Chapter 13

The role of human resource

management in the
twenty-first century

Chapter content
Opening case: a Change in HR
Introduction
The new role of human resource
management within organisations
Important changes taking place within the
workplace
Necessity to reposition the HR function
Tactics to reposition the HR function
Competencies needed by the HR professional
to manage this new work environment
The new HR structure in the new work
environment

The workplace of the 21st

century
Changes over the next few years) that will
reshape the work environment (Robert
Barner):
The virtual organisation

The ascendancy of knowledge workers

The birth of a dynamic workforce

Changes in the business and

its impact on the people and
the HR Department

The virtual organisation

Virtual organisation: organisational
members are linked at different work sites
by means of electronic technology, and
are communicating with each other via
these systems
Virtual organisations exhibit a number of
characteristics, it will:
Be reliant on .
Be enabled via .
Initially exist only across .

Growth in virtual
organisations
Growth can be attributed to:
- The rapid evolution of electronic
technology in the area of video, audio and
text information
- The spread of computer networks over the
world as a result of globalisation
- The growth of home offices
(telecommuting)

Principles for effective

virtual teamwork

Realign reward structures for virtual teams

Leverage anonymity when appropriate

Train teams to self-facilitate
Embed collaboration technology into
everyday work

Virtual organisations challenges for the future

Management , employees and HR
perspective:
Effective communication and __________
Form clear agreements from the outset
regarding
___________________________________
Misunderstandings and interpretations as a
result of ___________________________________
Speed of decision-making may place great
pressure on individuals

Virtual organisations challenges for the future

(cont.)

Management , employees and HR

perspective:

__________ and __________ will change

drastically
Rigid traditional job description will also
have to __________
Companies will follow the __________-based
approaches
Problems with performance appraisals and
the way employees are compensated

Predictors and criteria of the

VTCI

The just-in-time workforce

Growth in temporary workers, just-in-time
workers, and the outsourcing of a large
number of organisational functions have
resulted in companies using more __________
HR professionals will have to find __________
to motivate them, as serious problems in
performance and morale will occur
Conflict between __________ and __________
staff can easily occur

The just-in-time workforce

(cont.)
Due to their employment contract,
temporary workers cannot be motivated
by the traditional methods of promotion,
merit increases or even profit-sharing
programmes
To overcome these problems, .

HR professionals will have to look at

orientation and training of just-in-time
workers

The ascendancy of
knowledge workers
World is moving rapidly away from
manufacturing into .
The emerging knowledge worker will be a
unique individual who must be nurtured to
.

The ascendancy of
knowledge workers (cont.)
Companies continue to become flatter,
individuals who do not add value will be
__________
Previously individuals would be paid only for
performing __________ tasks
Managers and employees will have to make a
strong commitment to __________ and
__________ to achieve job security in the new
work environment
As these new knowledge workers become
more mobile, HR managers will have to
continually educate and train new employees
in company culture and values

Computerised coaching and

electronic monitoring
Growth in electronic systems over the
next number of years will allow
employees to become fully independent
Easier control by managers over .
Employees will be able to learn .

Computerised coaching and

electronic monitoring (cont.)
Employees will become less .
Difficult for employees to draw a line
between
Employees' right to privacy .

The growth of worker

diversity
Mobility of workers between countries has
________
Individuals with specific skills are sought
throughout the world
Companies are setting up manufacturing
and assembly plants worldwide, and
smaller companies are expanding into
international markets

The growth of worker

diversity (cont.)
Workers who are able to operate
successfully in these diverse environments
will be highly valued by companies
HR professionals will have to provide
.
Goldman example

The ageing workforce

In the past companies were reluctant to
employ older employees
Older workers were often denied
challenging jobs
With the lack of skills in numerous areas,
older workers are .
Older workers are more .

The ageing workforce (cont.)

Younger managers may find themselves
.
HR managers must arrange for these
managers to undergo .

The birth of the dynamic

workforce
Processes and methods of performing work
are no longer __________ it is __________
Requires workers to adapt __________
Managerial performance will be based less
on ________________________________ and
more on
__________________________________________
New dynamic environment will require
workers to jump quickly into new ventures
and manage temporary projects

The redesign of the HRM role

Gregory Kesler
Re-engineering of HR processes
will reduce waste, result
in more satisfied
internal clients
will not change the
fundamental role that
HR professionals play in
the business/value they
add to shareholders

HR professionals must work with top

management to contract for a new or realigned
role, before pursuing the re-engineering route
(to be successful)

The redesign of the HRM role

Three tactics to achieve success
according to Kesler:
_________ with
management
for a new
role for HR
__________
Identifying
HR work,
and _______
systems
new HR
and
competencies organisati
on

Components cannot achieve change alone,

need to be done in conjunction with one
another (Kesler)

Contracting new roles

Important to involve the internal clients who
will be served
Several stakeholders need to be approached
can include:

Two-way dialogue in which .

Process needs to be developed by which HR
priorities for the business are identified
through involvement of both HR and line
management
HR and line managers must also agree on
.

The performance capabilities

model: defining the
fundamental role of HR

HR grid at Whirlpool's North

American Appliance Group
(NAAG)

Competencies
Besides determining what new roles must
be developed, additional competencies to
support this new role (leadership, strategic
planning and business know-how) must
also be developed
In many HR organisations these
competencies will be unknown to the HR
staff

Redesign of the HR process

and structure
Final step is the
Re-engineering plays a vital role (as it
does in the other functional areas within
the organisation)
Re-engineering action redirects .
HR structure is realigned to focus on
.

Competencies required of
the future HR professional
Competency =
Ulrich, Brockbank, Yeung and Lake - HR
professionals demonstrate competence
when they add value to their business
Delivering ideas, .

Competencies required of
the future HR professional
(cont.)

Value of HR professionals is in their ability

to
In developing the competencies to design
and deliver practices which build
organisational capability, they create and
sustain unique sources of competitive
advantage

Six domains to become a

successful HR professional

Capability builder
The HR professional is able to enhance
individual abilities into an effective and
strong organisation, through building
the organisations capabilities
This process can take place through a
consistent audit and investment in the
creation of organisational capabilities
HR professionals who are successful in
this area will be able to:
-

Change champion
The HR professional makes sure that
isolated and independent organisational
actions are integrated and sustained
through a disciplined change process
To be successful the HR professional must
initiate change by building a case for the need
for change and must be able to sustain change
through organisational resources
HR professionals who are successful in
this area will be able to:

Strategic positioner
The HR professional must act and think
from the outside in
Well versed and can translate the external
business trends into internal decisions and
actions
Have a good understanding of the impact of
the economic, political, social, technological
and demographic trends
Able to target and serve their customers by
aligning organisation actions to these needs
HR professionals who are successful in
this area will be able to:

Technology proponent
The HR professional uses technology
more efficiently to deliver HR
administrative systems such as benefits,
payroll processing, and health-care costs
Be in a position to be able to connect people
better through technology
HR professionals who are successful in
this area will be able to:
-

HR innovator and integrator

The HR professional knows the
historical research on HR to enable
them to innovate and integrate HR
practices into a unified solution to
solve future business problems
Achieve this by gaining insight into the
latest trends in the different HR activities
HR professionals who are successful in
this area will be able to:
-

Credible activist
The HR professional must build their
personal trust through their business
acumen
Achieve this by communicating clear and
consistent messages with integrity
Have a clear point of view and be able to
influence others in a positive way.
HR professionals who are successful in
this area will be able to:

Competencies for the HR

professional of the future

The structure of the future

HR department of the future
HR department to function successfully and
survive tremendous changes within
organisations,
Reorganisation should better position HR
Hilborn:
HR departments have been evolving away from a
traditional functional design to a team based
model. The traditional design includes a vice
president of HR, a manager of compensation and
benefits, a manager of HRIS and payroll, a
manager of employment etc. Emerging model is
more like a 3-legged stool.

The 21st century HR

organisation