CONTEMPORARY ISSUES gaining a competitive advantage C Brewster L Carey P Grobler P Holland SWdmich OXFORD UNIVERSITY PRESS Southern Africa
Table of contents Acknowledgements About the authors Preface XVII xix xxiii Human resource management's role in the evolving paradigm 1 1.1 The origins of HRM 1.2 The new role of HRM 1.3 The new employee-employer relationship 1.4 Innovative approaches to HRM 1.4.1 Self-managed work teams 1.4.2 Alternative workplace 1.4.3-;.' E-HRM 1.4.4 Talent management Case study: Just putting you on hold... Protea Bank Appendix 1.1 Teleworking - organisational, societal, and individual advantages and challenges Appendix 1.2 Addressing the risks of working at home 1 1 1 2 2 3 5 8 8 11 14 15 17 18 19 22 22 22 22 27 29
viii CONTEMPORARY ISSUES IN HUMAN RESOURCE MANAGEMENT 3e 2 Human resources and the competitive advantage 30 30 30 30 31 2.1 What is a'competitive advantage'? 31 2.2 Sources of competitive advantage 31 2.3 HR's role in gaining a competitive advantage 34 2.3.1 The resource-based paradigm 35 2.3.2 The best-practices paradigm 37 2.3.3 The process paradigm 38 38 38 Case study: Outsourcing: Can it work? 39 42 42 42 43 3 Human resources and leadership 47 47 47 47 48 3* What is leadership? 48 3.2 What leaders do on the job 51 3.3 Successful and unsuccessful leadership 52 (, 3.4 Individual models of leadership 53 3.4.1 Traits-based approach 53 3.4.2 Behavioural-based approach 53 3.4.3 -Situational-based approach 54 3.5 Group models of leadership 54 3.5.1 Cross-functional teams 55 3.5.2 Self-managed teams 55 3.5.3 Executive teams 55 3.6 Organisational models of leadership 58 3.6.1 Transactional-based approach 58 3.6.2 Transformational-based approach 58 3.6.3 Charismatic-based approach 58 3.6.4 Managerial-based approach 58 3.6.5 Strategic-based approach 59 3.6.6 Institutional leadership 60
Contents ix 3.6.7 E-leadership approach 3.7 Techniques for leadership training and development 3.8 The leadership role of HRM Case study: Sam Magubane - Sun Sporting Goods 61 62 65 66 66 67 68 68 68 69 The strategic role of human resource management 73 4.1 The basic principles of SHRM 4.2 The relationship between strategic management and SHRM 4.2.1 The technical system 4.2.2 The political system 4.2.3 The cultural system 4.3 The design of an HR strategy 4.4 Models of SHRM 4.4.1 Organisational SHRM content models 4.4.2 Functional SHRM content models 4.4.3 Organisational SHRM process models 4.4.4 Functional SHRM process models 4.4.5 ^General SHRM models 4.4.6 Models of 'fit' versus 'flexibility' Case study: Happy Sky Company: Aligning human resource functions with strategic objectives Appendix 4.1 SHRM in the city of Clearwater, Florida (USA) 73 73 73 74 74 76 78 78 78 79 83 83 84 86 86 86 86 91 91 92 94 94 94 94 98
x CONTEMPORARY ISSUES IN HUMAN RESOURCE MANAGEMENT 3e 5 Managing flexible patterns of work for competitive advantage 102 5.1 5.1.1 5.1.2 5.1.3 5.1.4 5.1.5 5.1.6 5.1.7 5.1.8 5.1.9 5.2 5.3 5.3.1 5.4 5.4.1 5.4.2 5.4.3 5.5 5.5.1 5.52 What is flexibility? Functional flexibility Numerical flexibility Work-time flexibility Financial flexibility Procedural flexibility Regulatory flexibility Mobility flexibility Cognitive flexibility Organisational flexibility Organisation readiness for flex work Flexibility and organisational design The flexible firm or core-periphery model The changing dynamics of flexibility New workers -the changing dynamics of the flexible core worker ' New organisations - the changing dynamics of the flexible organisation 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 Case study:. Managing diversity for competitive advantage at Deloitte &Touche (now Deloitte) 102 102 102 103 103 103 104 104 104 105 105 105 106 106 106 107 107 109 109 111 113 114 114 115 117 118 119 120 120 120 120
Contents xi Talent management - An HR challenge 126 6.1 6.2 6.3 6.3.1 63.2 63.3 6.3.4 6.3.5 6.4 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 Talent management in practice Case study: Developing talent at Kyphon and Triage - different but similar 126 126 126 127 127 128 130 130 132 133 134 135 137 138 138 139 144 144 144 144 7 Measuring human resource management within organisations 147 147 147 147 148 7.1 The Balanced Scorecard 148 7.1.1 Compiling the Balanced Scorecard-who is responsible? 151 7.1.2 Implementing the Balanced Scorecard within an organisation 151 7.2 The HR Scorecard 153 7.2.1 Building an HR Scorecard 153 7.2.2 How does the HR Scorecard work? 153
xii CONTEMPORARY ISSUES IN HUMAN RESOURCE MANAGEMENT 3e 7.3 The Workforce Scorecard 156 73.1 The composition of the Workforce Scorecard 157 73.2 Implementing the Workforce Scorecard 158 159 159 Case study: IBM's HR takes a risk 160 164 164 164, 164 Appendix 7.1 Assessing the need for a Balanced Scorecard 165 8 Ethical issues and challenges in human resource management 167 8.1 8.2 8.2.1 8.2.2 8.2.3 8.3 8.3.1 8.3T2 8.3.3 8.3.4 8.3.5 8.4 8.4.1 8.4.2 8.43 8.5 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 Ethica [decision-making frameworks The consequences of actions: Teleological theory The importance of duty to others: Deontological theory Fairness: The idea of justice Individual entitlements: Rights 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 Case study: Voluntary resignations at Orbolay 167 167 167 168 168 170 170 171 172 176 176 178 179 181 182 184 185 187 189 190 192 192 193 195 195 195 195
Contents xiii Corporate social responsibility, ethics and governance: Implications for corporate citizenship and human resource management 200 9.1 9/1.1 9.1.2 9.1.3 9.1.4 9.2 9.2.1 9.2.2 9.3 9.3.1 9.3.2 9.3.3 9.4 9.4.1 9.4.2 9.4.3 Corporate social responsibility The narrow classical economic view of CSR The socio-economic view of CSR The broad maximal view of CSR Current developments in CSR Corporate ethics programmes Operationalising corporate ethics programmes Effectiveness of corporate ethics programmes Corporate governance Corporate governance and its importance Theories of corporate governance Governance standards and principles Corporate citizenship: Implications for the HR function Corporate social responsibility and HRM Corporate ethics programmes and HRM Corporate governance and HRM Case study: Constructive relationships bring tangible benefits at Anglo Platinum > Appendix 9.1 Proposed model stages of corporate citizenship 200 200 200 201 203 205 208 209 210 211 211 214 216 216 217 220 225 225 226 228 229 230 231 234 234 234 235 239
xiv CONTEMPORARY ISSUES IN HUMAN RESOURCE MANAGEMENT 3e 10 Human resource management and the electronic era 241 241. 241 241 242 10.1 The impact of the electronic era on business 242 10.1.1 What does e-business mean? 242 10.1.2 Where does a company start on the e-business path? 242 10.1.3 Formulating an e-business strategy 243 10.1.4 Implementing the e-business strategy 244 10.2 The impact of the electronic era on HRM 246 10.2.1 Describing E-HR ^ 246 10.2.2 Advantages of E-HR 246 10.2.3 Disadvantages of E-HR 247 10.2.4 HR intranet sites 247 10.2.5 E-HR in practice 248 255 256 Case study: Training at Sunrise Inc. 257 258 258 258 Endnof.es 258 if Change management and building the learning organisation 261 261 261 r 261 262 11.1 Change management 262 11.1.1 The triggers to organisational change 262 11.1.2 Barriers to organisational change 263 11.1.3 Overcoming barriers to change 265 11.1.4 A strategic organisational change (SOC) framework 266 11.2 The learning organisation 268 11.2.1 Characteristics and benefits of a learning organisation. 269 11.2.2 Building a learning organisation 269
Contents xv 11.3 The chief learning officer (CLO) 11.3.1 Characteristics of a chief learning officer 113.2 The role of the chief learning officer Case study: The role of HR in re-engineering and change at Siemens Rolm 273 274 274 276 276 277 278 278 278 278 12 Human resource management - An international dimension 280 280 280 281 281 12.1 Three key debates 281 12.1.1 The universalist and contextual paradigms in HRM 281 12.1.2 Convergence and divergence in HRM 283 12.1.3 Cultural and institutional explanations of differences in HRM 283 12.2 International HRM: What's special about'international'? 285 12.2.1 The drivers of global HRM 288 12.2.2 The enablers of global HRM 290 123 International transfers 291 12.3.1 International-transfers: Cheaper and/or better 291 12.4 Strategy and attention to detail 295 y-' 296 296 Case study: Global HR at McDonald's 297 299 299 299 299
xvi CONTEMPORARY ISSUES IN HUMAN RESOURCE MANAGEMENT 3e 13 The role of human resource management in the new millennium 304 13.1 The workplace of the new millennium 13.1.1 The virtual organisation 13.1.2 The just-in-time workforce 13.13 The ascendancy of knowledge workers 13.1.4 Computerised coaching and electronic monitoring 13.1.5 The growth of worker diversity 13.1.6 The ageing workforce 13.1.7 The birth of the dynamic workforce 13.2 The redesign of the HRM role 13.2.1 Contracting new roles 13.2.2 Competencies 13.2.3 Redesign of the HRM process and structure 133 The competencies the future HR professional will require 13.3.1 Talent manager and organisational designer 13.3.2 Culture and change steward 13.3.3 Strategy architect 13.3.4 Operational executor 13.3.5 Businesl ally 133.6 Credible activist 13.4 The structure of the HR department of the future Case study: A change in HR, ; 304 304 304 305 305 306 307 307 307 308 308 308 308 309 311 311 311 312 312 312 312 313 313 314 317 317 318 319 319 319 319 Glossary Subject index Author index 322 325 330