Changing Role of HRM
Changing Role of HRM
21st Century
Bhatti Venkatesh t
In the fast paced world of the 21" century, business as the management
of business portfolios, leads to mergers, splits, redesigning, restructuring,
finding synergies and achieving targeted values hinge on an effective
executive. In such a climate, optimizing human and intellectual capital is the
biggest challenge the organization faces.
The article focuses on the issues and concerns faced by the HR department
of the organization nationally and globally, which is being triggered off by
the changing scenario of the business environment. It also talks about how
the organization is grappling with the concerns of hiring the best talent in
order to sustain its hold in the competitive level of the organizational race.
t Bharti Venkatesh is a faculty member in the Maulana .vzad National Institute of Technology, Bhopal.
management has the process of getting and evaluation the results are based on
things done through other people. Infact, human capabilities, comprise team
it is said that all management is personnel building, team management, motivating
management as it deals with human the people and identifying them to utilize
beings. Thus, the attainment of objectives their potential. HR focuses on
of human resource management strengthening the process capabilities
significantly depends upon the including superior-subordinate
development of human resources. relationship at every level, team work,
(Drucker, 1994). in ter-departrnen tal and in ter-ream
What is Human Resource? collaboration and organizational culture.
Organization Growth
Size
Transformation in Transformation in
Organization structure in managerial roles
• The managerial roles are designed keeping in mind the designed structure and
management practices.
I Organization Growth
I
I Size
I
Transformation in Transformation in
organization structure in managerial roles
..I.. I I
Global
I I
-:
Institutional
<,
Matrix
organizational
Mammoth
I I
-:
Organizational
Divisional
<, Large
Corporate
I I Policy formulation
Functional
<,
I
l\Iedi~m
I
-: Strategy
implementation
For such changes which happen due to from its potential to leverage knowledge
transition in the external as well as internal from within (unpublished consultancy
environment and also due to growth in report).
size of the organization, new levels and
hierarchy are inducted, then effectively In our globalized economy, this
managing the relationship with the people knowledge, which lies in the expertise of
in the organization will become the key individuals, is becoming increasingly
to any organization's success. Today's dispersed. This raises the challenge of
leading organizations are rethinking and how to implement integrated HR and
changing their approach to people who knowledge management systems in
are the most valuable resources in an Intranet Technology and user-friendly
organization. For such a reason, HR software applications that can be assessed
management is moving form a centrally by anyone, anywhere.
driven approach to one where dialogue Changes Faced by HR in the New
with individuals is taking place. Research Millennium
has shown there is a direct correlation
between employee empowerment, We have all along heard that 'time moves on
customer satisfaction and bottomline steadify and relentlessfy ~ Then how is it that
benefits. Only through the people in the in new millennium we need to review the
organization contribution and keeping challenges for the HR functions in
them aware of what they need to know organizations? Has it taken a dramatic
the organization will be able to leverage turn, or is it because the start of the
the power of business to gain a century is a very convenient milestone to
competitive edge. take stock? However, such milestones not
only show how far and in what direction
However, HRM is no longer about we are progressing, but it also give the
mapping staff - related processes in distance to our destination, are often
complex organization. Today, it is about excellent anchors to take time off to re-
building new models in which people can examine the future course of action.
be managed and can manage themselves
- to meet future challenges. Concepts The threats facing the organization have
such as knowledge management, been changing with time and what was a
employability, intellectual capital and fine solution today may no longer be valid
employee self-service are the basic by tomorrow; It can now be said that the
foundation for building a strong, thriving organizations have moved to the era of
organization. In the past, sizeable not just change, but an accelerated rate of
investments in software and infrastructure change. As compared to the past, the
have enabled organizations to streamline 21st century organization are getting to be
organization processes. Today, an globally market driven ones with invest
organization's ability to create value does anywhere and share everywhere concept.
not come from its tangible assets, but The impact of e-cornmerce with rapidly
Sources
2. Web links
https://www.projectguru.in/publications/the-changing-role-of-human-resources-
management/
http://www.whatishumanresource.com/changing-role-of-hrm
http://gbr.sagepub.com/content/3/1/139.abstract
http://www.beyondtalent.co.in/pdf/96-99-Human-Resource-Barkat-Charania-Nov-
13.pdf
3. Suggested readings
Research and Practice in Human Resource Management, Samir R.Chaterjee
Human Resource Development and Management, Biswanath Ghosh
Human Resource Management, S.P.Singh
Human Resource Management, Pravin Durai
Strategic Human Resource Management, Rajib R.Lochan
EDITORIAL
HRM refers to how employees are managed and one of the main functions of this
discipline is the role of ‘employee champion’ (Ulrich 1997), however, this role has changed
significantly in the public sector over the past two decades, especially for professionals.
Professionals differ from other types of employees because of their expertise knowledge
and skills, and consequently have more discretionary power in the workplace. The
implementation of New Public Management (NPM) reforms was not uniform, although
some similar changes have emerged in relation to the impact on professionals generally.
The aim of the special issue was to document our understanding of professionalism ‘under
crisis’ and to build on a platform of established research that highlighted some of the
emerging challenges facing public sector professionals as we move towards the 2020s. Prior
to exploring the impact of the changes in HRM on public service professionals it is
important to consider the environment/s in which they are compelled to engage with.
Therefore before introducing the papers contained within this special issue it is appro-
priate to set the scene in which the policies, practices and events discussed are put into
context. This editorial briefly explores the evolution of public policy, public management
and HRM in public services, particularly those changes impacting on public service
professionals given it is 15 years since the last special issue of Public Management Review
focusing on HR issues in the public sector was published (Beattie and Osborne 2004, 2007).
The past 15 years have seen considerable change across public policy, public manage-
ment practice and HRM. In terms of public policy, particularly at the national level we have
witnessed a global drift to the political right. Such political philosophies tend to promulgate
a smaller state with less state ‘interference’ in the everyday lives of their citizens and
businesses. Therefore, we tend to see a retrenchment in the public sector workforce,
particularly with civil servants at national level. Whilst in many cases this has been
evolutionary there have been seismic changes in the public policy arena across a number
of countries. There is perhaps limited surprise at recent events in Turkey, where public
servants, including academia, the police and judiciary have been accused and in some cases
even imprisoned on the basis of being suspected of challenging the Erdogan regime.
Likewise, in Latin America the disputed election in Venezuela has brought much state
activity to a standstill affecting services to its citizens and the employment of its public
servants. Whilst acknowledging the severity of the consequences for the people and public
servants of these countries, they have had a long history of political instability, however
there were two political events of seismic proportions in 2016 which we would not have
predicted in 2004.
The first of these was the unexpected and narrow decision of the people of the UK to vote
to leave the European Union; not even the proposers of the leave campaign expected to win.
The then Cameron Government, which had supported the Remain campaign, were also
This article has been republished with minor changes. These changes do not impact the academic content of the article.
© 2019 Informa UK Limited, trading as Taylor & Francis Group
2 EDITORIAL
unprepared for this result to such an extent that little if any scenario planning had been
undertaken in the event of such an outcome. Consequently, the UK civil service, which had
been significantly reduced in terms of capacity and capability, as a result of previous and
ongoing government austerity measures, was put very much as a disadvantage when
negotiating with the highly skilled and well resourced EU negotiators. In terms of impact
on HRM, whilst there has been much discussion in the media and in political circumstances
about the overall effect BREXIT may have on employment there has been little discussion
on the impact on UK staff, most of whom are in professional roles, who currently work for
the European Commission (the EU’s civil service). However, one can assume that some of
their experiences are similar to UK MEPs who have been living with the uncertainty of the
actual departure date from the EU, which impacts on their daily lives e.g. some politicians
have moved, at great expense, into hotels as it is difficult to renew leases on property when
there is no fixed date. A key question is what outplacement support is going to be in place
for UK European public servants.
The second event which would have been deemed unlikely in 2004 was the election of
Donald Trump, a Republican, following the Democratic presidency of Barack Obama
which had seen liberalisation in policy areas such as healthcare and significant engagement
with foreign affairs. The Republicans, in recent times, have been seen as the small state
party aiming to reduce the influence of the federal government on citizens’ lives. Alongside
this has been Trump’s rallying call ‘to make America great again’ which has signalled
a more inward-looking USA compared to the Obama administration. A key strand of
Trump’s policy, which we also see in other centre-right governments, is to reduce
immigration, particularly from bordering Mexico. It is here where there has been
a significant clash between public policy and HRM as a result of Trump’s desire to build
a wall between the USA and Mexico. As a result of a stand-off with Congress over the
funding for the wall in late 2018 President Trump took the decision to temporarily close
down much of the Federal Government, including the Department of Homeland Security
potentially leaving the USA vulnerable to attacks. As a consequence many federal employ-
ees went unpaid over the festive season, and some had to resort to use food banks to feed
their families. Yet despite this there were reports of federal employees, including the TSA,
reporting for duty despite not receiving pay thus exemplifying their ‘professionalism’.
Although the above two cases are not explored in depth in this special issue they have
been highlighted here to show the vulnerability and precariousness of public service
employment, which traditionally had been perceived as a job for life, can be significantly
affected by political changes, particularly where this is a change in government. It will be
interesting to see if Denmark’s newly elected centre-left minority government led by
Social Democrat leader Mette Frederiksen will spark a move away from the centre-right.
Her government has emphasised traditional values of the centre-left e.g. increased
support for social welfare. However, to be electable she has continued with similar
tough immigration policies as her centre-right predecessors and other centre-right
governments elsewhere, which could have a significant negative impact on the labour
market supply, as being witnessed in the UK as a consequence of BREXIT. The role of
immigration, public policy and HRM could in itself be a future special issue of this
journal.
In terms of public management the shift to centre-right government proved to be fertile
territory for governments to enact New Public Management (NPM) to varying degrees,
particularly during periods of genuine economic austerity following the Global Financial
Crisis of 2008 (e.g. UK, Greece) or imposed political austerity (e.g. Australia). NPM also
PUBLIC MANAGEMENT REVIEW 3
promulgated the reduction of the public sector e.g. in the UK we have witnessed the
transfer of many social care services, e.g. care of the elderly, to the private and third sectors.
However, in recent years there has been an increasing recognition that some aspects of
NPM have been too harsh and have not taken sufficient account of the needs of individual
citizens and communities. Even as early as 2006 PMR (Osborne 2006) published articles
relating to ‘New Public Governance’ which amongst other partnership working involves
end users in some of or all of the co-creation, co-production and co-delivery of services in
areas such as health, social care, housing and community planning. In HRM terms this
requires an additional skills set for public servants, such as social workers, housing
managers, healthcare workers and planners to enable them to work as partners with
local communities rather than acting as a detached ‘expert’. This requires ‘street level
bureaucrats’ to not only learn about their specialist skills area, but also to learn more
generic skills around diversity, inclusion, negotiation and influencing. Examples of this
have been seen recently in the Scottish Health Service where patients and carers’ groups
have worked alongside clinicians and architects/designers to create several new hospital
buildings. However, it should be noted that NPG is still in its early days and many
remnants of NPM remain, particularly around performance management.
With regards to HRM in public services the first critical point to note is that HRM is
significantly under-researched compared to corporate HRM, whilst in practice centre-
right politicians thought ‘business’ models of HRM would ‘fix’ the public sector without
taking account of the different cultures and public service ethos of many public servants.
This special issue is an attempt to address this gap as is a forthcoming book by Beattie and
Waterhouse (forthcoming) to be published by Routledge. Another key difference is that
public service organisations tend to be more pluralistic than corporate organisations with
a wider range of stakeholders to satisfy including: national government, elected or
nominated members, professional organisations, trade unions, key client groups and
the wider public. Such a range of stakeholders is challenging for public sector leaders to
manage as power is not equal between stakeholders, power is also dynamic in particular
shifting as different coalitions emerge depending on issues. At the start of the 21st century
‘empowerment’ was one of the key HRM buzzwords, however it has been superseded by
employee engagement, a more substantial and widespread policy, although actual prac-
tice varies. The role of employee engagement is particularly pertinent to professionals as
their ‘loyalties’ may be split between their organisation, profession and end-users, and
has been extensively explored by Brunetto et al. (2015, 2018) in health and policing
(Brunetto et al. 2017), such variations in engagement can have a profound impact on
organisational commitment, job satisfaction and employee health and wellbeing. The
employee engagement agenda requires much in terms of the leadership qualities of those
responsible for leading professionals who themselves may have varied agendas.
When PMR last had a special issue on HRM the topics and countries involved were
fairly mainstream. NPM countries and topics including: a comparative analysis of
corporate and public further education in France; a comparative analysis of Strategic
HRM in Australian corporate and public sector healthcare services; NPM and the UK
Police Service; the relationship between communication and change in a large Australian
public organisation; work-life balance in Scottish public and third sector organisations;
and, partnership working in the UK health and social care sector as part of the ‘Third
Way’ policy. These articles represented the topical issues of 2004 and had a significant
focus on professional staff, however the papers were limited to a small number of
western-centric countries. A challenge to our readers is whether or not this new special
4 EDITORIAL
stress without compromising their wellbeing, engagement and safety, and would
complement the growth of New Public Governance.
The papers suggest a need for HRM researchers and practitioners to ‘gain their voice’
and find new ways of becoming the ‘employee’s champion, rather than the ‘rubber stamp’
of the board room. The papers also have a wider geographical spread than the previous
special issue in PMR, whilst France and the UK still feature, there is representation also
from Southern and Nordic Europe, in the cases of Italy and Denmark. The editors
particularly welcome the inclusion of a paper from Vietnam, giving some representation
to the developing world. We may also be witnessing, albeit tentatively, the beginning of
the public sector pendulum swinging from hard to soft(er) HRM, particularly in the
context of New Public Governance. Whilst pleased with the quality and range of papers
submitted for this edition and despite the inclusion of the paper from Vietnam, the
editors regret the ongoing under-representation of developing countries, particularly
those from BRICS and MINT categories, in public management and HRM research. We
make a plea to public management/HRM academics to address this gap, as many of these
countries e.g. Bangladesh, have young and rapidly growing populations. This we suggest
could be the subject of another special issue.
References
Beattie, R., and J. Waterhouse. forthcoming. HRM in Public Sector Organisations. London:
Routledge.
Beattie, R., and S. Osborne. 2004. “Editorial.” Public Management Review 6 (3): 299–301. doi:10.1080/
1471903042000256493
Beattie, R., and S. Osborne, Eds. 2007. HRM in the Public Sector. London: Routledge.
Brunetto, Y., B. Farr-Wharton, R. Farr-Wharton, K. Shacklock, J. Azzopardi, C. Saccon, and
A. Shriberg. 2017. “Comparing the Impact of Management Support on Police Officers’
Perceptions of Discretionary Power and Engagement: Australia, USA and Malta.” The
International Journal of Human Resource Management. doi:10.1080/09585192.2017.1375964.
Brunetto, Y., M. Xerri, E. Trinchero, R. Beattie, K. Shacklock, R. Farr-Wharton, and E. Borgonovi.
2018. “Comparing the Impact of Management on Public and Private Sector Nurses in UK, Italy
and Australia.” Public Management Review 20 (4): 525–544. doi:10.1080/14719037.2017.1309100.
Brunetto, Y., M. Xerri, E. Trinchero, R. Farr-Wharton, K. Shacklock, and E. Borgonovi. 2015.
“Public-Private Sector Comparisons of Nurses’ Work Harassment Using SET: Italy and
Australia.” Public Management Review 18 (10): 1479–1503.
Noordegraaf, M. 2015. “Hybrid Professionalism and Beyond: (new) Forms of Public Professionalism
in Changing Organizational and Societal Contexts.” Journal of Professions and Organization 2:
187–206. doi:10.1093/jpo/jov002.
Osborne, S. 2006. “The New Public Governance?” Public Management Review 8 (3): 377–387.
doi:10.1080/14719030600853022.
Ulrich, D. 1997. Human Resource Champions, the Next Agenda for Adding Value and Delivering
Results. Boston, MA: Harvard Business School Press.
Yvonne Brunetto
School of Business & Tourism, Southern Cross University, Bilinga, Australia
[email protected]
Rona Beattie
Glasgow Caledonian University, Glasgow, UK