Unit 3 - The Role of Line Managers within HRM PDF

Preview

Summary

Due to the changing nature of human resources and the HR department within organisations there has been a significant shift in devolving some HR responsibilities to line managers in order to support the strategic orientation of the HR function. By exploring the different factors that contribute to p...

Description

INTRODUCTION TO HUMAN RESOURCES MANAGEMENT. UNIT 3: The Role of Line Managers within HRM On completion of this unit you should be able to: · Evaluate how HRM contributes to organisational effectiveness and is embedded throughout the organisation. · Examine the impact of contextual factors on the people management within organisations. · Analyse the role that line managers play within organisations and their role in HRM practice. · Explore the debates that surround the devolution of HR responsibilities to line management. HRM's Contribution to Organisational Effectiveness One of the key differences between personnel management and HRM, as discussed earlier, was the focus of HRM on line managers playing a key role in the delivery of HR policy and practice. The traditional role of personnel was often criticised for being out of touch with the realities of the business and for restricting what managers could do with their staff. The significance of the line manager’s role in HRM was further reinforced by research conducted by Purcell et al (2003), where they found that line managers interpret and implement HR practices and therefore have a direct influence on the motivation and discretionary behaviour of their staff which impacts upon business performance. A business must have a certain product or service that it relies upon as its core activity and HRM supports and enables this product or service to be delivered, allowing the organisation to be effective and successful (Torrington et al., 2013). The way in which an organisation manages its resources will have a huge impact on its bottom line. Human beings can be seen as an organisations most valuable asset, however this is only achievable if the HRM approach and practices of the organisation are practical, realistic and suitable for that specific organisational context. As Armstrong (2014:41) stresses “HR has to be responsive – clear about what it is there for and what services it offers, and easy to contact”. The changes in the external environment which we learned about in Unit 2 have given rise to the HR structural changes we also explored during that unit. As a result of these developments, many HR responsibilities and activities have been increasingly devolved to line managers, with HR professionals acting in a more strategic and business partner role. Although this role has become crucial Torrington et al. (2013:6) highlight that “the management of people, however, can never be a responsibility shouldered by specialists alone. It is an area of management activity that all managers must share if it is to be carried out effectively and contribute to the achievement of competitive advantage”. Therefore everything that the HR department does should be aligned with the organisation, and this is what has

driven the HR business partners to become more strategic and the role of the line managers in delivering HR to become more popular in organisations. Foundations of HR Objectives Bloisi (2007) depicts HR objectives effectively into four categories as displayed in Figure 3.1. These objectives underpin everything that is done throughout the organisation. Typically activities to achieve the objectives are often lead by the HR department, although more commonly they are often being devolved to line managers.

3.2.1 Staffing

Objectives and Activities

3.2.2 Performance Objectives and Activities

3.2.3 Change Management Objectives and Activities

3.2.4 Administrative Objectives and Activities

Devolving HR Responsibilities to Line Managers “The devolution rationale is that HR management is critical to effective business performance and therefore needs to be enacted by empowered line managers who are responsible for coordinating and directing all resources, including human resources, towards organisational success” (Pilbeam and Corbridge, 2010:12). There are a number of different considerations to make when devolving the HR responsibilities to line managers as the changes in the responsibilities of line managers have sometimes proved problematical. Below are a list of drivers for devolvement: 1. Responsible for enacting HR policies regardless and therefore giving them specific tasks can ensure that it is done correctly (Armstrong, 2014). 2. Line mangers are closer to workplace issues and can resolve them a lot quicker (almost immediately) (Marchington and Wilkinson, 2012). 3. They tend to understand the work and business at ground level (often the same as employees do) and so can sometimes lack the skills and interest to fully engage in all HR activities (Torrington et al., 2014). 4. Line managers have technical expertise in relation to their specialist task areas (Marchington and Wilkinson, 2012). 5. They often have a closer working relationship with employees who will often go to their line manager more freely than they would a HR manager (Purcell et al., 2003).

A Partnership Between HR Specialists and Line Managers One of the key challenges for HR professionals and line managers is to find a way of working together that allows for the development of effective HR practices, policies and practices. These not only must meet the needs of the business but comply with external laws and regulations whilst still allowing for the flexibility required by line managers within their specific managerial context. Considering these demands on line managers, along with drivers of devolving HR responsibilities, there are a number of barriers to devolving responsibilities that we should now explore. Authors such as Torrington et al (2014) and Marchington and Wilkinson (2012) debate this problematic area and highlight issues surrounding devolution of HR activities to line managers which can include: 1.

2.

Many managers dislike HR work as it is seen as being common sense or something that can be learned from experience so don’t see why they need to be trained and they have no interest in being trained. However as they have often had very little training in people management skills, this leads to a reluctance to carry out HR activities as they fail to understand the importance underpinning them which means that they could face legal challenges if things are done incorrectly.

3. 4. 5.

They may hold criticisms of the HR function and why they need to ‘do HR’s job’ especially if they fail to understand the underpinning rationale. They often have a number of competing pressures of task commitments which often mean that HR activities are either seen as irrelevant or are carried out only if time permits. There can be inconsistencies in HR practice due to line managers’ lacking understanding of the importance of HR activities.

Can we encourage line managers to manage HR? Organisations must undertake a number of initiatives to encourage line managers to manage the HR responsibilities within their team/department due to the barriers that can arise as we have just explored. Armstrong (2014) and Marchington and Wilkinson (2012) both underline the importance of Hutchinson and Purcell’s (2003, 2007) seminal work which outlined a number of supportive conditions or principles necessary for effective HR devolution to line managers. These include; · continuous formal training and support (not provided on a one-off basis) that is compulsory and the action points should be embedded at the workplace to make them effective; · encourage the development of good working relationships with their own managers and their employees, whilst motivating them to undertake this role which often involves rewarding them for their performance and/or improving feedback levels; · an appraisal and feedback process (such as 360 degree feedback) and self-assessment tools could help line managers to monitor their own progress; · HR needs to understand the importance of the line manager , therefore the organisation must do all they can to ensure that the line manager is involved and committed to the HR activities of the organisation – if this doesn’t happen then there can be hugely detrimental impacts on their employees; · the creation of a strong positive organisational culture which puts a primacy on integration of HR practices and alignment between strategic goals and the workplace; · Support from and active commitment of senior management in role modelling behaviours that are important for the organisation and to line managers in particular. Overall a wide range of research projects demonstrate that there is a strong positive relationship between better people management; which can be achieved by line managers undertaking more HR responsibilites; and bottom line performance (CIPD, 2008).

Outcomes of Effective People Management Initiatives Throughout the Organisation The impact the line manager can have on employees is crucial to the success of the organisation. There are a number of advantages and disadvantages of devolving HR responsibility to line managers however the most fundamental driver is the impact on the employees as this has the greatest outcome. The HR objectives aim to achieve a greater performance level from employees along with achieving an unparalleled competitive advantage. In order to achieve this employees need to be committed, they need a greater sense of motivation and overall they need to be engaged with the organisational values, vision and strategy. Some outcomes of effective people management initiatives throughout the organisation are:    

High Commitment HRM Discretionary Behaviour Employee Engagement The Psychological Contract

Throughout the remainder of this unit we will take each of these in turn in order to explore them in more depth and analyse the role that the line manager plays in their facilitation. High Commitment HRM High Commitment HRM has become widespread throughout literature and practice due to the linkages such practices have with high performance (Torrington et al., 2014). High commitment HRM entails employees being involved with the organisation and wanting to stay with their employer. It is the ideology of wanting to really give your all to your employer and help them through the good times and the bad. As Torrington et al. (2014:55) emphasise “it was argued that such commitment from employees would lead to discretionary behaviour, and thus improve performance, and would also reduce labour turnover and absence costs”. The idea of being committed to an organisation involves an exchange taking place between the employer and employee relationship and this aligns with the move towards human resource management. If HR practices are built on strong employee commitment to the organisational strategy then Sung and Ashton (2005) found this lead to sustained organisational performance. Whilst exploring high commitment in practice Marchington and Wilkinson (2012:56) have reviewed a range of research papers derived from the seminal work of Pfeffer (1998). As a result they argue that the following characteristics are essential to achieve high commitment HRM in organisations. These characteristics include;  

Employment security and internal labour markets; Selective hiring and sophisticated selection; in order to ensure the correct fit with the organisation;

      

Extensive training, learning and development; which are used to reward and motivate employees; Employee involvement, information sharing and worker voice; Self-managed teams with a big emphasis on team-working; High compensation (usually monetary based) contingent on performance; Reduction of status differentials where everyone was treated on more of an equal footing and given more opportunities; Performance review, appraisal and career development; Work-life balance.

By understanding what it is that engenders high commitment from an employee to the organisation we can now explore the concept of discretionary behaviour. Employees have substantial discretion as to how they do their jobs. However it is more likely that they will use their discretion positively if they feel that they are being fairly treated. But adopting positive HR polices is not enough. The way in which they are implemented by line managers is critical to the way in which employees respond. Discretionary Behaviour Substantial research has been undertaken over the past two decades in both the United States and Britain to identify the links between strategy, business performance and HRM. As Kinnie et al., (2006:27) identify “There has always been an intuitive feeling that the way people are managed affects the performance of the organisation”. A definitive study by Purcell et al. (2003), attempted to ‘unlock the black box’ and provide an explanation as to why and there may be a link between certain HR practices and performance and what determines this link. This research extended previous literature as it identified the levers or determinants of improved performance, also known as the organisational process advantage, alongside the human capital advantage. Underpinning this research is the AMO model of performance, where performance is a function of: a person’s Ability, Motivation and Opportunity, which leads to discretionary behaviour and is depicted in Figure 3.2. This means that employees are prepared to do more than their basic requirements to go the extra mile or above and beyond the call of duty.

Purcell et al.’s (2003) research as depicted in Figure 3.2 demonstrates that employees should have three pivotal facets. They must have the ability and necessary knowledge and skills, including how to work with other people. Additionally they should be motivated to work and want to do well. Finally, employers ought to ensure they give employees the opportunityto deploy their skills both in the job and more broadly contributing to work group and organisational success. This research was a longitudinal study into 10 organisations from different sectors over a period of thirty months, with survey respondents from different levels within the organisations. One of the fundamental findings of this research by Purcell et al. (2003) was that line managers were crucial in their interpretation and implementation of strategy as they have direct contact with the workforce. It is not the number of HR practices adopted by organisations, but how line managers actually put these into practice that makes the difference to employees demonstrating discretionary behaviour. -

Discretionary Behaviour in Practice

· Tapping into hidden reserves. · Something we may hold back unless we feel really inspired or motivated to give more. ·Doing anything required to get the job done. · Going above and beyond to help. -

Encouraging Discretionary Behaviour

· Recognition and positive feedback · Alignment of personal and organisational goals · Encourage and reward positive attitudes · Rely on persuasion not power Employee Engagement In 2009 the UK government requested a research report be undertaken by two professionals, MacLeod and Clarke, which led to the establishment of a website called ‘engage for success’. The report defined employee engagement as “a workplace approach designed to ensure that employees are committed to their organisations goals and values, motivates to contribute to organisational success and able at the same time to enhance their own sense of well-being” (MacLeod and Clarke, 2009).

Truss (2009) states that “high levels of engagement create a statistically significant improvement to personal wellbeing, loyalty, job satisfaction, performance, as well as a reduction in the likelihood of leaving”. Organisation’s have reported that engaged employees can generate up to 43% more revenue and employees are 87% less likely to leave the organisation as they are engaged with the values and vision of the organisation (MacLeod and Clarke, 2009). Their commitment is also demonstrated through the fact that on average engaged employees take 2.7 sick days per year compared to disengaged employees who take on average 6.2 sick days (MacLeod and Clarke, 2009). There are a number of vital enablers of employee engagement that were reported as a result of the MacLeod Report (2009) which are: -

-

Leadership provides a strong strategic narrative giving a clear line of sight between the job and the organisations vision Engaging managers who offer clarity and training, who treat people as individuals, who listen and encourage through feedback and who ensure that work is organised efficiently There is employee voice in the organisation, for reinforcing and challenging views, for engaging in dialogue and feedback There is organisational integrity such that espoused values are reflected in behavioural norms.

The Psychological Contract The psychological contract can be defined by the CIPD (2008) as “the perceptions of the two parties, employee and employer, of what their mutual obligations are towards each other”. It is an unwritten contract which is mutually defined and is blurred at the edges. It is very different from the formal, employment contract which is legally binding. It can be different for each employee and can be amended and changed as time evolves, based on expectations from each participant in the relationship. Table 3.1 demonstrates the responsibilities from both parties.

HRM - A Shared Responsibility Throughout this unit we have explored the essential role that line managers play in implementing the HR policies, practices and procedures of the organisation. Mullins (2010:500) demonstrate this within a model displayed in Figure 3.3 which interlinks the roles of the senior leaders, HR professionals and line managers.

End of Unit Summary Throughout this unit we have explored a number of key elements which are vital for the implementation of HR policies, practices and procedures and line managers play a crucial role in the interpretation and delivery of HRM within organisations (Purcell et al., 2003). -

-

It is important that line managers are involved in the development of HR practices and are given training in order to ensure the effective implementation of HRM. There are a number of practical elements that must be taken into consideration when devolving HR responsibilities. These are very important because if they are forgotten there can therefore be detrimental impacts on the performance of employees and ultimately the organisation. Finally the considerations turned to the outcomes of effective people management initiatives which explored aspects such as employees’ commitment and engagement levels which are highly dependent on the role of the line manager....