Case Study:

Human Resources Development: A study of some of the key strategic aspects of

BPOLAND’s HR Practices and Culture, as per assigned Questions.

Compiled by : Renaldo Meyers

Student number : 153023

Course : Post Graduate Diploma Business Management

Subject : Human Resource Development

Due Date : 15 April 2020

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 Table of Contents:

Executive Summary Pg.1

Section A

Question 1

Making reference to the article, consider B.POLAND’s human resource development

practices, and discuss whether B.POLAND may be regarded as strategically mature
in its human resource approach? Pg.2

1.1) Literature Review in Support of Answer Pg.2

1.2) Researchers’ critical analysis and supporting texts Pg.4

Question 2:

Examine the changes at B.POLAND and critically discuss whether the implementation
of an organisational development (OD) approach would reasonably strengthen
efficiencies organisation-wide? Pg.5

2.1) Literature Review & Arguments in Support of Answer Pg.5

2.2) Researchers’ critical analysis and supporting texts Pg.7

Question 3:
Design a performance management system for B.POLAND, which would further
inform the training and developmental needs for their employees. In doing so, highlight
the benefits of this system for the organisation? Pg.8

3.1) Literature Review & Arguments in Support of Answer Pg.8

3.2) Researchers’ proposed Performance Management System Pg.9

3.3) Researchers’ critical review and supporting texts Pg.13

3.4) Benefits of the suggested system Pg.13

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 Section B

Question 4:
Suppose you have been appointed as part of a cross-functional team of the HR
department of an organisation, to assist with the task of selecting and implementing
an HRIS; recommend a systematic plan for selecting and implementing E-learning for
the organisation? Pg.15

4.1) Literature Review & Arguments in Support of Answer Pg.15

4.2) Researcher’s proposal for selecting & implementing E-Learning Pg.16

4.3) Researchers’ critical analysis and supporting texts Pg.21

Question 5:
Discuss the significance of the need for HR Directors to make HR risk management a
core part of their strategic management process? Pg.22

5.1) Literature Review & Arguments in Support of Answer Pg.22

5.2) Researchers’ critical review and supporting texts Pg.25

Concluding Remarks Pg.26

Reference List Pg.27

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Executive Summary:

A fundamental shift is occurring in the world economy. As we move progressively away

from a world in which national economies were relatively isolated from one another
into an interdependent global economic system, we are witnessing the rapid
appreciation for and development of all aspects associated with and affected by
human resource management (Stavrou-Costea, 2004).

Grugulis & Marchington (2000), further states that while the emerging international
economy creates opportunities it also presents challenges and threats with which
yesterday’s business managers did not have to deal.

Managing human resources has become critical to the success of all companies, large
and small, regardless of industry. The more effectively a firm manages its human
resources, the more successful the firm is likely to be. Subsequently, it has become
commonplace to say that the management of human resources is and should be a
partner in developing and implementing a company’s strategy (Grobler et al., 2006).

According to Urban (1988) & supported by Sisaye (2004), human resource

management can therefore help the company reach organizational effectiveness and
thereby have a determining effect on whether or not the company is good enough, fast
enough, and competitive enough not only to survive but also to thrive. Today, it would
be difficult to imagine any organization achieving and sustaining effectiveness without
efficient human resource management programs and activities

Section A

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Question 1:
Making reference to the article, consider B.POLAND’s human resource development
practices, and discuss whether B.POLAND may be regarded as strategically mature
in its human resource approach?

1.1) Literature Review:

In their recent collaborative work Grobler, et al. (2006, p.5) states that:

“The emerging trend in human resource management is clearly toward the adoption
of the human resource approach, through which organisations benefit in two significant
ways: an increase in organisational effectiveness and the satisfaction of each
employee’s needs. Rather than addressing organisational goals and employee needs
as separate and exclusive, the human resource approach holds that organisational
goals and human needs are mutual and compatible: one set need not be gained at the
expense of the other”.

The authors further elaborate on a number of principles that provide the basis for a
matured human resource approach, such as:

Employees are investments that will, if effectively managed and developed, provide
long-term rewards to the Organisation in the form of greater productivity.

Policies, programmes and practices must be created that satisfy both the economic
and emotional needs of employees.

A working environment must be created in which employees are encouraged to

develop and utilise their skills to the maximum extent.

HR programmes and practices must be implemented with the goal of balancing the
needs and meeting the goals of both the Organisation and the employee.

Similar to the above principles, Pfeffer (1998, cited in Marchington & Grugulis, 2000)
identifies seven practices of successful organizations with a fully-fledged approach to
human resources:

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Employment security – This is seen as fundamental in order to underpin the remainder
of the HR practices, principally because it is regarded as unrealistic to ask employees
to offer their ideas, hard work, and commitment without some expectation of security
on their part. It is noteworthy that the term ‘employment’ security is used; this mirrors
the situation in Japanese companies where employees are offered some degree of
security in return for agreeing to mobility and flexibility in their employment.

Selective hiring – This is seen as an effective way to achieve ‘human capital

advantage’ by recruiting outstanding people and ‘capturing a stock of exceptional
human talent. Even though the notion that employers want to recruit the best people
available is hardly new, this is nowadays more likely to be systematized through the
use of sophisticated selection techniques and taking greater care when hiring.
Technical ability is not the only, or even the most important, attribute that employers
seek in new recruits; indeed, two of the major facets which are sought are trainability
and commitment.

Self-managed teams / team working – This practice has become more prevalent over
the last decade for a variety of reasons, not least in response to Japanese competition
as a way of pooling ideas and improving work processes, and it is now identified by
most employers as a fundamental building block in their organization. It has become
one of the key attributes that employers look for in new recruits, something which is
asked for in references, and which even plays a part in courses organized for school
students. It is typically seen as a route to better decision making and the achievement
of more creative solutions.

High compensation contingent on organizational performance – There are two

elements to this practice, higher than average compensation and performance-related
reward. Although both send a signal to employees that they deserve to be rewarded
for superior contributions. To be effective, this would need to be at a level which is in
excess of that for comparable workers in other organizations so as to attract and retain
high-quality labour.

Extensive training – Having recruited ‘outstanding human talent’, employers need to

ensure that these people remain at the forefront of their field, in terms not only of
professional expertise and product knowledge but also in getting the best of situations.
There is little doubt that there has been a growing recognition during the last decade
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of the importance of training and development, and even learning, as a source of
sustained competitive advantage.

Reduction of status differences – This again has some of its roots in the practices of
Japanese organizations and in symbolic manifestations of egalitarianism, such as
common canteens, company uniforms, and similar sickness and holiday entitlements,
as well as in employers sending messages to manual workers or white-collar staff that
they are valuable assets who deserve to be treated in a similar way to their more senior
colleagues. It is also seen as a way to encourage employees to offer ideas within a
system of ‘open’ management.

Sharing information – There are two reasons why this practice is essential. First, open
communications about financial performance, strategy, and operational measures
conveys a symbolic and substantive message that employees are trusted as well as
reducing the role of the grapevine in spreading rumours. Second, if team working is to
be successful and employees are to be encouraged to offer ideas, it is essential that
they have information upon which to base their suggestions and know something
about the financial context in which their ideas are to be reviewed.

1.2) Researchers’ critical review and supporting texts:

Therefore when comparing B.POLAND’s human resource practice with the principles
and examples of seasoned human resource strategies, quite a few similarities can be
identified, such as for example the fact that B.POLAND has a very extensive learning
and development programme, to the extent that they invest more than 1.5 million
people – hours to this function annually. B.POLAND’s salary band distribution, flat
hierarchy and continual growth over the years also compares favourably with
principles, such as employment security, reduction in statuses differences,
compensation contingent on Organizational performance, all of which are key
elements of a fully-fledged human resource approach, as highlighted by earlier
research.

However the researcher also cautions against using only these examples as a
wholesale indicator of an Organizations’ level of human resource approach. When
unpacked, the practices are much less ‘best or matured’ than might be hoped, there 4
are times when they appear to present contradictory messages, they are not
universally applicable, and they tend to ignore any active input from employees, other
than to help achieve employer goals into the organizations for which they work. It is
not clear that employees are as enthusiastic about these models as their employers
are, and if they are, their views are not afforded the same space. The nature of the
employment relationship itself is over-simplified and distorted. Useful though this
debate is, much more research is needed to make it meaningful and sufficiently
rigorous to withstand critical analysis. This may mean a focus on the somewhat wider
concept of human resource architecture, a realization that different sets of practices
may be important in different organizations, and a recognition that employees’
perceptions of work and their human resource perspective are what really matter at
workplace level.

Question 2:
Examine the changes at B.POLAND and critically discuss whether the implementation
of an organisational development (OD) approach would reasonably strengthen
efficiencies organisation-wide?

2.1) Literature Review:

Nel, et al. (2004) infers that the term “Organisational Development” implies a
normative, re-education strategy intended to effect systems of beliefs, values, and
attitudes within the organisation so that it can adopt better to the accelerated rate of
change in technology in our industrial environment, and in society in general. They
further maintain that Organisational development is a long-range effort to improve an
organisation’s problem solving and renewal processes, particularly through a more
effective and collaborative management of organisational culture.

This viewpoint is further supported by Urban (1988), in that he describes

organisational development as an assortment of training or beneficial interventions
whose purpose is assumed to be the improvement of the organisation and its
members. He further reiterates that organisational development is a planned,
systematic process of organisational change, based on behavioural science
technology, research and theory.

Other supporting research concludes that organisational development should be a

planned, problem orientated approach. It involves goal setting, action planning,
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monitoring and taking corrective action when and where necessary. Organisational
development attempts to apply theory and research from a number of disciplines to
the solution of organisational problems. It reflects a system approach, closely linking
the human resource and potential of an organisation to its technology, structure and
management processes. It is also an integral part of the management process,
focusing on improvement. It is thus not only for sick or failing organisations, but also
for healthy ones. It is something that can therefore benefit almost any organisation n
(Sisaye, 2004).

In addition to this, Cacioppe & Edwards (2004) suggests that the purpose of
organisation development is not only to improve organisational effectiveness but to
also improve organisational health and quality of working life. The organisational
health perspective includes the skills and knowledge base of the organisation,
environmental factors, occupational health and safety, staff development and the
quality of work life of employees. Still, other approaches define organisational
development more in terms of cultural and values development as opposed to
behavioural effectiveness. The spiral dynamics approach, for example, emphasises
the values base and the cultural worldviews of organisations and their stakeholders.
The organisational health and values model sees these developmental objectives as
goals in themselves and they offer a very different understanding of development to
the effectiveness model. Organisational development theorists also differ in terms of
their orientation towards the rate and scope of the change process itself. In general,
definitions of organisational development tend to focus on the notion of “incremental
adjustment”.

Also, many definitions of organisational development refer to the ideas of effectiveness

and strategic planning to improve organisational performance. For example, one
widely accepted definition considers organisational development to be the system-
wide application of behavioural science knowledge to the planned development and
reinforcement of organisational strategies, structure, and processes for improving an
organisation’s effectiveness (Cummings and Worley, 1997 cited in Cacioppe &
Edwards, 2004).
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It is clear from the research that organisational development has many benefits. Fact
of the matter is that such development is no longer optional but rather a necessity,
research bilaterally (Nel, at el., 2004) advises that Globalisation has made the world
free from national boundaries. The pressure of globalisation has rendered the nation-
state less important. Countries have become like companies; they are all engaged in
competition. Organisations are in search of optimal operating environments. They thus
engage in self-renewal, without renewal or development, organisations soon become
less competitive and many simply die off.

2.2) Researchers’ critical review and supporting texts:

The CEO and President of B.POLAND made it clear that the Organisation is growing
at an unprecedented pace, with no signs of a slowdown, hence B.POLAND can only
strengthen efficiencies organisation-wide, through strategic organisational
development.

However the researcher also wants to highlight that organisational development

comes with its own set of challenges, which can be detrimental to any organisation if
not managed with the utmost care.

For example Nel, et al. (2004), argue that organisational development, often coincides
with complex changes within the organisation. Such changes may dramatically
shorten the life spans of organisations. This would in turn reflect the organisation’s
inability to phase out strategies, policies and businesses that are no longer relevant
whilst creating new activities, products, services or strategies to sustain performance,
relevance and success. Change is thus its own challenge, and is driven by many
factors and forces. It in turn unleashes many reactions among affected individuals,
hence change is a big challenge that faces many organisations in today’s globalised
market.

Holti, Miller & Neumann (1994) further warn that human resource practitioners or the
implementers of change can slip into a habit of applying approaches that have worked 7
well in other situations regardless of the unique characteristics they meet in a new
client system. Indeed, some organisations request that interventions have a proven
track record on success elsewhere. Applying a ready-made tool kit or “product’’,
therefore, can seem easier and more cost efficient than developing a responsive and
innovative consultancy style. Contemporary organisational changes, however, present
human resource practitioners or agents of the change with demands for which theory,
corresponding tools and products may not have caught up.

According to Ehlers & Lazenby (2010), human resource managers have a critical role
to play to ensure that the change process is run smoothly, as the event in itself causes
a high level of turmoil in an organisation. Many organisational changes that face
companies today concern new systems for working and implications for new work
roles and identities. Human resource practitioners therefore need to be able to address
the complexity of these issues if they do not want to be perceived as marginal and
placed into a training or group process “ghetto’’. In this viewpoint, Ehlers & Lazenby
have identified three contemporary challenges requiring attention by organisations.
Methodologically, organisational development practitioners need concepts for
understanding and methods for addressing: the function of organisational pressures
for change; the structure of consultation and change processes; and the need to be
aware of and work with motivational forces in oneself and one’s organisational system.

Question 3:
Design a performance management system for B.POLAND, which would further
inform the training and developmental needs for their employees. In doing so, highlight
the benefits of this system for the organisation?

3.1) Literature review:

Performance measurement is the process of quantifying action, where measurement

means the process of quantification and the performance of the operation is assumed
to derive from actions taken by management. Performance is defined as the degree
to which an operation fulfils the five performance objectives at any point in time, in
order to satisfy its customers. Some kind of performance measurement is a
prerequisite for judging whether an operation is good, bad or indifferent (Chambers,
Johnston & Slack, 2007).

Hill (2005) further states that “what gets measured gets done. According to Hill if data 8
are collected to measure an aspect of operations performance, then how well that
dimension is being achieved will be noted, monitored and reviewed. As a
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consequence, performance levels will be highlighted and the attention given to that
aspect will result in time and resources being allocated to maintaining or improving
that operations task.

There are generally three major purposes of performance management, namely that
it’s a process for strategy implementation, secondly it’s a vehicle for culture change
and thirdly it provides input to HR systems such as development and remuneration
(Nel, et al. 2004). The authors further elaborate that performance management
systems are considered to be operating when the following conditions are met; a vision
of objectives is communicated to employees, departmental and individual
performance targets are set within wider objectives, a formal review of progress
towards targets is conducted and the whole process is evaluated to improve
effectiveness.

3.2) The researcher recommends a Balanced Score Card approach as a performance

measurement tool for B.POLAND. This decision is supported in research completed
by Chambers, Johnston & Slack (2007), wherein the authors elaborate that operations
performance measures have been broadening in their scope and that its now generally
accepted that the scope of measurement should, at some level, include external as
well as internal, long-term as well as short-term, and ‘soft’ as well as ‘hard’ measures.
The opinion of the authors is that the best-known manifestation of this trend is the
‘Balanced Scorecard’ approach. As well as including financial measures of
performance, in the same way as traditional performance measurement systems, the
balanced scorecard approach attempts to provide the important information that is
required to allow the overall strategy of an organisation to be reflected adequately in
specific performance measures. It includes more operational measures of customer
satisfaction, internal processes, innovation and other improvement activities.

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Source: Adapted from Kaplan & Norton (1996a, p.77), cited in Grey, Perkins &
Remmers (2014, p.150).

The Balanced Score Card aims to translate the corporate strategy into four processes,
articulated for managing strategy: first, “Translating the Vision”; second,
“Communicating and Linking”; third, “Business Planning”; and fourth, “Feedback and
Learning”. These four processes aim to provide a framework for companies to develop
their ability to link long-term strategic objectives with short-term actions in an iterative
manner, with the Balanced Score Card sitting at the heart of this process, as shown in
above diagram (Chui, Chung & Tsai, 2005).

The four key aspects, the researcher’s suggested Performance Measurement system
for B.POLAND will thus focus on:

i) Financial Aspect:

The ultimate goal is to improve financial performance. The performance measure of

financial aspect can reveal the implementation and execution of enterprise strategies.
There are different phases with respect to the development of enterprise which can
generally be divided into three phases: Growth phase – it refers to the beginning of
enterprise development. Since the enterprise is devoted to the development, it would
invest all of the capitals at this phase. Because it makes all effort to expand the
enterprise, the income might be less than expenditure at this time. Maintenance phase

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– the goal of this phase is to maintain current market, eliminate obstacles, expand
productivity and enhance improvement. Harvest phase: the cost invested in the last
phase will be harvested in this phase (Grey, Perkins & Remmers 2014; Chavan 2007)

Source: Grey, Perkins & Remmers (2014, p.151).

ii) Customer Aspect:

The five cores of customer aspect of this performance measurement tool are market
sharing rate, current customer maintenance, acquisition of new customers, customer
satisfaction and customers’ capacities of profit acquisition (referring to customers’
effect on company’s profit acquisition ability). Significance of five-core measurement
is reorganized in the following table. Customer value opinion means that for the
properties of product and service, the organisation aims to create customer loyalty and
satisfaction in target segmentation (Grey, Perkins & Remmers 2014).

Source: Grey, Perkins & Remmers (2014, p.153).

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iii) Enterprise Internal Business Process Aspect:

Both Chavan (2007) and Grey, Perkins & Remmers (2014) stipulates that before
designing a performance measurement indicator, the researcher should analyse the
value chain of the enterprise and consider how to satisfy the customers’ needs from
three aspects: Innovation process, Operation process and Post-sale service and
further establish various measurement indicators which can reach the goal. Innovation
– stressing that the enterprise must first identify the customers’ needs and satisfy their
needs by innovative products. Operation – it is the manufacturing process which is
from the enterprise’s receiving of production orders to the product delivery to the
customers. Post-sale service – it is the post-sale service the enterprise offers to the
customers, including regular maintenance and handling of flawed products or return.
The measures of this aspect are average unit price, growth rate of target product,
return rate and short supply rate.

iv) Learning and Growth Aspect:

Grey, Perkins & Remmers (2014) further elaborate that the goal of learning and growth
means that either the employees’ personal skill learning or their satisfaction toward
the enterprise will affect the threes aspects mentioned previously; thus cause and
effect relationship is the basic origin of learning and growth. There are three core
measurement standards in learning and growth aspect. Employees’ stay rate –
employees are part of the assets in the organisation; in other words, this goal is to
persuade the employees related to long-term benefits to stay. Employees’ satisfaction
– it means the employees’ satisfaction toward the organisation and the work.
Employees’ productivity – it means the relationship between employees’ productivity
and the resources cost for manufacturing these outputs.

The authors also propose the drive factors of specific situation of growth and learning
as indicated in Table 3. These drive factors derive from three critical enables.
Employees’ skill recreation. Capacity of information system and encouragement,
authorization and cooperation.

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Source: Grey, Perkins & Remmers (2014, p.155).

3.3) Researchers’ critical review and supporting texts:

The researcher therefore advocate that through the promotion process of the
Balanced Scorecard approach, BPOLAND will generate a series of concrete
organisational learning actions and of organisational learning strategies through the
promotion process of the Balanced Score Card. The result of organisational learning
action is based on the requirement of target value of learning & growth measurement
indicator of Balanced Score Card which further ensures the close connection between
organizational learning action and strategic goal accomplishment by learning & growth
through the Balanced Score Card approach.

3.4) According to Chui, Chung & Tsai (2005), the following benefits of applying this
Performance Measurement approach at BPOLAND can be reaped:

i) Clarified enterprise vision, strategies cascaded to each employee in their daily

functions.

ii) Efficient skill continuity and avoiding the skill gap caused by talent outflow because
of large-sized companies’ shares and bonus.

iii) Accumulating organizational knowledge.

iv) Saving operational time (looking for information and the use of research method
and avoid unnecessary repetitive works).

v) Sharing excellent models in the organization in order to enhance the employees’

learning.

vi) Upgrading the result quality of execution of application research project.

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vii) Reducing educational training cost.

viii) Establishing competition advantages, upgrading reputation, increasing business

opportunity, attracting excellent talents.

Viiii) Quantification of performance indicator for allowing the execution of

organizational learning strategy to have direction

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 Section B

Question 4:
Suppose you have been appointed as part of a cross-functional team of the HR
department of an organisation, to assist with the task of selecting and implementing
an HRIS; recommend a systematic plan for selecting and implementing E-learning for
the organisation?

4.1) Literature Review:

The Human Resource Information System (HRIS) forms part of the Organisation’s
larger Management Information System (MIS). A Human Resource Information
System is used to collect, record, store, analyse, distribute, and retrieve data
concerning the organisation’s human resources. It has increasingly become important
for the human resources department to fulfil a bigger role in the strategic direction of
the company and to effect internal and external change. The strategic value of human
resource management lies in the ability to distribute relevant and accurate information
to key decision makers in the organisation and to ensure that the respondents are able
to interpret and utilise the information (Nel, et al., 2004).

However E-Learning on the other hand is another way of teaching and learning. It
comprises instructions delivered through all electronic media including the internet,
intranets, extranets, satellite broadcasts, audio/video tapes, interactive TV and CD-
ROMs. It facilitates access to knowledge that is relevant and useful. E-Learning
involves encompassing the delivery of education and training to anyone, anytime and
anywhere. The development and delivery of e-learning in recent times by several
organizations and institutes is underpinned by a desire to solve authentic, learning,
teaching and performance problems (Uhomoihbi, 2006).

Ellis, Hase & Newton (2002), further elaborates that E-learning is a form of distance
education, and is defined as a way to teach using the mechanisms of modern
communication like computers, networks, multimedia and Internet portals to deliver
information to learners in a fast and cheap way, and to enable us to manage the
educational process and setup and measurement and evaluate the performance of
learners.

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According to Govindasamy (2002), the objectives and importance of E-learning can
be stated as follows:

Using the information technology as a means to enhance the ability of the student to
learn and maximize the utilization of his potentials.

Reduce the cost of learning.

Develop the personality, the spirit, mind and body of the individual, and upgrade his
abilities and skills.

Provide a flexible learning environment, and prepare qualified and skilled staff to use
the strategies and methods of modern teaching.

Govindasamy (2002), continues to identify the following advantages of E-learning:

Overcome the constraints of space and time in the educational process.

Provide an opportunity for learners to interact electronically with each other on the one
hand and between them and the teacher on the other hand.

Promote a culture of learning and self-training in the community, which improves and
develops the capacity of learners and trainees at the lowest cost and minimum effort.

Raise students’ sense of feeling and equality in the distribution of opportunities in the
educational process and break the barrier of fear and anxiety.

Reduce the administrative burden for courses through the use of electronic means
and tools in the delivery of information and duties and assignments to learners and
assess their performance.

Use a variety of methods which are more accurate and fair in evaluating the
performance of learners.

4.2) Proposed plan: The researcher agrees with Schonwald (2005), who advises that
a comprehensive change process such as implementing of a new E-Learning model
doesn’t happen in a single step within a short timeframe, but evolves over a period of
time, in several phases. Hence the Researcher propose the following steps, which
aims at providing systematic plan for implementation of an E-Learning platform.

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Source: Schonwald (2005, p.2)

i) Set the strategic target:

Institutional change, to be effective, needs to be led from the top, starting with a vision
of what the new organisation is to be like. E-Learning is not a value for itself. The
crucial question an organization has to ask is “What do we want to use E-Learning
for?” The agreement on a strategic aim has to be followed by a commitment for the
next steps in the implementation process.

ii) Need analysis:

There is no generic “best-practice” solution to implement a change process. In order

to realise the strategic approach, it is important to know the specific change needs of
the organization. The five sustainability dimensions can serve as guiding principal to
formulate the necessary questions to analyse the situational needs for change. This
is a very crucial but also very delicate phase as the analysis will bring up important
information, but will also raise expectations and fears among the employees and the
Organisation. Here are some of the ideas for questions to be addressed in this phase:

Learning & teaching:

- What is the prevailing learning paradigm?

- How is the organisation development regarding pedagogical competence organised?

- How does the quality management processes for teaching look like and how does it
have to change to support the strategic approach?

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Culture: - What is the standing of teaching in comparison with research within the
institution?

- What are the experiences, motivation, attitude and expectations regarding E-

Learning of the main stakeholders?

- Who are potential change agents within the organisation?

- What is the communication culture within the organisation and how does it have to
change to support the strategic approach?

Technology: - What is the current software & hardware infrastructure for E-Learning?

- How familiar are the stakeholders (e.g. end users – employees) with technology?

- What technological support structures are there and how does it have to change to
support the strategic approach?

Organization: - What are the support infrastructure for teaching?

- What are the incentives for teaching/research?

- What are the decisive performance factors for promotions and appointments?

- How is the cooperation within/among the departments organised?

- What are the informal networks and how does it have to change to support the
strategic approach?

Strategy and management: - What is the current mission of the organization?

- What are the policies for project funding?

- What are the legal regulations for teaching material?

- How is the budget allocation and how does it have to change to support the strategic
approach?

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iii) Plan and Design:

Having a profound inside situational context is a sound basis for planning and
designing of the implementation process. In addition to planning the technical, financial
and organisational infrastructure, the human factor is a critical success factor. An
innovation will only be adopted, if the key stakeholders are motivated and competent
to manage the change. Motivation and ability have to be fostered on the individual,
department and the board level. The key stakeholders have to be involved in the
planning phase in order to prevent a later “not-invented here” syndrome.

Here are some of the planning considerations to be taken in this phase:

Learning & teaching: - provide faculty development program e.g. workshops,

certificates

- integrate the new learning approaches

- establish or adapt quality management concept to reward good-practice projects and

to ensure a continuous improvement process for teaching offerings. Culture –
establish a stakeholder-management e.g. identify and involve change agents and
sponsors.

- set up target-group specific communication plan, considering various communication

vehicles and plan a two-way communication in order to get feedback and raise
commitment.

- foster knowledge exchange, e.g. organise project lessons learned workshops, inform
on committee sessions.

- set incentives for innovative teaching environment.

Organisation: - establish central support structures to reduce technical aversions and

challenges for the individual in a discreet way and leverage the pedagogical quality.

- set legal guidelines especially regarding copyright and intellectual property for the
media.

Production: - revise the promotion process to reward teaching excellence and to foster
pedagogic competence of the teaching staff

Technology: - build technical architecture e.g. selection of central LMS, support for
standard authoring tools, provide networked workstations for staff and students.

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Strategy and management: - set up a funding plan e.g. project funding guidelines

- identify external cooperation e.g. with Universities, companies, commercial E-

Learning providers.

iv) Implement and Improve:

The most challenging aspect about change is to make the change successful and
sustainable. A sound plan is a good basis for the final implementation of the innovation.

However, even the best plan can’t anticipate all developments. So while realising the
implementation plan additional requirements have to be included and adopted in the
process. An important aspect in the implementation phase is the expectation
management of the stakeholders. HR staff and employees which make their first step
with learning online are often disappointed, that the course didn’t work, as they have
imagined. Staff generally appreciate the flexibility, which virtual learning offers them.
However the change from a passive learning attitude in anonymous large lecture halls
to autonomous learning requirements in a virtual self-study environments is not always
appreciated by everyone. The postulation of constructivist learning settings to enable
employees for the life-long-learning requirements collides with traditional employee
expectations to be told what subjects to learn.

Another important aspect in the implementation phase is the identification and

handling of resistance. The implementation of E-Learning brings along changes that
are not welcomed by every individual or group within the organisation. Concerns are
often not expressed openly, but act as “hidden agendas”, covered by other official
arguments. Open and honest communication as well as a sound stakeholder
management is critical success factors within this phase.

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4.3) Researchers’ critical review and supporting texts:

The researcher strongly advocates that Human Resource Information Systems & e-
learning platforms ultimately needs to improve the strategic management of people
and also to strengthen the Human Resource department as a business partner within
BPOALND. These systems should not be driven by nice to have functions, but rather
on what can be delivered within reasonable costs, but able to deliver the most
comprehensive coverage of the Organisation’s specific needs.

The temptation with e-learning is often to design on a grand scale. However literature
by experts in the field advocate that it is better to start small and build from a solid
base.

Jere, Lanyo & Were (2019), also advises that users’ perception of the system’s
characteristics may influence successful adoption of the new system. According to the
authors several variables influence the adoption of an innovation. How individuals
perceive certain characteristics of an innovation may influence its rate of adoption.
These characteristics would be; relative advantage, which is how an innovation is
perceived as better than the previous ideas; Human resource system compatibility,
which is how an innovation is perceived as being consistent with current values, past
experiences and needs; complexity, which is how an innovation is perceived as being
difficult to understand and use; triallability, which is how an innovation can be
experienced before its adoption; and observability, which is how the results of an
innovation are visible to others.

The advice therefore is that, especially in the early stages, ‘‘small is beautiful’’. It is far
better to build awareness about e-learning first. The differences between e-learning
and more traditional types of training may also need to be carefully thought through in
each company.

This can be achieved if they have certain features and if their implementation follows
particular standards as recommended by the earlier research. These features and
standards are perceived and interpreted by professionals involved in the
implementation process.

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Question 5:
Discuss the significance of the need for HR Directors to make HR risk management a
core part of their strategic management process?

5.1) Literature Review:

Boudreau & Cascio (2014), in their recent research mentions that the uncertain
economic times of the past few years have had a major effect on how companies
operate these days. Companies that used to operate smoothly with the help of
forecasts and projections now refrain from making business judgements that are set
in stone. Now, companies have a renewed focus: to manage risk.

The authors continue to argue that risk is the main cause of uncertainty in any
organisation. Thus, companies increasingly focus more on identifying risks and
managing them before they even affect the business. The ability to manage risk will
help companies act more confidently on future business decisions. Their knowledge
of the risks they are facing will give them various options on how to deal with potential
problems.

What is Risk?

“Organisations face internal and external actors and influences that make it uncertain
whether, when, and the extent to which they will achieve or exceed their objectives.
The effect this uncertainty has on the organisation’s objectives is risk.”

Maenpaa & Voutilainen (2012), also admits that risk can come from both internal and
external sources. The external risks are those that are not in direct control of the
management. These include political issues, exchange rates, interest rates, and so
on. Internal risks, on the other hand, include non-compliance or information breaches,
among several others.

Risk management is important in an organisation because without it, a firm cannot

possibly define its objectives for the future. If a company defines objectives without
taking the risks into consideration, chances are that they will lose direction once any
of these risks hit home.

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Ernst & Young (2008), cited in Boudreau & Cascio (2014) conducted an in-depth
examination of HR risks in terms of where they reside, their impact on an organization,
how they should be approached, and their role in business development. The HR risk
framework is based on the results of a survey conducted among global finance, HR
and risk executives from Fortune 1,000 companies. It comprises four broad areas:
strategic, operational, compliance, and financial risks.

Below are definitions of each risk area and some important sub-areas within each one,
which the Human Resource department of BPOLAND should be well aware off.
Human Resources Directors should be monitoring these environments continuously,
based on analysis of data constantly collected by the HR Organisation. Critical or
potential shifts should be highlighted to the Organisation’s Senior Management, in
order for strategic changes within the Organisation to be made timeously.

Strategic: - People-related issues that limit the ability of an organization to achieve its
strategic objectives. Key sub-areas include: talent management and succession
planning, ethics and tone at the top, and the alignment of pay and performance.

Operational: - Meeting organisational objectives through the efficient and effective use
of Human Resources. Key sub-areas include: policies and procedures that define
internal controls, vendor management and sourcing, and employee training and
development.

Compliance: - Processes and controls to keep a company out of trouble. (Note:

reducing these risks has little bearing on being able to “make the business better.”)
Key sub-areas include: regulatory compliance, fraud, and monitoring regulatory
changes.

Financial: - Risks intrinsic to an organisation’s financial management and reporting.

Key sub-areas include: equity and incentive compensation, financial accounting and
disclosure, and HR performance metrics and cost management.

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The elements and types of human capital risks:

Human capital risk refers to the uncertainty arising from changes in a wide variety of
workforce and people-management issues that affect a company’s ability to meet its
strategic and operating objectives. Identifying and optimizing human capital risks is
important, if for no other reason than the fact that in many companies, human capital
accounts for at least half of all operating costs. At the top of the list of potential human
capital risks is the linkage of HR strategy and plans with business strategy and plans,
both short and long term. As an example, consider Sysco Corporation, the global
leader in marketing and distributing food products to restaurants, healthcare and
educational facilities, hotels and inns, and other foodservice and hospitality
businesses.

At Sysco, human capital metrics (along with financial, operational, and customer
metrics) are an explicit component of the balanced scorecard that the company uses
to assess the success of its business strategy. Unfortunately, this is not the case in
most companies, as recent findings show. Human capital risk ranks fourth (behind
regulatory, operational, and strategic risks) in terms of its impact on business results.
It is ranked higher than financial, reputational, supply chain, and the risks associated
with information technology. At the same time, however, it ranks tenth in terms of how
effectively it is now managed (Cascio and Boudreau, 2014).

Compliance Risk:

According to Durden & Pech (2006), much of the recent interest in the field of corporate
governance has been driven by corporate scandals in the USA, involving firms such
as Enron and WorldCom. Recent corporate scandals have focused the minds of
governments, regulators, companies, investors and the general public on weaknesses
in corporate governance systems and the need to address this issue. As a result
governments and financial market regulatory bodies have proposed or put in place
various changes relating to directors’ responsibilities, the role of independent directors,
new and/or more stringent external reporting requirements and minimum disclosure
levels.

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Compliance Focus:

Durden & Pech (2006), also warn that an increasing focus on compliance and
regulation has the potential to distract both the board and management from their key
responsibilities. A likely outcome is that because boards become more preoccupied
with compliance, senior management in turn will become more involved with this task:
“In many companies a considerable amount of board time is spent on compliance with
law rather than company performance’’. A key thrust of corporate governance change
is to make ‘‘management more accountable to boards and making boards more
accountable to shareholders’’. In doing so this may effectively restrict the scope of
management to manage the business effectively in response to a turbulent and
dynamic external environment.

5.2) Researchers’ critical review and supporting texts:

The researcher agrees with Boudreau & Cascio (2014) in their beliefs that it is no
accident that human capital and strategic HR may be receiving increased attention in
the wake of recent events that drew attention to the importance of a sophisticated
approach to strategic risk. This is an opportune moment for the HR practitioners and
Directors within BPOLAND to capitalize on this attention, and to forge a deeper and
more vital role as a strategic business partner. However, fully achieving that potential
will require that the HR field not be satisfied merely to demonstrate strategic value in
preventing risks, as tempting as that may be. Indeed, one of the most difficult tasks
may be to wean organizations away from the mistaken impression that preventing
things like turnover, risky decisions, and legal violations is the only way that HR can
add strategic value.

The full potential for HR to contribute to the management of strategic risk will be
realised through an evidence-based perspective on risk optimization and a clear
explanation of the role of human capital in achieving it. Fortunately, existing theories
and frameworks offer great potential to inform and develop this point of view. It is time
for HR scholars, practitioners, directors and leaders to develop it together.

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 Concluding Remarks:

Overall, BPOLAND’s Human Resource approach compares favourably with so called

“Best Practice” and “Strategic” Human Resource approaches covered in the
literature. Further evidence from the Case Study, points that the Organisation is
heading in the right direction, through planned E-Learning as well as creating
awareness around the exponential growth in Risks, which faces many Organisations
in today’s Global Economy.

However as the saying goes: “There is always room for improvement”, and now is
not the time for BPOLAND’s Strategic Management think tanks, to become
complacent.

In conclusion, one can say that organisational performance is linked with the way
human resources are managed, which in turn is directly related to the challenges
identified. According to the research, it can be derived that training and development,
employee relations, and efficiency and flexibility are going to be the primary challenges
in organisations over the next few years.

Therefore for BPOLAND to improve and continue to succeed in its areas of business,
they have to continue to apply innovative management, especially for their human
resources, to result in both organisational and individual improvements. Today’s highly
competitive environment demands organisational excellence, an organisational
challenge that needs to be addressed with the work of human resources.

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