Perceptions of the value of the HR function

This article explores the added value of the HR function as it is perceived by three groups of managers: top managers, HR managers and line managers. Despite the fact that literature about strategic HRM focuses almost exclusively on the value of the HR function as a strategic partner, it was assumed that its perceived value for the business would not be restricted to the area of strategy formulation and implementation. Several 'result domains' can be distinguished in which the HR function can deliver value to the business. Based on our review of the literature, the degree of strategic involvement of the function was used as a second perspective to investigate its perceived added value. To examine our propositions, a qualitative study was carried out in which 97 HR managers, 38 top managers and 178 line managers participated. The results confirm our thesis that the perceived value of the HR function contains more than just the fulfilment of its role as a strategic partner. Based on our results, an integrated model for the perceived value of the function has been developed.     

Perspectives on line managers in human resource management: Hilton International's UK hotels

Although contextual factors act to encourage the devolvement of human resource management to line managers, recent research indicates that there is substantial potential for human resource specialists and line managers to share more effectively responsibility for their organization's human resource activities in business partnerships. The foundation for this is arguably commonality in opinions on the principles and practices of human resource activities. However, line managers and human resource specialists often have dissonant opinions on human resource management.

This paper explores line manager and human resource specialists' perspectives on line manager involvement in human resource management, theoretically and empirically. The primary work comprises a survey of the views of line managers and human resource specialists on devolving a range of human resource activities to line managers in a case organization, Hilton International's UK hotels. Differences between line managers' and human resource specialists' perspectives are found in five aspects: understanding and ownership of the company's service and HR strategy; line manager involvement in and rankings of HR activities; HR specialists' support of line managers; barriers to line managers' involvement in HR activities; and the competence of line managers in HR activities. Importantly, it is found that where there are divergent views across line managers and their HR specialist in their hotel there is poor hotel business performance and, conversely, convergent views are evident in the effectively performing hotels. These findings may have resonance for other organizations in devolving human resource management to the line and developing human resource business partnerships for business performance. It is proposed that three types of line manager buy-in are central to their active involvement in HR, namely: conceptual understanding of the rationale for their involvement; implementation effectiveness through HR role clarity and capability; and affective commitment in believing in the value of their involvement in HR.     

Metrics: HRM's Holy Grail? A New Zealand case study

What gets measured in business is noticed and acted on. The importance of human resource management (HRM) to be noticed as a vital key to business success has been argued profusely by the HRM profession over the last three decades. While the importance of human resource (HR) measurement is not disputed by business managers, the search for meaningful generic HR metrics is like HRM's Holy Grail. The purpose of this research is to investigate the issues confronting a sample of business organisations concerning measurement issues. It examines the current measurement practices used and their HR measurement needs. Developing appropriate HR measures, in terms of adding value, allows organisations to refocus their resources for leverage. Inappropriate measures simply encourage inappropriate behaviours not in the long‐term interests of the business. We know that HRM is less prepared than other business functions (like finance or management information systems) to quantify its impact on business performance. Our results suggest that HR metrics as the Holy Grail of HRM remain elusive. This research signals the importance of developing relevant and meaningful HR measurement models, while acknowledging that the actual metrics used (unlike accounting measures) may vary from business to business.     

HR outsourcing: the impact on HR role,competency development and relationships

The business benefits of an outsourcing strategy are well documented, and HR is encouraged to outsource in order to add value. Yet little is known about how HR outsourcing affects the HR role, competencies and relationships with senior management. These issues are examined through 27 semi‐structured interviews with senior HR professionals, comparing HR departments engaged in HR outsourcing with those maintaining full in‐house HR provision. The findings indicate that HR outsourcing stymies HR role transformation. HR outsourcers experienced limited skill development and an increased focus on cost reduction at the expense of their strategic position. In contrast, non‐HR outsourcers actively engaged in other parts of the business, developing competencies that garnered trust and support of senior managers. The benefits of an external HR community appear limited. The study suggests that an ‘internal’ HR community is better placed to enhance HR departmental roles.     

THE SOCIAL ROLE OF BUSINESS ENTERPRISE IN BRITAIN: AN AMERICAN PERSPECTIVE. PART II

In Part I of this paper,²it was suggested that a concern for the social responsibilities of large business enterprises had received far less explicit attention in Britain than it has in the United States. In the latter it has preoccupied corporate managers, business critics, scholars, trade unionists and the general public for more than a generation. My analysis of the reasons for the comparatively lower degree of British concern with the social role of business enterprise stressed the importance of the following seven factors:

• 1 There exists in Britain (relative to the United States) greater reliance on publicly owned enterprises about which the public policy debate concerning the social role of business institutions has been focused.
• 2 British acceptance of corporate size and market dominance is greater than in the United States.
• 3 A long-standing governmental involvement in economy and society has characterized Britain's political economy.
• 4 A pre-emption of societal leadership functions by non-business élites has occurred in Britain.
• 5 The impact of Britain's social structure has produced an informal Clite consensus regarding a limited social role for business.
• 6 There is a British tradition of according privacy to business and other social institutions.
• 7 There is a lesser degree of‘professionalism’ in management practice–both in terms of substance and style–in Britain when compared with the United States.

     

The benefits,satisfaction, and perceived value of small business membership in a chamber of commerce

• Nonprofit chambers of commerce have a long history in western culture but little if any empirical research has been conducted to explore why a small business would join one. This study focuses on members' evaluation of chamber assistance programs and benefits and how they mediate the impact of satisfaction and the perceived customer value of paid membership for chamber services. A mail census survey of all 2019 members, in a large category‐four chamber of commerce, provided valid and reliable representation of existing membership demographics. Factor analysis identified four main benefits, whereas a LISREL model was applied to identify the mediating impact of relational benefits on satisfaction and perceived value. All four dominant benefits significantly correlated with both membership satisfaction and perceived value as did the correlation between satisfaction and perceived value. However, perceived value was found to have higher correlations with relational benefits than that of satisfaction. This study is important as it provides managers with a framework to identify and balance the benefits desired by the membership and adjust the level of expected satisfaction with perceived value in a nonprofit service‐oriented assistance organization.

Copyright © 2013 John Wiley & Sons, Ltd.     

Labour inclusion of people with disabilities in Spain: the effect of policies and human resource management systems

Abstract

This research answered the question of which elements, linked to HR management, facilitate the labour inclusion of people with disabilities. We analysed the existence of policies in different organizations, and the interaction between these policies and the adaptation of the human resource management systems in order to archive effective labour inclusion. Spanish Human Resource managers answered a questionnaire theoretically based on the Human System Audit model. Results showed that the existence of a strategic plan for the normalization of disability in the work environment effectively leads to high levels of inclusion. This is especially relevant for those organizations that have not adapted the systems of training, professional development and internal communication to people with disabilities. The added value and newness of this research lies in bringing empirical evidence on the role of a strategic plan to normalize disability in the work environment, a policy with an internal- and external-focus, as a diversity strategy roadmap in the framework of an inclusive culture.     

Redesigning the human resources function at Lafarge

This article describes the detailed process of redesigning and implementing the human resources (HR) function at Lafarge. The article argues that a well‐articulated and integrated approach of (1) recruitment, selection, and induction, (2) retraining and redeployment, (3) a performance appraisal system, (4) a compensation and reward mechanism, and (5) rightsizing and (6) integration is required to be aligned with the overall business strategy of the organization. It also reinforces that the foundation of a value‐added HR function is a business strategy that relies on people as a source of competitive advantage. Key challenges for Lafarge in the future include (1) maintaining the change momentum, (2) fast and effective integration of acquired companies and transfer of “best practices,” and (3) attracting and retaining a diverse workforce through their internationalization program. © 2004 Wiley Periodicals, Inc.     

企业人力资源管理有效性研究

本文通过分析企业中人力资源经理和直线经理对人力资源管理实践的相关问题的认知评价,研究了中国本土企业的人力资源管理实践有效性的问题。研究数据表明,目前企业中直线经理和人力资源经理对于人力资源管理各功能的重要性认知相同,但在人力资源管理对于企业内部客户服务的有效性的认知和评价标准存在显著差异。本研究的意义在于帮助企业从人力资源管理职能的角度,加强人力资源管理系统与企业战略目标实现的匹配,为改善企业业绩的“捆绑性”的实践提供实证依据。     

How Top Management HR Beliefs and Values Affect High‐Performance Work System Adoption and Implementation Effectiveness

What explains why high‐performance work systems (HPWSs) are not adopted more widely by firms that would appear to benefit economically by adopting them? We address this question by drawing on the upper‐echelons perspective to consider the role of the top managers’ beliefs concerning the financial payoffs from investments in HR (“HR cause‐effect belief”) as well as their employee‐centered value‐based beliefs (labeled “HPWS values”). We propose a conceptual model in which top management HPWS values moderate the relationship between HR cause‐effect beliefs and the intensity of HPWS programs reported by managers as well as the relationship between HPWS programs and employees’ perceptions of implemented HPWS practices. We test our model using a unique multisource data set collected from 120 hotel franchisees that includes survey responses from 648 managers and 1,293 employees. We find that firms’ ability to translate top managers’ cause‐effect beliefs about the economic value of HR investments into adoption of HPWS programs, as well as their ability to effectively implement these HPWS programs, is significantly affected by the value‐based HR beliefs held by top managers. © 2014 Wiley Periodicals, Inc.     

How international nonprofits build brand equity

This paper describes an empirical model of brand equity for international nonprofit organizations and offers nonprofit managers suggestions for the management of their brands. The main areas of interest include:

• A review of the importance of branding for nonprofits, the lack of a brand equity models specifically for nonprofits, and the key differences between for‐profits and nonprofits.
• A proposed nonprofit brand equity model, based on a grounded theory and system dynamics approach.
• A series of specific managerial recommendations, for building nonprofit brand equity.

Copyright © 2008 John Wiley & Sons, Ltd.     

People management: developing and testing a measurement scale

Abstract

The central concept in this study is people management, referring to line managers’ implementation of HR practices and their leadership behaviour oriented at supporting the employees they supervise at work. In this study we conceptualize people management and develop a multidimensional scale to measure it from the perspectives of both employees and line managers. Using a Study 1/Study 2 design, including two-wave multilevel data from employees and line managers of a financial service provider, and cross-sectional data from teachers, educational support staff, and supervisors, we demonstrate the scale’s reliability and multidimensionality across samples and over time. We provide evidence of the convergent validity by showing that employees’ and line managers’ perceptions of people management are significantly related, and that people management is significantly related to transformational and transactional leadership. Also, we demonstrate that people management adds explained variance above and beyond transformational and transactional leadership in predicting team performance. We demonstrate criterion-related validity through people management’s relationship with job satisfaction, commitment, and work engagement. We discuss the implications of our measure for theory and research on people management, its antecedents, and its effects.     

Identification of values relevant to business research

In the face of increasing global competition, Human Resource (HR) professionals have been charged with ensuring that their organizations' human assets are adding the maximum value to products and services. One way to do this is to make an effective match between individual values and those that the organization espouses and requires. This article suggests that advances in maximizing human assets are being impeded because HR professionals lack a meaningful vocabulary with which to discuss values. Lists or taxonomies of values currently in the literature (Allport, G. W., Vernon, P. E., & Lindzey, G. (1960). A study of values. Boston: Houghton Mifflin; England, G. W. (1967). The manager and his values: An international perspective from the United States, Japan, Korea, India, and Australia. Cambridge, MA: Ballinger; Rokeach, M. (1973). The nature of human values. New York: The Free Press) are not framed in the common language of contemporary business. This article presents an alternative list of values derived from interviews with representatives from the business community including senior HR managers and executive recruitment professionals. The implications of this empirically derived list of value statements for the management of human resources are discussed, including the integration of HR and strategic functions and applications within traditional HR practices.     

Foundational Value of Statistics Education for Management Curriculum

The purpose of this paper is to propose a unique and distinct value of statistics education for management. The 1986 inaugural conference on Making Statistics More Effective in Schools of Business (MSMESB) proposed valuable guidelines for reforming statistics education in schools of business. However, a survey conducted by McAlevey & Everett (2001) identified that their impact has been minimal, and argued that structural problems many business schools have are the potential cause. We argue these structural problems exist because the value of the body of statistical tools for management is ambiguous and has not been made explicit. The unique and distinct value of statistics for management can be identified as the body of tools necessary to meet the inherent needs of a manager charged with making predictive judgments facing data. The need arises because human information‐processing capacity is quite limited, as the findings of researchers in cognitive psychology testify. These findings also affirm that the basic statistical concepts needed for processing data cannot be learned from management experiences. The model of a manager faced with data, while considering the evidence of inherent limitations of human information‐processing capacity, establishes the foundational value of statistics training in the management curriculum. Statistics education in business schools will be made more effective when management educators recognize such value of the discipline, lend their support and reward the ownership commitment for continuous improvement and innovations of the business statistics curriculum.     

The consensus between Italian HR and sustainability managers on HR management for sustainability-driven change – towards a ‘strong' HR management system

By sustainability-driven change, we mean the transformation of a company into an active agent of broad sustainable development. This paper focuses on two key features of this transformation: (i) the key role played by the company's human resource (HR) management system within that process; and (ii) the fact that the transformation involves a variety of agents and that, among others, HR and sustainability managers are pivotal to the success of the process. Gaining consensus between them on those aspects of the HR system that support sustainability-driven change is a key success factor, as it results in a ‘strong' HR management system that sends coherent messages to the organization. In addition, consensus between the two managers can be critical in preparing a compelling business case for sustainability for the senior management of the organization. This paper explores the level of consensus between the HR and sustainability managers using a survey of 89 managers in Italian companies committed to sustainability. The results of our research indicate which elements of an HR management system are seen as important for sustainability-driven change by both the HR and the sustainability managers and what differences in perception exist between them. Based upon our findings, implications for HR practice and research are then advanced and discussed.     

The twenty‐first‐century HR organization

Like any value‐creating staff function, HR departments should operate as a business within a business. Others have focused on the strategy and direction of HR departments. This article examines the next evolution for how HR department organization structure can deliver value based on two premises: (1) HR organization should be structurally aligned with the organization structure of the business and (2) because diversified/allied business models prevail, it is important to lay out the five roles and responsibilities of HR that respond to this organization model: service centers, corporate, centers of expertise, embedded HR, and operational HR. The article lays out the duties of each role, the relationship among these roles, and suggestions for implementing this new HR structure. © 2008 Wiley Periodicals, Inc.     

A problematic transition to a strategic role: human resource management in industrial enterprises in China

The Chinese government has launched extensive reforms to encourage integration with the global economy. Our research investigates the implications for human resource management practices of the changing business environment in China, ownership of organizations, organizational strategies and strategic integration of the HR function. We conducted two surveys in major Chinese cities in 1994/5 and 2001/2, with managers of state-owned, privately owned, collectively owned and foreign-invested enterprises.

Regression analyses showed that organizational strategy and organizational ownership, in contrast with earlier research, were not found to be strong predictors of HRM practices. The changing business environment in China and participation by the HR function in strategic decision-making were the strongest predictors of HRM practices. Overall, a strategic role for the HR function and implementation of ‘Western’ HRM practices are becoming more prevalent in China, although the legacy of traditional practices endures and new challenges are emerging.     

Venture capitalists and entrepreneurs become venture philanthropists

• Non‐traditional charitable sources of revenue may be categorised as follows:
  • Venture philanthropy: Human resources and funding invested as donation in the charity by entrepreneurs, venture capitalists, trusts and corporations in search of a social return on their investment. It involves high engagement over many years with fixed milestones and tangible returns and exit achieved by developing alternative, sustainable income.
  • Commercial ventures: They seek a financial return on investment by creating a social enterprise operated by charities and their trading/holding companies alone or in partnership with the corporate sector, venture capitalists or investors to provide funding. Venture philanthropists may also ‘invest’ without establishing an equity position in the commercial enterprise. Any profits are re‐directed to mission‐related activity, although the business activity may or may not be mission related.
  • Social venture capital: It funds commercial ventures (as above) but may not seek a complete return on investment; instead the investor may off set some or all of the investment against social outcomes.
• Within the context of venture philanthropy, this paper demonstrates how charities, venture capitalists and entrepreneurs may work together in strategic alliances. It explores venture philanthropy from the perspective of venture capitalists and entrepreneurs, giving examples. Charities are shown how to prepare themselves to take advantage of these entrepreneurial opportunities.
• Although the emphasis in this paper is on venture philanthropy, the processes outlined may be used to help a charity take advantage of opportunities within the broader social entrepreneurial context. Successful venture capitalists and entrepreneurs have demonstrated the ability to turn outline business ideas into big results, frequently in highly competitive business environments.
• A common characteristic that appears to unite these individuals when they divert their interest toward social ventures is a desire to apply their business‐like approach, which includes planning processes, milestones and outcome measurement to their social venture activity.

Copyright © 2005 John Wiley & Sons, Ltd.