OXFORD UNIVERSITY PRESS SOUTHERN AFRICA

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1 CONTEMPORARY ISSUES IN Human Resource 4th edition Management P. Grobler R. Bothma C. Brewster L. Carey P. Holland S. Wärnich OXFORD UNIVERSITY PRESS SOUTHERN AFRICA

2 Contents Preface About the authors xiv xvi 1 Human resource management's role in the evolving paradigm 1 Learning outcomes 1 Purpose 1 Chapter overview 1 Introduction The origins of HRM The new role of HRM The new employee-employer relationship Innovative approaches to HRM Self-managed work teams Alternative workplace E-HRM Talent management 18 Summary 21 Key concepts 22 Case study: Just putting you on hold... Protea Bank 22 Review questions and activities 25 Further reading 25 Websites 25 Endnotes 26 Appendix 1A: Teleworking - organisational, societal, and individual advantages and challenges 31 Appendix IB: Addressing the risks of working at home 34 2 Human resources and the competitive advantage 35 Learning outcomes 35 Purpose 35 Chapter overview 35 Introduction What is a 'competitive advantage'? Sources of competitive advantage HR's role in gaining a competitive advantage The resource-based paradigm The best-practices paradigm The process paradigm The new competitive landscape: How can it be sustained? 43 Summary 46 Key concepts 46 Case study: Outsourcing: Can it Work? 46

3 Review questions and activities 49 Further reading 50 Websites 50 Endnotes 50 3 Human resources and leadership 55 Learning outcomes 55 Purpose 55 Chapter overview 55 Introduction What is leadership? What leaders do on the job Successful and unsuccessful leadership Individual models of leadership Traits-based approach Behavioural-based approach Situational-based approach Group models of leadership Cross-functional teams Self-managed teams Executive teams Organisational models of leadership Transactional-based approach Transformational-based approach Charismatic-based approach Managerial-based approach Strategic-based approach Institutional leadership E-leadership approach Techniques for leadership training and development The leadership role of HRM 76 Summary 77 Key concepts 78 Case study: Sam Magubane - Sun Sporting Goods 79 Review questions and activities 80 Further reading 80 Websites 81 Endnotes 81 4 The strategic role of human resource management 87 Learning outcomes 87 Purpose 87 Chapter overview 87 Introduction The basic principles of SHRM 89

4 4.2 The relationship between strategic management and SHRM The technical system The political system The cultural system The design of an HR strategy Models of SHRM Organisational SHRM content models Functional SHRM content models Organisational SHRM process models Functional SHRM process models General SHRM models Models of 'fit' versus 'flexibility Where do we go from here? 108 Summary Ill Key concepts Ill Case study: Happy Sky Company Ill Review questions and activities 113 Further reading 114 Websites 114 Endnotes 114 Appendix 4A: SHRM in the city of Clearwater, Florida (USA) Managing flexible patterns of work for competitive advantage 123 Learning outcomes 123 Purpose 123 Chapter overview 123 Introduction What is flexibility? Functional flexibility Numerical flexibility Work-time flexibility Financial flexibility Procedural flexibility Regulatory flexibility Mobility flexibility Cognitive flexibility Organisational flexibility HR checklist - Organisation readiness for flex work Flexibility and organisational design The flexible-firm model or core-periphery model The changing dynamics of flexibility New workers - the changing dynamics of the flexible core worker 130

5 5.4.2 New organisations - the changing dynamics of the flexible organisation Contemporary flexibility - High-Involvement Work Systems New perspectives - flexible workers need flexible managers Advantages and disadvantages of flexible patterns of work The employer perspective on flexible patterns of work The employee perspective on flexible patterns of work 140 Summary 141 Key concepts 142 Case study: Flexibility at ComputerCo 143 Review questions and activities 144 Further reading 145 Websites 145 Endnotes Talent management-an HR challenge 153 Learning outcomes 153 Purpose 153 Chapter overview 153 Introduction Attraction and retention - a theoretical perspective Talent management and the demographic time-bomb Building a new paradigm Embrace a talent mindset Craft a winning employee value proposition (EVP) Rebuild your recruitment strategy Weave development into your organisation..., Differentiate and affirm your people Workforce advisory: Superior talent = tomorrow's competitive advantage Acquiring new talent Leveraging existing talent Retaining talent 166 Summary 166 Key concepts 166 Case study: AgencyCo 167 Review questions and activities 168 Further reading 168 Websites 168 Endnotes 169

6 7 Measuring human resource management within organisations. 173 Learning outcomes 173 Purpose 173 Chapter overview 173 Introduction The Balanced Scorecard Compiling the Balanced Scorecard - who is responsible? Implementing the Balanced Scorecard within an organisation The HR Scorecard Building an HR Scorecard How does the HR Scorecard work? The Workforce Scorecard The composition of the Workforce Scorecard Implementing the Workforce Scorecard 185 Summary 188 Key concepts 189 Case study: IBM's HR takes a risk 189 Review questions and activities 194 Further reading 194 Websites 194 Endnotes 194 Appendix 7A: Assessing the need for a Balanced Scorecard..l96 8 Ethical issues and challenges in human resource management 199 Learning outcomes 199 Purpose 199 Chapter overview 199 Introduction Ethics and the South African business environment Ethical dimensions of a strategic HRM paradigm The problem of dual loyalties HR professional codes of conduct An integrity-oriented approach to strategic business partnership Ethical decision-making frameworks The consequences of actions: Teleologica! theory The importance of duty to others: Deontological theory Fairness: The idea of justice Individual entitlements: Rights 218

7 8.3.5 Convergence across normative ethical theories Ethical issues and challenges in the workplace Selection Compensation Promotion and performance management The role of HR professionals in the operationalisation of corporate ethics programmes 231 Summary 233 Key concepts 233 Cases study: News of the World 234 Review questions and activities 236 Further reading 237 Websites 237 Endnotes Corporate responsibility and governance: Implications for HRM 243 Learning outcomes 243 Purpose 243 Chapter overview 243 Introduction Corporate responsibility The narrow classical economic view of CR The socio-economic view of CR The broad maximal view of CR Current developments in CR Corporate ethics programmes Operationalising corporate ethics programmes Effectiveness of corporate ethics programmes Corporate governance Corporate governance and its importance Theories of corporate governance Global governance systems, principles and practices Corporate citizenship: Implications for the HR function Corporate responsibility and HRM Corporate ethics programmes and HRM Corporate governance and HRM 282 Summary 284 Key concepts 284 Case study: Starbucks 285 Review questions and activities 288

8 Further reading 289 Websites 289 Endnotes Human resource management in the electronic era 297 Learning outcomes 297 Purpose 297 Chapter overview 297 Introduction The impact of the electronic era on business What does e-business mean? Where does a company start on the e-business path? Formulating an e-business strategy Implementing the e-business strategy The impact of the electronic era on HRM Describing E-HR Advantages of E-HR Disadvantages of E-HR HR intranet sites E-HR in practice 307 Summary 318 Key concepts 318 Case study: Training at Sunrise Ine 319 Review questions and activities 320 Further reading 321 Websites 321 Endnotes 321 Appendix 10A: Guiding principles regarding the protection of information that human resource professionals should consider Change management and building the learning organisation 327 Learning outcomes 327 Purpose 327 Chapter overview 327 Introduction Change management The triggers to organisational change Barriers to organisational change Overcoming barriers to change A strategic organisational change (SOC) framework The learning organisation 335

9 Characteristics and benefits of a learning organisation Building a learning organisation The chief learning officer (CLO) Characteristics of a chief learning officer The role of the chief learning officer 345 Summary 345 Key concepts 345 Case study: The role of HR in re-engineering and change at Siemens Rolm 346 Review questions and activities 347 Further reading 347 Websites 347 Endnotes Human resource management - An international dimension 351 Learning outcomes 351 Purpose 351 Chapter overview 351 Introduction Four key debates The universalist and contextual paradigms in HRM Comparative and International HRM Cultural and institutional explanations of differences in HRM Convergence and divergence in HRM IHRM: What is special about 'international'? The drivers of global HRM The enablers of global HRM International transfers International transfers: Cheaper and/ or better Strategy and attention to detail 369 Summary 370 Key concepts 370 Case study: Global HR at McDonald's 370 Review questions and activities 372 Further reading 372 Websites 372 Endnotes 373

10 13 The role of human resource management in the twenty-first century 379 Learning outcomes 379 Purpose 379 Chapter overview 379 Introduction The workplace of the twenty-first century The virtual organisation The just-in-time workforce The ascendancy of knowledge workers Computerised coaching and electronic monitoring The growth of worker diversity The ageing workforce The birth of the dynamic workforce The redesign of the HRM role Contracting new roles Competencies Redesign of the HRM process and structure The competencies the future HR professional will require Strategic Positioner Credible Activist Capability Builder Change Champion HR Innovator and Integrator Technology Proponent The structure of the HR department of the future 392 Summary 395 Key concepts 396 Case study: A change in HR 396 Review questions and activities 397 Further reading 397 Websites 398 Endnotes 398 Appendix 13A: HR risk management 401 Case studies 402 Glossary 415 Author index 418 Subject index 421

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