Human Resource Professionalism:A Panacea for Public Organizations: (A Diagnostic Approach to Third-World Countries)

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© 2014 Dr. Mostafa Ravand. All rights reserved.

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Published by AuthorHouse 07/09/2014

ISBN: 978-1-4969-1776-8 (sc)

ISBN: 978-1-4969-1769-0 (e)

Library of Congress Control Number: 2014911254

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Contents

ACKNOWLEDGMENTS

PREFACE

CHAPTER ONE

New Public Management: Evolution Vs. Revolution

Introduction

Paradigm Shift In Public Sector

The Context Of The NPM

Conceptualizing The NPM

NPM And Professionalism

Public Management In Iran (The Field Of Case Study): Historical Viewpoint

CHAPTER TWO

Professionalism: An Imperative For HR

Introduction

What Is A Profession And Who Is A Professional? (History-Origin-Definitions)

Professionalism Definitions And Characteristics

Theoretical Foundations Of Professionalism

Perspectives On The Notion Of Professionalism

Historical Approaches To Professionalism

Some Outstanding Models And Frameworks In Professionalism

Public Administrators’ Professionalism

Research On Professionalism Of Public Administrators

Development Of Professionalism Scales

Professionalism Dimensions In Recently Years

Comparative Studies-Professional Associations Of Management In The World

Professionalism & The State

Advantages Of Professional Organizations

Facilitator Solutions Of Professionalism Trend In Management

CHAPTER THREE

Human Resource Management: A Gateway Toward Organizational Excellence

Introduction

Personnel Management vs. HRM

The Concepts Of HRM

HRM Practices & Processes

Approaches Of HR Strategy Formulation

The Emergence Of SHRM

Public And Private Sector Influence

Line Managers And HRM Roles

Some Noticeable Models And Frameworks In HRM & SHRM Domain

The Challenges Of Human Resource Management

CHAPTER FOUR

Proposing A Professional Approach To Human Resource Management

Introduction

Introducing A HR Professional Model

Career Management

Competency Management

Planning HR Professionalism Level And Their Career Paths In The Organization

Professionalism And HRM Processes

Ethics & Professionalism (Position & The Authorities)

HR Professionals & Their Role In Organizations

Some Resources For HR Professionals

Challenges And Opportunities Facing Today’s HR Professional

CHAPTER FIVE

Case Study: Professionalism in Iranian Public Organizations

Introduction

Some Potential Gaps Of Professionalism In Iranian Public Organizations (Process-Based View To HR Lifecycle)

Current Trend Of Key HRM Processes In Electric Power Industry Of Iran

Methodological Steps Of Research

Data Analysis And Research Findings

Suggestions & Recommendations

References

About The Author

Endnotes

Tables

Table 1.1- Key components of new public management

Table 2.1- Previous studies on Professionalism among different Professions/Occupations

Table 2.2 - Characteristics of public administration professionalism

Table 3.1- Main analytical differences between

Personnel Management & HRM

Table 3.2- Lifecycle stages and HRM strategy

Table 4.1- Experience (HR Roles and Responsibilities) at

Professional Level and Strategic Level

Table 4.2- Capability (HR Competencies) at Professional Level and Strategic Level

Table 4.3- The role of employees, managers, and

organization in relation to career management

Table 4.4- Definition of the competency model

Table 4.5- Difference between a functional and a competency-based approach to HRM

Table 4.6- Benefits of Competency Management by Interest Groups

Table 4.7- The Central Personnel Agency in Charge of

Competency M

Table 4.8- Managing Competencies in the Various HRM Processes

Table 4.9- HR Professional Standards for their Career Paths

Table 5.1- Research Variables by the type of affect,

measuring indicators numbers, and their abbreviations

Table 5.2- Fit Indices for primary measurement model related

to main research model

Table 5.3- Fit Indices for modified measurement model related

to main research model

Table 5.4- The results of research main hypotheses

test based on SEM

Table 5.5- The results of relevant research hypotheses test

Figures

Figure 3.1- Process-oriented relationship of company strategic plan, HRM strategic plan and HRM practices

Figure 3.2- Two Types of Fit (Vertical & Horizontal)

Figure 3.3- Comprehensive SHRM Model with Integrated

Approach (proposed Model)

Figure 4.1- Proposed Framework for Individual, Organizational &

Social Professionalization in HRM Area of Public Organizations

Figure 5.1- The role of establishing balance between

organization and HR

Figure 5.2- HRM Practices in relation to sub-criteria of

research practice factor and their authorities

Figure 5.3- Process relationship of HRM Practices

Figure 5.4- Institution factor affecting HRM Practices

Figure 5.5- Effect relationship of ultra-organizational and individual variables on HRM institution and practice variables

Figure 5.6- Research conceptual model

Figure 5.7- Primary measurement model in standardized

solution situation (derived from initial conceptual model)

Figure 5.8- Modified measurement model in standardized

solution situation

Figure 5.9- Research Path Analysis with Detailed approach and regression’s effect coefficients black.jpg

Figure 5.10- Structural-Process view to professionalism in

HRM of Iranian public organizations (Proposed Structure)

Human Resource Professionalism:

A Panacea

for Public Organizations

(A Diagnostic Approach to Third-World Countries)

Discussing HR professionalism as a panacea, this book argues that an organizational excellence and prosperity has been achieved by focusing on HR professionalism. Nowadays, the necessity of this issue has been more increasingly revealed into public sector, especially in Third-World Countries Because pubic organizations and societies in these countries are continuously struggling with several challengeable issues and multi-dimensional corruptions such as fraud, bribery, unfairness, discrimination, over-consumerism, brain drain, degree mania, etc. The chapters are based upon research studies about public management, professionalism, human resource management, integrated approach to two last issues, and case studied in Iran as one of main Third-World Countries. The issues covered include:

• New Public Management: Evolution vs. Revolution

• The Concepts of Professionalism, particularly in Public Sector

• Human Resource Management with a strategic and process based perspective as a SHRM model

• Proposing a Professional Approach to HRM as a panacea for Public Organizations

• Position of Professionalism in the State and Public Organizations, Roles and the Authorities

Research Outcomes of Case Study (Iranian Public Organizations):

• Factors affecting Professionalism in SHRM of Public Organizations with a diagnostic approach

• Structural-Process view to Professionalism in SHRM of Iranian Public Organizations

HR Professionalism: A Panacea for Public Organizations will be essential reading for those studying HR as a Profession, HR Professionals, Custodians of Public Organizations, the State and Public Organizations in the Third-World Countries, Policy Making Practitioners, and professional managers who concern about their Human Resources as the most valuable asset of their organizations. we hope that Mottos "to want, to know, to be able & thinking good thoughts, saying good words, and doing good deeds" realize throughout the world via institutionalizing professionalism into individuals, organizations, and the Societies all around the globe.

Mostafa Ravand is PhD of Human Resources from the Institute of Economics & Demography, Academy of Sciences of the Republic of Tajikistan (under the supervision of VAK Organization in Moscow, Russia). He has more than 10 years experiences of working in HR areas with a strategic & process perspective.

Although the process of completing this work has been long, we hope you agree that the wait was worthwhile.

ACKNOWLEDGMENTS

To Dr. Fereydoun Abdesabour who persuaded me to study relevant literature & write this book.

To Prof. Seyed Mehdi Alvani who kindly help me to write a preface at short notice.

To my supervisors, Prof. Mir-Ali Seyed-Naghavi & Prof. Ghaforjon Joraboev who sincerely guided me to conduct my PhD thesis.

To Gholam-Reza Ravand & Gholam-Reza Nazari who transformed difficult manuscript into elegant copy.

To Alireza Teymouri and Aziz Safarov for their expertise and mastery in front page design and whole arrangement of this book.

To Richelle Keith, My Check-In Coordinator at AuthorHouse publisher who responded quickly and positively at every stage, and progressed the manuscript into print with remarkable speed and accuracy.

To my colleagues & practitioners in TREC, especially Dr. Mohsen Ghanbari, Mohsen Kamrani, Majid A’lamy, Amin Edalatpour, Ali Hasanzadeh, & Mahshid Abdolvahab who have helped shape my thinking over the years.

Finally, and most importantly, to my good hearted family for coping with the consequences of workload overspill during the last few months of studying & writing.

PREFACE

We live in a land that values govern on all aspects of individual and collective human life. In such an environment, organizations and occupations should also be associated with the values of humankind, and be compatible with them. Professionalism in management is an attempt to compromise occupations with ethics and values and in turn, professionalization of them. Professions can be defined as a combination of occupations with ethics and work commitment, and professionals are those whose views of their jobs are teeming with commitment and ethics. If managers view to their work as a profession, they, as the main executives of administrative and organizational system, can build a huge transformation in administrative and organizational society, and ethics would be attained to real position within organizations. Professional managers are not only equipped with their own theoretical and practical know-how, but also they are adorned with ornament of ethics and commitment, and this adornment is that gives them value and respect. Value of management profession is summarized into not only managers’ expertise, but also their obligation to ethics and commitment, and their fair and humankind performance in dealing with employees, citizens, and the rest of stakeholders, generally. Professionals follow friendship and purity with adherence of moral virtues, and keep away themselves form wrong paths and deviations. If professionals are moving away from ethics, they will be transformed to occupations’ owners that follow routines and living in present with viewing as a instrumental rationale to the organization and people. But in professions, intellection is value and substance, and professionals obliged themselves to obey ethics, and it considers to stakeholders as right owners of the organization and auditors of their responsibilities. Professional ethics protects from occupation, and it keeps away professionals from fouls. It can be suitable alternative for external and organizational controls. With becoming professional in management, many controls and audits will be faded, and professionals monitor their actions and behaviors by themselves. It will be created a type of self-controlling, and this evolution can lead to a transformation in organizations and their management. Therefore, encouragement and development of professionalism in all occupations, especially management is origin of goodness and excellence for human, organizations and society.

It is imperative to be noted that the values of faith in Iran (as an instance of Third-World countries) which play a vital role in administrative and organizational behaviors, professional vision gets subtle and effective form that differentiates professions of this country from professions of others. Morality based on religious teachings can evolve managerial occupations to managerial professions with more strength and power, and shape new approach in management professionalism. But the important thing that can be addressed in professionalism is how to preserve and protect from professions, and who institution, and in what position to play this role in relation to organizations, especially public sector? How should it be viewed to the issue of professional jobs and in turn, professionals into public sectors as a process approach? And such these questions.

As regards one of core foundations in each organization is HR¹ Units, and these units are considered as a driver of vitality and agility into the organizations, taking into account to professionalization of HR processes’ executives, and professional view of these "Buffers" can facilitate and resolve problems of various levels and sections in organizations-especially public sectors. Nowadays, one of the critical challenges faced by Third-World countries, especially Iranian public organizations is living in present and lack of work morale toward organizational growth and excellence, and naught of personnel attempts to achieve given goals. Reduction of adaptability and consistency between purposes and strategies, and HR strategies in practice, and personnel inattention to issue of management professionalism in HRM² department may be considered as the main causes of this problem. Erratic workforces in HR supply and demand market with various scientific levels and different motives enter an organization with merely taking an employment exam and an interview of sometimes ceremonial and with the only purpose of spending time in one of public organizations that tasks, positions, relationship with job description and job skills haven’t been clearly defined. These employees settle into a routine during work period, regarding problems governing the society at the same time, they don’t think anything unless economic crisis. In such a society, productivity and effectiveness that was followed by the organization is abandoned barren, unfruitful; value-adding mechanisms, transferring experiences and knowledge management also remain in daily talks, even if all of these steps scientifically set, it isn’t expected to perform in practice. According to mentioned cases, considering different dimensions and sections affecting SHRM³ whether Individual level, or Organizational, or Ultra-Organizational ones can provide a context to improve SHRM in public organizations of Third-World countries, in turn, we will have organizations and the society that all elements have professional view in their own personal and vocational interactions, and practice with this rationale.

This book is composed of five chapters. In the first chapter, we’re going to have a brief description about origins and evolutions of public management; then, we highlight some revolutions which have been occurred in the maturity of this discipline till the emergence and the conceptualization of "New Public Management; at the end of this chapter, a historical viewpoint about public management in Iran (the field of Case Study) will be presented. In the second chapter, we argue in regard to the necessity of professionalism for HR in public organizations like An Imperative Panacea". To attain this goal, we bring some definition about concepts "Professions, Professional, Professionalism; then, we explain theoretical foundations, perspectives, historical approaches, noticeable models of professionalism within businesses; next, we explain professionalism in public administration and relevant research in this area, development of professionalism scales, its dimensions in recently years, introduce some professional associations of management in the world as a comparative study; and finally, we highlight the State role in relation to professionalism, some advantages of professional organizations, and facilitator solutions of professionalism trend in management. In the third chapter, we decide that the readers of this book chronologically becomes more familiar with HR concepts including HR as a cost/asset element, Personnel Management vs. HRM, HRM definitions and evolutions, HRM practices and processes, SHRM emergence, public and private sector influences, some outstanding HRM frameworks and models, and after mentioning some HRM challenges, we will finally introduce HRM as A Gateway toward Organizational Excellence by offering a proposed model in this respect. In the forth chapter, we will concurrently try to consider two issues Professionalism and HRM in public organizations, explain two important issues Career Management and Competency Management, and describe professionalism into personnel lifecycle and their career paths in organization, discuss about professionalism and HRM processes, the authorities, their roles and responsibilities, and position of ethics and professionalism in public organizations; at the end of this chapter, we introduce some HR Professionals’ resources throughout the world, mention some challenges and opportunities facing today’s HR Professionals. In the fifth chapter, a Case Study conducted for getting PhD degree in HR major by author will be presented at last. It should be noticed that Ministry of Energy and Subsidiary Companies of Electric Power Industry of Iran" as a representative of Iranian public organizations and in turn, Third-World countries’ public organizations has been selected as the field of Case Study, due to the extent of case study area, relative dominance of author over Electric Power Industry of Iran and our activity of about one decade in HR area of Tehran Regional Electric Company (TREC). In this study, we tried to identify, investigate, and diagnose key factors and criteria affecting professionalism in HRM process at the macro level of the society. Research Method is Descriptive-Survey via unstructured interview & researcher-made questionnaire. In the end of this book, we offer a systematic model for professionalism approach in HRM of Iranian public organizations. we hope to clarify and improve HRM performance in public organizations with recruiting, maintaining, training, developing, and exiting of empowered, competent, and professional human resources.

Mostafa Ravand

PhD of Human Resources

CHAPTER ONE

New Public Management: Evolution vs. Revolution

You can only govern men by serving them.

Victor Cousin

Introduction

In recent decades, we have witnesses the emergence of a new approach in public administration. In other words, it is formed new approach or paradigm to deal with contemporary complex problems and issues. The necessity to deal with several challenges such as technological change, globalization, information revolution, and international competition forced the governments to build major changes in their public administration. Traditional model paradigm that was considered dominant theory in most of 20th century, in the recent years that we have witnessed changes far larger than all of the 20th century replaced by "Managerialism or New Public Management". An important feature of NPM approach is public participation in the affairs and bringing them to work. Managerialism approach is appropriate for communities in which: 1) client viewpoints of organizations are highly important; 2) human dignity and values are taken into consideration; and 3) the main goal is responsiveness to society requirements and citizen satisfaction.

Public administration, called the traditional model here, was considered a major movement in its era. Traditional model could be known as administration of affairs under official control of political leadership which be based on a strict hierarchical model of bureaucracy. The great sociologist, "Max Weber", in the early 20th century, realized the importance of bureaucracy. Because the most important issue of Weber was modernity and modern rationality, attentions were forcibly focused on modern organizations.

The traditional model of public administration that was strongest and most successful theory of management in public sector is now transforming. There are many reasons for this transformation. In traditional model, there is a tendency toward rigidity and becoming bureaucratic, the emphasis on process rather than outcome, and focus on codes rather than results. From 1970s, logical and precise criticisms targeted rigid bureaucracies’ inadequacy which once was considered to be a means to achieve the highest level of performance. Governments changed attention from official codes, structures and protective actions to results, and less paid to talk about the tools to achieve results. Almost after one hundred years, the traditional model is in the danger of destruction. At the moment, the traditional model theory and its applications are obsolete, and don’t match the needs of today’s changing society at all.

It is believed that the administration is a limited duty of management and thus, move from public administration to public management means a major change in theoretical and performance aspects. Administration stem from "minor, then minister, synonym servicing and governing. Management is derived manus meaning to control and achieve results". Based on several definitions of these two words in the texts and respectively specialized dictionaries, it can be inferred that public administration focuses on process, codes, and conventional and common rules, while public management is beyond of these issues, and emphasizes on the fulfillment of results and their responsibility rather than just following the codes.

In the 1980s and early 1990s, in response to the deficiencies of classical models, a new managerial approach emerged in public sector. This approach has probably eliminated some of the problems and issues of previous models; bur it requires significant changes in public sector management.

Managerial approach has many meanings: "Public Management (Perry & Kraemer, 1983), Supply-side Management (Carroll, Fritschler & Smith, 1985), Managerialism (Pollitt, 1990), New Public Management (Hood, 1991; Pollitt, 1993; & Mascarenhas, 1990), or Entrepreneurial State or Entrepreneurial Government" (Osborne & Gaebler, 1992). Different names for NPM reflect different perspectives on current events. However, they all share the same points:

• First, whatever we call the model, it is a major shift from traditional public administration to immense attention paid to achieve results and personal responsibilities of managers.

• Second, explicit attention paid to distancing from classical bureaucracy to make organizations, employees, and employment rules and regulations more flexible.

• Third, individual and organizational goals must be clearly set until they can be measured through performance indicators. Similarly, a systematic performance assessment will be more. Three components "Economy, Efficiency, and Effectiveness" are key drivers of mentioned points.

• Forth, senior employees tend to be more politically committed to a government, rather than any special interest and partisan politics.

• Fifth, governmental jobs are faced more and more with market tests, like delegating affairs to others in terms of contracts, and this is what some authors have called "driving boats not just paddling it". Governmental intervention shouldn’t always mean getting the job done by means of bureaucratic tools.

• Sixth, there is also decreasing trend of government functions through privatization which in some cases will provide public organizations with maximum rapidity toward progress and excellence; it doesn’t mean part of managerial plan, because the above modifications may occur without reducing the scope of public duties and responsibilities; but in any case, these two problems occur at the same time.

Subscribe to these points is that focus is transferred from processes to results.

The term NPM was first used as a label to denote recent administrative reforms by Hood in 1991. In 1980s and early 1990s reform content was classified as NPM describing the move towards a reform of public management in which quantification, measurement, results and outcomes had been emphasized.

In recent years, a growing interest in the study of NPM, reforms, public sector performance indicators, and impact of modernizing public administration among nations and communities is expanding. For example, studies show that need for modernizing public sector is often response to low levels of trust of citizens to government (Bouckaert & Van de Walle, 2003). Negative image of citizens from government and public administration may be a consequence of the implementation of tasks by these organizations. That means better quality of public services leads to users’ satisfaction of these services, and thereby increasing the confidence to government (Glaser & Bartley, 1999). In addition, some studies show that trust to government will be retrenching and increased democratic systems capability (Borre, 2000). It should be noted that a stable democracy requires active participation and cooperation of the citizen in various areas. Despite some criticisms about the cooperation and participation of the citizens in managerial areas of administration, researches often suggest the most effective citizen participation in political and administrative affairs (Vigoda, 2002). The central argument of these researches is that the citizen participation in organizational/bureaucratic and social/political levels will probably increase the confidence of citizens to administration; because citizen participation increases their awareness and information about the processes, outcomes and achievements will adjust their expectations of government (Rose, 1999). Likely, responsiveness to citizens as clients is core and main feature of public administration modernizing, because accountable bureaucracy reaches goods and services to destination with a high degree of accuracy and speed. Accountability tied to the speed and accuracy is response to client expectations and requirements because speed leads to reducing the waiting time and accuracy makes the appropriate response to client needs and demands (Stewart & Stewart, 1994).

In