays a strategically and coordinating supportive role in the whole process. Since performance management is all about the achievement of the strategic objecives of the organisation, it is imperative that the stategic goal is determined in a professional and effective way. For this purpose a SWOT analysis needs to be conducted. The strategic contribution of HRD would be determined based on this central, holistic objective and all actions by the HRD will be directed accordingly. In this Unit we will look at approaches that the HRD can follow to best fulfill its role, whereafter we will in turn look in detail at the Strategic role of HRD, and the integrated support in the areas of recruitmant and selection, reward and learning and training and development. STRATEGIC ROLE WITHIN THE ORGANISATION According to Ashdown (2014:11), there was a perception in the past "that appraisal and performance management are the resposibility of the HR function." In some instances the role of HR was perceived to be some kind of policing role to ensure that the outcomes of performance measurement were recorded and completed, but with little or no value added. Ulrich and Brockbank (2005) (cited by Ashworth, 2014:11) places this in a more realistic perspective by identifying HRD as "functional expert, strategic partner, employee advocate, human capital developer and HR leader." Using this framework as basis, HR can as functional expert provide knowledge and expertise on performance management and advise on efficient and effective performance management policies and procedures and provide a framework for the ongoing management of performance. As an employee advocate, HR can reinforce the participation and input of the employees in the performance management process. The strategic partner role of HR is the area where HR cooperates with and support the senior management team in the achievement of the strategic goals and values of the organisation. Swanepoel, et al. (2014:176) contend that a strategic approach is favoured in the integrated organisational and societal management of work and people. He continues by citing Mello (2006:158) that a strategic approach by HRM becomes the most important priority in the organisation and that HRM then becomes integrated "within the framework of the organisation's strategy". HRM is therefore of strategic significance for organisations. According to Ashdown (2014:43,44) strategic HRM can and should be understandable and relevant to all HR professionals. Strategic management starts with the vision statement or the organisational mission. This means in effect a general description of the reasons why the particular organisation exists. Thereafter follows the identification of strategic goals i.e. the intended results to be achieved through pursuing the mission. These could be long-term goals or short term goals. Goals cannot be haphazardly achieved and a strategic plan needs to be compiled and implemented. These plans "are often referred to as corporate strategy, the process for developing and defining a sense of direction" (Ashdown, 2014:44). Strategic management is a complex and comprehensive subject on its own and only the fundamental aspects pertaining to performance management will be addressed in this module. Ashdown (2014:45) describes the typical strategic management process as consisting of the following stages: Establishing a mission statement and key strategic goals as mentioned above Conducting an analysis of the external environment, identifying opportunities and threats Analyse internal environment for strengths and weaknesses (in the structure, capacity, systems and capabilities) Setting specific goals Identifying options and actions to achieve these goals Draft plans to achieve these goals; and Regularly evaluate progress of the plans against the set strategic goals Janse van Rensburg and Drotsky (2017:114) and Ashdown (2014:46) contend that the SWOT analysis is the best management tool available to analyse the external and internal environment of the organisation. S (strengths) and W (weaknesses) identify the internal factors of the organisation like systems, processes, structures, communication, planning, organising, leadership, control and are generally factors where relative high degrees of influence can be exercised by the organisation. Conversely, O (opportunities) and T(threats) originate externally to the organisation and are usually beyond the control of the organisation. Important, however, is the fact that SWOT is an analysis of these factors and serves as the guidelines and directives for setting the strategic goals. Ashdown 2014:39 describes the acronym Political factors, Legislation, Environmental issues, national and international Economic trends, Technological developments and Social matters that form the external environment (acronym -- PESTLE) as follows: Political -- how will political change at local, national and international level impact on this organisation? Economic -- what is the potential impact of economic indicatores (for example, gross domestic produect, growth, inflation, interest or exchange rates)? Social -- how will social trends impact on this organisation (for example, consider the impact of social networking over the last couple of years)? Technological -- how will developments in technology impact in how this organisation operates in the future? Legal -- what changes are expected and what impact are they likely to have on the organisation? Environment -- how might changes to the environment and changes to environmental practice affect the organisation? The rendering of support to the organisation to achieve strategic and operational objectives, would therefore have to be through management of performance in addressing strengths and weaknesses, whilst taking full cognisanse of opportunities and threats. Strategic goals take cognisance of the factors, strive to enhance or improve strengths, and exploit opportunities, whilst you try to address your weaknesses and minimise the impact of external threats or accommodate them in the strategic plan. The best way in which HRD can align its strategic goals with that of the organisation, would be to conduct its own internal departmental SWOT analysis. INTEGRATIVE LINK WITH OTHER HRM FUNCTIONS The challenge for HR performance management lies in strategic human resource management to "add value and support the achievement of goals" by integrating HRM strategies with those of the organisation and ensure that there is linkage between employees and the organisation. The link between HRM and the strategic objectives of the organisation would to a large extent depend on the approach to achieve this (Ashdown, 2014:48). This principle universally applies to all organisations. APPROACHES (STRATEGIES) BY HRM Ashdown (2014:41) identifies two main perspectives of approach: the "best practice" approach and the "best fit" approach. The best practice approach is based on the premise that there is a basic (or ideal) set of HR practices that would always add value and adapt to whatever the organisational context may be. This implies a horizontal integration of HR functions: Sophisticated recruitment and selection processes Sophisticated induction programmes Good communication internally Internal promotion opportunities and employment security Effective job design Extensive training and development The best practice approach has been criticised based on the argument that something that works well in one organisation may not be suitable for another, where there are different goals, management style, culture and structure. The best-fit approach has no belief in universal solutions, but rather a requirement for HRM policies and practices that "fit" and are appropriate. "What is appropriate for one organisation cannot just simply be transferred to another with the presumption that the same positive results will ensue" (Ashdown, 2014:49). An important factor to keep in mind is the size of the organisation, which will obviouslty also determine the size and capacity of its HRD. Ashdown (2014:49) continues by citing Sisson and Storey (2009) who have used the business life cycle in explaining why HRM practices vary from one organisation to the next. Four stages are identified in the life cycle of organisations: Start-up, growth, maturity and decline. They contend that at each stage the type and range of the HRM policies and processes will be amended to accommodate the external and internal influences affecting the organisation. At the start-up phase, there will be a high degree of entrpreneurial influence and policies will not be finally formulated. External legal requirements will have to be strictly adhered to, for example employment legislation. The financial situation at start-up will not be healthy enough to allow for short term rewards, but more aimed at longer term rewards. Another best-fit approach is the use of competitive advantage models where the emphasis is on areas where HRM can support the organisation, instead of trying to "match" in. competition between organisations. Porter (1985), as cited by Ashdown, (2014:51), argued that employers basically have three options as organisational strategy: to compete on cost, to compete on quality or to compete through innovation. Cost reduction HR will focus on minimising costs. Outsourcing of actiivities may be considered to save on cost. The most cost-effective ways of learning and development may be pursued. Goals may be more short ter in nature and delivery rewarded. HR and quality The contribution of HRD will be more substantive and sophisticated and focus on the performance of employees and outputs, allowing for higher levels of employees' participation. Innovation and HR If innovation is an approach throughout the whole organisation, it is likely that there may be specific units or departments focused on innovation as basis of competition. According to Ashdown (2014:52) some organisations will first follow the best practice approach by observing other organisations' practices and then shape those to fit their own particular circumstances and strategic and operational requirement AREAS OF INTEGRATED HR SUPPORT Strategic performance management The themes of horizontal and vertical organisational structures were mentioned in Unit 1, and (as aptly pointed out by Ashdown, 2015:53) "are clearly important in any discussion about strategic HRM practices. It could be argued that nowhere do they have greater importance than in the area of performance management, which relies on the effective integration of a wide range of HR activities, including but not exclusively, recruitment and selection, induction, training and development and reward management." In practice it appears as if integration is more straightforward where there is an integrated HR function within a fairly simple organisation structure. Within a more complex structure where HR operates in separate silos, integration can be more of a challenge. Ashworth (2014:53) continues: "The key here is strong communication between the different areas of HRM, from the planning stage through to execution and evaluation of all HR activities." Evans (2017:293) is very strong in his disapproval of the vertically structured organisation: ""No organisational unit has control over a whole process, although most processes involve a large number of functions". This is also true for the performance management process. He continues: "This structure is likely to create complex, wasteful processes, as people do things in one area that must be redone or undone in another... Worse yet, if one function tries to improve its part, it may well make things worse (more wasted time and effort, more cost) for another part of the process. In this environment, continuous process improvement doesn't stand a chance". It is important that we note here that condemnation of the "silo" structured organisation does not mean rejection of the structure; it merely emphasises the fact that thorough, continuous communication across functional fields is imperative. PERFORMANCE MANAGEMENT AND RECRUITMENT AND SELECTION Performance management commences with the recruitment and selection process (Ashdown, 2014:53). Job analysis is done, and a job description formulated. The tasks that appear in the job description are guided by the actions that will be required from the future incumbent of the particular post and would contribute to the achievement of individual goals in contribution to the achievement of organisational strategic objectives. (These individual objectives or tasks can be revised, dependent on the outcome of the interview that follows performance assessment. See unit 6 of the module). Incumbent employees should be well informed right from the date of their appointment about what they would be expected to deliver. From the point of advertising the vacancy the "candidate accesses data (and) is forming an understanding of what the organisation expects in terms of performance" (Ashdown, 2014:54). Ashdown continues: "During the selection process, candidates must be given an accurate picture of performance expectations, so all employees involved in the selection process must share a consistent understanding of the requirement of the job". Selection tools such as tests to be written must assess the skills and behaviour required for the role and questions be compiled accordingly. During the recruitment and selection process a meaningful set of data about a candidate's skills, experience and past performance would be obtained and should be kept and used as reference for performance potential and serve as valuable input for personal development plans. This should be kept on the personal file of the individual. HRD should ensure that the information is used as reference and not gather 'dust'. (Refer Unit 5). Should it be found during the selection that the successful applicant does not possess all the necessary skills and/or knowledge, this should be "flagged" and addressed by way of training and development. This specifically applies when the person managing the new recruit has not been involved in the selection process. Such a line manager should be fully informed about the situation by the team involved in the recruitment and selection process. (Ashdown, 2014:55) Induction is a key element in the integration of performance management with selection and recruitment. The reason is that it assists in familiarising the new recruit as soon as possible with desired performance requirements. Induction is furthermore instrumental in enhancing clear communication. The organisation's culture and behavioural expectations are also introduced. The third aspect in which induction makes a significant contribution is the creation of an environment where the employee is motivated to perform. It creates a feeling of "belonging", assisting the new employee in overcoming the feeling of uncertainty in the new job environment. In the fourth instance, induction assists in promoting socialisation. It "enables new recruits to develop work relationships through formal interventions such as team building events but also more informal socialising" (Ashdown, 2014:56). As the employee begins to feel part of the organisation and starts to deliver the required performance induction gradually flows into the ongoing performance management process. PERFORMANCE MANAGEMENT AND REWARD Ashdown (2014:58) contends that "there is little debate over the need for a consistent and coherent approach to people management in terms of performance management and reward strategy and processes". The nature of award depends on the organisation's policy and approach. Whilst some organisations still hold on to the principle of rewarding the length of service with the organisation, this may lead to disillusionment amongst new recruits. The basic question to be answered is what is most valuable to the company. The behaviour, output or values leading to achievement of the organisation's goals should be cherished and promoted. Rewards are but one way to motivate employees. When rewards are discussed in the context of performance management, it must be clear that we are talking about "total reward". This concept brings together all types of reward -- financial and non-financial -- as an integrated and coherent whole. It should be clear that the values of the organisation as reflected in its goals are the predominant driving force. Wilton (2011:217) is cited by Ashdown (2016: 59) in providing a summation of the need for integration: " Reward constitutes a principal means by which employers attempt to generate and direct required effort and behaviours to be consistent with organisation objectives. It is important... that employers are mindful of the signal transmitted by their reward strategy, systems and practices and ensure that the connection between reward and behaviour is effectively communicated". The question of reward as motivation and compensation for performance will be discussed further in units 4 and 6. For the purpose of this Unit and the role of HR in integrating rewards as part of performance management, it would suffice to say that HRD should make meaningful inputs in the organisation's formulation of a reward policy. Should rewards be linked to measured performance, HRD will be responsible for the administration and processing of the performance appraisal outcomes. Performance management and learning and development. As we have seen, performance management is about improvement ant development. This implies that it aims at ongoing improveent of the levels of performance. As Ashdown points out: "It is therefore vital that learning and development (L&D) activity in organisations is fully integrated with the performance management process. There are two approaches that can be followed when determinng L&D needs. Firstly the needs can be identified during the objective setting phase, being it organisation, team or individual level. This is a rather abitrary approach that needs good communication, usually at managerial level and based on the operational needs for certain skills and knowledge. When integration between HRD and the organisation is needed, it is normally structured and needs to be well resourced. It can however, be demotivating to an employee if the resources are insuffient within HRD and the necessaty L&D needs cannot be met in accordance with expectations. With the second approach, integration is supported "by ensuring that performance management processes themselves create an environment where L&D can flourish" (Ashdown, 2014:62). An interesting analogy between a successful weight-loss diet and performance management could be found in the article by Blackman, Buick and O'Donnell emphasising the fact that only continuous and consistent implementation of performance management principles would lead to sustainable success.The following factors can support this approach: A continuous culture of regular feedback through praise and constructive criticism When L&D opportunities are incorporated in the performance agreement Effective personal development planning Coaching or mentoring Learning is increasingly recognised as being more than just going on a course; the emhasis is moving to learning as a continuous daily activity that is an integral part of the job itself.and a way of improving the growth of an individual. It is obvious that the line manager's role in this process would be key to the effectiveness thereof. HRD should render support to these line managers in providing opportunities for their employees to reflect, giving regular feedback, job enrichment and coaching. (Ashdown, 2014:62)