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
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 2 1.1 The origins of HRM 2 1.2 The new role of HRM 3 1.3 The new employee-employer relationship 6 1.4 Innovative approaches to HRM 8 1.4.1 Self-managed work teams 9 1.4.2 Alternative workplace 12 1.4.3 E-HRM 15 1.4.4 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 36 2.1 What is a 'competitive advantage'? 36 2.2 Sources of competitive advantage 37 2.3 HR's role in gaining a competitive advantage 39 2.3.1 The resource-based paradigm 40 2.3.2 The best-practices paradigm 42 2.3.3 The process paradigm 43 2.4 The new competitive landscape: How can it be sustained? 43 Summary 46 Key concepts 46 Case study: Outsourcing: Can it Work? 46
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 56 3.1 What is leadership? 56 3.2 What leaders do on the job 60 3.3 Successful and unsuccessful leadership 60 3.4 Individual models of leadership 62 3.4.1 Traits-based approach 62 3.4.2 Behavioural-based approach 62 3.4.3 Situational-based approach 63 3.5 Group models of leadership 63 3.5.1 Cross-functional teams 64 3.5.2 Self-managed teams 65 3.5.3 Executive teams 65 3.6 Organisational models of leadership 68 3.6.1 Transactional-based approach 68 3.6.2 Transformational-based approach 68 3.6.3 Charismatic-based approach 68 3.6.4 Managerial-based approach 70 3.6.5 Strategic-based approach 71 3.6.6 Institutional leadership 72 3.6.7 E-leadership approach 72 3.7 Techniques for leadership training and development...73 3.8 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 88 4.1 The basic principles of SHRM 89
4.2 The relationship between strategic management and SHRM 92 4.2.1 The technical system 95 4.2.2 The political system 95 4.2.3 The cultural system 95 4.3 The design of an HR strategy 96 4.4 Models of SHRM 101 4.4.1 Organisational SHRM content models 101 4.4.2 Functional SHRM content models 101 4.4.3 Organisational SHRM process models 104 4.4.4 Functional SHRM process models 104 4.4.5 General SHRM models 107 4.4.6 Models of 'fit' versus 'flexibility 107 4.5 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)..119 5 Managing flexible patterns of work for competitive advantage 123 Learning outcomes 123 Purpose 123 Chapter overview 123 Introduction 124 5.1 What is flexibility? 124 5.1.1 Functional flexibility 125 5.1.2 Numerical flexibility 125 5.1.3 Work-time flexibility 125 5.1.4 Financial flexibility 126 5.1.5 Procedural flexibility 126 5.1.6 Regulatory flexibility 127 5.1.7 Mobility flexibility 127 5.1.8 Cognitive flexibility 127 5.1.9 Organisational flexibility 127 5.2 HR checklist - Organisation readiness for flex work 127 5.3 Flexibility and organisational design 128 5.3.1 The flexible-firm model or core-periphery model 128 5.4 The changing dynamics of flexibility 130 5.4.1 New workers - the changing dynamics of the flexible core worker 130
5.4.2 New organisations - the changing dynamics of the flexible organisation 132 5.4.3 Contemporary flexibility - High-Involvement Work Systems 134 5.4.4 New perspectives - flexible workers need flexible managers 137 5.5 Advantages and disadvantages of flexible patterns of work 138 5.5.1 The employer perspective on flexible patterns of work 138 5.5.2 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 145 6 Talent management-an HR challenge 153 Learning outcomes 153 Purpose 153 Chapter overview 153 Introduction 154 6.1 Attraction and retention - a theoretical perspective 154 6.2 Talent management and the demographic time-bomb 155 6.3 Building a new paradigm 158 6.3.1 Embrace a talent mindset 158 6.3.2 Craft a winning employee value proposition (EVP) 158 6.3.3 Rebuild your recruitment strategy 160 6.3.4 Weave development into your organisation...,162 6.3.5 Differentiate and affirm your people 163 6.4 Workforce advisory: Superior talent = tomorrow's competitive advantage 165 6.4.1 Acquiring new talent 165 6.4.2 Leveraging existing talent 165 6.4.3 Retaining talent 166 Summary 166 Key concepts 166 Case study: AgencyCo 167 Review questions and activities 168 Further reading 168 Websites 168 Endnotes 169
7 Measuring human resource management within organisations. 173 Learning outcomes 173 Purpose 173 Chapter overview 173 Introduction 174 7.1 The Balanced Scorecard 175 7.1.1 Compiling the Balanced Scorecard - who is responsible? 178 7.1.2 Implementing the Balanced Scorecard within an organisation 179 7.2 The HR Scorecard 179 7.2.1 Building an HR Scorecard 180 7.2.2 How does the HR Scorecard work? 181 7.3 The Workforce Scorecard 183 7.3.1 The composition of the Workforce Scorecard.183 7.3.2 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 200 8.1 Ethics and the South African business environment...200 8.2 Ethical dimensions of a strategic HRM paradigm 203 8.2.1 The problem of dual loyalties 204 8.2.2 HR professional codes of conduct 205 8.2.3 An integrity-oriented approach to strategic business partnership 207 8.3 Ethical decision-making frameworks 211 8.3.1 The consequences of actions: Teleologica! theory 211 8.3.2 The importance of duty to others: Deontological theory 214 8.3.3 Fairness: The idea of justice 215 8.3.4 Individual entitlements: Rights 218
8.3.5 Convergence across normative ethical theories 218 8.4 Ethical issues and challenges in the workplace 223 8.4.1 Selection 225 8.4.2 Compensation 227 8.4.3 Promotion and performance management...230 8.5 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 237 9 Corporate responsibility and governance: Implications for HRM 243 Learning outcomes 243 Purpose 243 Chapter overview 243 Introduction 244 9.1 Corporate responsibility 247 9.1.1 The narrow classical economic view of CR 248 9.1.2 The socio-economic view of CR 252 9.1.3 The broad maximal view of CR 256 9.1.4 Current developments in CR 257 9.2 Corporate ethics programmes 258 9.2.1 Operationalising corporate ethics programmes 259 9.2.2 Effectiveness of corporate ethics programmes 263 9.3 Corporate governance 265 9.3.1 Corporate governance and its importance 265 9.3.2 Theories of corporate governance 268 9.3.3 Global governance systems, principles and practices 269 9.4 Corporate citizenship: Implications for the HR function 278 9.4.1 Corporate responsibility and HRM 278 9.4.2 Corporate ethics programmes and HRM 280 9.4.3 Corporate governance and HRM 282 Summary 284 Key concepts 284 Case study: Starbucks 285 Review questions and activities 288
Further reading 289 Websites 289 Endnotes 289 10 Human resource management in the electronic era 297 Learning outcomes 297 Purpose 297 Chapter overview 297 Introduction 298 10.1 The impact of the electronic era on business 298 10.1.1 What does e-business mean? 298 10.1.2 Where does a company start on the e-business path? 299 10.1.3 Formulating an e-business strategy 299 10.1.4 Implementing the e-business strategy 300 10.2 The impact of the electronic era on HRM 302 10.2.1 Describing E-HR 302 10.2.2 Advantages of E-HR 304 10.2.3 Disadvantages of E-HR 305 10.2.4 HR intranet sites 305 10.2.5 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 324 11 Change management and building the learning organisation 327 Learning outcomes 327 Purpose 327 Chapter overview 327 Introduction 328 11.1 Change management 328 11.1.1 The triggers to organisational change 329 11.1.2 Barriers to organisational change 329 11.1.3 Overcoming barriers to change 330 11.1.4 A strategic organisational change (SOC) framework 330 11.2 The learning organisation 335
11.2.1 Characteristics and benefits of a learning organisation 335 11.2.2 Building a learning organisation 336 11.3 The chief learning officer (CLO) 342 11.3.1 Characteristics of a chief learning officer 342 11.3.2 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 348 12 Human resource management - An international dimension 351 Learning outcomes 351 Purpose 351 Chapter overview 351 Introduction 352 12.1 Four key debates 352 12.1.1 The universalist and contextual paradigms in HRM 352 12.1.2 Comparative and International HRM 354 12.1.3 Cultural and institutional explanations of differences in HRM 354 12.1.4 Convergence and divergence in HRM 356 12.2 IHRM: What is special about 'international'? 357 12.2.1 The drivers of global HRM 360 12.2.2 The enablers of global HRM 362 12.3 International transfers 362 12.3.1 International transfers: Cheaper and/ or better 363 12.4 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
13 The role of human resource management in the twenty-first century 379 Learning outcomes 379 Purpose 379 Chapter overview 379 Introduction 380 13.1 The workplace of the twenty-first century 380 13.1.1 The virtual organisation 381 13.1.2 The just-in-time workforce 382 13.1.3 The ascendancy of knowledge workers 383 13.1.4 Computerised coaching and electronic monitoring 383 13.1.5 The growth of worker diversity 385 13.1.6 The ageing workforce 385 13.1.7 The birth of the dynamic workforce 385 13.2 The redesign of the HRM role 385 13.2.1 Contracting new roles 386 13.2.2 Competencies 389 13.2.3 Redesign of the HRM process and structure...389 13.3 The competencies the future HR professional will require 389 13.3.1 Strategic Positioner 389 13.3.2 Credible Activist 389 13.3.3 Capability Builder 390 13.3.4 Change Champion 390 13.3.5 HR Innovator and Integrator 391 13.3.6 Technology Proponent 391 13.4 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