HRM and Personnel Management
as a Specialist Function
Geoff Armstrong ( Director General of the
Institute of Personnel and Development)
in a review of a recently published compendium of HRM (Storey, 1995) expressed disappointment with HRM's
inability to get away from rhetoric. He states:
I find its (op. cit) HRM foundation flawed.....the rhetoric - labelling certain
approaches to people management as HRM - can stimulate strategic-level attention
(but).......... I cannot accept... that there is a coherent and
comprehensive approach to people management under the HRM umbrella, sufficiently
distinctive to form the model or benchmark against which managerial performance
is judged. It is part of the answer not the whole picture.
The proposition is that the rhetoric of HRM (employee involvement, development of
individuals and empowering them to realise their creative contributions to the
business) , does not fit well with business realities in a competitive economy
where priorities focus on
- cost-cutting; the drive for continuous improvement means job cuts.
- stripping organisations to the most effective, high yielding core activities
- satisfying institutional owners of equity capital rather than other
"stakeholders" - employees being just one collection.
The place of the staffing/personnel function.
Personnel management, as a specialist, function, concerns itself with the fact
that except for the sole proprietor, business employs or needs to employ staff.
Employing people carries costs - arising from
- the contract of employment
- the responsibilities for the employer towards the employee
- additional facilities and support needing to be given to employees
- the overheads of accommodating them
Specialised knowledge is needed to employ someone and this reflects
- a basic need to have workable, consistent, efficient procedures for carrying
the administrative, communications and support activities required for
- appointing people to jobs
- supporting them with systems so that they perform well, continuously and with
committment
- processing the ending of employment relationships
This is the clerk of works, bureaucratic,
systems and control, model of personnel practice. Rules and regulations,
information, communications and maintenance need to exist on both sides of the
work-reward exchange. The exchange must be "serviced" with due regard
to the legal and social contexts of employment. The servicing involves costs -
employing personnel administrator/advisor to co-ordinate and deliver a servicing
operation to management.
The Line Manager as Personnel Manager
Apart for the staff of the personnel department itself and perhaps groups of
apprentices/trainees that come under the personnel budget but who are assigned to
operating departments, a personnel manager has no direct control over staff. The
departmental manager is the line manager of his/her staff. Personnel management
therefore forms part of every manager's job.
A specialist personnel manager or section provides expertise to the business as a
whole and departmental managers. The latter only want a personnel service
if it eases their burden and provides a value based service. They have profit
and cost priorities when delivering their products/services. There is a natural
resentment of "personnel people" who are seen to contrain local
action, who act as social workers, who talk a lot but perhaps are seen to little
direct output.
If the personnel person provides service that conforms to the prevailing
framework of priorities that senior managers and line managers regard as
important then the relationship many be valued. If personnel practictioners are
avoided by line managers become marginalised only being called on when the line
manager needs to be rescued because of problems arising with a member of staff.
The Conformist-Innovator
At the level of the corporation and within the prevailing value systems of the
firm, personnel specialists may contribute policy analysis and recommendations.
They contribute programmes and systems that help the organisation to adapt in
ways that support its maintenance and innovative (change) objectives. The
innovative personnel function is thus manifested by the
policies and policy initiatives, advisory/consultancy services, regulative and
adminstrative frameworks that ensure effective and consistent practices and
decisions in relation to staff and staffing across the organisation.
Many initiatives can be minimum reactions to events. Others may be more
proactive seeking to anticipate events and shape outcomes.
Within a policy framework and with a service co-ordinating the implementation of
policy and programmes, managers of other functions (direct operations and others
services) can then concentrate on their operational task - knowing that a
well-defined personnel system supports their staffing activities, relationships
and requirements.
Why a specialism?
Skilled labour is a scarce and complex commodity. People are not machines - they
have their own strengths and frailities, ambitions and insecurities. At the level
of the firm these become lost. The "firm" is not sensitive to the needs
of others only people are. Senior managers may be too removed from the mass of
employees. Employees become head count. Individual line managers have the
problems of their own personalities to contend with - sometimes; too busy,
removed, selfish, blind, uncaring, brash, shy and basically not very good
with people.
Doing recruitment, selection and training (arguably) involves specific conceptual
and practical understandings. Some of the know-how is general and a good general
manager can develop these abilities. But much of the know-how requires detailed
understanding and the "quality" service elements involve specific
effort, consistency and time.
- The sourcing, placement, support and adaptation of employees at work is
interpersonally and administratively demanding.
- Employees join a firm, they leave a firm. Some may be dismissed. Some may be
made redundancy as the jobs for which they are employed have ceased to exist in
whole or in part. The law is involved (rights of employees and obligations of
employers).
- The costs of employing are major elements in a business's expenditure.
Personnel systems bring predictability, reliability and control. They enable the
firm to secure consistency of behaviour/action amongst line-managers. They
purport to secure better utilisation of people's abilities at work - important
for the short and long-term economic success.
Which Hat Am I Wearing?
As a member of management, the personnel specialist has a difficult balance to
keep. He/she may have access to confidential information about staff, may offer
counselling and guidance to a member of line manager's staff in repect of their
training, career or even personal affiars. The advice may even relate to the the
relationship with the line manager him/herself. The personnel practitioner may
sympathise with the employee and feel that the employee has a just case in
relation to the organsiation or the line manager. But a personnel
practitioner is a manager and a contributor to the management process/team.
- He/she is not a trade union official.
- Is the personnel specialist in a position to mediate between the employer and
the employee. The answer is NO if this means acting contrary to the business's
interests as defined by senior management. However he/she is in a position to
advise the management team about facts and implications of employee matters.
Personnel's typical responsibilities
Advising on and implementing good practice activities/systems concerning
- terms and conditions of emploment
- staffing and the labour market
- certain aspects of how work is organised (mostly this is an operations
manager concern)
- training and development
- rewards and benefit
- welfare facilities, staff support and the effects of the working environment
on employees.
- organisational relationships with trade unions and employee representatives.
- how individual managers and the management team as a whole maintain and
develop effective communications and consultation with staff
- promoting non-discriminatory employment practices and common standards in the
treatment of employees ( individuals and groups)
- applying professional knowledge in ensuring that company policies and
practices satisfy the requirements of employment legislation and taking steps to
protect the firm from the effects of its impact.
- acting as the firm's liason with agencies, employer institutions, trade
unions and professional/education bodies in respect of employment matters.
The employee focus of the personnel function
This covers e.g.
- counselling individuals on such issues as development, career moves and (in
support of the line manager's function) discipline
- ensuring privacy and confidentiality of personal information (see Data
Protection Act 1984)
- ensuring that current staff and job applicants are given full and accurate
information concerning their employment within the organisation
Can the Promise be Delivered?
Since the 1930's personnel practice progressed from models dominated by
administration and systems towards ones based on strategic business needs. Yet
- in 1954 Peter Drucker queried whether personnel management as
"bankrupt". The contributions were, he felt, still have currency but
the gains of personnel practice were less the liabilities generated by
rhetorical promises. It was doubtful that the promotional claims about improved
managerial and employee performance steming from liberal (HRM) personnel practice
could be substantiated.
By 1993 Drucker saw a need for management to concentrate on creating knowledge
workers in responsibility based organisations - where everyone takes
responsibility for objectives, contribution and behaviour. This is representative
of the empowerment, investors and techno-organisation view of the contribution of
modern HR.
- Legge's work is chastening here. In 1978 she pointed to the status problem of
the personnel manager and role dilemmas facing someone working as a personnel
service specialist. In her recent book Human Resource Management: Rhetorics and
Realities, she concludes
A management group that preaches one message but practices another runs the risk
of not being taken seriously....Personnel management's function of employment
regulation points us to an underlying cause of tension between normative
aspirations and enacted behaviour. Both the activity and personnel specialists
are driven by contradictions that promote ambiguity of action.
Karen Legge, 1995
- From the mid-1980's onwards we have seen a resurgence in managerial power
(recession and smaller, less powerful trade-union base), corporate restructuring,
the excellence movement, down-sizing and out-sourcing. Associated with these
trends a return is noticeable to view that
...Line managers need to take more responsibility and be empowered to manage
their people better. This should not be driven by backroom specialists.
The emphasis is on divisional/local managers controlling their own staff being
able to call on a basic (internal) personnel service. This service is a cost
centre. Personnel specialists deliver administrative and systems support and may
have some local consultancy opportunities. If the internal personnel system
cannot handle the requirement then, the firm can call in (out-source) additional
expert help and assistance.
- Sisson points to nil growth in HR people on boards of companies during the
1980s suggesting that HR as a growth, essential specialism is on the wane. (HRM
and the personnel function - in J Storey, 1995). He and
others identify a trend to break HR down into sub-set, "professional"
activities.
Traditionally we have in-house personnel service deliverers who are in an
operational or administrative/clerk of works role - part of the managerial
control structure. They deliver admin. services and skills necessary to the
enterprise. However
as Tyson suggests, even this clerk of works personnel
service, as a function, is being uncoupled as a large department/cost centre
entity and being separated into sub-specialisms. Each might be out-sourced
rather than provided internally. A bought in service can work to source
(recruit), develop (train) and socialise (gee up with rewards and feedback
systems) employees within the firm. The uncoupled personnel person might
specialise as a
- tax or pensions person
- corporate communications adviser
- simple external recruitment agency or even psychology oriented recruitment
expert
- out-placement, redundancy or stress counsellor
- labour lawyer
- deliver of training
- producer of multi-media training packages
- But is there a future for the personnel/HRM function in a higher level
strategic, development role?
Tyson suggests that there is. Such is the scale and
complexity of the human resource element that the firm has have the right kind
of vision, understanding of staffing issues, organised and co-ordinated
programmes relevant to the change objectives of the business. This is where
personnel managers as members of a strategic management team can contribute to
shaping how the business as a whole interprets and copes with environmental
change - where this relates to employees and employee performance. Here the
personnel person must be a business person - able to relate employees to the
competitive imperatives and financial demands of the business.
Future Issues?
How might a career as a personnel manager be influenced by
- the demise of old industries such as mining, steel, shipbuilding and heavy
engineering balanced by the rise of technological and service oriented firms?
- new jobs but but fewer of them and fewer employees?
- changes in the nature of work is changing. Career tracks are blurred and less
clear with short-term contracts and part-time or casual work?
- Rationalisation, downsizing, right-sizing and resultant pool of middle-aged
men who are unlikely to work full-time again?
- cheap labour competitive Pacific Rim countries and eastern Europe constrain
prices and put pressure on costs. Capital movements are global and seek the best
return on any investment?
- organisations becoming smaller and built from alliances, joint ventures,
supplier partnerships. What are the implications for employees and organisational
staffing if rganisational boundaries are blurred?
- organisations that were previously centralised in terms of employment polices
now trading and, through devolved financial/budgeting arrangements now making
tighter decisions about staffing and staff costs? They are encouraged to be
" competitive" and to respond to market forces. These include hospital
trusts, schools/colleges, quangos and government agencies. What are the
implications for personnel policy change and service responsiveness. Are the line
managers of these organisations able to cope with the increasing variety and
complexity of employee related decisions?
- Outsourcing and sub-contracting changes the shape/architecture of the
organisation. A dynamic, network of mutually dependent organisations.
Contributors come and go. Working relationships are even more volative for those
still employed within the parent organisation
In such situations those running business organisations must still
- properly manage the contracts of exchange with employees
- organise,d co-ordinate and support to secure productive relationships with
employees both as individuals and collectives (possibility organised)
- develop policies and programmes which will enable them to manage change at
various levels
The strategic HRM aspiration.
In comparison to the clerk of works we have the architect / high level strategic
HRM operator who focuses (presumably) on business effectiveness rather than just
operational efficiencies. Strategic level personnel professionals face a shift
in the concept of the organisation. HRM is predicated on the notion of an ideal,
large, corporate organisation yet
- companies are becoming smaller, employing fewer
- shop floor hierarchies are becoming more technical team centred (rather than
hordes of manufacturing operatives) and local managers better able to manage via
their teams
- matrix, multi-skilled(horizontal) groupings are replacing vertical divisions
of labour
- the product-service relationship is becoming blurred. Operations managers in
manufacturing are required to give emphasis to the service elements of their
product/role.
- the technology of work itself changes so quickly and becomes redefined so
that constant training becomes accepted as a norm by line managers. The latter do
not need much encouragement now from personnel specialists.
Assignment
Hastings (1993) suggests that the following factors are
shaping future organisations.
- radical decentralisation
- intense interdependence within firms and between firms
- demanding expectations and definition of performance standards
- distributed leadership in a techno-system
- business networking and reciprocity
What scope do these provide for strategic HRM contributions?
Developed and maintained by Chris Jarvis