REGIONAL ASSOCIATION OF PERSONNEL AND HUMAN RESOURCE PROFESSIONALS

Briefing Report:
How Can Personnel Organise to Add Value
Developing Effective HR Operations & Principles

Prepared by: Carol Hamilton Personnel Manager South Caledonia Institute of Learning 55 Parker Street BRIDGEBURY

Briefing Report: How Can Personnel Organise to Add Value

Issue This report is a brief overview of the future challenges and opportunities for personnel practitioners with a view to developing effective human resource principles and operations. Background Personnel Management represents and refers to the traditional administrative function of managing staff in an organisation. Professionals in this practice are still around today despite the evolution of personnel management to Human Resource Management and Strategic Human Resource Management. This is largely due to the fact that despite the evolution, some organisations are still traditional in nature. Hence, they subscribe to the traditional

approach of managing personnel as a cost function and not as a strategic resource. However, although this tradition is still alive, it has to be organised and managed in such a manner that it can add value to the organisation. The Opportunities for Personnel Practitioners Pfeffer (1995) states ``people and how we manage them are becoming more important.. This is linked directly to the new roles of personnel managers as an administrative experts and strategic partners. Ulrich 1998 in Mac

Lachlan, Case Study, HR with attitude. Pg.78, point 1 & 2. No longer are they confined to the welfare regime that characterised the profession in previous years.

Briefing Report: How can Personnel Organise to Add Value

Therefore, the opportunity is here and now for the personnel practitioners to embrace this role by developing a quantitative and qualitative approach to human resources deliverables in the most cost effective way and acquiring the level of competence required for this new role. Personnel practitioners today are adopting a consultative role in dealing with personnel issues. This specialist role is highlighted by Guest and Koque, 1999 November in the Case Study (Yes Personnel does make a Difference), pg.48, paragraph 1, Line 1-4, By exerting influence, personnel managers help to shape the framework of personnel policy and practice; line managers will generally take day-to-day personnel decisions, sometimes referring queries and problems back to the personnel department. This is suggestive of the new administrative role set in which the personnel practitioners are expected to perform. Personnel practitioners are recognised as having direct authority for establishing the operating framework by which employees within organisations are managed. Guest and Koque 1999 November in the Case Study (Yes Personnel does make a Difference), pg.47, paragraph 6, Line 3-4, In many cases, line managers take personnel decisions, perhaps within a framework established by the personnel department. Personnel practitioners are further developing their administrative roles by operating as consultants and administrative experts through improved and efficient processes and effective delivery of service.

Briefing Report: How can Personnel Organise to Add Value

This administrative efficiency can only be achieved if personnel departments adopt a more business-oriented approach to personnel management and a participative style of management, integrating business and human resource strategy. Ulrich 1998 in Mac Lachlan, Case Study, HR with attitude. Pg.78

Paragraph 5.1 Line 1-3 states that, HR should be held responsible for defining the companys organisational architecture. showing the marketing strategy behind personnel departments. The business of human resource gives

personnel practitioners the responsibility for designing and building the framework for management of the organisations most valuable resource. In order for human resource strategies to align with the organisational strategy it is imperative that the personnel department be recognised as a strategic partner with a participatory presence at the board and executive level. As Guest and Koque, 1999 November in the Case Study (Yes Personnel does make a Difference), pg.48 paragraph 5, Line the presence at board level of a specialist personnel director rather than someone responsible for personnel issues. This position should be established so that there will be cohesiveness between corporate business strategy and human resource policies and procedures. David Ulrich 1998, in Mac Lachlan, Case Study, HR with attitude. Pg.76 Paragraph 2 Line 2-4, stated in his predictions in the field of human resource Because HR will at last be widely recognised as crucial to a firms business strategy and top team.

Briefing Report: How can Personnel Organise to Add Value

Personnel management needs to be given level of recognition and to not only be involved in policy and decision-making but also participate and contribute in a meaningful way. This role provides an opportunity for personnel

practitioners to attain the required competencies to operate at this strategic level now and in the future. Ulrich 1998 in Mac Lachlan, Case Study, HR with attitude. Pg.79 Paragraph 3 Line 5-7, explains, because more chief executives are recognising that there is an important body of knowledge in HR, and that without access to it, mistakes could be made. This level of recognition will add value to the profession by attracting competent personnel specialist at various levels who will aptly and confidently apply and practice personnel management in a holistic and appropriate manner. Significant Challenges faced by Personnel Practitioners Although there are opportunities in these new roles for personnel practitioners there are still a number of challenges that prohibit personnel practitioners from practicing their roles as strategic partner and administrative expert. Notwithstanding the influential power and authority given personnel

practitioners they still lack the confidence to operate as administrative experts. In some cases, top priority is given to business strategy without any kind of integration with human resource policies and strategy. As Guest and Koque, (1999) November in the Case Study (Yes Personnel does make a Difference), pg.47, paragraph 1, Line 2-4, refer The personnel management profession has sometimes displayed an alarming lack of self-confidence.

Briefing Report: How can Personnel Organise to Add Value

Torrington (1996) Strategic Management of Human Resources Manual Pg. 45 also suggests that three challenges for personnel specialist arise from their confidence, identity and direction. This suggests that personnel practitioners and the departments are not performing to the standards expected. Many

personnel practitioners are operating in the position but do not practice and represent what is required of a personnel practitioner. In the case study,

Guest & Baron (2000)(Piece by Piece, People Management 20th July 2000) states pg.16; paragraph 9 (Lines 2-4) HR departments are not always seen as effective in lead HR projects and initiatives. It is one thing to know what

should be done, but quite another to achieve it. Personnel practitioners need to develop the required expertise and have confidence in their practice. Along with Guest they bring into perspective the lack of confidence in personnel practitioners which impacts negatively not only on the profession but the department as well. Strategic Management of Human Resource

Manual Chapter 2. Pg.42 highlights the need to incorporate professional HR/ personnel practice and to to allow for diversity of approach, balancing stakeholder needs. Personnel practitioners need to find the balance between representation and management of workers. They should represent the

interest of workers, ensuring that they are well trained, equipped, rewarded and managed and also ensure that there is commitment to the organisations corporate objectives.

Briefing Report: How can Personnel Organise to Add Value

Ulrich (1998) in Mac Lachlan, Case Study, HR with attitude. Pg.7 Point 3 Line 13, explains in his view of employee champion, It should be the responsibility of HR people to ensure that employees feel committed to the organisation and are contributing fully. Adding value means more than just putting policies in place, it also requires effective monitoring, review and evaluation to ensure that the human resource outcomes align with the organisations business strategy. The case study,

Guest & Baron (2000)(Piece by Piece, People Management 20th July 2000) pg.15, paragraph 10 (Line 3-5) confers with this statement as it highlights While the effective implementation of these practices depends on both HR and non-HR managers, the effectiveness of processes depend far more on the HR department and personnel specialist. Because change is a constant factor today, it is imperative that personnel practitioners become responsive to the changing environment in which they operate, both internal and external. They need to consider the impact of new and flexible working arrangements, psychological contracts, the need to acquire the appropriate skills and management and evaluation of employee competence. In describing the role of personnel specialist as change agents Ulrich (1998) in Mac Lachlan, Case Study, HR with attitude. Pg.79 Point 4 Line 1-3, describes to replace resistance [to change] with resolve, planning with result and fear of change with excitement about its possibilities. It is also

Briefing Report: How can Personnel Organise to Add Value

imperative

that

the

planning

and

implementation

of

change

in

the

organisation be pioneered by personnel specialist. Aitken and Saunders, (1995 December 21, People Management, Case study pg.461 paragraph 3) suggest The need for the personnel function to take more of a lead was another issue that emerged. Only one-third of HR

managers, and fewer than one-sixth of line managers, reported that HR change management experts had been responsible for the planning and implementation of change. commitment and involvement There is apparent inaction and lack of from personnel practitioners in the

organisational change.

Strategic Management of Human Resource Manual

Chapter 2. Pg.43 highlights, Whilst HR need to raise its profile, facilitating change in the organisation, it must retain its specialist silks and be reviewed as clearly adding value to the organisation. If personnel specialists dont

embrace this role they will not be fulfilling their role as change agents. Conclusion The personnel function needs to be adaptable to the changing business environment and invest in managerial competence of staff so that the organisation can achieve sustained competitive advantage. This can only be done when effective human resource operations and principles are developed and practiced. In order for personnel departments to make an effective contribution they need to develop and maintain a more strategic and influential approach,
Briefing Report: How can Personnel Organise to Add Value 8

continuously examine and monitor their performance and effectiveness and become adaptive to the changing business environment. ultimately be the aim of the personnel departments. Recommendations It is recommended that a strategic review of the personnel department be performed to evaluate their policies and procedures, service and competence. This should be a continuous process and should measure the effectiveness of their strategies, policies and procedures, level of service and general competence and skills levels. This will ensure that the appropriate balance to be aligned with the organisational strategy. These recommendations are also consistent with suggestions espoused by Foot & Hook (1996) Strategic Management of Human Resource Manual pg.43 which Emphasise the benefits of HR and create a basis for measuring and evaluating the outcome by making HR issues central to the agenda at Board level. Use briefings, This should

communications, learning and development activities and so on. There are still valuable elements within the sphere of personnel management that can add value to organisation once it is practiced in accordance with relevant and applicably sound policies and procedures.

Briefing Report: How can Personnel Organise to Add Value

Bibliography
Strategic Management of Human Resources (Anon), University of Sunderland, 2004 (Course Manual). Aitken, A. & Saunders, I., 1995 December 21, Case Study, Vision only works if communicated. People Management. Strategic Management of Human Resources (Anon), University of Sunderland, 2004 (Course Manual, Pg.460-463) Bateman, S.T. & Snell, S. A.,1999. Management, Building Competitive Advantage. 4th ed. Irwin McGraw-Hill.

Guest, D. & Baron, A., 2000 July 20th Case Study, Piece by Piece. Strategic
Management of Human Resources (Anon), University of Sunderland, 2004 (Course Manual Pg.13-17)

Guest, D. & Koque, K., 1999 November in the Case Study, Yes Personnel does make a Difference. Strategic Management of Human Resources (Anon), University
of Sunderland, 2004 (Course Manual Pg.46-52)

Leopold, J., Harris, L. & Watson, T., 2005. The Strategic Managing of Human Resources. FT Prentice Hall. Mac Lachlan, R. (n.d.) Case Study, HR with attitude. Strategic Management of
Human Resources (Anon), University of Sunderland, 2004 (Course Manual Pg. 76-83)

McShane, L.S. & Von Glinow, A.M., 2000. Organisational Behaviour. 1st ed. Irwin
McGraw-Hill.

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Bibliography (Continued)
Electronic Sources Anglia Ruskin University, Harvard System of Referencing Guide, July 2007. Available at http://libweb.anglia.ac.uk/referencing/files/Harvard_referencing.pdf, accesses 2008 June 29th Pfeffer, Jeffery (1995) Competitive Advantage through People Unleashing the Power of the Workforce, Harvard Business School Press, January 1995, Ed. 1, Available at: http://search.barnesandnoble.com/Competitive-Advantage-

through-People/Jeffrey Pfeffer/e/9780875847177, accessed 2008 June 27th

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Reference List
Strategic Management of Human Resources (Anon), University of Sunderland, 2004 (Course Manual Unit 1, 2, 3 & 8).(Pg, 42, 43 & 45) Aitken, A. & Saunders, I., 1995 December 21, Case Study, Vision only works if communicated. People Management. Strategic Management of Human Resources (Anon), University of Sunderland, 2004 (Course Manual, Pg.461, Paragraph 3)

Guest, D. & Baron, A., 2000 July 20th Case Study, Piece by Piece. Strategic
Management of Human Resources (Anon), University of Sunderland, 2004 (Course Manual Pg.15, Paragraph 10. Lines 3-5 & Pg.16, Paragraph 9. Lines 2-4)

Guest, D. & Koque, K., 1999 November in the Case Study, Yes Personnel does make a Difference. Strategic Management of Human Resources (Anon), University
of Sunderland, 2004 (Course Manual Pg.47, Paragraph 1, Line 2-4, Pg 47, Paragraph 6, Line 3-4, Pg. 48 Paragraph 1, Line 1-4, Pg.48 Paragraph 5, Line 3-4)

Mac Lachlan, R. (n.d.) Case Study, HR with attitude. Strategic Management of

Human Resources (Anon), University of Sunderland, 2004 (Course Manual, Pg.76. Paragraph 2 Line 2-4, Pg.78, Point 1, Line 1-3, Pg.79 Point 3, Line 1-3, Point 4 Line 1-3, Paragraph 3, Line 5-7

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Reference List (Continued)

Electronic Source Pfeffer, Jeffery (1995) Competitive Advantage through People Unleashing the Power of the Workforce, Harvard Business School Press, January 1995, Ed. 1, Available at: http://search.barnesandnoble.com/Competitive-Advantagethrough-People/Jeffrey Pfeffer/e/9780875847177, accessed 2008 June 27th

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