The Multiple-Role Model of HRM

In the late 1997, a good friend and HR buddy of mine (Mr. Chong W.M) from my packaging division head-office recommended me to buy a HRM book. It was written by Prof. Dave Ulrich (1997) "Human Resource Champions: The Next Agenda for Adding Value & Delivering Results" - published by Harvard Business School Press. During that time - it was a highly recommended HR management book and reluctantly I paid RM$135 for it. After reading the book, the way I view HRM would change forever. It became one of the many books I used as reference for most of my MBA assignment.

In summary, the author (and the his book) gave options to me on what HR roles I wanted to venture into: -

• Strategic Partner
• Change Agent
• Administrative Expert
• Employees Champion

Since then, I made-up my mind I wanted to focus on the role of (i) Strategic Partner and (ii) Change Agent but as years goes-by I felt that it is important to have a balance of all the four (4) qualities mentioned. Please refer to Exhibit # 1 for details of the "multiple roles" of HR.

Exhibit 1: Multiple Role Model of HR

[Modified & adopted from (i) Hewlett-Packard HR activities and (ii) Dave Ulrich (1997) "Multiple Role Model of HR"]

What they don't teach you in College: Why must an Individual stay 2 years in an Organisation?

When I first enter the field of personnel management in 1994, I met a very professional (& competent) headhunter. My company has engaged her services as her company was one of the handful that provide executive search in the Asia-Pacific (APAC) region. If I am not wrong, her name was Rosalyn and the company she worked for was known as TAO. Recently, I found out that TAO was later acquired by Heidrick & Struggles at the beginning of the year 1998.

She commented that their firm / consultancy  will only consider people who has serve a minimum of 2 years employment track records with an organization before recommending the candidates to a potential organization. I asked her why two (2) years? She explain to me the following scenario: -

Scenario # 1 

• End of 1st year, during your performance appraisal you achieved your targeted results but your boss don't agreed to it and make remarks it was not your effort. You voice your disappointment but fall on deaf ears.
• At 2nd year, you achieved your targeted objective with outstanding results and again your boss be little your achievement.
• Action: Time to pack your beg and leave the company.

Scenario # 2

• 1st year - your recommended to your boss that some corrective action should be taken to improve a particular business process
• 2nd year - you asked your boss to review his decision but he is not interested to take any measure.
• Action: Don't waste your time ... look around for new potential employer who will appreciate your initiative!

I guess - she was trying to tell me that 2 years is the minimum and best time to leave a company as you have exhausted your effort and if the Company or your boss continue to ignore and don't value your work - she argued that the person has every right to seek new career opportunity and should not be labelled as "job hopper".

Strategic Human Resource Planning Skills

Today - I was flipping tru my old HR training material and came across a model / framework (dated October 1996) entitled "Strategic HR Planning Skills" ... compare today (21 April 2011) - you will find that the current popular "jargon"  adopted by HR Strategist are missing: -

• Rewards management
• Talent management / High Potential (HiPo)
• International assignment / Expat program
• Retention scheme / bonus
• Long term incentive program (LTIP)
• Employee engagement
• Performance Matrix / Balanced Score Card (BSC) / Goal Agreement

But please don't think that the above strategies were not implemented by HR professional during the 1990's - we only call / labeled under different names. But I do have to admit that the level of focus and intensity were different.

 After review the model - I personally think the model is still applicable but modification is required and you may need to insert current HR practices / strategies into the correct boxes shown below.

 Exhibit 1: Strategic HR Planning Skills

[source: O D Management Consultants Sdn Bhd - 1996]

Introduction To Total Rewards & Compensation

Total rewards in an organization context include (i) monetary and (ii) non-monetary rewards provided to attract, motivate and retain the employees.

In this short article, I will only introduce the basic knowledge a typical C&B officer / executive should know: -

• Base pay - It is the basic compensation that an employee receives usually as wage or a salary.
• Wages - It is payment directly calculated on the amount of time worked.
• Salary - It is a consistent payment made each period regardless of the number of hours worked.
• Variable Pay - It is compensation linked directly to an individual, team or organizational performance.
• Benefits - Indirect reward given to an employee or a group of employees for organizational membership.
• Entitlement Philosophy - For example, an employee who have worked another year are entitled to pay increase with little regard for performance differences.
• Pay for Performance Philosophy - Requires that compensation changes reflect performance differences.

Exhibit 1: Total Rewards

[source: Ghee, Mathis, Jackson (2010) - Human Resource Management, an Asia Edition]

Exhibit 2: Continuum of Compensation Philosophies

[Modified from source: Ghee, Mathis, Jackson (2010) - Human Resource Management, an Asia Edition]

Aligning HR Strategy with Business Strategy

As a young HR Executive working for a French MNC that specialized in power generation, very offend the CM (Country Manager) would be telling my superior that the HR Dept annual action plan need to be aligned towards the business strategies. During that time (early part of 1990's) - I did not understand  what the CM was talking about (his expectation).  You can say that I was still the era of 'Personnel Management' and my HRM knowledge during that time were limited to HR Admin and payroll administration.

I would like to share this 'HR-Business Strategy Aligning' model with young HR professionals and potentials HR Managers (and Business Leaders). It is a self-explaining model on some HR strategies can be considered assuming that the business strategy is focusing on either (i) divestment, (ii) M&A or (iii) business expansion.

Exhibit 1: Aligning HR Strategy to Business Strategy

(Source: Elizabeth Martin-Chua, 2009 - Maximizing Human Capital in Asia)

Organizational Alignment

Every Human Resource Manager or Director need to understand the concept and application of 'organizational alignment'. When I mentioned organizational alignment - I am not referring to the streamline of HR policies and procedures but focusing on the overall HR Dept alignment capability at a higher level and organizational-wide.

One of the organizational alignment tool which I was introduced to in 1996 (while working with Hong Leong Group Malaysia) was ODI (Organizational Dynamics Inc) 'Alignment Diagnostic Tool'. It opened my eyes as a young manager on how business strategy, human resource, processes, and customer (internal /external) can be aligned and drive the organization to achieve the targeted business results (Please see Exhibit 1 and 2 for an overview of the model / framework)

To have a better understanding of the application - I recommend you look up at the local library on "The Power Of Alignment" by Dr. George Labovitz.

Exhibit 1: ODI (1996) Alignment Model

Exhibit 2: ODI (1996) - The PDR Cycle

Exhibit 3: The Book "The Power of Alignment"

Definition of Human Resource Management

What is Human Resource Management?

Designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals. [Ghee-Mathis-Jackson, 2010 - Human Resource Management, An Asia Edition]

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Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. 

[ Susan M. Heathfield, About.com Guide]

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The first definition of HRM is that it is the process of managing people in organizations in a structured and thorough manner.

 

The second definition of HRM encompasses the management of people in organizations from a macro perspective i.e. managing people in the form of a collective relationship between management and employees.

[http://www.managementstudyguide.com/human-resource-management.htm]

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The Evolution of Human Resource Management

After doing a research on the history of HRM - I felt that the best way to explain the evolution of HRM was to used Exhibit # 1, which I call it "The Evolution of HRM".

 Exhibit 1

Introduction to Human Resource Management

From an academic perspective, the subject of Human Resource Management is commonly divided into 5 Sections: -

1. Context of Human Resource Management
2. Performance
3. Relations
4. Development
5. Employment

Some Human Resource Management Text Book also has sections that cover: -

• International HR Management
• Emerging HR Issues
• e-HR Technology
• Change Management (Human Side)

From a corporate HRM practices, a typical Human Resource Dept organization structure will be divided into following functions: -

• HR Admin / Compliance / Record Mgt - leaves, HRIS, etc)
• Recruitment (Talent Acquisition, College Recruitment Program, etc)
• Training & Development (Company Training Program, Training Grant Claims, Talent Management / Succession Plan, etc.)
• Industrial Relations (Negotiation with Union on CA, Domestic Inquiry, etc)
• Employee’s Relations / Employee’s Engagement
• Compensation & Benefits; and Rewards (usually Performance fall under this function)
• HR Projects (HR Systems, M&A, Formulating Policies & Procedures, Competency Mapping, etc)

Exhibit 1: The HR Activities

[Source: Ghee-Mathis-Jackson, 2010 - Human Resource Management, An Asia Edition]