[Type text]

2011

VISHNU VAMSHI.GAJULA

[THE HRM AND LINE

MANAGER ROLE IN THE
ORGANISATIONAL
SUCCESS]

How can the HRM function support

leaders and managers to drive a
culture of employee engagement,
improve performance and achieve
organizational goals.
Vishnu Vamshi. Gajula P120655

INTRODUCTION:
The fundamental aim of strategic HRM is to generate strategic
capability by ensuring that the organisation has the skilled, committed and well-motivated
employees it needs to achieve sustained competitive advantage. Organisations are
implementing strategic HR as a change agent, not to replace an out dated personnel
department.

STRATEGIC HRM:
Strategic management is a field that deals with the major intended and
emergent initiatives taken by general managers on behalf of owners, involving utilization of
resources, to enhance the performance of organisations in their external environments
Strategic human resource management can be defined
as the linking of human resources with strategic goals and objectives in order to improve
business performance and develop organizational culture that foster innovation, flexibility
and competitive advantage. SHRM focuses on building a solid underlying structure to your
business that will subsequently be fleshed out through the combined efforts of every
individual you employ. (Paauwe, J & Boselie P.2003) .
Strategic HRM is concerned with longer-term people
issues and macro-concerns about structure, quality, culture, values, commitment and
matching resources to future need. It refers to the art of planning your business at the
highest possible level. In an organisation SHRM means accepting and involving the HR
function as a strategic partner in the formulation and implementation of the company's
strategies through HR activities such as recruiting, selecting, training and rewarding
personnel. Organisations implementing commitment-based HR practices perform better
than organisations implementing transaction-based HR practices (Arthur, 1992, 1994; Batt,
2002; Collins and Smith, 2006; Youndt, Snell, Dean and Lepak, 1996).

PERSONNEL MANAGEMENT vs HUMAN RESOURCE MANAGEMENT:

HRM is a new and a distinctive philosophy with a
paradigm shift towards a more strategic approach to people management.

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Personnel Management and Human Resource Management is

more or less the same thing. In fact Personnel Management is one of the core
components of Human Resource Management. Personnel Management deals with
the selection, recruitment, job description and work load of an employee. On the other
hand, Human resource management looks after the broader concept of HR. It deals with
Personnel Management as well as Organizational Management, Personnel administration,
Manpower management, Industrial Management, Organizational Development and also

PRACTICAL EXAMPLE : TESCO

Tesco’s have strategically integrated HR into their
overall plans. This has shown high commitment to HR, attempting to gain acceptance from
all employees, and offering them with basic and extended training. This helps the
individual employee to understand their role and importance within the organisation.HR is
not an administrative department in Tesco; they are proactive and strategic level of
organisation. The human-resource strategy at Tesco’s revolves around work simplification,
challenging unwritten rolling out core skills to all head office employees and performance
management linked to achieving targets. This stresses the way in which Tesco’s business
measures are closely linked to performance management.

ROLE OF HRM AND LINE MANAGERS:

PETER DRUCKER: The management of organisations by a hierarchy of objectives is

one of his most influential ideas. He suggests these targets should fall into five key groups
dealing with market standing, innovative, performance, productivity, liquidity, and
profitability.

MANAGER:

A member of an organisation who either has formal

responsibility for the work of one or more persons in the organisation or who is
accountable for the specialist advisory duties in support of key management activities.
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KEY ATTRIBUTES OF A MANAGER: (handy 1993)

These interact and cannot be dealt with in isolation .A

change in one of them inevitably lead to a change in others.

 People.

 Work and structures.

 Systems and procedures.

 Goals of the organisation.

 Technology available.

 Culture of the organisation.

Douglas McGregor in 1960 used the terms Theory X and

Theory Y to identify two very different forms of management style:
A Theory X manager tells employees what to do and supervises their work. This involves
using strict controls within the business. This reflects an autocratic style. In contrast, a
Theory Y manager believes employees want to do well. The manager provides individuals
with the opportunity to take the control of their work. They can contribute towards solving a
problem or issue. This helps motivate them to do better.

LEADER:
A leader is "a person who influences a group of people towards the
achievement of a goal".

LEADERSHIP:

Effective leadership is required to lead and to guide the subordinates to

perform organizational tasks efficiently and effectively.

In the words of “Leadership is the activity of influencing people to strive

willingly for group objectives.”- - - George Terry

“Leadership is the ability to secure desired actions from a group of

followers voluntarily, without the use of coercion.”- Alford and Beatty.

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LEADERSHIP STYLES:
The main types of leadership styles are as follows:
 Charismatic
 Traditional
 Situational
 Appointed
 Functional
 Principle centred
***Principle centred leaders cannot be a good manager as he does what is correct rather
than by going by the rules and regulation of the organisation.

DIFFERENCES BETWEEN A MANAGER AND A LEADER:

MANAGER LEADER

• Managers do things right. • Leaders do the right things.

• Managing is an authoritative
relationship.
• He has the ability to manage people
under him.
• Manager creates stability.
• Developed by the company.
• May or may not work in a team or
may or may not be interested in team
work.
• He influences people to do things
right by changing.
• He authorises the organisation.
• He wants others to work for him.
• Leading is an influence relationship.
• He has got a vision and leads people
under him.
• Leader creates change.
• Not developed by the company.
• Works in a team and is usually
dedicated for the team.
• He influences people to do the right
thing by leading them to the right
path.
• He leads the organisation.
• He himself works with the
organisation.

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LINE MANAGERS:
Line managers are managers who are responsible for an
employee or work group to a higher level of management. They are normally in the lower
layers of the management hierarchy. Line managers are departmental managers with
operational responsibility directly related to the purpose of aims of the organisation.
Although they are often specialists in their own work and usually have both leadership and
managerial skills. They are not usually specialists in the HRM function. Their management
responsibilities would include:

• People management
• Managing operational costs
• Providing technical expertise
• Organisation work allocation and rotas
• Monitoring work processes
• Dealing with customers/clients
• Measuring operational performance.

In many organisations line managers now carry out

activities which were traditionally within the remit of HR such as providing coaching and
guidance, undertaking performance appraisals and dealing with discipline and grievances.
In many cases they also carry out recruitment and selection in conjunction with HR.

THE POLICIES AND PROCEDURES OF LINE MANAGERS:

Below is the list of practices in which Line managers make
a difference:

• Performance appraisal.
• Training, coaching and guidance.
• Employee engagement (involvement and communication).
• Openness – how easy is it for employees to discuss matters with their line manager.
• Work-life balance.
• Recognition – the extent to which employees feel their contribution is recognised.

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His role is crucial in enabling the HR policies and

practices, or bringing them to life, He acts according to the advice or guidance from HR in
controlling the work flow by directing and guiding the work of others.

THE IMPACT OF OUTSOURCED HR AND BUSINESS PARTNERS:

The outsourcing of transactional HR activities has
evolved more responsibility to line managers to maintain records, input data and manage
routine HR activities such as staffing requests, training or submitting payroll information.
However, when outsourcing is working well it also enables them to access better and
timelier information and support to carry out people management tasks and manage their
staff more effectively.

The move to business partnering has enhanced people

management aspects of the line manager’s role, enabling them to develop a peer
relationship with HR business partners to develop responses and solutions to HR issues.
The arguments in favour of business partnering stress the positive aspects of the
partnership, enabling both people and business issues to be considered in a wide range of
decisions, which will impact on organisational effectiveness. Because the relationship is
ongoing both sides develop a better understanding and develop long term strategies and
solutions.

PRACTICAL EXAMPLE : TESCO

TESCO ensures that each and every employee has the

opportunity to understand his or her individual role in contributing to the TESCO core
purpose and values. The frontline employees are considered the ultimate reflection of
Tesco to its customer, but all employees have a very important role to play in turning core
values and customer commitment into reality on a daily basis. The big picture of Tesco’s
strategic direction is discussed with all employees. Each employee is considered a part of
the overall strategy; therefore they are instructed on the importance of their role. This
training is delivered in a way that encompasses all learning skills and allows for cultural
difference.Being the largest Private employer in UK Tesco takes this responsibility
seriously, this is demonstrated through their training and development policy. This has
exceeded the government’s recommendations for training of the individual and the move
towards a learning society.
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EMPLOYEE ENGAGEMENT:

Employee engagement describes employees’

emotional and intellectual commitment to their organisation and its success. Engaged
employees experience a compelling purpose and meaning in their work and give their
discrete effort to advance the organisation’s objectives. It is sometimes used to describe
‘engaging with’ employees. Effective internal communication, consultation with employees
and employee representation are all important elements of employee engagement. An
effective communication plan or a successful consultation exercise leads to a better
employee engagement.

Engagement relates to the core of the business, its

values, culture and way of managing .The positive behaviour of a deeply engaged
employee will rub off on all stakeholders like clients, customers, colleagues. A highly
engaged company has better performance, enjoys high staff retention and sustains long
term success. Engaged employees display energy, productivity and innovativeness.
Organisation wins regard as an attractive place to work.

Employee engagement refers to positive feelings held

by employees about their jobs and also the motivation and effort they put into work.
Engagement leads to positive employee behaviours that lead to organizational success.

RELATIONSHIP BETWEEN EMPLOYER AND EMPLOYEE:

The relationship employers share with employees is

affected by three significant factors like interests, control and motivation. It is up to
employers to effectively manage and balance these factors to ensure a good working
relationship. From the beginning of the employment to the end, the employer should not
treat his or her employee unlawfully, discriminated against, harassed, denied his/her due
wages or benefits, made to work in unsafe conditions, or wrongfully terminated. Employer
should be confident of the result he needs to derive out of the employee. He should use
his means of effective communication to understand whether the employee is facing any
problems and thereof suggest ways to overcome them, this increases a good friction
between them. Employers must balance interests such as decreasing wage with increase

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of labour productivity in order to achieve a good relationship with the employee.

ATTRIBUTES OF EMPLOYEE ENGAGEMENT:

1. The most important attributes which lead to better employee engagement.

2. Communicate: Project managers should clearly indicate their expectations from

and about the employee. They should also provide feedback to the employees
regarding their work and performance.

3. Career: Management should provide meaningful work to the employees along

with career growth opportunities.

4. Confidence: Good managers should induce and boost confidence in an

employee.

5. Control: Managers should let the employees utilize the control which they have
on their job and career.

6. Clarity: Managers should have a clear vision of what job is to be done and how
it is to be done.

7. Collaborate: Good coordination and relationships should be maintained within a

team. Managers should motivate their employees to work in and as a team. He
should also take steps to cultivate trust among the team members.

8. Compliment: Give recognition to the employee for the job well done.

9. Connect: Managers should make their employees feel valuable and important.
Show that you care.

10. Contribute: Give opportunities to employees to contribute in the management

decision making process. Ask for suggestions, new ideas, and ways of
improvement.

11. Credibility: Managers should set examples for the employee by imbibing and
teach others to practice ethical standards and practices.

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PSYCHOLOGICAL CONTRACT:

A psychological contract represents the mutual

beliefs, perceptions, and informal obligations between an employer and an employee. This
is not a written document but implies a series of mutual expectations and satisfaction of
needs arising from the people-organisation relationship. It is distinguishable from the
formal written contract of employment which only identifies mutual duties and
responsibilities in a generalized form.

The psychological contract is an important factor in

the socialisation of new members of the staff to an organisation in forming perceptions and
impressions of the management. But some of the initial statements, no matter how
informal and imprecise, may later be remembered as promises and give rise to
expectations. Whether they are incorporated into the parallel psychological contract will
depend on whether both parties believe that they should be treated as part of the
relationship.

According to Mullins 2010 a company should find new

ways to increase loyalty and commitment of employees like:

• Attention to reward strategies

• Recognition of contribution rather than status

• Systematic training and development

• Skills for working in cross functional teams

• Training of managers in counselling, coaching and leadership.

MOTIVATION:

According to Professor Herzberg, Motivation occurs

when people do something because they want to do it. Most people’s idea of a fair day’s
work was less than half what they could give. The key to success, he felt was to create the
circumstances in which people wanted to give all they could to the job.

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TAYLOR: He believed that people work for only one reason-money. He saw it as the task
of the manager to device a system which would maximise efficiency. This would generate
the profit to enable the worker to be paid a higher wage. Taylor’s view of human nature
was that of economic man. In other words people were motivated only by the economic
motives of self-interest. Therefore a manager could do his best is to motivate a worker by
offering an incentive.

MAYO: His methods were heavily influenced by FW.TAYLOR. His theories suggest that
Individual workers cannot be treated in isolation, but must be seen as members of a group.
Monetary incentives and good working conditions are less important to the individual than
the need to belong to a group and Informal or unofficial groups formed at work have a
strong influence on the behaviour of those workers in a group.

MASLOW: Maslow believed that everyone has the same needs –all of which can be
organised as a hierarchy. At the base of the hierarchy are physical needs such as food,
shelter, and warmth. When unsatisfied, these are the individual’s primary motivations.
When employees earn enough to satisfy these needs, however their motivating powers
withers away.

Bell, Taylor & Thorpe (2001) explains that the business performance needs both the
control and consent of employees, with skilled and motivated employees working harder,
better and with less wastage.

PERFORMANCE MANAGEMENT:
A method of reviewing the performance and
potential of employees that is usually undertaken formally and systematically at regular
intervals is called performance management. It can be defined as a strategic and
integrated approach delivering sustained success to organisations by improving the
performance of the people who work with them and by developing the capabilities of team
and individual contributors.

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Performance management is one of the key processes,
when effectively carried out, helps employees know that their contributions are recognized
and acknowledged. It is an ongoing process of communication between a supervisor and
an employee that occurs throughout the year, in support of accomplishing the strategic
objectives of the organization.

APPRAISAL OF PERFORMANCE:
Appraisal system is usually a one-to-one discussion
between the individual and the manager. It can be held frequently, but is usually once in a
year. The discussion may consider specific performance measure such as individual
output or involve a more general review of the contribution the employee makes to the
smooth running of the business .An appraisal system provides information which allows
the business to plan and develop its human resource provision.

EQUALITY AND OPPURTUNITY:

The organisation is committed to achieving equality
of opportunity for all staff in career development, training and promotion. Initially the focus
of development programs will be aimed at Heads of Departments, senior staff, managers
and supervisors who have a particular responsibility for implementing the Equal
Opportunities Employment Policy. If the organisation doesn’t treat their employees with
equality then it has not only far reaching impact on those directly affected, but also
damages wider workplace culture. Where inequalities occur there is a risk to the reputation
of an organisation within the business community and beyond.
Human Resources will regularly monitor applicants,
appointees and existing staff, with particular, but not exclusive, regard to recruitment and
promotion, to provide statistical and other reports to show how this Policy is being
implemented. The monitoring process will provide data for the organisation to evaluate
how far goals are being achieved while also providing information on formulating new
goals.

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IMPORTANCE OF PERFORMANCE MANAGEMENT:
It is important that a formal performance
management system doesn’t result in managers failing in their responsibilities for
reviewing performance on a day-to-day basis. Review shouldn’t be limited to a formal
event occurring once or twice a year rather it should be a continuous process of monitoring
feedback and review and there should be regular communication and contacts between
managers and staff. It provides the basis for key managerial decisions relating to allocation
of duties and responsibilities of employees; payment and promotions; empowerment;
levels of supervision; career progression; training and development.

FEEDBACK:
The Performance management process is a cycle,
with discussions varying year-to-year based on changing objectives. The cycle includes
Planning, Checking-In, and Assessment.
• To begin the planning process, Employer and his employee review overall
expectations, which include collaborating on the development of performance
objectives. Individual development goals are also updated. Then develop a
performance plan that directs the employee's efforts towards achieving specific
results to support organizational excellence and employee success.
• Goals and objectives are discussed throughout the year, during check-in meetings.
This provides a framework to ensure employees achieve results through coaching
and mutual feedback.
• At the end of the performance period, employer assess the employee's
performance against expected objectives, as well as the means
used and behaviours demonstrated in achieving those objectives. Together, they
establish new objectives for the next performance period.

BENEFITS OF PERFORMANCE MANAGEMENT:

The objective of performance management is to
improve the performance of individuals leading to improvement in the performance of the
organisation as a whole.

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Performance management provides information for
human resource planning, to assist succession planning, to determine suitability for
promotion and for particular types of employment and training. It can improve
communications by giving staff the opportunity to talk about their ideas and expectations,
and how well they are progressing. It helps to reveal problems that may be restricting
progress and causing inefficient work practice. It develops greater degree of consistency
through regular feedback on performance and discussion about potential. This encourages
better performance from staff.

TRAINING AND DEVELOPMENT:

An organisation is said to be successful when all the
concepts of training and development are satisfied and achieved.
This is a good way of engaging the employees and all should
have equal opportunity to grow. It is essential to train everyone concerned in the operation
of the scheme i.e.; both managers and their staff. Training should be given to them on how
to set objectives, how to select and use performance measures, and how to review
meeting should be prepared for and conducted.
The media that are available for communications include
bulletins, notice boards and videos. But the aim should be to achieve two-way
communications, so that management can obtain feedback on its plans.

EVALUATION:

To know the function of any organisation the above

segment should be considered but technically there are few tools to evaluate the
performance in the organisation. They are IIP (investors in people) TQM (total quality
management) and EFQM. TQM is an integrative philosophy of management for
continuously improving the quality of products and processes. TQM tries to improve quality
by ensuring corresponding in appearance to internal requirements.

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CONCLUSION:

Strategic HRM supports in achieving the organisational

goals or success by developing a plan of action. The policies and procedures adopted by
the organisation in strategic HRM emerge as a pattern in action and can be very effective
in the future. The value that is placed on HR demonstrates commitment from the top levels
of the organisation to training.

The study of HR policies has demonstrated that by

introducing a higher level of training to all employees it has an effect on the bottom line.
When the employees are trained and demonstrating a higher commitment to the
organisation they feel a part of the overall strategy. This leads to employees feeling valued
and therefore a more committed work force. This is then felt by the consumer, with a
higher level of service, which gives the organisation added value.

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BIBILIOGRAPHY:

REFERENCES: .
1. Armstrong, M (ed.) 192a) Strategies for Human Resource Management: A Total
Business Approach. London: Kogan Page.

2. The impact of IIP on people management practices and firm performance. Centre
for business management .Cranfield University.

3. Burns, JM (1978) Leadership, Harper & Row, New York.

4. Drucker, PF (1988) ‘The coming of the new organisation ‘Harvard Business Review,
January-February.

5. Fletcher, C (1984) ‘What’s new in performance appraisal?’, Personnel Management,

February.

6. Maslow, AH (1954) Motivation and Personality, Harper & Row, New York.

7. McGregor (1960) ‘The Human Side of Enterprise’, McGraw-Hill, New York.

8. Miller, P (1989) ‘Strategic HRM: what it is and what it isn’t’, Personnel management,
February.

9. Handy, C (1993) ‘The future of Work’, Blackwell, Oxford.

10. Herzberg, F W (1968) ‘One more time: How do you motivate your employees?
’Harvard Business Review, January-February.

11. Human Resource Management, Third edition, Ian Beardwell & Len Holden, 2001.

12. Business Studies For AS, Second Edition, Ian Marcouse & Malcolm Surridge.
September 2003.

13. Management and Organisational Behaviour, Laurie J. Mullins, Eighth Edition,

Prentice Hall, Financial Times.

14. ARMSTRONG, M and BARON, A. (2002) Strategic HRM: the key to improved
business performance. Developing practice. London: Chartered Institute of
Personnel and Development.

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WEBSITES:

15. http://www.cipd.co.uk/subjects/corpstrtgy/changemmt.

16. www.tescoplc.com

17. www.docstoc.com

18. www.scribd.com

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