The role of the HR function can be divided into strategic and operational
Strategic – planning and managing the human resources of the organisation (i.e. its staff) to ensure that the organisational goals are met. i.e. aligning the human resources and the organisational goals. This could mean ensuring that the correct skills are evident within the workforce, diversity, career development
Operational – supporting line managers, recruitment, selection, training, development, collective bargaining (trade unions).
Decentralisation – this starts to raise the question of how much of the HR function has fallen to line managers. Torrington tell us that during the late 20th century organisations were keen to reduce their staff costs and one way to do this was to break down hierarchies – some functions were outsourced (e.g. we see catering and cleaning outsourced within the NHS). However, these cost cutting exercises have yielded short-erm benefits but had long-term problems, for example .shortages of skilled staff.
Appropriate staffing – does the organisation have the right number of people, people with the appropriate skills
Contracts – can some work be sub-contracted out? Recruitment and selection of appropriate staff
Competing in the labour market – retaining the best, affordable workforce – includes the best packages (including pay) to attract and keep staff – harder in a tight labour market (therefore not just pay, but training and development packages)
Motivation – underpinned by a belief that motivation leads to improved performance. This includes training and development of staff.
Discipline – involvement in the discipline and monitoring of staff whose performance is falling behind the required levels or their conduct is unacceptable. This can also include providing the necessary support to help staff improve their performance where it has fallen, for example, through illness or personal issues or they lack the skills necessary.
Employee involvement – this can include negotiations with trade union representatives. Engaging employees with decision making is argued to improve commitment and therefore performance. This also linked to what Torrington et al call ‘discretionary effort’ which means going above and beyond for the organisation, for example, working longer hours than their contracts require.
A range of external factors can force change, for example, demographics, legislation, changing economics. However, there may also be a need to change the internal culture of an organisation. Therefore HR may need to ensure leaders are recruited who have the necessary skills to drive change (in the right direction). Also involving employees in this change as this is likely to facilitate acceptance of any changes.
These are all necessary for the HR department to be seen as professional and maintain credibility within the organisation
Economic changes may include the recession, periods of boom (e.g. construction industry when in boom there is plenty of work to go around and plenty of people to recruit, but lack of necessary skills). During crisis may need to make people redundant, change working hours.
Legislation changes fairly frequently and is something with which the HR function must keep up to date.
The text book has details of specific acts, but these have changed in recent times – particularly equality legislation
Conservative government – made changes which limited the rights of individuals and trade unions – belief that employment rights inhibited the free market economy
2002 and 2008 employment acts – aimed to provide protection for vulnerable workers in relation to unfair dismissal, a minimum wage
Health and Safety at Work Act 1974 – creation of the health and safety commission and the health and safety executive – 2008 HSE
(2008 – mental health units – ban in England, exemption in Scotland)
Strengthening disabled people’s protection from discrimination
Protecting people from discrimination by association and perception
Single Public Sector Equality Duty covering 8 protected characteristics. The protected characteristics are:
Age
Disability
Gender reassignment
Pregnancy and maternity
Race
Religion and belief
Sex
Sexual orientation
Positive Action in recruitment and promotion which gives greater scope to address deficits in the workforce
Strengthening the powers of employment tribunals
Strengthening the protection for pregnant women and breastfeeding mothers
Banning discrimination in private members’ clubs
The labour market is changing with more women entering the workforce, abolition of the default retirement
Much of the HR literature assumes a large organisation with an HR department.
Highly varied – can see that size, age of organisation and prevalence of paid staff important.
SMEs have fewer resources to fund training provision,
Data suggests that smaller companies are adopting the principles and practices of HRM, but in less formalised ways than larger companies. However, this may not be at the strategic level (i.e. are smaller companies aligning their HRM policies with the organisational goals?).
Can we really draw generalisations given that there is a huge variety of organisations under the umbrella of SME? Also the birth and death rate of new firms is rapid.
Survey – little use of formal HR practices. Where used they are seen to contribute to organisational objectives.
Often no dedicated HR person – if work was done to formalise HR often at the direction of the managing director – this role often given to someone else who already had a key task, for example the Managing Director’s personal assistant. Agreement that HR is important, but not necessarily as a separate area.
Interview data suggests a reliance on informal HR practices e.g. informal appraisals. Often taking more creative and tolerant approaches to equality and diversity
There did tend to be formal systems for recruitment.