Work Systems Design towards SHRM

Work Systems Design and their links with SHRMChandraObjectivesTo understand the design of work systems and their links with SHRMStrategic View of Human Resources (Mello, 2005)Employees are human assets Increase in value to the organization and marketplace, when appropriate investments are made in policies and programs by the companyEffective organizations recognize that employees have value just as the organizations physical and capital assets have valueEmployees are valuable source of sustainable competitive advantage(Strategic) Sources of Employee ValueTechnical KnowledgeMarkets, processes, customers, environmentAbility to Learn and GrowOpenness to new ideasAcquisition of knowledge and skillsDecision Making CapabilitiesMotivationCommitmentTeamworkInterpersonal skills, leadership abilitySHRM (Mello, 2005)Involves development of consistent, aligned collection of practices, programs, and policies to facilitate achievement of strategic objectivesRequires abandoning mindset and practices of personnel management and focusing on strategic issues rather than operational issuesIntegration of all HR programs within a larger framework, facilitating mission and objectivesA written down strategy facilitating involvement and buy-in of senior executives and other employeesHPWSHigh Performance Work System (HPWS) (Marler, 2012)A combination of high involvement work practices and high commitment employment practicesConfiguration perspective: Synergetic effects due to the system of work practices characterized by a cluster of HR practicesUniversalist perspective: Adopting HPWS configuration regardless of context leads to superior organizational performanceUniversalist PerspectiveThe relationship between HRM practice and organizational performance occurs, irrespective of the context in which an organization operatesConfigurational PerspectiveSystems, clusters or bundles of human resource management practices (configuration of a set of internally aligned HRM practices) interact with each other to have synergistic outcomes at the organization level than single HRM practices taken in isolation.Most studies conclude that HPWS positively influences the firms performance (Subramony 2009, Batt 2002)

Emergence of HPHRS from HPWS - Ericksen and Dyer (2005) HROs (High Reliability Organizations) strive to achieve virtually problem-free performance under the most trying circumstances.HPWS focuses on organizing systems that HROs use to foster reliability.HPHRS (high performance human resource strategy) refers to two distinct yet blurred streams of human resource strategy research: HPWS and best practices.REHRS (Reliability enhancing human resource strategy) on the other hand centres around behaviour approach to arrive at HPHRS, thus forming the 3rd wing.

Ericksen and Dyer (2005) conclude that reliability-oriented employee behaviours (ROEB) explain how people contribute to specific organizational goals in specific contexts and in turn, identify human resource strategies that extend the general HPHRS in new and important ways.

HPWS Adoption and Perception of Strategic ValueHuman capital refers to knowledge, skills, and abilities embedded within a firms human resources that are the direct result of learning, education, and training (Becker, 1962).Social capital pertains to the strength of relationships inside the firm and the ability to facilitate knowledge sharing and employee interaction (Youndt and Snell, 2004).Guthrie et al (2011) indicate that managers assessment of the strategic value of their firms HR departments are significantly influenced by relative HPWS useFurther this relationship is mediated by workforce human capital and social capital.HPWS Chief Operational ConstituentsHRPStaffing, down-sizing, reassignment, training and development, outsourcing, contractorsEmployee participationDesign and redesign of work systemsPerformance management and feedbackCompensation (skill-based, group intensive)Productive employee separationManagement of the global work force(Baily 1993, Pfeffer 1994, Huselid 1995, Mello 2005)Work Systems Model (Mello, 2005)A typical work systems model

Design of work systemsJob specialization, job enlargement, job rotation, job enrichment, vertical loadingCore Job characteristics modelSkill variety, task identity, task significance, autonomy, feedbackInterdependencePooled, sequential, reciprocal, higher levels of interdependence

What do workers need?Changing demographics and lifestylesWork-life balanceRepresentation of their ideasSafety in the workplaceFocus Aspects in Redesign of Work-systemsAlignment with strategic choiceDown-sizing, changed strategic objectivesMore involvement of workers in design and reengineering of jobsApplicable in disruptive technologiesStrategically beneficial cross-functional teamsMulti-tasking, functional down-sizing than personnel downsizingIndividualistic employees are unproductiveTrainings on team-cultureRestructuring requires training and supportFocus Aspects in Redesign of Work-systems contdOutsourcing of non-core work activitiesOffshoring to low-cost countriesMergers and acquisitionsAddress the barriers to changeNatural built-in resistance to changeFocus on benefitsRisk, uncertaintyBring clarityPoor coordination and communicationStrategic communicationIssues in Redesign of HPWSFailure to assign duties in a productive wayFailure to identify overloadsFailure to realize the tipping point of demands exceeding capacityHPWS keys a Team PerspectiveValue and endorse dissentEncourage fluidity of membershipEnable teams to make decisions(Mello, 2005)

Team Development Model (Mello, 2005)

Key ReferencesMarler, J., H. (May, 2012). Strategic Human Resource Management in Context: A Historical and Global Perspective. Academy of Management Perspectives Symposium, 6-11.Mello, J., A. (2005). Strategic Human Resource Management. South-Western.Ericksen, J., and Dyer, L. (June, 2005). Toward a strategic human resource management model of high reliability organization performance. The International Journal of Human Resource Management, 16(6), 907-928.Guthrie, J., P., Flood, P., C., Liu, W., MacCurtain, S., and Armstrong, C. (April, 2011). Big hat, no cattle? The relationship between use of high-performance work systems and managerial perceptions of HR departments. The International Journal of Human Resource Management, 22(8), 1672-1685.Becker, G., S. (1962). Investment in Human Capital: A Theoretical Analysis. Journal of Political Economy, 70, 9-49.Youndt, M., A., and Snell, S., A. (2004). Human Resource Configurations, Intellectual Capital, Organizational Performance. Journal of Managerial Issues, 16(3), 337-360.Bailey, T. (1993). Discretionary Effort and the Organization of Work: Employee Participation and Work Reform Since Hawthorne. Working Paper, Columbia University, New York.Huselid, M., A. (1995). The Impact of Human Resource Management Practices on Turnover , Productivity, and Corporate Financial Performance. Academy of Management Journal, 38(3), 635-672.Pfeffer, J. (1994). Competitive Advantage through People: Unleashing the Power of the Work Force. Harvard Business School Press: Boston, M.A.Batt, R. (2002). Managing Customer Services: Human Resource Practices, Quit Rates, and Sales Growth. The Academy of Management Journal, 45(3), 587-597.Subramony, M. (2009). A Meta-Analytic Investigation of the Relationship between HRM Bundles and Firm Performance. Human Resource Management, 48(5), 745-768.