Reinventing HR : Strategic and Organisational Relevance of the Human Resources Function [1 ed.] 9781869225308, 9781869225315

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Strategic and Organisational Relevance of the Human Resources Function

Revolutions are typically huge and dominating events in the world’s history accompanied by radical, visible change. The current revolution is in this regard ‘silent’ yet change is everywhere. The changes in organisational life are affecting management and the way in which businesses are being run.

1. 2. 3. 4. 5. 6.

Leadership and meaning Relationships Workplace socialisation Productivity Organisational transformation Personal wellness

These pillars, as strategic focus areas, are built upon foundational HR competence and business acumen. The intention behind the project is to enable the HR function to reinvent itself into a discipline which is acknowledged and respected for its relevance, competence and professionalism. Reinventing HR will provide you with the context in which the HR function needs to find its strategic and operational relevance. Content includes: • • • • • • • • • •

Research report and findings Transitional pillars Foundational understanding: HR competence and business acumen Leadership and meaning Relationships Workplace socialisation Productivity Organisational transformation Personal wellness The future

ISBN: 978-1-86922-530-8 

Strategic and Organisational Relevance of the Human Resources Function

CECILE SCHULTZ • HUGO VAN DER WALT

In this volatile context the Human Resource (HR) function need to be strategically correctly positioned. It needs to be ‘reinvented’ and positioned in terms of all aspects of people and relations in an organisational context, with clearly identified main activities (professional streams). In order to understand the current state of affairs of the HR function and to give definition to a future ideal positioning for the function, the authors conducted a survey. It was sent out to members of management, as well as to HR practitioners. Based upon the findings of the survey, as well as an analysis of international trends and developments, the authors propose six transitional pillars for the HR function:

Reinventing HR

Reinventing HR

Reinventing HR

CECILE SCHULTZ • HUGO VAN DER WALT

Reinventing HR

Reinventing HR Strategic and Organisational Relevance of the Human Resources Function

by

Cecile Schultz Hugo van der Walt

2015

Copyright © Knowres Publishing, Cecile Schultz and Hugo van der Walt All reasonable steps have been taken to ensure that the contents of this work do not, directly or indirectly, infringe any existing copyright of any third person and, further, that all quotations or extracts taken from any other publication or work have been appropriately acknowledged and referenced. The publisher, editors and printers take no responsibility for any copyright infringement committed by an author of this work.

Copyright subsists in this work. No part of this work may be reproduced in any form or by any means without the written consent of the publisher or the authors. While the publisher, editors and printers have taken all reasonable steps to ensure the accuracy of the contents of this work, they take no responsibility for any loss or damage suffered by any person as a result of that person relying on the information contained in this work. First published in 2015

ISBN: 978-1-86922-530-8  eISBN: 978-1-86922-531-5 (PDF eBook)

Published by Knowres Publishing (Pty) Ltd P O Box 3954 Randburg 2125 Republic of South Africa Tel: (011) 706-6009 Fax: (011) 706 1127 E-mail: [email protected] Website: www.kr.co.za

Printed and bound: Mega Digital (Pty) Ltd. Parow Industria, Cape Town Typesetting, layout and design: Cia Joubert, [email protected] Cover design: Marlene de Villiers, [email protected] Editing and proofreading: Simone van Eeden for The Translation Workbench, [email protected] Project management: Cia Joubert, [email protected] Index created with: TExtract, www.Texyz.com

TABLE OF CONTENTS About the authors.....................................................................................................................................iii Introduction................................................................................................................................................iv Silent revolution.................................................................................................................................iv HR positioning...................................................................................................................................... v Embedding the function................................................................................................................ vii The business case for change.................................................................................................... viii The new economy..............................................................................................................................ix References.............................................................................................................................................. x

CHAPTER 1: RESEARCH REPORT AND FINDINGS.......................................................................1 Introduction.................................................................................................................................................1 Methodology.........................................................................................................................................1 Results and discussions....................................................................................................................2 References........................................................................................................................................... 10

CHAPTER 2: TRANSITIONAL PILLARS........................................................................................... 11 CHAPTER 3: FOUNDATIONAL UNDERSTANDING: HR COMPETENCE AND BUSINESS ACUMEN........................................................................................................................ 13 An overview of HR competencies based upon research and practice...................... 15 HR knowledge................................................................................................................................... 21 Business acumen.............................................................................................................................. 23 Talent management........................................................................................................................ 26 HR technology................................................................................................................................... 28 Organisational development (OD)............................................................................................ 29 HR metrics, measurements and analytics............................................................................. 31 Strategic HR........................................................................................................................................ 35 Innovation........................................................................................................................................... 36 Professionalism................................................................................................................................ 37 Conclusion........................................................................................................................................... 37 References........................................................................................................................................... 40

CHAPTER 4: LEADERSHIP AND MEANING................................................................................. 43 Leadership.......................................................................................................................................... 44 Understanding emotional intelligence................................................................................... 50 Understanding social intelligence............................................................................................ 51 Meaning................................................................................................................................................ 61 References........................................................................................................................................... 64

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CHAPTER 5: RELATIONSHIPS........................................................................................................... 65 Engagement........................................................................................................................................ 66 Communication................................................................................................................................. 69 Communities...................................................................................................................................... 74 Customers........................................................................................................................................... 75 Diversity management................................................................................................................... 79 Conflict.................................................................................................................................................. 81 Collaboration (teamwork)........................................................................................................... 83 References........................................................................................................................................... 85

CHAPTER 6: WORKPLACE SOCIALISATION....................................................................................... Governance of ethics...................................................................................................................... 91 References........................................................................................................................................... 93 CHAPTER 7: PRODUCTIVITY.............................................................................................................. 95 1. Productivity management..................................................................................................... 96 2. Economics.................................................................................................................................... 99 3. People development..............................................................................................................100 4. Performance management..................................................................................................102 5. Coaching......................................................................................................................................104 6. Mentoring...................................................................................................................................106 7. Tutoring.......................................................................................................................................108 8. Work practices (Job design)...............................................................................................109 References.........................................................................................................................................111 CHAPTER 8: ORGANISATIONAL TRANSFORMATION............................................................113 Business strategy...........................................................................................................................113 References.........................................................................................................................................143 CHAPTER 9: PERSONAL WELLNESS.............................................................................................145 Key themes........................................................................................................................................146 Emotional wellness.......................................................................................................................149 Psychological wellness................................................................................................................153 References.........................................................................................................................................157 CHAPTER 10: THE FUTURE..............................................................................................................159 Conclusion................................................................................................................................................160 Index...........................................................................................................................................................162 ii

ABOUT THE AUTHORS Cecile Schultz Cecile completed her BCom (Industrial Psychology), BCom Hons (Human Resource Management), MCom (Industrial Psychology) and her Doctorate degree in Human Resource Management. Her career started during 1992 at the Department of Foreign Affairs in South Africa where she operated as a Human Resource Officer. She has been employed by the Tshwane University of Technology since 1994 till current. Her passion for HR and Organisational Leadership lead to supervision of post graduate students and several research outputs such as articles and conference papers. She wrote two chapters in Dessler’s Human Resource Management book during 2011. Her involvement with KeyStone Strategic People Solutions widened her horizons of HR or rather People Management. She enjoys her community engagement once a month at the People Upliftment Programme (POPUP) training centre in Pretoria. Cecile is married to Raymond, and they have two children, Christiaan and Cilé-Mari.

Hugo van der Walt Hugo started his career in the mining industry in 1981 at Anglo American, in the Human Resources department. He left Anglo American in 1995 to set up his own business consultancy and has subsequently been involved in various strategic initiatives, both in a business and community environment.

Hugo is a founder member and director of KeyStone Strategic People Solutions (KSPS). At KSPS, he is able to live out his passion which is to contribute towards people wellness and effectiveness, as the main contributor to organisational success.

He completed his B.Sc. Honn. degree in Psychology at the Potchefstroom University and Certificate Programme in Industrial Relations (CPIR) at Wits Business School. Currently, he is also a part-time lecturer at the Tshwane University of Technology (TUT) in the Faculty of Management Sciences. He is also a founder member of the Casa Deo initiative, which specialises in socioeconomic development at community level. The Initiative links various community development projects in a geographic area into integrated execution frameworks. Hugo is married to Charmaine, and they reside in Pretoria.

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INTRODUCTION “Modern management, much of which dates back to the 19th century, has reached the limits of improvement. In fact, the foundations of ‘modern’ management were laid by people like Daniel McCallum, Frederick Taylor and Henry Ford, all of whom were born before the end of the American Civil War in 1865. Managers today face a new set of problems, products of a volatile and unforgiving environment. Some of the most critical: How in an age of rapid change do you create organizations that are as adaptable and resilient as they are focused and efficient? How in a world where the winds of creative destruction blow at gale force can a company innovate quickly and boldly enough to stay relevant and profitable? How in a creative economy where entrepreneurial genius is the secret to success do you inspire employees to bring the gifts of initiative, imagination and passion to work every day? How at a time when the once hidden costs of industrialization have become distressingly apparent do you encourage executives to fulfil their responsibilities to all stakeholders?” (Hamel, 2009:1)

Organisations are scrambling to keep up with ongoing demographic, social, environmental, technological and political changes. Trying to recreate what worked in the past is futile. The situation is further complicated by a workforce that challenges traditional authority and hierarchies, and by the need to establish a balance between control and autonomy. Ulrich, Ulrich and Goldsmith (2010:265) describe the difficulties faced by organisations in attempting to align individual aspirations and abilities with organisational purposes. Information overload and centrifugal goals cause employees and organisations to spin away from their basic sense of purpose and direction. This is the framework in which the HR function needs to find its strategic and operational relevance. It is required to step up and be accountable, and it can no longer afford to be pushed into back offices, hiding behind silo activities and transactional processes for which it is attempting to remain pertinent. The time to impact organisational life is now. The time to rise as a profession is now, and not only become relevant but become trendsetters in the arena of people management. The time to not only to facilitate change, but to own it, is now.

Silent revolution

Revolutions – huge and dominating events in world history – have always been accompanied by radical, visible change. The current revolution, though, is silent. There is no major, focused event taking place, yet change is everywhere. Traditional iv

authoritarian relationships are being challenged familial and societal life, organisational fields and religions realms. The amount of knowledge available to all is phenomenal; social networks and informal communication channels are continuously expanding their reach and influence. Today, however, not much physical change is visible on the surface. This revolution is arising out of knowledge, partnerships and collaborative connections that are being forged largely outside formal structures and processes. These interfaces span international borders and are creating cultures based on expressions of freedom and near radicalism reflected in the defiance of all existing structures governing societal and organisational life. Nothing is taken for granted. Meaning, in the context of a broader understanding of existence, has become an uncomfortable process driver. Mission and value statements, which used to decorate office walls, are now examined for internal validity and alignment with broader societal realities and responsibilities.

HR positioning

It is of interest to note that the term ‘Human Resource’ was first recorded in 1961 and Human Resource Management (HRM) appeared by mid-1980’s replacing its precursor, ‘Personnel Management’. The birth of HRM as a discipline was necessitated by the need to ensure legislative compliance following on the pressures from the Civil Rights Movement. Ever since HRM has been drifting and driven reactively by external forces; it has not been able to proactively define its own future. Human Resources Development (HRD) developed as a separate discipline to HRM for unknown reasons. It is by radically reinventing itself within this silent revolution into a socio-economic dynamic, and then an agent for change, guiding and supporting organisations through transformation as the only future certainty. From within, ‘people’ as common denominator, the ‘HRM’ and ‘HRD’ functions need to be consolidated into a professional discipline acknowledged and respected as ‘People Management’. In this regard main activities (professional streams) and accompanying outputs need to be identified. HR has gone through many transformations and this has added to its current professional confusion. Increasing pressure from executive management has forced the profession to justify its existence through the identification of HR metrics. This is foreign territory for a function with a traditional specialisation in soft skills. But merely putting down metrics within a fundamentally dysfunctional system will not solve the current challenges of the HR function.

Furthermore, the term human resource is no longer relevant as the human component of organisations is now, at last, regarded as people. Not personnel, not staff and most definitely not resources. The research contained in this book – the harvest of a multitude of interviews over the last three years – and our own experience, honed v

over the last fifteen years, support our conviction that the HR function be correctly designated as People Management (PM). HR is expected to coach managers on people issues.

HR, in many organisations, is at a crossroad. On one hand HR is in crisis, increasingly under fire to justify itself and confronted with the very real prospect that a significant portion of its traditional responsibilities will be outsourced. Outsourcing of traditional HR functions such as payroll and recruitment, as well as the creation of HR self-help system platforms, add to the disquiet. The current trend in organisational behaviour (OB) is therefore not capitalised on and is implemented by external consultants. Its insecure positioning results in the HR function becoming increasingly isolated.

Finance, supply chain management and IT have managed to remain necessary to operational requirements. Their functions have evolved into value added propositions to the executive and operational staff. HR, on the other hand, is – for a variety of reasons – no longer seen to add relevant value and so finds itself unable to influence or impact an organisation’s strategy. This is a huge paradox. The most expensive component of a business is its people, and this is also the point where an organisation is most vulnerable to the proper execution of its objectives. Yet the people in a business do not feature in its strategic and operational priorities. Tangible equipment and systems are seen as a far higher priority than the people that man and operate them. Therefore, the correct designation of HR as People Management will re-position the matter into its proper perspective, and will correctly allocate all people aspects to the department of People Management. The opportunity exists for the HR discipline to step out of a reactive ‘human resources’ mind set and reinvent itself as ‘People Management’ – owning and managing all the current and evolving people related concepts and processes in terms of corporate strategy and organisational life.

Note: Because the HR function is still widely known as HR, we will remain with the current designation to avoid confusion. The rationale for the function to be correctly designated as People Management will become evident to the reader during the review of the subject material contained in this book.

vi

Embedding the function Once the HR function has reached agreement on its core function and contribution to the organisation, and has clearly identified current and envisaged trends within business development, it will need to be reinvented accordingly. With People Management as the overarching theme, its main activities (professional streams) and accompanying outputs will need to be identified. In the process, the HR function must be prepared to shed its current and historic perspectives which arise out of their ever shrinking models based on a silo mentality.

Therefore it is necessary for the HR function and its activities to become institutionalised. Institutionalisation refers to the process of embedding something (for example a concept, a social role, a particular value or mode of behaviour) within an organisation, social system or society as a whole.

The only way in which the HR function can become embedded in organisational life is through its correct and relevant positioning. It must own all people related concepts and processes such as relationships, transformation, productivity, change, diversity and wellness. In a strategic and organisational context these are major issues, and over time their relevance will increase significantly. Yet, none of these is being adequately addressed within organisations. The design and execution thereof is left to consultants, who stand outside of any accountability and relationships. Unless the members of an organisation are part of the change, and own the change, it will have no effect on organisational culture. This is an area of specialisation which requires vision, courage, persistence and skill. It is an area into which the HR department’s capacity needs to be expanded. Effecting change in organisational culture is a very rewarding experience, especially if the current culture is totally dysfunctional.

In his book Good to Great (2001), Jim Collins refers to the critical relevance of culture in his definition of a culture of discipline. Herewith a quote from the book which illustrates the point that culture can positively impact performance (2001:13): All companies have a culture, some companies have discipline, but few companies have a culture of discipline. When you have disciplined people, you don’t need hierarchy. When you have disciplined thought, you don’t need bureaucracy. When you have disciplined action, you don’t need excessive controls. When you combine a culture of discipline with an ethic of entrepreneurship, you get the magical alchemy of great performance. (Jim Collins, 2001:13)

vii

HR must be transformed from a reactive department with a transactional and administrative focus to a proactive department with streamlined and simplified processes that are integrated and connected to the business needs, with the emphasis on service consistency and adding value. Its perspective must be holistic and futuristic, owning change and innovation from a sense of coherence and self-efficacy.

The HR department must develop a local and a universal positioning. Local positioning refers to immediate operational requirements and challenges, and universal positioning to international benchmarking practices and visionary dynamics.

The business case for change

Kim and Mauborgne (2005:6-7), state that corporate strategy is heavily influenced by its roots in military strategy. The very language of strategy is deeply imbued with military references – chief executive officers, headquarters, troops and frontlines are some examples. Described this way, strategy is about confronting an opponent and fighting over a given piece of land that is both limited and constant. In so doing the distinctive strength of the business world – the capacity to create uncontested new blue ocean market space – is denied.

The changes in organisational life, although silent in major developments, are affecting management and the way in which businesses are being run. Different strategies regarding the volatility of the people component of business are attempted but to no avail. Trends such as re-engineering, engagement, empowerment and leadership development leave no sustainable impact because the operational environment keeps changing. Nothing is fixed. The organisational model of control through hierarchy and coercion is imploding and requires a new paradigm. Business strategy needs to release innovation, collaboration, meaning, engagement, energy and leadership at all levels within an organisation. It is into this transformational dynamic between the past and an uncertain future that the HR function needs to find its professional relationship to impact, influence and significance. This will require huge boldness, strong leadership and a readiness for change so that the HR function can enter into a transitional phase; from a reactive positioning to a proactive, game changing audacity. The alternative is a slow and steady decline into obsolescence and oblivion. It is therefore critical for the HR function to stay abreast of developments on a broad socio-economic perspective, and to constantly reinvent itself, since reinvention in this context is a lifestyle, and not a once off process.

viii

In this regard a survey sanctioned by Deloitte (2014) to engage the 21st-century workforce is worthwhile noting. To gain insights into the 2014 global human capital trends, Deloitte conducted a survey in the last quarter of 2013 that included 2 532 business and HR leaders in 94 countries. The critical human capital trends emerging from the survey were organised into three broad areas: •

•

•

Lead and develop: It is necessary to broaden, deepen and accelerate leadership development at all levels, build global workforce capabilities, re-energise corporate learning by putting employees in charge and fix performance management. Attract and engage: Develop innovative ways to attract, source, recruit and access talent; drive passion and engagement in the workforce; use diversity and inclusion as a business strategy and find ways to help the overwhelmed employee deal with the flood of information and distractions in the workplace.

Transform and reinvent: Transform HR professionals into skilled business consultants. Create a global HR platform that is robust and flexible enough to adapt to local needs; reskill HR teams; take advantage of cloud-based HR technology and implement HR data analytics to achieve business goals.

The new economy

“Most companies strive to maximize shareholder wealth – a goal that is inadequate in many respects. As an emotional catalyst, wealth maximization lacks the power to fully mobilize human energies. It’s an insufficient defence when people question the legitimacy of corporate power. And it’s not specific or compelling enough to spur renewal. For these reasons, tomorrow’s management practices must focus on the achievement of socially significant and noble goals.” (Hamel, 2009:1)

The capitalist system is under siege and in recent years business has increasingly been viewed as a major cause of societal, environmental and economic problems. Companies are widely perceived to be prospering at the expense of the broader community. Even worse, the more business has begun to embrace corporate responsibility, the more it has been blamed for society’s failures. The legitimacy of business has fallen to levels not seen in recent history. This diminished trust in business leads political leaders to set policies that undermine competitiveness and sap economic growth. Business is therefore caught in a vicious circle. HR today, more than ever in the past, is everybody’s business. Every business manager is an HR manager. HR is an all-pervading function and it is the individual manager whose primary responsibility it is to manage his human resources, blend them into

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an effective team, manage their performance and address their needs and aspirations, such that together they achieve more. In this process, as an organisation, there has to be in place a body of collective people practices governed by a particular philosophy; a set of abiding principles for human respect and dignity, and well demonstrated values and ethical norms. The reinvention of the HR department must parallel the many dimensions of the business. If there are multiple products, customers, geographies or service lines, then HR needs to support them all. It is a multi-faceted model in which portfolio leadership will be central. Perhaps the quote by Albert Einstein summarises the challenge quite eloquently. “Problems cannot be solved by the level of awareness that created them.”

(Albert Einstein (March 14, 1879 – April 18, 1955))

References Collins, J. 2001. Good to Great. London: Random House Business Books.

Deloitte Consulting LLP and Bersin by Deloitte. 2014. Global Human Capital Trends: Engaging the 21st-century workforce. Deloitte University Press.

Hamel, G. 2009. Moonshots for Management. Boston, MA: Harvard Business Review. February. Retrieved February 26, 2015 from https://hbr.org/2009/02/moon-shots-formanagement

Kim, W.C. & Mauborgne, R. 2005. Blue Ocean Strategy. Massachusetts: Harvard Business Review Press. Ulrich, D, Ulrich, W. & Goldsmith, M. 2010. The Why of Work. New York: McGraw-Hill.

Wikiquote. Talk: Albert Einstein. Retrieved February 26, 2015 from http://en.wikiquote.org/ wiki/Talk:Albert_Einstein

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CHAPTER 1 RESEARCH REPORT AND FINDINGS Introduction In order to understand the current state of affairs of the HR function and to give definition to a future ideal positioning for the function, a survey was conducted. It was sent out to members of management and to HR practitioners.

Methodology

A qualitative content analysis approach was used. Qualitative content analysis has been defined as: “A research method for the subjective interpretation of the content of text data through the systematic classification process of coding and identifying themes or patterns.” (Hsieh & Shannon, 2005:1278) “An approach of empirical, methodological controlled analysis of texts within their context of communication, following content analytic rules and step by step models, without rash quantification.” (Mayring, 2000:2) “Any qualitative data reduction and sense-making effort that takes a volume of qualitative material and attempts to identify core consistencies and meanings.” (Patton, 2002:453)

Qualitative content analysis allows a unit of text to be assigned to more than one category simultaneously (Tesch, 1990). The data was analysed by using Tesch’s method of analysis for qualitative data (Tesch, 1992:117). After coding, similar topics were grouped together into themes and categories.

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Reinventing HR

The following questions were posed as part of this research project’s questionnaire.

Questionnaire Section A In which industry do you work? What is your designation? Section B

B1. Based upon your experience in working with or within the HR function, how do you describe its current performance? B2. How do you envisage the ideal HR function within your working context, bearing in mind its representation of the people component? B3. In your opinion what is currently preventing the HR function from performing according to the described ideal referred to in question B2 above? B4. What should be the HR function’s relevance to business strategy and the execution thereof?

Results and discussions The descriptive data from part A of the questionnaire was as follows:

2

Chapter 1: Research report and findings Which of the following best describes the industry sector of your organisation?

4.5 4

Senior Management

3.5 3

HR Director

2.5

CEO/Chairman/MD

2

Partner

1.5

Owner

Travel/Tourism/Leisure/Entertainment

Telecommunications and IT

Safety and Security

Non-Pro�it Organisation

Mining/Quarrying

Manufacturing

Health and Medical Services

Electricity, Gas and Water Supply

Consulting

0

Agricultur/Hunting/Forestry/Fishing

1

0.5

Figure 1.1: Senior management: industry sector

9 8 7 6 5 4 3 2 1 0

Senior Management HR Director

CEO/Chairman/MD Partner Owner

Figure 1.2: Senior management: job title

3

16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0

4 Wholesale and Retail Trade

Travel/Tourism/Leisure/Entertainment

Transport/Logistics/Storage

Telecommunications and IT

Scientific/Technical Services

Safety and Security

Provincial Government

Non-Profit Organisation

National Government

Mining/Quarrying

Media and Publishing

Manufacturing

Local Government

Health and Medical Services

Financial Services, Including Banking, Insurance, real estate and business services

Electricity, Gas and Water Supply

Education

Consulting

Building and Construction

Agriculture/Hunting/Forestry/Fishing

Reinventing HR 10

9

8

7 Middle Management

6 HR Specialist

5 Administration/Clerical

4

3 Consultant

2

1 Other, please specify

0

Figure 1.3: Middle management, HR specialists and consultants: industry sector

Middle Management

HR Specialist

Administration / Clerical

Consultant

Other, please specify

Figure 1.4: Middle management, HR specialists and consultants: job title

Below is a summation of the combined main responses from the respondents on the four questions asked in the part B of the questionnaire:

Chapter 1: Research report and findings

1.

Current performance of HR:

2.

Ideal HR:

3.

Preventing HR from performing ideally:

4.

HR’s relevance to business strategy:

• • • • • •

• • • • • •

• • • • • •

• • • • • •

Reactive functioning Under resourced Gaps in perception of HR role Lack of credibility with line Transactional/administrative focus Outdated competency framework Change agent/transformational role Integrated part of business Business expertise People strategist Create capacity (develop leaders and employees) Functional expert in key HR functions (eg talent and performance management) People not a business priority HR admin focus Silo functioning Lack of business skills Too specialised Lack of strategic insight

Handle people strategy of the business Performance enhancement Execution of strategy (engage with staff, alignment) Understand contribution to business plan Create an enabling environment Member of the executive team

On a global scale, the future of the HR profession is also receiving attention. The Society for Human Resource Managers (SHRM) conducted a study (2002) to document research on the changing nature of the human resource profession. The report represents perspectives from management consultants that work with HR professionals in multiple industries, both nationally and internationally.

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Reinventing HR

Some of the recurring themes with regard to the skills and experience requirements of the HR profession are: • • • • •

Leading and managing change Business knowledge and skills Consulting skills Ability to translate business strategy into effective HR strategy Organisational development capacity (culture, change, etc.)

The Boston Consulting Group in association with the European Association for Personnel Management (2010) conducted research on the future of HR in Europe. The research involved HR and other executives and 1 355 responses were received from representatives of 27 European countries. Their report (2010) identified the following key HR related challenges for businesses through to 2015: • • • • •

Managing change and cultural transformation Managing work-life balance Managing talent Becoming a learning organisation Managing demographics

Additionally the following three HR main streams were identified: • • •

Streamlined, efficient and effective HR functions; full use made of outsourcing and shared services in this regard Transforming HR into a strategic partner Talent management supported by renovated recruiting and staffing processes “Overall, HR roles will likely become more tightly integrated into the business. In

many ways, the HR professional’s role may shift from the development of highly rigid and formal processes related to developing specific career ladders and advancement opportunities, training or recruitment processes to one in which they design incentives, market-based mechanisms and information sharing tools to help individuals develop their own career trajectories, learning opportunities and future employment opportunities based on demand.” (De León, LaVelle, Cantrell, 2013:8)

The following expectations emerged out of a study conducted by the Human Resources Professionals Association and Knightsbridge Human Capital Solutions on the future of HR from a CEO perspective, which the CEOs have from their HR executives (2011): 6

• • •

•

•

• •

Chapter 1: Research report and findings

Talent management and succession planning.

Connecting the company’s culture with its objectives, as well as defining and communicating what makes their organisations great places to work. Help predict and manage the impact of the four generations in the workplace, especially in recruiting, building teams, dealing with change and motivating employees.

Own employee communications and ensure that middle managers – especially – have the tools and information they need to communicate with and lead employees. Have a solid grasp on how to use social media to communicate with and recruit employees. This must be balanced between the desire that HR has to establish best practices around employee use of social media and leveraging social media platforms as an engagement and communications tools. Forecast the social and people trends that will impact the business.

A toolbox of change management practices, a consulting mind-set and a strong understanding of how compensation and performance management can be used to support change. “If HR is not embedded in the organization, it is not successful. It needs to be visible. It needs to understand the business better in order to bring greater value to the table. HR can become too narrow, too specialized—it needs to be broader in its approach to the business.” (Human Resources Professionals Association and Knightsbridge Human Capital Solutions, 2011:3)

The issues coming out of our own survey were, confirmed by the international reports mentioned above. In view of the survey information and taking cognisance of the broader international perspectives, the following areas are priority: • • • • • • • • •

Business knowledge and skills Change management People strategist Productivity (performance) enhancement Wellness (work-life balance) Relationships (communication, building teams, etc.) Leadership development Developing organisational culture/workplace socialisation Functional expertise, eg talent management.

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Reinventing HR

The above list is a mixture of strategic- and operational issues with which the HR function is confronted. One certainty for the HR team is it can no longer be business as usual. It is also glaringly obvious that the people element of the organisation, both strategically and functionally, must reside with the HR department, or rather with the People Management department. It is clear that HR has a critical role to play in the economy and in creating peoplecentric partnerships that are ultimately focused on adding value and improving productivity. The question is not whether HR can, but rather how HR will fulfil this role. In order to correctly position the HR function into the future ideal of value adding and professional service. The main findings of part B of the questionnaire are summarised as categories and themes (see Table 1.1 below).

Table 1.1: Categories and themes CATEGORIES

THEMES

1. Foundational understanding: HR competence and business acumen

1.1 Knowledge of all basic HR functions and practices such as HR planning, job analysis, job evaluation, staffing, induction, compensation, performance management, labour relations, health and safety, training and development 1.2 Business acumen 1.3 Talent management 1.4 HR technology 1.5 Organisational development 1.6 HR metrics and measurement 1.7 Strategic HR 1.8 Innovation 1.9 Professionalism

2. Leadership and meaning

8

2.1 Personal awareness 2.2 Authentic leadership 2.3 Crucibles of leadership 2.4 Emotional and social intelligence 2.5 Developing leadership ability 2.6 The why of organisational existence 2.7 Meaning in an organisational context

Chapter 1: Research report and findings

CATEGORIES

THEMES

3. Relationships

3.1 Engagement 3.2 Communication 3.3 Communities 3.4 Customers 3.5 Diversity management 3.6 Conflict 3.7 Collaboration (teamwork)

4. Workplace socialisation

5. Productivity

6. Organisational transformation

7. Personal wellness

4.1 Socialisation 4.2 Knowledge management (SECI model). 4.3 Ethics and values. 4.4 Governance and ethics. 5.1 Productivity management 5.2 People development 5.3 Performance management 5.4 Coaching 5.5 Mentoring 5.6 Tutoring 5.7 Workplace practices

6.1 Organisational strategy design 6.2 Organisational strategy execution 6.3 Congruence 6.4 Leading change 6.5 Readiness for change 6.6 Resistance to change 6.7 Proactive change agent 7.1 Physical 7.2 Emotional 7.3 Psychological 7.4 Sense of coherence

Note: Because the current focus on meaning as an organisational dynamic, and as the creation thereof is seen as a function of leadership, we have decided to include it with leadership in the same category, i.e. leadership and meaning.

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Reinventing HR

The categories in Table 1.1 are proposed as the transitional pillars for the reinvention of the HR discipline around the people function within organisations, both strategically and operationally. The categories and themes will be discussed in chapters 2 to 9 of this book.

References Boston Consulting Group. 2010. The Future of HR in Europe: Key Challenges through 2015. Retrieved February 26, 2015 from https://www.bcg.com/documents/file15033.pdf De León, D.S., LaVelle, K., Cantrell, S.M. 2013. Trends Reshaping the Future of HR. Accenture Institute for High Performance. Retrieved February 26, 2015 from http://www.accenture. com/SiteCollectionDocuments/PDF/Accenture-Future-of-HR-Digital-Radically-DisruptsHR.pdf

Hsieh, H.F. & Shannon, S.E. 2005. Three approaches to qualitative content analysis. Qualitative Health Research, 15(9):1277-1288.

Human Resources Professionals Association and Knightsbridge. 2011. Human Capital Solutions. The Role and Future of HR: The CEO’s Perspective. Retrieved February 26, 2015 from http://www.hrpa.ca/Documents/HRPA_KB_CEO_Perspective_Research_Highlight.pdf Patton, M.Q. 2002. Qualitative Research and Evaluation Methods. Thousand Oaks, CA: Sage.

Mayring, P. 2000. Qualitative content analysis. Forum: Qualitative Social Research, 1(2). Retrieved February 26, 2015 from http://217.160.35.246/fqs-texte/2-00/2- 00mayring-e.pdf.

Society for Human Resource Managers (SHRM). 2002. The Future of the HR Profession. Retrieved February 26, 2015 from http://www.shrm.org/about/pressroom/Documents/future_of_ hr.pdf

Tesch, R. 1990. Qualitative Research: Analysis Types & Software Tools. Bristol, PA: Falmer Press.

10

CHAPTER 2 TRANSITIONAL PILLARS Any process of change requires a transitional model which gives structure and content to the process, otherwise it remains removed and does not affect current culture and practices which are deeply embedded. For the HR department to become strategically and functionally a value adding discipline, a transitional model based upon key differentials of service delivery is required. One of the major difficulties with any change process is the sustainment thereof. Following the initial excitement interest drops off and life tends to drift back to familiar territory. In our experience the best way to sustain change is to institutionalise it by integrating it into organisational life, or making it part of the institution. Once this happens it starts to impact, influence and direct organisational life.

The most practical way is to identify transitional pillars upon which the change process is built, and which also serve as mechanisms from which to institutionalise the new dynamics. The current comfort zones of people and those attributed to processes and culture will create huge resistance to change and it will take real leadership to move the process forward. Various technologies supporting change processes can be used to facilitate this forward motion (see chapter 3). A huge and important point is to develop change coalitions and to make change everybody’s business. The successful transition of its own function will create huge confidence within HR practitioners as they represent change on a broader basis. It is always essential to understand the current reality and to have a perspective on the future ideal. Issues arising from these processes are usually varied and large in number, therefore requiring processes to clean them up, and categorise and prioritise the issues into focus areas or strategic thrusts. The categories so identified will then become the pillars upon which the transitional process will be built. The issues that have surfaced out of our own survey, and confirmed by broader international perspectives, identify the following categories from which the HR function is to reposition itself towards its own reinvention as a discipline (The categories of Table 1 in chapter 1):

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• • •

Leadership and meaning Relationships Workplace socialisation

• • •

Productivity Organisational transformation Personal wellness

As explained in the previous chapter these categories are proposed as the transitional pillars for the reinvention of the HR discipline around the people function within organisations, both strategically and operationally. We will elaborate on these categories and topics later in the book. Much has been written on each of them, but in this instance they will be presented in the context of the HR function. The perspective here is on how it relates to the HR function, both in terms of an operational positioning as well as from an envisaged support (advisory) capacity as internal consultants. The transformation process will require assertiveness and audacious confidence from HR practitioners, and consideration must be given to the development of support groups to effect change professionally and in tandem with normal operations.

An integrated change model also requires an updated contextual understanding of the HR function’s competence base and business acumen. Some of the traditional functions and processes might have to be realigned in business strategy, or perhaps even outsourced or re-engineered, but definitely not disregarded. The model must also represent the future ideal of its visionary perspective. To this end we propose the following:

Sustained organisational success through aligning peoples’ aspirations with organisational intent in a context of shared meaning. Sustained organisational success in a context of shared meaning

Leadership and meaning

Relationships

Workplace socialisation

Productivity

Organisational transformation

Foundational understanding: HR competence and business acumen

Figure 2.1: Reinventing HR: Transitional framework.

As mentioned previously these pillars, as well as the foundational understanding of the model, will be discussed as separate chapters in this book. 12

CHAPTER 3 FOUNDATIONAL UNDERSTANDING: HR COMPETENCE AND BUSINESS ACUMEN Sustained organisational success in a context of shared meaning

Leadership and meaning

Relationships

Workplace socialisation

Productivity

Organisational transformation

Personal wellness

Foundational understanding: HR competence and business acumen

Figure 3.1: Reinventing HR: Transitional framework

An understanding of HR competence and business acumen is indeed the foundation for reinventing the HR function. Some of the traditional tasks and processes might well be outsourced or re-engineered but should remain within the scope of the HR role. “The new mission for HR executives is not to transform from the inside out, but the outside in. Figure out what the business needs and then configure yourself to that. Then, HR transformation can really take off because it can make an almost immediate impact. Executives setting out on this multi-stage journey typically begin with some form of diagnostic or assessment to set a baseline of operational effectiveness and current strategic relevance to the business. The outcome of that assessment then drives an action plan and roadmap toward the ultimate end state of transformed, integrated and business-relevant HR. By becoming a true business partner, HR also becomes a partner in the ultimate objective of achieving high performance.” (Sotkiewicz & Jensen, 2007:2) “There is a real opportunity for HR to increase its role and visibility within line businesses, should HR professionals become better business people. To do so, it’s not enough to bring HR functional skills to the table. There must be a foundation

13

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of business experience as well. The most successful HR professionals will be those who can quantify, in financial terms, their value to line organisations. When HR’s primary organizational contribution is compliance focused and administratively based, HR is vulnerable. The best-positioned HR professionals are those who tap into an organisation’s longer-term strategies and develop an agenda based on meeting the company’s future needs.” (SHRM, 2002:12)

The lack of HR and of business competence severely limits HR’s ability to impact business strategy and advance business goals.

Competence refers to knowledge, skills, abilities and personal characteristics related to performing one’s job. The following HR competencies was identified from the survey and will be discussed in this chapter: •

• • • • • • • •

Knowledge on all the basic HR functions and practices such as HR planning, job analysis, job evaluation, staffing, induction, compensation, performance management, labour relations, health and safety and training and development Business acumen

Talent management HR technology

Organisational development

HR metrics, measurement and analytics Strategic HR Innovation

Professionalism

Boxall, Purcell and Wright (2007) mention that human resource management consists of three major sub-fields: •

•

14

Micro human resource management (MHRM) covers the sub-functions of HR policy and practice, including recruitment, selection, induction and socialisation and training and development.

International human resource management (IHRM) focuses on issues such as transferability of HR practises across business units in different countries, the optimal management of expatriates and the impact of different institutional country context on HRM.

•

Chapter 3: Foundational understanding: HR competence and business acumen

Strategic human resource management (SHRM) is concerned with linking HRM to business strategy, designing high-performance work systems and adding value through good people management to gain a competitive advantaged.

An excellent HR manager or practitioner should have competencies in the above three sub-fields in order to be relevant in an organisation.

An overview of HR competencies based upon research and practice

Ulrich, Brockbank, Johnson and Younger (2009) suggest the following HR competencies: •

•

•

•

Credible Activist: The HR professional is both credible (respected, admired, listened to) and active (offers a point of view, takes a position, challenges assumptions). Some have called this HR with an attitude. HR professionals who are credible but not activists are admired but do not have much impact. Those who are activists but not credible may have ideas but will not be listened to.

Culture and Change Steward: The HR professional appreciates, articulates and helps shape a company’s culture. Culture is a pattern of activities more than a single event. Ideally, this culture starts with clarity around external customer expectations. Additionally, successful HR professionals facilitate change in two ways. First, they help make culture happen. Second, they develop disciplines to make changes happen throughout the organisation. This may include implementation of strategy, projects or initiatives. They help turn what is known into what is done.

Talent Manager/Organisational Designer: The HR professional masters theory, research and practice in both talent management and organisational design. Talent management focuses on competency requirements and how individuals enter and move up, across or out of the organisation. Organisation design focuses on how a company embeds capability (for example, collaboration) into the structure, processes and policies that shape how an organisation works. Strategy Architect: The HR professional has a vision for how the organisation can win in the future and plays an active part in the establishment of the overall strategy to deliver on this vision. This means recognising business trends and their impact on the business, forecasting potential obstacles to success and facilitating the process of gaining strategic clarity. The HR professional also contributes to the building of the overall strategy by linking the internal organisation to external customer expectations. This linkage helps make customer-driven business strategies real to the employees of the company.

15

Reinventing HR

•

•

Operational Executor: The HR professional executes the operational aspects of managing people and organisations. Policies need to be drafted, adapted and implemented. Employees also have many administrative needs; to be paid, relocated, hired and trained, for example. HR professionals ensure that these basic needs are efficiently dealt with through technology, shared services and/ or outsourcing. This operational work of HR ensures credibility if executed flawlessly and is grounded in the consistent application of policies.

Business Ally: Businesses succeed by setting goals and objectives that respond to external opportunities and threats. HR professionals contribute to the success of a business by knowing the social context or setting in which their business operates. They also know how the business makes money. Finally, they have a good understanding of the parts of the business – finance, marketing, research and development, engineering – what they must accomplish and how they work together so that they can help the business to make money.

A summary of the above six competencies is illustrated below.

Organisation Capabilities

Culture and change Steward

Strategy Architect

Systems and Processes

BU

LE

SIN

ES

OP PE

Talent Manager/ Organisation Designer

• Sustaining strategic agility: –– Recognise external trends and impact on the business.

S

• Outside-in culture – what do others expect from the business?

Operational Executor

Relationships

Business Ally

Credible Activist

HR

PROFESSIONALISM

Interpreting social context: • Grasping the external political environment. • Being able to clarify social issues that may impact their industry. • Recognising the demographic trends that influence their business. • Understanding government regulation and how HR practices are affected by regulation.

Doing HR with an attitude:

• Taking appropriate risks. • Providing candid observations.

Figure 3.2: A model of HR competencies

• Influencing others. • Anticipating problems.

Source: http://www.portailrh.org/impression/default.aspx?f=55520

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Chapter 3: Foundational understanding: HR competence and business acumen

The South African Board of People Practices developed a South African HR competency model illustrated below. Strategy

5 Capabilities

Talent Management

HR Governance, Risk, Compliance Analytics and Measurement HR Service Delivery HR and Business Knowledge

Solution Creation and Implementation Interpersonal and Communication

4 Pillar

Core Competencies

Organisational Capability

PROFESSIONALISM

ETHICS

Leadership and Personal Credibility

Citizenship for Future: Innovation, Technology, Sustainability Duty to Society

Figure 3.3: South African HR competency model Source: http://www.sabpp.co.za/professional-services/national-hr-competency-model/

In 2012, the South African Board for People Practices (SABPP) launched a national HR Competency Model. The five core competencies are as follows: leadership and personal credibility, organisational capability, solution creation and implementation, interpersonal and communication skills and citizenship for the future. The HR competency model of the Society of Human Resource Management (2002) is illustrated in Figure 3.4.

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COMMUNICATION

RELATIONSHIP MANAGEMENT

ETHICAL PRACTICE

CONSULTATION

LEADERSHIP & NAVIGATION

SHRM COMPETENCY MODEL

GLOBAL & CULTURAL EFFECTIVENESS

HR EXPERTISE (HR KNOWLEDGE)

BUSINESS ACUMEN CRITICAL EVALUATION

Figure 3.4: HR Competency Model of the SHRM Source: http://www.shrm.org/HRCompetencies/Documents/Competency%20Model%2011%20 2_10%201%202014.pdf

According to Ulrich, Younger, Brockbank and Ulrich (2012), the RBL Group HR Competency Model in 2012, The RBL Group, with the Ross School of Business, University of Michigan and HR professional association partners, completed a sixth round of the 2012 Global Human Resources Competency Study. They collected data in this round of HRCS from over 20 000 individuals. They have determined six fundamental competency domains: strategic positioner, credible activist, capability builder, change champion, human resource innovator and integrator and technology proponent.

Lee and Yu (2013) mention the Cornell ILR School’s HR Competency Model. Professor Lee Dyer, from Cornell ILR School, established the HR competencies in consideration of competency models of CAHRS (Center for Advanced Human Resource Studies) members. The model consists of business acumen, functional expertise, strategic HR, contextual expertise and capabilities. 18

Chapter 3: Foundational understanding: HR competence and business acumen

Lee and Yu (2013) also mention the HR competencies as proposed by General Electric, Ingersoll Rand, CISCO and Tyco HR competencies: •

• •

•

General Electric: Business Mastery (Business Acumen and Customer Orientation), HR Mastery (Organisatioanl Design and Selection & Staffing), Change/Process Mastery (Quality Focus and Change advocacy) and Personal Attributes (GE Leadership, Values and Credibility) Ingersoll Rand: Business Advisor, Strategic Decision Making, Business Impact, Organisational Development, Talent Management and Employee Engagement

CISCO: Business Acumen, Client Engagement, Recruitment/Selection/On Boarding, Employee Relations, Organisational Effectiveness, Training and Development, Leader Development & Succession, Performance Management, Compensation and Benefits, Change Management and Program and Project Management

TYCO: Organisation Design, Talent Management, Performance Management, Engagement, Total Rewards, Employee Relations, Talent Acquisition and Staffing, Learning and Development, Culture and Change Expertise, Process and Technology, Building Collaborative Relation and Influence.

Deloitte Consulting LLP and Bersin (2014:110-112) mention that companies need to develop HR skills in the following areas: •

•

•

HR and talent skills: Technical HR skills such as training, recruiting, sourcing, organisational design, employee relations, labour relations, compensation strategies, benefits and many other functions are critically important. A deep understanding is needed of the labour markets and how to manage service levels, design service-centric systems and solutions, measure quality of service and implement self-service technology. Cloud, mobile and social technologies as well as skills around statistics and analytics are also essential.

Business, industry and global skills: HR professionals should develop a deep understanding of business and industry trends, comprising how the company makes money, what drives long-term competitive advantage, what skills are needed to maintain and drive improved profits, what new products are underway, how customers perceive value and how to drive innovation. HR professionals must be innovative in accessing talent in global geographies.

Management, leadership and program implementation skills: HR professionals must understand how people lead, how to coach leaders and how to lead their own teams. Confidence to interact with senior business professionals in a meaningful way is also of utmost importance. Project and change management 19

Reinventing HR

skills and a continuous development and knowledge sharing of the entire HR function are crucial.

Welch and Welch (2012:614) conducted research and reported their findings regarding international HR roles: • • •

• •

Service provider: Providing effective HR servicing of different assignment types across distance. Policy police: Complying with host country regulations and enforcing company policies and procedures.

Strategic partner/advocate: Ensuring the company’s global resourcing capabilities match the firms internationalisation strategies; managing relationships with external stakeholders in host country. Change agent: Replacing domestic HR practices and mindset with a global orientation. Welfare officer: Mitigating geographical isolation of the project site and disruptive effects of staff transfers; integrating project workforce into local community.

The support of human resource management practices is fundamental in adopting environmental management practices (Jackson et al. 2011; Govindarajulu & Daily, 2004; Sarkis et al., 2010). These researchers confirm that human resource management must align its practices – recruiting, selection, performance evaluation and training – with environmental management objectives. This process is called Green Human Resource Management.

All the above competencies, skills, roles and practices of HR managers or officers are essential to function optimally at micro human resource management (MHRM), International human resource management (IHRM) or Strategic human resource management (SHRM). They need to have basic HR and business knowledge before they can even be considered to be competent. Deloitte Consulting LLP and Bersin (2014:107) state that “To become an effective business partner, HR teams need to develop deeper business acumen, build analytical skills to underwrite their leadership, learn to operate as performance advisors and develop an understanding of the needs of the 21st-century workforce.” In order to achieve this let us start by looking at the foundational HR knowledge and business acumen that HR leaders should possess.

20

HR knowledge

Chapter 3: Foundational understanding: HR competence and business acumen

HR knowledge on all the different functions in HRM is essential. The SHRM (2014) classified six major functions of HRM: • • • • • •

Human resource planning, recruitment and selection Human resource development Compensation and benefits Safety and health

Employee and labour relations Human resource research

Any HR officer, HR manager or HR executive must have knowledge on all HR functions. It was clear from the findings of the survey discussed in chapter 1 of this book that line management expressed their concerns that HR does not have the basic knowledge of HR functions in order to give them proper advice on HR related matters.

Transactional or traditional HR is concerned with the day to day mechanics of keeping an organisation running. It involves a variety of repetitive and administrative tasks. According to Kulkarni, Tolaney and Gupta (2013:27), some of the traditional transactional roles of HR include: • • • •

Designing the policies and procedures of the organisation Handling the compliance and legal issues Employee Benefits Recruitment

HR should thus have in depth knowledge of the following HR practices, and it is essential to be lifelong learners in the field: •

•

HR planning: Aggregate planning (traditional forecast and demand) and succession planning (identify key management positions): Traditionally, succession planning has concentrated on identifying high-potential leaders and developing them for senior roles in the organisation. Rather than just focusing on these managerial positions, this process should be expanded to include other key roles and to including key technical specialists, people in critical customer-facing roles and expert operations and project managers (Deloitte Consulting LLP and Bersin, 2014)

Job analysis: Obtain job related information through observation, questionnaires, diary/log book and interviews: Compile a proper job description with job specifications (years of experience, qualification and other requirements).

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• •

•

• • •

Job evaluation: Knowledge on methods such as the Hay method, Patterson, Peromnes and Castellion.

Knowledge of traditional recruitment and selection. Recruitment: Internal recruiting methods (intranet and notice boards) and external recruiting methods (agencies, newspapers, internet, radio, tertiary institutions, head hunting).

Selection: Interviewing and testing (psychometric tests, assessment centres and aptitude tests). However, the traditional staffing team is replaced by a strategic talent acquisition function focusing on building an employment brand, sourcing people in new places using social media tools, creating opportunities for internal candidates through utilising a network of referral relationships within the organisation as well as LinkedIn, Facebook, Twitter, Glassdoor, Yahoo, Google and other social networks. Talent acquisition is becoming more like marketing. Induction: Compiling a proper orientation programme for newcomers to enhance socialisation.

Compensation: Total compensation system while keeping the internal and extrinsic rewards in mind with payroll.

Performance management: Know that there are different traditional performance appraisal methods, for example, Management by Objectives (MBO), MultiRater Assessment (360-Degree Feedback), Graphic Rating Scale, Behaviourally Anchored Rating Scale (BARS), Critical-Incident Appraisal, Essay Appraisal, Checklist, Forced-Rating, Ranking Methods and Work Standards Approach. Shifting away from annual performance evaluations toward a process of continuous coaching and improvement requires a new role for HR and managers. An in depth discussion can be found in chapter 7. “Perhaps the fundamental aspect of traditional performance management is

grading by the curve or forced ranking of employees. This process, widely known as ‘rank and yank’, has been found in many companies to demoralize employees, create animosity and spur good people to look elsewhere for work.” (Deloitte Consulting LLP and Bersin, 2014:46)

• •

22

Training and development: Different methods to improve the skills, knowledge and attitudes of employees.

Labour and employee relations: Basic knowledge on the relevant acts such as Employment Equity Act (EEA), Labour Relations Act (LRA), Basic Conditions of Employment Act, Skills Development Act. Being able to ensure labour peace. Knowledge on unionism, employers organisations, reconciliation, arbitration, mediation, collective bargaining, discipline, counselling and dismissals.

• • •

• • •

Chapter 3: Foundational understanding: HR competence and business acumen

Health and safety: Knowledge on how to ensure employee well-being and safety management. HR technology: Knowledge on which software, hardware and data will improve the service delivery of HR.

HR research: Conducting surveys and interviews as well as reading HR related articles will ensure that HR stays relevant and updated within the organisation. Knowledge on HR analytics is also essential. HR metrics and measurement: Balanced scorecard and dashboard.

Organisational development: Internal change agent to optimise change management in the organisation. Strategic HRM: How to align the HR strategy with the business strategy of the organisation.

If you are good in payroll, attendance or other HR operational jobs, better you upgrade your skills to a HR expert or HR generalist and HR business partner. Most companies are eliminating HR transactional jobs, and such functions are outsourced to optimise costs. Recruitment (placement) agencies are now outdated. Everybody has job portals. More jobs will be filled through internal job postings, referrals and through professional and social sites. Companies are tracking candidates through the likes of such social media as LinkedIn, Facebook, Plaxo and Twitter.

There is a growing body of literature urging managers to practice evidence-based management (Latham, 2009; Locke, 2009; Rousseau, 2006, 2012). “Evidence-based human resource management means making decisions, promoting practices and advising the organisation’s leadership through the conscientious combination of four sources of information: the best available scientific evidence; reliable and valid organisation facts, metrics and assessments; practitioner reflection and judgment and the concerns of affected stakeholders.” (Rousseau & Barends, 2011:222–223)

This gives new meaning to HR research.

Business acumen

Why is business acumen important to HR? Garey (2011) is of the opinion that when HR professionals articulate the language of business, their peers and superiors in the organisation will include them in the organisational decision-making process. Business acumen and an awareness of the operational and strategic challenges facing 23

Reinventing HR

the business are vital. Business acumen is not a technical skill; it is a set of behaviours independent from intelligence, technical skills and financial knowledge. HR needs to talk about metrics, and the ability to speak Return on Investment (ROI) is one to be mastered. One essential question is whether the HR executive can read and analyse a balance sheet and other financial reports. CEOs and boards are more comfortable with people who get the numbers. The perception is that HR is short on this and always has been. If this is a weak spot for you, talk to your CFO about mentoring you around the numbers and the language, or consider taking up some business-focused study. According to Spencer (2014), the key business acumen skills are: •

•

•

Financial acumen: A comprehensive understanding of what drives profitability and cash flow. Understanding of budgets, financial statements, key performance measures and how decisions will affect value creation.

Market orientation: A deep understanding of the external environment. Ability to analyse and synthesise market and competitive data, and an understanding of customers’ business objectives and purchasing criteria – in the public sector, ability to understand how different forces (law, public policy, needs of citizens) come together to influence the decisions made about the services offered.

Strategic perspective: An overall big picture understanding of the business. Understanding critical interdependencies across functions and divisions, and grasping the short and long-term trade-offs of business decisions.

HR specialists could improve their ability to gather organisational metrics, and then design, develop, implement and evaluate programs that contribute to business goals and organisational competitiveness by being conversant with line managers on such line functions and responsibilities as customer/client satisfaction, marketing initiatives and financial results.

The questions then arise: How can business knowledge and skills for the members of the HR department be developed? What should they do? What should they know?

The SHRM (2002) answers these questions by suggesting the following business acumen for HR specialists: • • • • • 24

Strategic agility

Business knowledge Systems thinking

Economic awareness

Effective administration

• • • • • • •

Chapter 3: Foundational understanding: HR competence and business acumen

Knowledge of finance and accounting Knowledge of sales and marketing Knowledge of technology

Knowledge of labour markets

Knowledge of business operations/logistics

Knowledge of government and regulatory guidelines

HR and organisational metrics/analytics/business indicators

Every business focuses on five basic elements that every HR specialist should know: •

•

• • •

Cash is an item on the balance sheet that reports the value of a company’s assets. Cash in-flows arise from three activities; financing, operations, investing. Cashout flows derive from expenses or investment.

Margin is what is left over after you paid your expenses. It can be expressed in terms of money or per cent. The types of expenses you deduct determine which margin you are calculating. Velocity is the speed with which you make assets work to make more money. Growth can be measured in sales, net earnings and earnings per share.

Customer is the end user of your products and/or services. It may comprise of internal or external clients.

Business acumen is therefore the capability to bring about positive business outcomes and to create capital. Note that capital used this way does not always, or even necessarily, refer to financial capital. It also can refer to the creation of social capital as in nonprofits, or political capital as in government organisations.

There are different approaches to measuring and developing business acumen. Firstly, to build financial literacy is perhaps the most common approach, and unfortunately it is also the most misguided. It usually involves either conducting in-house financial training, or for more senior executives, sending them off to a programme at a university. In addition to the fact that having high financial literacy has nothing to do with making money, there are other reasons why this approach, generally, does not result in the desired outcomes listed above. Secondly, conducting business simulations and games can be used as vehicles to improve business acumen. This is often done with younger employees. Lastly, behavioural tools for assessment and intervention can be used to determine the level of business acumen and which interventions are needed to close the gap. Assessments are completed as a basis to determine an employee’s business acumen and to provide the behavioural data 25

Reinventing HR

required for an intervention programme targeted at their unique behavioural needs. The motivation for behavioural assessment is that different individuals respond in different ways to financial cues and signals. If we don’t understand these differences, we can’t get a clear picture of the individual’s current capabilities – meaning we won’t be able to address their intervention needs. Any HR specialist should keep a knowledge book. In this Excel workbook, all the business knowledge information that is gathered can be entered – process information, participants, facts, definitions and acronyms related to the domain. This book becomes a faithful companion and a reliable reference guide.

Job rotation is another method to enhance business acumen. It would be beneficial within the HR function so as to contribute a broad perspective relevant to strategic activities, as well as in various other business roles in order to develop business knowledge required to integrate HR into the strategic focus of the organisation.

Talent management

Talent management (TM) is more than a new language for old HR work, or just the next hot new thing for HR practitioners and managers to embark on. On the basis of our research findings in chapter 1, we argue that TM is of strategic importance, and can differentiate an organisation when it becomes a core competence that significantly improves strategy execution and operational excellence. TM is a strategic and holistic approach to both HR and business planning, and a successful path to organisational effectiveness. It is critical to the success of any people-based strategy to attract and retain the very best. Becoming an employer of choice, however, requires an aligned HR system. It is very easy, but very expensive, to provide compensation and benefit levels that will be attractive. The challenge is to also structure an HR system that selects, develops and produces a level of performance that can justify those investments. The issue today is therefore not the talent; the issue is for the right talent which grows the business. Without critical talent and skills, companies cannot grow their businesses.

26

Talent refers to individuals who have the capability to make a significant difference to the current and future performance of the company. Talent management refers to anticipated human capital that the organisation may require, and involves individual and organisational development in response to a changing and complex operating environment. Talent management is the implementation of integrated strategies or systems designed to increase workplace productivity by improving processes for attracting, developing, retaining and utilising people with the required skills and aptitude to meet current and future business needs.

Chapter 3: Foundational understanding: HR competence and business acumen

The demand for human capital drives talent management in the race for competitive advantage. Talent management strategies focus on five primary areas: attracting, selecting, engaging, developing and retaining employees. Although pay and benefits initially attract employees, top-tier leadership organisations focus on retaining and developing talent. Kehinde (2012) mentions that talent management can be viewed from different perspectives: • • • •

•

Process perspective: processes needed to optimise people within an organisation where the future success of the company is based on having the right talent. Cultural perspective: the development of every individual’s talent is vital. Allowing people to explore and develop their talent becomes part of the work routine.

Competitive perspective: the focus is on developing high potentials, or talents, more quickly than others.

HR planning perspective: a more general HR planning perspective that claims talent management is about having the right people matched to the right jobs at the right time, and doing the right things. Succession planning tends to be more prominent in organisations that take this approach. Change management perspective: the talent management process is used as a driver of change in the organisation, using the talent management systems as part of the wider strategic HR initiative for organisational change.

Suggested TM initiatives may include: • • • • • • •

Up-to-date talent profiling of individuals

Conducting calibrations of business performance and key results behaviours Assessing and forecasting succession depth

Implementing organisational assessment summaries to give status reports for leadership talent Using just-in-time, action-learning programs and talent-sharing assignments

Developing talent at risk tools based on potential derailers and defection triggers.

Introducing a talent scorecard with five perspectives, each of which has critical indicators – hiring, performance, retention, transportability and succession pipeline.

HR must facilitate a learning organisation that is able to attract and retain best talent by entering into a psychological contract with their employees that motivates

27

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them to generate and share knowledge in return for nurturing and nourishing their professional skills. Their HR philosophy develops trust and encourages organisational citizenship behaviours.

How many top performers will you lose to retirement in the next five or ten years? What skill demands are on the rise? Which regions, categories and functions need greater attention? What will be the bottom line impact of giving merit increases to top performers only versus all employees? This is all insight that the HR leader can and should provide. One of the three crucial elements of a successful business is having the best people in the world. It is a war to find, develop and retain the best people, but it’s one that can be won with the right tools at hand.

HR technology

Information technology completely infuses HRM processes and HRM departments in today’s global networking timeframe. For more than a decade now, digital possibilities have been challenging traditional ways of delivering HRM services within business and public organisations. e-HRM, virtual HR(M), web-based HRM, intranet-based HRM, self-service portals, HR Information System (HRIS), vendors and MIS call for an integration of diverse expertise, interdisciplinary comprehension and modernisation of the HR profession. The traditional two-level HRM function based on HR department and middle managers is being questioned for its inflexibility, rigidity, innovative incapacity and inferior efficiency and effectiveness (Bondarouk & Ruël, 2009). Strohmeier (2007), mentions that because of IT interventions in HRM, the conservative infrastructure of the HRM function is resisting the transition to a multilevel, contingencies-dependent HRM including HR corporate central departments, decentralised HR specialists and administrators, line managers and employees.

With services like employee self-service and help desks, the employee experience will undergo a complete change and will motivate HR professionals to spend more time on talent management and development and strategic planning (Kulkarni, Tolaney & Gupta, 2013).

Self-service technology enables employees to view and manage their own records, which helps to streamline operations and ensures increased accuracy of records (Otter, 2003). It has been suggested that increased technological use by employees results in direct enhancement and increased breadth of employee skills, and improves quality of personal data (Keep, 2001). Through the adoption of self-service technology individual employees could arguably be encouraged to take ownership of their own careers and job lifecycle via the new access to personal data and employee intranet 28

Chapter 3: Foundational understanding: HR competence and business acumen

tools. Staff working in high-volume production line environments or remote homeworkers may have particular difficulties in accessing this type of service (Hunter & Saunders, 2005). This may result in a portion of the workforce, particularly in certain industries, being unable to appreciate and utilise the true benefits of this service. This suggests that the vastness and complex connotations of technological change can present a major challenge for managers in making sense and good use of what technology can offer. Included is the removal of those processes that may not add value. Research also stresses the importance of management adopting the ability to remain ahead of the ever-expanding curve of technology, leveraging information for business results as the sole focus (Ulrich, 1998). HR leaders are often stereotyped as saying yes to the CEO. Since HR’s history is often rooted in administration and service, it can be easy to fall into a reactive mindset where the function is lost in the chaos of trying to make everyone happy. But if you don’t have a firm point of view about what matters in an organisation, your chances of doing something remarkable drop to zero. Sales executives have specific opinions about how to develop customer relationships, as do finance executives about budgeting processes. When HR leaders don’t develop their own point of view credibility suffers. Instead of relying on people, companies are automating their HR processes. Everything is online, for example your training history and all your appraisals. Managers are not expected to go to HR for small issues. Managers will have control of their team through manager self service and employee self service. HR is only here to advise and consult. No paper work and bureaucracy and more face to face discussion are expected.

Organisational development (OD)

The development of change management as one of the main streams in the proposed reinvented HR function puts a different spin on organisational development, or OD. OD was historically regarded as high level consulting processes driven by executives and external consultants. Nobody really knew what was going on, and foreigners were treated with distrust and professional discourtesy. Implementation of processes was met with passive resistance and procrastination. Obviously change management, or leading change, involves – by implication – organisational development. It is the same with the design and execution of strategy. The changes in organisational culture and the evolving role of leaders require different perspectives. We nevertheless think there is still scope for OD, but in a revised context. Any organisation, as a living organism, is in the process of continuous change. Nothing can stop these processes. Some changes in organisations may be considered positive, in which case it is common to use the term development. Which changes are deemed

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positive depends on the desired direction of development. Other changes may be undesirable and when they take place may be referred to as deterioration.

Change management has been defined as the process of continually renewing an organisation’s direction, structure and capabilities to serve the ever-changing needs of external and internal customers (Moran & Brightman, 2001:111). Management is expecting that HR take ownership of organisational development initiatives. You can still hire the consultants, but in the first stage HR is expected to diagnose and act on the plan and devise the HR strategy. HR will have to play the role of deployment leaders of new initiatives, and measure the success of such initiatives. In chapter 8 we deal extensively with organisational transformation through strategy (long term perspective) and the dynamics involved with leading change (continuous activity). But in terms of OD we have revisited the work by Greiner (1998) on organisational development over time. Just as people develop through different stages, organisations go through predictable stages, requiring different criteria for success at each stage. Greiner provides a useful model for understanding and tracking development phases in an organisation over time. Irrespective of strategy, change management or operational improvement interventions, all organisations still go through these phases over time. More thought will be required, but it is our contention that the HR function needs to give new definition to OD as process stream. In this sense the development phases which Greiner proposes can serve as guidelines.

Table 3.1: Development phases Phase 1

Phase 2

Phase 3

Phase 4

Phase 5

production

efficiency of the

entering new

and improving

problems and

Getting

processes set up; focusing

on growth in

market share and revenue.

Improving the organisation; improving quality

standards and

reducing costs.

Creating and

markets; profit maximisation in business units.

Regrouping

coordination

mechanisms; developing,

introducing

and monitoring plans.

Solving

improving

innovation;

team based

participation in matrix design.

Obviously the operating context and organisational environment are inconsistent variables, necessitating strategic positioning which can cause the organisation to move between the phases with purposeful intent. Furthermore, the phases are supported by processes grouped into categories: 30

• • • •

Chapter 3: Foundational understanding: HR competence and business acumen

Organisational design Managerial style

Focus of control systems

Managerial reward systems

The process description that an evolutionary development within a phase leads to the introduction of a new phase in a revolutionary sense, makes for interesting reading. The model on organisational development through five phases proposed by Greiner needs further attention by HR (and OD) practitioners. It is also an interesting topic on which to do further research.

HR metrics, measurements and analytics

There are different ways of looking at measurement. The traditional measurement approach focuses on performance outcomes, often mainly financial outcomes. What about measuring the input? Input represents the inventions or managerial practices (including HR practices), but also the human capital management available to the organisation. There are three forms of capital namely, human capital (knowledge, skills and abilities of employees), social capital (social networks and relationships between employees) and organisational capital (practises and systems in place). The three forms of capital constitute a hard approach, but there are other ways of measuring HR input; using questionnaires with measurement scales or options such as presence, satisfaction, intensity, coverage and importance, for example. •

•

•

Overview of HR scorecards: Early HR scorecards focused on HR measurement from the HR function perspective. Yeung and Berman (1997) attempt to add value to HR by reorienting human resource measurements to drive business performance. They were among the first to include organisational capabilities and employee satisfaction in the HR scorecard. Becker, Huselid and Ulrich (2001) opt to link people, strategy and performance by using a HR scorecard that included the HR role and competencies (strategic partner, administrative expert, employee champion and change agent), HR practices (staffing, compensation and development) and HR systems (HR infrastructure). Phillips, Stone and Phillips (2001) focused on measuring the return on investment by using a HR scorecard. They emphasised evaluation planning, data collection, data analysis, calculating the return on investment (ROI), intangible benefits and the general programme cost.

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The next generation HR scorecards presented by Paauwe (2004) and Huselid, Becker and Beatty (2005) are much broader including not only the HR function and practices but organisational elements as well. Paauwe (2004) suggests the 4logic HRM scorecard: • • • •

Professional logic – expectations from line managers, employees, works councils and colleagues of HR departments

Strategic logic – expectations of board of directors, chief executive officer (CEO), shareholders and financiers Societal logic – expectations of works councils, trade unions, the government and other interest groups or stakeholders relevant to the organisation Delivery logic – cost effectiveness of the possible HR delivery channels, including HR departments, line management, teams, employees themselves, outsourcing and self-service through e-HRM

The workforce scorecard of Huselid et al. (2005) focuses on four key dimensions:

• • • •

The mindset and culture of the workforce in an organisation

Workforce behaviour with specific attention paid to the leadership team The competencies of the workforce

The workforce success in achieving strategic goals

Certain conditions precede the successful implementation of an HR scorecard: • • • • • • • • • •

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Top management support

Well-operating IT infrastructure

Involvement of all stakeholders (line managers, employees and HR professionals) Clear responsibility structure

HR input data must be linked to the outcome measures

Time period for HR measurement must be determined, monitored and evaluated Establish reporting intervals (monthly, weekly or daily)

Clarify concepts, indicators and measurements so that they are understood Clarify targets

Determine actions to be taken in case of failure

Chapter 3: Foundational understanding: HR competence and business acumen

The balanced HR scorecard might end up as a dashboard. Dashboards are a popular trend in measuring and tracking organisation performance. A dashboard can be a critical tool for company decision-making provided that it is comprised of metrics that are the best predictors of success. One goal of a dashboard is to align metrics with the strategic goals of the company.

Using the compensation metrics and dashboards, financial officers and compensation specialists can monitor the costs of payroll, overtime and variable compensation. Managers can view performance by company pay levels, comparing these either within the company’s own structure or to external competitive benchmarks. Compensation specialists and managers can link compensation with worker performance. Managers can analyse high performers with potential to fine tune their rewards and so ensure their retention, thereby optimising compensation plans while managing costs. Recruiting dashboards provide a complete set of recruiting metrics that measure the efficiency and effectiveness of the entire recruitment life cycle. It enables optimisation of candidate sourcing; analysis of the recruitment pipeline and hire to-retire process efficiency; analysis of time to fill to support optimisation; monitoring of vacancies; and measurement of quality of hires and their retention by source. By analysing these effectiveness metrics, an organisation can fine tune its recruiting strategy, balancing costs, retention and performance.

From the learning management metrics and dashboards, specialists can assess learning offerings and how those programs affect employee performance and tenure. They can monitor learning offering effectiveness and the costs to deliver by delivery option. With this information, they can fine tune the overall learning program, perhaps adding more courses or eliminating those not well attended. From the absence subject area metrics and dashboards, specialists and managers can monitor planned and unexpected absence events to gain greater insight into lost productivity and the cost impact of unplanned absences and staffing. This dashboard shows staffing levels, absence rates and trends at a glance, along with a scorecard view of absence by location, enabling managers to immediately pinpoint problems and from there drill down to causal factors where action can be taken. From the HR performance dashboard, operational managers can link financial measures with key workforce metrics to demonstrate HR’s strategic value in the workforce. These trends indicate a possible dilemma with turnover. But, in fact, looking further, the Employee Expense Trend chart shows overtime expenses trending sharply up, as are contracting expenses shown in the Key Variable Cost Drivers chart.

With this information, managers can move to reduce overtime costs or contractor costs, such as hiring full time staff at lower and more stable salary costs.

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The Workforce Profile dashboard provides a starting place for analysis of headcount and headcount movement trends, turnover and span of control, providing a consistent view of the workforce to line managers and HR. Drilling down from this level, one can gain insight into the recruiting life cycle, analyse staffing (staffing levels, retention, diversity and performance), view employee performance by organisation, see retention (retention hotspots or retention by top performers) and various other demographic trends. Users can view the entire organisation by time periods and can select a divisional, departmental or workgroup view within the organisational hierarchy. With the tight integration between the workforce profile subject area, with its dashboards and metrics and the underlying HR system of record, managers can view up-to-date workforce counts; something that has eluded most organisations to date and helps HR build credibility with financial departments. Finally, with regard to HR demographics and HR analytics, do you know what the employee cost against the revenue and sales is? What is the contribution margin of the product? How does the HR cost impact on the product? Do you know the demography of your employee? How are HR costs trending and making the business impact? HR is expected to work on HR analytics and demography; not only understand what that is, but understand the business impact and analysis, and make HR plans. HR demographics help to devise a customised HR strategy.

Performance metrics within businesses can include retention numbers and trends that are as valid as any financial results. Human capital analytics and other measureables, such as compensation histories, performance ratings and participation in training programs, can be correlated with retention trends. Engagement surveys can be used to better understand what factors motivate employees to leave or to stay. The challenge for HR is to link retention and engagement insights to business results (Deloitte Consulting LLP and Bersin, 2014:46). Rather than measuring HR business partners by client satisfaction, use talent metrics (quality of hire, leadership progression, retention) so that HR feels responsible for outcomes, not just administrative services. HR is developing into a data-driven function. The focus is not on reporting data but on allowing the organisation to make informed talent decisions, predict employee performance and conduct advanced workforce planning. The jump from data reporting to data analytics can be very challenging. Industrial and organisational psychologists, statisticians and data analysts may all be needed to help HR build this new competence.

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Chapter 3: Foundational understanding: HR competence and business acumen

HR metrics are therefore a critical source of information. Deciding what information is most essential to making the right talent, leadership and culture decisions should drive metrics. For example, revenue per store in retail is a key outcome. One chain worked to identify which management practices had the most impact on store revenue and discovered that leadership skills were the largest predictor. They then focused on developing leaders to be more effective. Metrics should follow a chain of data that comes from information that comes from insight that comes from decision clarity. Start with clarity about the business decision that needs to be made, then find HR data to improve that decision.

Strategic HR

According to Kim and Mauborgne (2005:19), strategy will always involve both opportunity and risk, be it a red ocean or a blue ocean initiative. At present the playing field is, however, dramatically unbalanced in favour of tools and analytical frameworks to succeed in red oceans. As long as this remains true, red oceans will continue to dominate the strategic agendas of companies, even as the business imperative for creating blue oceans takes on new urgency.

Today’s CEOs and executives maintain that there are three key components to a successful business: 1) you have to have the right strategy, 2) you have to have the operations in place to execute that strategy and 3) you have to have the best people in the world to execute those operations. It’s clear that a shift is needed. The next generation of HR leadership is not about completing transactions – it’s about helping drive the CEO to great decisions and using technology to connect the dots throughout the entire organisation. But to be able to make this leap from transactional to strategic, HR leaders need to put greater focus on tools, process and integration, and stop addressing talent management in silos. Another fact to make this leap is all about “fit”. To fit or not to fit appears to be one of the key points of attention in the field of SHRM over the last two decades. For example, does a fit between the business and the HR strategy add value to the organisation?

Having a strategic perspective means not only thinking strategically, but performing strategically. For example, if one function of HR is to facilitate company-wide reorganisation efforts, it is then expected that HR will reorganise its own department for maximum efficiency and effective achievement of internal goals and objectives. A self-assessment focused on combining high-value-added HR activities and eliminating others could lead to significant cost savings. Strategically HR must position itself to make a more vigorous business case for arranging company-wide reorganisation, having successfully arranged that in their own area of responsibility. It always starts at home. 35

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Innovation It is widely accepted among business leaders that innovation is vital to both competitive advantage and long-term success. Firms with greater innovativeness will be more successful in responding to changing environments and in developing new capabilities that allow them to achieve better performance (Montes, Moreno & Fernandez, 2004). For most companies, the ability to innovate is the single most important predictor of future growth. First of all it is important to understand that innovation has different facets comprising technical, organisational, institutional and social. On having a closer look at organisational innovation, organisational intelligence is established by the accumulation of knowledge of each individual, because each member of the organisation contributes their ideas and values. Studies strongly show that the most successful corporate innovation strategies are the ones that predominantly focus on people. These include finding, engaging and incentivising key talent for innovation, creating a culture of innovation by promoting and rewarding entrepreneurship and risk-taking, and developing innovation skills for all employees. Developing a culture of innovation is everybody’s business. When employees have the possibility to be creative, they can share their new developed ideas with the entire organisation, which leads to innovation.

Performance management can serve as a valuable tool in the creation of a sustainable culture of innovation as HR managers can ensure innovation features prominently within a company’s objective setting and appraisal processes. Reward, on the other hand, can be used to reinforce the importance of innovation activity and outcomes, while recognition schemes can be used to encourage and inspire employees to innovate and to share ideas (even if the ideas fail). Organisational design can be used to facilitate easier exchange of employees’ ideas across boundaries and functions. Other innovative work practices can influence incentive payments, recruitment and selection, teamwork, flexible job assignments, employment security, communication and training. Knowledge management may influence the relationship between strategic HR practices and innovation performance. Knowledge management is an approach to adding or creating value by more actively leveraging the knowhow and expertise residing in the minds of individuals. The results of the study by Cheng and Huang (2009) indicate that strategic HR practices relate positively to knowledge management capacities, which in turn relate positively to innovation performances. The findings show support for the mediating effect of knowledge management capacities on the relationship between strategic HR practices and innovation performance. Strategic HR practices work their beneficial effects on innovation performance through the capacity in knowledge acquisition, sharing and application (Cheng & Huang, 2009). 36

Chapter 3: Foundational understanding: HR competence and business acumen

Professionalism

Throughout our working lives, most of us will have many different jobs, each requiring a different level or set of skills. No matter the industry – from customer service to an office job to construction and the trades – all of these jobs have one thing in common: in order to succeed and move ahead, you need to demonstrate professionalism. Professionalism does not mean wearing a suit or carrying a briefcase. It means conducting oneself with responsibility, integrity, accountability and excellence. It means communicating effectively and appropriately and always finding a way to be productive.

Conclusion

It was clear in the survey mentioned in chapter 1 that HR should not be occupied with administration all the time, but rather with spending more time on becoming an adequate business partner. HR is moving away from the transactional, paper-pushing, hiring/firing support function it has been, and orientating towards a bottom-line business decision maker. The diagram below suggests that HR should be able to transform itself into becoming more relevant. Paauwe (2004) suggests the 4logic HRM scorecard. Traditional HR model

Future HR model

10% *

Policy/ planning

30% *

60% *

HR Transformation

Business partnering

Administration

20% * Policy/ planning Business partnering

60% *

Administration Employee 20% * Outsourced and manager activities self service

*Percentages are for illustrative purposes only

Figure 3.5: HR Transformation Source: http://www.changeboard.com/content/4201/leadership-and-management/changemanagement/a-model-for-successful-hr-transformation/

“For decades the corporate HR department was seen as a back-office function, a cost centre focusing on mundane administrative tasks such as managing compensation and benefits plans. For years many of the HR chiefs she recruited reported to the COO or the CFO and complained that they lacked real influence in

37

Reinventing HR

the C-suite. In recent years she has noticed a dramatic change in that they often report directly to the CEO, serve as the CEO’s key adviser and make frequent presentations to the board. She also states, very encouragingly, that when companies now look for HR executives they focus on higher-level leadership abilities and strategy implementation skills. This role is gaining importance like never before. It has moved away from a support or administrative function to become much more of a game changer, and the HR person enables the business strategy.” Filler (2014:30)

It is not enough to simply create HRM practices and systems that are aligned with strategy. The real challenge is to connect capable and motivated people with complex and dynamic strategic objectives, organisational processes and resulting work requirements (Ostroff & Bowen, 2000). “There is a need to align the intended strategy with execution by creating the necessary human capital (clear expectations, capabilities and motivation of employees) along with the social capital (relationships, processes and systems) to effectively implement strategy.” (Buller & McEvoy, 2012:45)

It is essential to possess sufficient basic HR and business knowledge that serve as a foundation from which any HR practitioner and HR manager work, but when HR leaders don’t cultivate their own point of view credibility suffers. In cultivating a defined point of view about how HR should be executed it should be based on data first, and then your experience, expertise and beliefs. You need to view yourself as the expert (or certainly one of them) on HR within your organisation. To develop a point of view, answer these questions: • • • • • • •

38

What is the purpose of HR?

How does HR create business value?

What are the attributes of a great HR organisation? How should HR’s success be measured? How do you define talent?

When should HR, or part of it, be outsourced?

What role does HR play in policy creation, maintenance and enforcement? And why?

If you don’t have easy answers that you are confident about and are willing to defend, it might be time to do some work cultivating your philosophy. By cultivating your point of view on HR, you will be able to connect HR more successfully to the business.

Chapter 3: Foundational understanding: HR competence and business acumen

The question arises whether a HR practitioner or HR manager should be a generalist or a specialist. The Human Resources Institute of New Zealand (HRINZ) (2014) believes that generalists are expected to have more breadth of capability than a specialist in HR delivery, but less depth in any one HR area than a specialist is expected to have. Specialists on the other hand are expected to have more depth of capability in their specialist subject(s) than a generalist, but less breadth of HR delivery than a generalist.

The survey in chapter 1 made it clear that line management preferred that HR to have knowledge on all the HR functions and practices in order to be able to give proper advice to them, and this seems to lean towards an HR manager being more of a competent HR generalist. According to Lee and Yu (2013), HR needs certain skills to make the leap from transactional to transformational HR: Digital skills: Of all technical capabilities, digital business skills are most critical. Remotely hosted, Internet-based technologies are replacing on-premise systems. To serve business requirements in nimble, strategic and consultative way, HR needs to embrace new technologies. Agile thinking and risk leveraging: In industries facing significant regulatory and environmental cross-currents, the ability to prepare for multiple scenarios is important. HR should leverage risks by clarifying where would more risk-taking help rather than hurt the company dealing with complexity and paradoxes.

Interpersonal and communication skills: Overall, co-creativity and brainstorming skills will be greatly in demand, as will relationship building and teaming skills. This reflects the continued corporate shift from a command-and-control organisation to a more fluid and collaborative style. HR executives put a high premium on innovative thinking, dealing with complexity and managing paradoxes. Global operating skills: The seeking of new markets and understanding international business were identified as the top global operating skills required.

The global survey of Deloitte Consulting LLP and Bersin (2014:141) show that 81 per cent of large organisations (10 000 employees or more) report that implementing a HR global operating model is urgent or important today. Key features of this model include: • •

Implementing a global technology platform that provides common HR standards, frameworks and tools Empowering local teams to innovate and to customise corporate programs

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•

Defining HR success not simply in terms of cost-cutting, but by HR’s ability to drive business performance and growth

References

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Boxall, P., Purcell, J. & Wright, P.M. (eds) 2007. The Oxford Handbook of Human Resource Management. Oxford: Oxford University Press.

Buller, P.F. & McEvoy, G.M. 2012. Strategy, human resource management and performance: Sharpening line of sight. Human Resource Management Review. 22:43–56. Chen, C.J. & Huang, J.W. 2009. Strategic human resource practices and innovation performance — The mediating role of knowledge management capacity. Journal of Business Research, 62:104-114.

Deloitte Consulting LLP and Bersin by Deloitte. 2014. Global Human Capital Trends: Engaging the 21st-century workforce. Deloitte University Press.

Filler, E. 2014. Why Chief Human Resources Officers make great CEOs. Boston, MA: Harvard Business Review, December: 30-32. Garey, R.W. 2011. Business Literacy Survival Guide for HR Professionals. SHRM.

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Hunter, I. & Saunders, J. 2005. Transforming HR: How to Get Shared Services, Outsourcing and Business Partnering to Deliver What You Want. London: Thorogood Reports.

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Jackson, S.E., Renwick, D., Jabbour, C.J.C. & Muller-Camen, M. 2011. State-of-the-art and future directions for green human resource management. Zeitschrift für Personalforschung. German Journal of Research in Human Resource Management, 25:99-116. Keep, L. 2001. Models of Provision and the Move to Shared Services: Continuing the Emergent Review. Bristol. [NHS case study].

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Kulkarni, S., Tolaney, C. & Gupta, S. 2013. HR’s Role: Roadmap from Transactional to Transformational. Research Journal of International Science and Management, 3(8): 27-40.

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CHAPTER 4 LEADERSHIP AND MEANING Sustained organisational success in a context of shared meaning

Leadership and meaning

Relationships

Workplace socialisation

Productivity

Organisational transformation

Personal wellness

Foundational understanding: HR competence and business acumen Figure 4.1: Reinventing HR: Transitional framework

With reference to the above framework, one of the transitional pillars identified in the process of the reinvention of the HR function is leadership and meaning. “Traditional employee value propositions have focused on terms and conditions of work, often around pay and working conditions. While money will always matter, the new employee value propositioning is about meaning. The heart of leadership is fundamentally about the creation of meaning and leaders have a primary accountability to unleash it. A focus on meaning can yield employees who are more productive and committed, that build the organisation’s capacity to respond to business challenges and that help their organisations succeed.” (Ulrich, Ulrich & Goldmith, 2010:262)

The above quote by Ulrich and Ulrich sets the tone for the leadership function. The world of work is changing in line with new social and economic developments and perspectives. Control through organisational practices and systems dampen innovation and commitment. Initial perspectives on leadership were pitched from a bureaucratic perspective and are inadequate in this changing context.

Leadership as an evolving concept still, however, requires an inside-outside perspective for development and application. 43

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Leadership “For companies around the world, a shortage of leaders is one of the biggest impediments to growth. This challenge is particularly acute today as the global recovery strengthens. Companies seek to rapidly grow their businesses in new markets and older leaders begin to retire at accelerating rates. Leadership needs today are far broader and deeper than merely developing the next CEO or even building the C-suite pipeline. Companies face leadership gaps at every level of the organisation.” (Deloitte Consulting LLP and Bersin, 2014:25)

It is almost impossible to comprehend a situation in which so much time and money has been spent on leadership development over the last two decades, yet remains one of the biggest impediments to growth. Leadership is indeed an enigmatic concept which allows for many interpretations, within which everybody is looking for the one liner defining what makes a good leader. In our experience, based upon collective involvement with leadership and leadership development over the last decade, the one common theme in this regard is that leadership is an inside-outside concept. It is more a matter of inner processes and awareness that influence the external life. Therefore, we have decided to start the discussion with internal themes before moving to the interpersonal dynamics. •

Personal awareness: One of the keys to becoming a highly effective leader is learning to ask great questions. By most definitions, a leader will need to become comfortable with a certain amount of ambiguity or fuzziness around the edges. This is because leadership is constantly evaluating whether the current mindset is correct. A leader’s journey begins and matures from the inside out. This is because it is very difficult to question an organisational outlook without doing so inside first. Said another way, changing inside will cause the person to influence change in the external world of work and family.

The elements of personal awareness are a clear sense of identity regarding personal purpose, and a set of personal values supported by clarity of intent. These must be evidenced in a vision statement and goals or objectives. Leadership therefore, is not something we do, but it is a process, an expression of who we are; our being in action. Personal awareness is also the first element of the emotional and social intelligence framework which we will discuss later in the book. 44

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Three powerful and topical themes regarding leadership are authentic leadership, crucibles of leadership and servant leadership. These are all powerful themes related to inner processes and clearly exemplify the inside out nature of leadership.

Authentic leadership: The journey to authentic leadership begins with understanding the story of your life. Your life story provides the context for your experiences, and through it you can find the inspiration to make an impact in the world. Your life story makes you authentic, an original human being. One can indeed learn from others, but attempting to be like them results in losing one’s own authenticity.

People trust others and can relate to them when they are genuine and authentic, not a replica of someone else. “The values that form the basis for authentic leadership are derived from your beliefs and convictions, but you will never know what your true values are until they are tested under pressure. It is relatively easy to list your values and to live by them when things are going well. When your success, your career or even your life hangs in the balance, you learn what is most important, what you are prepared to sacrifice and what trade-offs you are willing to make. Leadership principles are values translated into action. Having a solid base of values and testing them under fire enables you to develop the principles you will use in leading.” (George, Sims, McLean & Mayer, 2007:5)





George et al. (2007:2) also report on the largest in-depth study of leadership development ever undertaken in which more than 1 000 studies were undertaken in an attempt to determine the definitive styles, characteristics and personality traits of great leaders. None of these studies has produced a clear profile of the ideal leader. The research team was startled when they came to realise that there were no universal characteristics, traits, skills or styles that seem to lead to leadership success. Rather, great leadership seemed to emerge from the life stories of those great leaders, and was the means through which they discovered the purpose of their leadership and learned that being authentic made them more effective. Interviewed leaders described how they managed to become authentic. First and most importantly, they framed their life stories in ways that allowed them to see themselves not as passive observers of their own lives, but rather as individuals who developed self-awareness out of their experiences.

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Authentic leaders act on that awareness by practicing their values and principles, sometimes at substantial cost or risk to themselves. They are careful to balance their motivations so that they are driven by these inner values as much as by a desire for external rewards or recognition. Authentic leaders also keep a strong support team around themselves, ensuring that they live integrated, grounded lives. Discovering your authentic leadership: - - - - - - -

Learning from your life story Knowing your authentic self

Practicing your values and principles

Balancing your extrinsic and intrinsic motivations Building your support team

Integrating your life by staying grounded Empowering people to lead

“In order for leaders to make a real impact on their organisations, they must engage with organisational life in a way that creates the possibility of making change happen. So, to the three ingredients of authenticity – consciousness, coherence and consistency – we would add a fourth for those who want to make a real difference: a necessary degree of clever conformity.” (Goffee & Jones, 2006:133)

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Crucibles of leadership: A crucible is a transformative experience through which an individual comes to a new or an altered sense of identity. The experience forces one into deep self-reflection, where one’s real values are exposed with the resultant questioning of assumptions. Some crucible experiences illuminate a hidden and suppressed area of the soul. These are often amongst the harshest of crucibles involving, for instance, prejudice, episodes of illness and/or violence. “Crucibles force leaders into deep self-reflection, where they examine their values,

question their assumptions and hone their judgment. It is the combination of hardiness and ability to grasp context that, above all, allows a person to not only survive an ordeal, but to learn from it and to emerge stronger, more engaged and more committed than ever. These attributes allow leaders to grow from their crucibles, instead of being destroyed by them – to find opportunity where others might find only despair. This is the stuff of true leadership.” (Bennis & Thomas, 2002:9)

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What enables one leader to inspire confidence, loyalty and hard work, while others – with equal vision and intelligence – stumble? How individuals deal with adversity provides a clue.

Extraordinary leaders find meaning in – and learn from – the most negative events. Like phoenixes rising from the ashes, they emerge from adversity stronger, more confident in themselves and their purpose and more committed to their work. Such transformative events are called crucibles – a severe test or trial. Crucibles are intense, often traumatic – and always unplanned. Crucibles force leaders into deep self-reflection, where they examine their values, question their assumptions and hone their judgment.

Nelson Mandela referred to his twenty-seven years in jail as a crucible experience during which time he had the opportunity to think, reflect and gain control over his emotions. “Prison was a kind of crucible that tested a man’s character. Some men, under the pressure of incarceration, showed true mettle, while others revealed themselves as less than what they appeared to be.” (Mandela, 2013:172)

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Servant leadership: “A fresh critical look is being taken at the issues of power and authority, and people are beginning to learn, however haltingly, to relate to one another in less coercive and more creatively supporting ways. A new moral principle is emerging, which holds that the only authority deserving one’s allegiance is that which is freely and knowingly granted by the led to the leader in response to, and in proportion to, the clearly evident servant stature of the leader.” Greenleaf (2002: 23-24)





Servant leadership as a concept make leaders very uncomfortable as it sounds like the inmates will be running the prison. It takes an enormous sense of personal maturity to see oneself as being in service to your followers. This is not compromising on the results which must be delivered by the team and the organisation, but it enhances performance and efficiency if done authentically. As said, it requires maturity from the leadership, and trust, respect and openness towards their followers. Allow the process to develop and work through the basics of leadership. Larry Spears (2005), a colleague of Robert Greenleaf’s, outlines ten characteristics of the servant–leader that he views as being of critical importance:

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Listening: Leaders have traditionally been valued for their communication and decision-making skills. While these are important skills for the servant– leader, they need to be reinforced by a deep commitment to listening intently to others. Listening also encompasses getting in touch with one’s own inner voice and seeking to understand what one’s body, spirit and mind are communicating. Listening, coupled with regular periods of reflection, is essential to the growth of the servant–leader. Empathy: The servant–leader strives to understand and empathise with others. People need to be accepted and recognised for their special and unique spirits. One assumes the good intentions of co-workers and does not reject them as people, even while refusing to accept their behaviour or performance. The most successful servant–leaders are those who have become skilled empathetic listeners. Healing: Learning to heal is a powerful force for transformation and integration. One of the great strengths of servant–leadership is the potential for healing oneself and others. Many people have broken spirits and have suffered from a variety of emotional hurts. Although this is a part of being human, servant leaders recognise that they have an opportunity to help make whole those with whom they come into contact.

Awareness: General awareness, and especially self-awareness, strengthens the servant–leader. Awareness aids in understanding issues involving ethics and values. It lends itself to being able to view most situations from a more integrated, holistic stance. Persuasion: Another characteristic of servant–leaders is a primary reliance on persuasion, rather than on using one’s positional authority when making decisions in an organisation. The servant–leader seeks to convince others rather than coerce compliance. This particular element offers one of the clearest distinctions between the traditional authoritarian model and that of servant–leadership. The servant–leader is effective at building consensus within groups.

Conceptualisation: Servant–leaders nurture their abilities to dream great dreams. The ability to look at a problem (or an organisation) from a conceptualising perspective means that one must think beyond day-to-day realities. The traditional manager is focused on the need to achieve shortterm operational goals. The manager who wishes to also be a servant–leader must stretch his or her thinking to encompass broader based conceptual thinking. Servant–leaders are called to seek a delicate balance between conceptual thinking and a day-to-day focused approach.

Foresight: Closely related to conceptualisation, the ability to foresee the likely outcome of a situation is hard to define, but easy to identify. Foresight is a

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characteristic that enables the servant–leader to understand the lessons from the past, the realities of the present and the likely consequences of a decision for the future. It is also deeply rooted within the intuitive mind. There has not been a great deal written on foresight. It remains a largely unexplored area in leadership studies, but one most deserving of careful attention. Stewardship: This is an interesting concept in that it implies that leadership of an organisation from executive to operational level plays significant roles in the commitment to serving the needs of others. In holding their institutions in trust for the greater good of society, leaders need to emphasise the use of openness and persuasion rather than control and manipulation.

Commitment to the growth of people: Servant–leaders believe that people have an intrinsic value beyond their tangible contributions as workers. As such, the servant–leader is deeply committed to the growth of each and every individual within his or her institution. The servant–leader recognises the tremendous responsibility to do everything within his or her power to nurture the personal, professional and spiritual growth of employees.

Building community: The servant–leader senses that much has been lost in recent human history as a result of the shift from local communities to large institutions as the primary shaper of human lives. This awareness causes the servant–leader to seek to identify some means for building community among those who work within a given institution. Servant–leadership suggests that true community can be created among those who work in businesses and other institutions.

These are crucial issues in leadership understanding and development, and need to be explored further by practicing HR professionals.

Understanding emotional intelligence

Emotional intelligence has become closely linked to brain research and as such is highly scientific. The emotional and social intelligence framework consists of five elements separated into two categories; one inside yourself (personal emotional competencies), and the other outside, interacting with others (social emotional competencies).

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Table 4.1: Emotional and social intelligence framework (Goleman, 2004:26-27) Your inside or personal emotional

Your outside or social emotional

• Self-awareness: knowing who you are - Self-awareness of own feelings. - Getting feedback to align your selfperception with that of others. - Having sufficient self-esteem to be able to take risks.

• Empathy: awareness of the emotion and needs of others - Empathic and understanding; able to walk in the shoes of another. - Taking a personal interest in others and in what others have to say. - Active listening skills. - Knowing and, if appropriate, adapting to the maturity, styles and preferences of others.

• Motivation and drive: being results orientated - Formulating and holding yourself accountable for your goals. - Having a balance between becoming (wanting and leading change) and being (getting things done). - Able to get personal results, but not at the expense of your colleagues.

• Social skills: helping others succeed; seeing your success as the success of others. - Teamwork: knowing when to collaborate and when to compete. - Networking: building a win–win support system. - Basic counselling skills: being able to help people express their concerns, needs and feelings. - Communication skills. - Roles and power relationships: reading and working within the inevitable organisational power structures.

competencies

• Personal self-mastery: dealing with your own feelings - Taking responsibility for yourself; not blaming others for your shortcomings. - Handling yourself well in emotional and changeable situations. - Not being threatened by either the expertise nor aggressiveness of others. - Having integrity and trust. - Balance between big picture and detail. - Modelling the behaviour you expect.

competencies

From the above framework it is evident that social intelligence is dependent on personal (internal) emotional intelligence as expressed in self-awareness, selfmastery, motivation and drive. 50

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Biology of leadership:

“Research in the field of social neuroscience is beginning to reveal subtle new truths about what makes a good leader. Newly acquired knowledge about mirror neurons, spindle cells and oscillators can be translated into practical, socially intelligent behaviour that can reinforce the neural links between leaders and followers. The notion that effective leadership is about having powerful social circuits in the brain, has led to the relationship-based construct for assessing leadership called social intelligence.” (Goleman & Boyatzis, 2008:2-3)

Understanding social intelligence The interactive or social intelligence factors are in empathy and social skills. They are built and executed from an internally mature and settled frame of reference. “The notion that effective leadership is about having powerful social circuits in

the brain has prompted us to extend our concept of emotional intelligence, which we had grounded in theories of individual psychology. A more relationship-based construct for assessing leadership is social intelligence, which we define as a set of interpersonal competencies built on specific neural circuits (and related endocrine systems) that inspire others to be effective.” (Goleman & Boyatzis, 2008:2-3)

Social intelligence is defined as a set of interpersonal competencies built on specific neural circuits (and related endocrine systems) that inspire others to be effective. According to Goleman and Boyatzis (2008:5), it consists of seven social intelligence qualities: • • • • • • •

Empathy: understand what motivates other people across cultures Attunement: listen attentively and think about how others feel

Organisational awareness: appreciate your group’s culture and values Influence: persuade others by engaging them in discussion

Developing others: coach and mentor others with compassion.

Inspiration: lead by bringing out the best in people, build group pride

Teamwork: foster cooperation, encourage participation of all within the team

Some ideas on developing social intelligence:

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Get to know people, learn and use their names. People like the sound of their own names. 51

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Practicing the application of employee engagement as a leadership practice is very helpful. It implies truly acknowledging other people and responding to them, both in their existence and in their contributions. Since social intelligence as an emotional process is regulated by the brain’s limbic system which governs feelings, impulses and drives, aspects of development in this regard must include motivation, extended practice and feedback.

Making learners attentive to the existence, needs and requirements of other people is an essential first step for becoming socially intelligent. When one is self-absorbed and oblivious to others, it will not be possible to participate fully in social life. Explore collaboration models in team development, individual and team communication.

Settle down and embrace conflict and turmoil as opportunities to grow personally and to develop your team. Do not personalise conflict, but focus on solving the problem.

Develop assertiveness and be honest about your inadequacies, shortcomings, motives and intentions.

Always be prepared to test and validate your perceptions, especially about other people. Encourage feedback.

Portfolio leadership.

Leaders are now transforming human resource functions, hierarchy, responsibilities and skill levels to meet the new demands of a volatile marketplace and a diverse workforce. Human Resources is coming into a new state of being – revolutionising current roles into strategic partnerships that focus on tight alignment to business goals. In setting itself up for a reinvented, value adding contribution to the organisation, the HR function needs to develop a strategic orientation based upon external and internal processes and indicators. This obviously includes alignment with the organisation’s strategic intent and focus. In developing a strategic positioning or orientation, the development of a portfolio leadership model by the HR team is crucial. This implies that at the core you want to be highly specialised and professional with key processes and activities that you want to own. In a second category there will probably be processes and activities that you are accountable for, but for which you do not want to own the execution. This is where you develop a portfolio of specialists, partners, associates, advisors and consultants from within your professional network. In setting up a portfolio leadership model, the following questions arise: 52

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What does HR want to own?

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In which areas does HR want to be professional experts?

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What does HR want to manage in its portfolio?

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Who will be HR’s strategic partners in setting up and managing its portfolio?

Reviewing the following factors will assist the HR function in developing a portfolio leadership model: •

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Managing demographics: The vast majority of HR professionals believe that HR serves as a partner (has partial or shared responsibility) in managing change and cultural transformation in organisations. Managing talent and improving leadership development are the most critical HR challenges facing organisations today (and are projected for the future), but it’s worth asking if organisations are doing an average job in these areas? Managing demographics and managing globalisation must be a higher priority for organisations. Many organisations do not have staff dedicated to managing demographics.

Addressing the generation gap: No name has been given to the generation born since 2010, but it is assumed that these kids will be called Generation Alpha. For the first time, with this generation, we will see a greater generation gap compared to the one now entering the labour market, Generation Z. From the present Millennial generation, the past Generation Z, and this Generation Alpha, we are seeing a progressive uptake of technology. In these new generations certain trends are arising: a greater need for work to have meaning and bring value to their lives rather than following the traditional work-to-live ethos, and a greater desire for mobility, flexibility and overall autonomy to develop their projects. These are, of course, generalisations. Attracting and retaining these generations is a concern, and needs a cultural change at the organisational level to handle it. Data analytics: Over the last four years we have been witnessing the development of ‘Big Data’ in many areas of HR analytics (Rivera, 2014). Gartner suggests that there are various states of maturity in talent analytics: level 1 or reactve, level 2 or proactive, level 3 or strategic and level 4 or predictive, which is the ideal state of maturity for ‘Big Data’ in talent management. Although there are few companies that have reached this stage, the benefits are evident in many areas: First, all the applications that ‘Big Data’ has in talent management at the micro or intra-organisational level, for example, recruitment, performance appraisal, employee retention or training. -

Next, applying and harnessing this mass volume of information as a source of macro-economic trends and predictions, like for example world labour market indicators. We are entering a talent world where people data is

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now central to every decision we make. Organisations that are investing in analytics teams, analytics tools and analytics expertise are going to far outperform their peers. Who to hire, who to promote, how much to pay, how to develop, what next job to take – all these decisions are now data enabled and HR technology is becoming more integrated.

Passionate business partner: The HR business partner model and the general upskilling of HR is becoming the accepted way to address the immediate and future needs of an organisation, and is poised to dramatically transform who we are and how we function within the executive ranks. Becoming more strategic not only means losing the transactional and broadening the business acumen, but having a complete understanding of all aspects of the organisation to provide a more consultative role to the CEO and department heads. This transformation is changing the very structure of Human Resources. Creating a team of passionate HR business partners and strategic executives who understand all facets of the business and its marketplace can help to guide and influence corporate strategy and develop a high performance workforce that is more competitive, productive and efficient. But first HR roles and responsibilities must change – and the way we deliver HR to the business must change as well. The transformation to becoming more strategic involves more than just increasing business acumen. The skills needed to link employee performance to business goals and drive organisational change in areas like employee engagement and retention, recruiting and leadership development now define the new HR. Strategy and business acumen: The ability to effectively guide strategic planning to help the business meet present and future goals requires a true understanding of all facets and departments within the organisation. In addition, the capabilities to facilitate organisational change, manage technology and create solid partnerships with stakeholders are increasingly mandatory skills needed to drive the organisation forward. The HR business executive also plays a vital role in balancing the needs of the organisation, its employees and internal stakeholders – while creating a culture based on good company values and the vision forward. The strategic recruiter: As all aspects of HR become more strategic and business focused, we find the role of the recruiter and talent acquisition executives also changing. They now require a deeper understanding of business and how it relates directly to productivity and the bottom line of the organisation. A vital part of becoming more strategic, or taking a role as a recruitment business partner, is building strong relationships with key business stakeholders. This is key to understanding the current and future talent needs of the organisation, and helps to create a sustainable talent supply solution. When incorporating business savvy skills that include analytics, an understanding of ROI, forecasting and relationship building, the strategic recruiter gains critical insights into the always-changing needs for future talent and how it can best serve the organisations goals.

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Driving employee engagement: The vast majority of CEOs acknowledge employee engagement is a critical component to delivering innovation and gaining the competitive advantage. Still, there are many organisations that need to prove the ROI and positive business outcomes to senior management. Once initiatives are put in place, who owns the responsibility of driving the process forward? It is helpful to find the programs proven to be the most effective in aligning to business goals. Creating a connection between employees, the executive level and meaningful work can motivate and engage workers.

Foster a culture of innovation: HR can help deliver culture in some very significant ways. First, it can help define innovation as more than products or services to include governance models, workplace practices, customer interfaces and other business processes. Second, HR can ensure that people have both discovery and delivery skills to foster innovation. Third, HR can make sure that organisation practices like staffing, training, compensation, promotion, organisation structure and communication reinforce innovation. Fourth, HR can make sure that leaders who preach innovation practice it in their personal work. Underlying most of these issues is the need to re-skill and re-energise HR. It is interesting that the US organisations SHRM and HCI are now competing to sell HR certifications. The problem is not one of certification, it is one of redefining what HR professionals do. Company after company is going through a restructure of their HR team, moving HR closer to the business and re-skilling generalists into finely tuned business consultants. We believe this is a decade-long transition taking place within the HR function. Lastly, talent is about the productivity of people. Leadership is the shared agenda of defining a future. Culture is the external identity of the firm translated into internal organisation actions. When talent, leadership and culture connect to customers and investors, long-term competitiveness is enhanced. Developing leadership ability:

“As in previous years, leadership continues to top the priority list in the 2014 Human Capital Trends survey. The challenge is to develop leadership pipelines that are global, broad and deep, reaching to every level of the organisation. This involves a significant investment of time and resources and a commitment to leadership from the board and executive team. Perhaps the biggest challenge is for business and HR leaders to ask whether they are confident that they are doing enough and whether they are exploring new approaches to move the needle on their business leadership requirements.” (Deloitte Consulting LLP and Bersin, 2014:31)



As previously mentioned all the effort towards leadership development have not contributed much towards actual leadership performance and sustained

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organisational success. Numerous leadership programmes, motivational speakers and experts litter the organisational field.

Based upon research we have developed an inside-outside model of the development of leadership ability. We also strongly believe that leadership, as an evolving concept, can only be developed through experience in a context of peer support and strengthening.

Leadership development implies, firstly, an awareness of one’s own emotions and being able to control one’s own feelings. An authentic life story and crucibles make you who you are. Reflect upon your life, lessons learned, mistakes made; it all adds up to who you are. Take the best way forward and step forward into who you are. Present yourself to your team as an authentic leader and a real person. Work towards gaining their trust in a context of mutual respect and acceptance of clear roles and responsibilities. Developing conversational communications skills is also a huge requirement. “A hallmark of high performance leaders is the ability to influence others through all levels and types of communication, from simple interactions to difficult conversations and more complex conflicts, in order to achieve greater team and organisational alignment. High performing leaders are able to unite diverse team members by building common goals and even shared emotions by engaging in powerful and effective dialogue.” (Kohlrieser, 2008:1)





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Leadership development is very personal, but in relation to an interface with followers it also has an evolving quality. This affects the leader’s perspective, and the perspective of the followers. The leader has to take the initiative to open up the dynamics of leadership through relationship building as opposed to taking on a managerial role. Leadership interaction with followers is initially at a basic level, requiring open communication by pushing back on issues brought to their attention. Once the leader has settled down in this new territory, he or she can facilitate the relationship with their followers to the level of engagement. Obviously, it has to be preceded by personal capacity building and understanding. The objective of the leader in his or her personal development, as well as the development of the team, is to move from a directive role to a supportive one. Traditional authority must make way for a relationship with the team at a deeper level of connection in which respect and trust are key. Performance and

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accountability towards the team members, supported by the leader in advisory or managerial functions.

This relationship evolves over time and must be strategically managed, not hurried.

Table 4.2: Evolving leadership Basic leadership

Engaging leadership

Strategic leadership

• Open communication

• Employees feel undervalued • Symptom chasing

• Main question – what do you suggest?

• Managers fundamentally reframe how they see their roles – facilitators, catalysts, coaches

• Deeper level of conversations and factual questions

• Employees need to learn more about business strategy • Bottom-up leadership (functional/operational) • Managers traditional authority challenged

• Move away from substantive business issues.

• Adopt a strategic positioning (playing coach to coach.

In a reciprocal relationship the followers have an influence on the leader’s performance, and on the relationships with his or her followers.

In this regard Howell and Shamir (2005:112) concluded that “followers also play a more active role in constructing the leadership relationship, empowering the leader and influencing his or her behavior, and ultimately determining the consequences of the leadership -follower.” The Leadership Model by Kouzes and Posners (2007), is well known and very practical. It consists of the following: •

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Model the way: This suggests that leaders’ actions speak louder than words. Leaders must become involved and demonstrate their commitment. Personal ethics are crucial in this context.

Inspire a shared vision: Leaders must have a vision of change and must be able to eloquently share that vision with others. Envision the future by examining exciting possibilities. Challenge the process: Successful leaders use change and innovation. Search for opportunities by seeking innovative easy to change, grow and improve the team.

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Enable others to act: This practice acknowledges that successful leadership and accomplishments are not the result of a single person. Leaders foster teamwork and encourage others to exceed their own expectations. Strengthen others by sharing power and discretion.

Encourage the heart: Recognise contributions by showing appreciation for individual excellence. Successful leaders know that constituents require recognition and celebration. This fosters a strong sense of community.

Global leaders operate in a context of multicultural, paradoxical complexity in the world. Empirical research confirms that leadership skills can be taught. Experiential learning provides the greatest rate of success for transforming high potentials into high functioning leaders. In their research paper, Holt and Seki (2012) present four developmental shifts that are required in order to be effective in this context: • • • •

Developing multicultural effectiveness

Becoming adept at managing paradoxes

Cultivating the being dimension of human experience

Appreciating individual uniqueness in the context of cultural differences

An aspect of leadership development which we advocate is the establishment of leadership support groups (LSG). Leaders in a geographical area come together to create their own LSG with the main objective being the creation of a ‘safe’ place in which they can share, learn and be strengthened as persons and as leaders.

The LSG provides a learning experience, not a training programme. Self-development takes place through shared experiences, supported by coaching on key themes. Combinations of external and internal coaches working through being aspects (shifting paradigms, focusing on relationships, stepping out of comfort zones) balanced with doing (applying leadership practices, leading breakthrough projects).

Five focus areas of the LSG: • • •

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Creation of a platform for open and honest sharing and learning on a continuous basis.

Discovery of leadership as an intimate understanding and experience between and what you do and who you are

Allowance for personal reflection, for example drawing up a one-page leadership biography describing their purpose at work, their personal values, their vision

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• •

for the organisation and the legacy they wish to leave behind, balanced with external coaching and sharing.

Development and implementation of a leadership action plan, enabling participants to apply the five practices of Kouzes and Posner. The opportunity exists for the HR discipline to step out of a reactive ‘human resources’ mind set and reinvent itself as ‘People Management’ – owning and managing all the current and evolving people related concepts and processes in terms of corporate strategy and organisational life. On a current breakthrough project and in their day-to-day work.

Participants build a strong cross-functional network among themselves.

The LSG provides an ideal platform for experienced leaders to support and coach junior and upcoming leaders on the paradoxical relationship of being a leader of people, whilst being in a managerial position. According to Rogers and Blonski (2010), leaders striving for success today must be able to master three levels of competence: •

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Global business acumen: financial, industry, functional and technical skills needed to navigate markets characterised by rapid evolution of business models, markets, products and mergers and acquisitions.

Global mindset: the capacity to engage in a boundary-less and synthesising cognitive process that identifies opportunity and innovation in complexity. Global citizenship: a combination of geographic, political, economic, governmental, legal, cultural, technological and environmental savvy that informs business strategy formulation and execution.

A research report by Deloitte Consulting LLP and Bersin by Deloitte (2014:26) indicates that leaders following the foundational and new leadership skills are in high demand: • • • • • • •

Business acumen: Understanding the core business well

Collaboration: Having the ability to build cross-functional teams Global cultural agility: Managing diversity and inclusion Creativity: Driving innovation and entrepreneurship

Customer-centricity: Enhancing effective customer relationships

Influence and inspiration: Setting direction and driving employees to achieve business goals Building teams and talent: Developing people and creating effective teams

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It is important to reflect upon what followers want from their leaders in developing leadership qualities. In our experience the key issues in this regard are trust, transparency, free flowing communication, feedback and goal clarity. An interesting perspective hereon is provided by Goffee and Jones (2006:192). Based upon their research they have come up with four attributes required of their leaders:

First, and above all, followers demand authenticity. We want our leaders to show us who they are – to reveal some of their real human differences. Second, followers need to feel significant. In simple terms, they need recognition for their contributions. Third, followers need a sense of excitement. Leadership involves exciting others to higher levels of effort and performance. Fourth, followers want to feel part of a community. Human beings are hardwired for sociability and desire solidarity. Lastly, herewith an overview with regard to key aspects of leadership development: • • • • • • •

Internal awareness and emotional maturity as a departure point Authentic expression of your beliefs, values and motives Social (interpersonal) awareness and responsiveness

Sensitivity to individuals and groups needs and requirements

Evolving nature of leadership; close up to and more distant, offering support, encouragement, coaching role more prominent over time LSG ideal as a leadership development platform amongst peers and associates

Ultimately, leadership development is not a learning experience, but a lifestyle based upon positive relationship behaviour in the pursuit of shared ideals and objectives

From the above it is evident that the skill sets of competencies, abilities and aptitudes needed from our leaders are changing to adapt to the new market environment. Some of these critical leadership skills include the ability to communicate a clear vision that connects to the workforce from a place of trust, transparency and critical thinking, which includes analytics, managing cross-functional and diverse teams, problem solving and driving innovation.

HR business leaders need to take a more consultative role in advising and coaching leadership. By developing collaborative partnerships, HR business leaders are also required to work with executives to help with decision making, to act as a resource with a broad business and talent view and to assist in generating organisational efficiencies. In addition, the HR business leader must understand new processes in indentifying, managing and motivating high potential employees to guide the organisation forward. 60

Meaning

Chapter 4: Leadership and meaning

Frankl (1992:105) states that man’s search for meaning is the primary motivation in his life. Man is by definition future orientated and needs a sense of purpose, a mission that gives meaning to his life. Seeking a meaningful life is part of what makes us human and the only thing that gives meaning to our lives is a higher level of awareness in our existence. Doing more meaningful things with our time, such as helping others, is a way to bring our lives into balance and achieve a higher state of existence.

Meaningfulness is defined as the value of a work goal or purpose, judged in relation to an individual’s own ideals or standards (Hackman & Oldham, 1980; Renn & Van der berg, 1995). Meaningless work is often associated with apathy and detachment from one’s work (Thomas & Velthouse, 1990). Restoration of meaning in work is seen as a method to foster an employee’s motivation and attachment to work (May, Gilson & Harter, 2004).

Ulrich, Ulrich & Goldsmith (2010:3) mention the why of work refers to the human search for meaning that finds its way into our offices and factories, a search that motivates, inspires and defines us. The how gets us into the practicalities of how leaders facilitate that search personally and among their employees. “When we find meaning in our work, we find meaning in life. In addition to

inherent value, meaning has market value. Meaningful work solves real problems, contributes real benefits and thus adds real value to customers and investors. Employees, who find meaning in their work, are more satisfied, more engaged and in turn more productive. They work harder, smarter, more passionately and creatively. They learn and adapt. They are more connected to customer needs. And they stick around. Leaders invest in meaning not only because it is noble but also because it is profitable. Making sense can also make cents.” Ulrich, Ulrich and Goldsmith (2010:3)

Almost all organisations have a very clear understanding of what they do in the line of business, products and services. Most organisations have a clear understanding of their how, expressed in organisational differentials with regard to technology and methodology.

Very few organisations, however, understand the why of their organisational existence. In his excellent book on the topic, Start with the Why, Simon Sinek (2001), argues the point quite strongly that successful organisations clearly understand their why. Their energy and passion flow from this centre point into the how of their existence.

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Sinek (2011) summarises it as follows: •

• •

The clarity of why as a belief

The discipline of how as a set of actions to realise the belief The consistency of what in the results of those actions

Making money is not the meaning of an organisation, but good and sustainable profits are indicative of understanding and living out organisational meaning. All the more so when it takes place in a context in which people are recognised, engaged and able to align themselves with the organisation’s meaning. People want to be acknowledged, appreciated and respected. Internationally people are standing up, wanting to be heard, wanting to live lives of meaning and to be recognised. This social dynamic must be acknowledged and acted upon. The workplace should be a place in which people experience a sense of value and meaningfulness, and in which their inputs and contributions are encouraged and acted upon. Ultimately a sense of meaning and purposefulness must permeate the organisation from the organisational mission as an expression of its higher purpose, downward into all functions and operations.

Working with the sole purpose of adding to the wealth of business owners and shareholders is not cause for employees to be excited and committed. A related issue in this regard is what is referred to as finding meaning in the second half of your life. This is an important point for HR practitioners to understand and they need to be able to relate to this dynamic. Hollis (2005:86) distinguishes between the first and second half of one’s life as follows:

The psychology of the first half of life is driven by the fantasy of acquisition: gaining ego strength to deal with separation, separating from the overt domination of parents, acquiring a standing in the world, whether it be through property, relationship or social function. If the agenda of the first half of life is social, meeting the demands and expectations our milieu asks of us, then the questions of the second half of life are spiritual, addressing the larger issue of meaning.

Hollis (2005:7-10) adds that a life that constricts meaning wounds the soul and that meaninglessness inhibits fullness of life. The second half of your life presents a rich possibility for spiritual enlargement owing to greater powers of choice, emotional resilience, more lessons of history from which to learn, more insight into what works for you and what does not and the conviction of getting your life back. 62

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HR leadership must therefore assist managers to instill a culture of trust, fairness and relationship building to improve the meaning in the workplace. Successful people management is dependent upon whether the parties involved trust each other and treat each other fairly. Of course, everybody is aware of it but unfortunately very few organisations pause to reflect on this fundamental reality before they formulate and implement HR policies. No HR strategy can succeed unless the organisation has an overarching HR philosophy that assures its employees that they are working for a caring, nurturing, trustworthy and meaningful organisation. People consider employment more as a social relationship than a contract. It is important to ask employees what matters and to coach managers to also ask their employees. “Survey employees regularly – not just annually about how they experienced

the organisation over the past year, but frequently and ‘in the moment’ through pulse surveys and roundtables – to find out what makes them passionate about work and what parts of the environment are irritating or too bureaucratic.” (Deloitte Consulting LLP and Bersin by Deloitte, 2014:81)

Employees want to feel respected and they want to find meaning in the work that they do. Ulrich, Ulrich and Goldsmith (2010) discovered that employee meaning can be increased when managers pay attention to seven factors:

• • • • • • •

Identity

Purpose

Relationships

Work environment Work itself Learning Fun

From our perspective meaning represents a most exciting and challenging concept in the work context. It involves organisational meaning in answering the why of their existence, as well as individual meaning as an understanding of purpose. Facilitating the process towards the exploration of organisational meaning and its interface with individual meaning, is a daunting task and an exciting prospect for HR practitioners.

References

Bennis W.G. & Thomas R.J. 2002. Crucibles of Leadership. Boston, MA: Harvard Business Review.

Nelson Mandela by Himself. 2011. The Authorised Book of Quotations. Edited by Sello Hatang & Sahm Venter. Johannesburg: Macmillan.

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Deloitte Consulting LLP and Bersin by Deloitte. 2014 Global Human Capital Trends: Engaging the 21st-century workforce. Deloitte University Press. Retrieved February 26, 2015 from http:// dupress.com/wp-content/uploads/2014/03/GlobalHumanCapitalTrends2014.pdf Frankl, V. 1992. Mans Search for Meaning London: Random House.

George B., Sims, P., McLean A.N. & Mayer D. February 2007. Discovering your authentic leadership. Boston, MA: Harvard Business Review.

Goffee, R & Jones, G. 2006. Why Should Anyone be Led by You? Boston MA: Harvard Business Review Press. Goleman, D. 2004. Working with Emotional Intelligence. Bloomsbury: London.

Goleman, G. & Boyatzis, R. 2008. Social Intelligence and the Biology of Leadership. Boston, MA: Harvard Business Review.

Greenleaf, R. K. 2002. Servant-leadership: A journey into the nature of legitimate power and greatness. Mahwah, NJ: Paulist Press. Hackman J.R. & Oldham, G.R. 1980. Work redesign. Reading, MA: Addison-Wesley.

Hollis, J. 2005. Finding Meaning in the Second Half of Life. New York: Gotham Books.

Holt, K. & Seki, K. 2012. Global leadership: A development shift for everyone. Industrial and Organizational Psychology. 5(2) June:196–215. Howell, J.M & Shamir, B. 2005. The Role of Followers in the Charismatic Leadership Process: Relationships and their Consequences. Academy of Management Review, 30(1):96-112.

Kohlrieser, G. 2008. Leading at the Edge. Retrieved February 26, 2015 from http://www.imd. org/research/challenges/TC090-08.cfm

Kouzes, J. & Posner, B. 2012. The Leadership Challenge. Fifth ed. San Francisco, CA: Jossey-Bass. Renn, R.W. & Van der Berg, R.J. 1995. The critical psychological states: An under-represented component in job characteristics model research. Journal of Management, 21:279-304.

Rivera, J. 2014. Gartner Identifies the Top 10 Strategic Technology Trends for 2014. Retrieved February 26, 2015 from http://www.gartner.com/newsroom/id/2603623 Rogers, E.M. & Blonsky, D. 2010. The global leadership mindset. Chief Learning Officer. Retrieved February 26, 2015 from http://www.clomedia.com

Sinek, S. 2011. Start with the Why. London: Portfolio Penguin.

Spears, L.C. 2005. The Understanding and Practice of Servant–Leadership. Regent University. Published by the School of Leadership Studies, Regent University. Virginia.

Thomas, K.W. & Velthouse, B.A. 1990. Cognitive elements of empowerment: An interpretive model of intrinsic task motivation. Academy of Management Review, 15:666-681. Ulrich, D., Ulrich, W. & Goldsmith, M. 2010. The Why of Work. New York: McGraw-Hill.

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CHAPTER 5 RELATIONSHIPS Sustained organisational success in a context of shared meaning

Leadership and meaning

Relationships

Workplace socialisation

Productivity

Organisational transformation

Personal wellness

Foundational understanding: HR competence and business acumen

Figure 5.1: Reinventing HR: Transitional framework

Relationships in the workplace and in life in general are continuously being challenged and redefined. Therefore the term ‘relationships’ has also been identified as a transitional pillar for the reinvention of the HR function. Traditional relationships held in place by bureaucracies are being hugely challenged. Different generational mixes in the social domain and workplaces, as well as cultural diversity, add to tremendous uncertainty in this regard. Employees use interactions with their supervisors as cues to evaluate their relationship with the organisation. The HR function must own this dynamic within professional confidence and an internal consulting ability. The key aspects in this regard, which will be discussed in this section, are: • • • • • • •

Engagement

Communication Communities Customers

Diversity management Conflict

Collaboration (teamwork) 65

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Source: http://rs2img.memecdn.com/this-relationship_o_152172.jpg

Engagement

“The opposite of autonomy is control. And since they sit at different poles of the behavioural compass, they point us towards different destinations. Control leads to compliance; autonomy leads to engagement.” (Pink, 2011:110)

Engagement is a very topical, yet often misunderstood concept. Empowerment, participation, motivation, commitment and involvement are often regarded as synonyms to engagement. Ironically, it encompasses aspects of each of these concepts, yet not one of them adequately expresses the meaning of engagement.

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Engagement at work was conceptualised by Kahn (1990:694) as the “harnessing of organizational members’ selves to their work roles; in engagement, people employ and express themselves physically, cognitively and emotionally during role performances.” Such engagement serves to fulfil the human spirit at work. Engagement is important for managers to cultivate given that disengagement, or alienation, is central to the problem of workers’ lack of commitment and motivation (Aktouf, 1992). Employee engagement is an important concept for organisations because it predicts productivity, job satisfaction, motivation, commitment and low turnover intention (Bakker, Demerouti & Schaufelli, 2003). Employee engagement is defined as a “positive, fulfilling, work-related state of mind that is characterised by vigour, dedication and absorption.” (Shaufeli, Salanova, Gonzàlez-Romà & Bakker, 2002:74) Shaufeli et al. (2002) further explain that:

• • •

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Vigour entails high energy levels and mental resilience while working

Dedication refers to deriving a sense of significance from one’s work, as well as feeling enthusiastic, inspired and proud Absorption means to be happily immersed in one’s work

We have recently been involved in the rollout of an engagement project as part of a corporate strategy. The problem started right there – what does the organisation mean by engagement and what does it want to achieve through it? Both difficult questions but without strategic intent, corporate and executive support and clarity of definition and expectations, it becomes an exercise in futility.

Strategy, leadership and engagement must work in tandem. Leadership without engagement does not make any sense as followers are not capacitated in any form of participation, let alone being engaged in the business journey. On the other hand, engagement without leadership support can turn evoked energy into destructive dynamics. Energy created during engagement must be proactively and productively channelled. In the event of organised labour being involved in the organisation, they will have to be involved in the design of the programme from the start. The same applies with the involvement of other key stakeholders.

Leadership at all levels is the champion of engagement in the employer-employee relationship. From a top-down managerial style a safe space is created in which employees are acknowledged as human beings capable of contributions and objectivity on crucial issues and decisions. It creates a sense of value and loyalty to the leaders and the organisation.

Engagement is a two-way process between leader and follower, with the leader initiating, nurturing and maintaining the process. The most significant driver in employee engagement levels is for the employee to have a personal sense of acknowledgement by feeling involved and valued by the organisation. Engagement is not a theoretical concept but finds expression in very real process drivers which we found helpful in understanding the concept and its implementation: • • • •

Strategic intent and clarity

Executive leadership understanding and support

Visible supporting actions by the organisations leadership at all levels Personal relationship between leaders and followers

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• • • • • • • •

Extent of employee participation and autonomy Clarity on company’s objectives and values

Codification of values into code of behaviour by team members Free flowing and regular communication

Agreed upon performance criteria for individuals and teams Feedback on performance and issues raised by staff Personal and career growth opportunities Pride in the company

In the engagement project referred to above, we sat down with executive and organisational leaders and developed the following engagement project outputs: • • •

Job contribution: sense of value, meaningfulness, acknowledgement, discretionary effort (extra mile) Job satisfaction: autonomy, variety, competence, challenged, growth opportunities

Job support: leadership, co-workers, systems, conditions of employment

This was very helpful in the project rollout and in the project validation, which were performed by an external team. External validation is always recommended in interventions as neither the HR department nor external consultants can validate their own work. Lastly, a contribution by BlessingWhite Research (2013) which reports that full engagement represents an alignment with maximum job satisfaction (I like my work and do it well) with maximum job contribution (I help achieve the goals of my organisation). •

Maximum job satisfaction

- - •

Line of sight on own future in the organisation

Maximum job contribution - -

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Personal satisfaction in role and support Contribution to the company’s success

Line of sight on organisation’s mission and goals

Chapter 5: Relationships

Communication

“Leaders communicate both formally and informally the things that matter most to them. When communications include not only facts but feelings, leaders can touch hearts as well as minds.” (Ulrich, Ulrich & Goldsmith, 2010:255)

Relationships are held together through effective communication. This relates to both personal and workplace relationships. The surest way for a relationship to fail is when a breakdown in communication occurs. This happens very subtly and almost inconspicuously. The symptoms appear through conflict, mistrust, loss of respect and procrastination around requests and tasks. Enormous discipline and focus are required to keep communication intact. “The single biggest problem in communication is the illusion that it has taken place.” (George Bernard Shaw, 1856-1950, Irish Dramatist; quote in Periyakoil, 2012:5351.)

One thing is certain where communication is concerned, and that is that communication occurs whether you want it to or not. That is a real dilemma for an organisational leader, especially during a change process. Everything the leader says and does becomes part of the overall change jig-saw puzzle. Every word, raised eyebrow, nod of the head, smile and raised voice provides information, so the key is to know that and manage it as best you can. Herewith some ideas on the development of an effective communication strategy: • •

•

Develop a communication plan that includes how and when you will tell people what, and by which medium Consistency is everything. People will look at the sequencing of communication for any hints or hidden messages and read in it things that were never intended. Its critical to maintain a consistent message, and to ensure continuation from one communication to the next

Communicate on a regular basis, even if there is little to say. It is much more important to keep the regular channels open than to only say what you need to say when you need to say it. Also remember that a gap in communication will always be interpreted as bad news.

It is important to establish workplace communication mechanisms. There should be teamwork- based meetings on a daily basis off a standardised agenda. Examples

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can be acknowledgements, production reviews, safety perspectives, challenges and concerns and issues for referral.

Outside of formal meetings management must also develop a conversational style of management. This implies just quietly sharing observations and informal conversations with employees. It might seem insignificant for leaders but is extremely potent for employees and shows that they are acknowledged and valued. These practices are gaining in popularity and break down the hierarchical divide between leaders and employees.

A conversational style does not come naturally in a controlled bureaucratic organisational context. In such a context the communication is mainly directional and top down. It therefore takes a disciplined and focused effort to develop a more informal conversational style of communication. It need not be exercised in a formal setting but is much more effective in an informal setting. Debra Fine, in her book The Fine Art of Confident Conversation (Piatkus, 2008), lists the following conversational techniques: •

• •

•

•

Exercise problem-oriented talk by focusing on a problem that can be solved rather than on the person responsible for the problem. Person-oriented communication, on the other hand, puts the listener on the defensive and focuses attention on blame rather than on ways to avoid or solve problems. Congruent talk conveys what the speaker is thinking and feeling. It offers authentic opinions and perspectives so people can trust what you say. Descriptive talk expresses objective descriptions of problems rather than evaluations of those problems which can be perceived as judgmental and even of a racial nature.

Validating talk helps people feel understood, appreciated and accepted. It centers on finding a point of agreement. Invalidating communication treats the listener like a lesser person, while validating communication shows respect for the listener’s thoughts and feelings.

Conjunctive talk is communication that flows smoothly from one topic to the next. A topic needs to be fully explored and brought to closure before moving on to the next topic.

Boris Groysberg and Michael Slind (2012) conducted excellent research on the subject of leadership conversations. Herewith an overview of the four elements of an organisational conversation which they have identified: 70

•

•

•

•

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Intimacy: Personal conversation flourishes to the degree that the participants stay close to each other, figuratively as well as literally. Organisational conversation, similarly, requires leaders to minimise the distances that typically separate them from their employees. Key aspects in this regard are to gain trust, listen well and encourage feedback.

Interactivity: A personal conversation, by definition, involves an exchange of comments and questions between two or more people. The sound of one person talking is not, obviously, a conversation. The same applies to organisational conversation, in which leaders talk with employees and not just to them. This makes the interaction open and fluid rather than closed and directive.

Inclusion: Expand employees’ roles by encouraging them to put their own ideas – and, indeed, their hearts and souls – into the conversational arena as fullyfledged conversation partners. In the process such leaders raise the level of emotional engagement that employees bring to company life in general. Intimacy involves the efforts of leaders to get closer to employees, whilst inclusion focuses on the role that employees play in that process. It also extends the practice of interactivity by enabling employees to provide their own ideas, rather than simply parrying the ideas that other present. Intentionality: Intentionality differs from the other three elements of organisational conversation in one key respect. While intimacy, interactivity and inclusion all serve to open up the flow of information and ideas within a company, intentionality brings a measure of closure to that process. A personal conversation, if it’s truly rich and rewarding, will be open but not aimless; the participants will have some sense of what they hope to achieve. The conversation that unfolds within a company should reflect a shared agenda that aligns with the company’s strategic objectives. “Traditional corporate communication must give way to a process that is

more dynamic and more sophisticated. Most important, that process must be conversational. Leaders achieve more engagement and credibility when they take part in genuine conversation with the people who work for and with them. A conversation in this regard is a frank exchange of ideas and information with an implicit or explicit agenda.” (Groysberg & Slind, 2012:5)

In a conversational style of communication, the emphasis is on the skill of dialogue, which is in contrast to discussion. Dialogue is a wonderful communication process and requires openness in sharing by the participants and the willingness to expose their thinking. 71

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Senge (2006:223-224) presents it as follows: “The word dialogue comes from the Greek dialogos. Dia means through. Logos means the word, or more broadly, the meaning. In dialogue, a group accesses a larger pool of common meaning, which cannot be accessed individually. In dialogue, a group explores complex difficult issues from many points of view. Individuals suspend their assumptions but they communicate their assumptions freely. The result is a free exploration that brings to the surface the full depth of people’s experience and thought, and yet can move beyond their individual views”.

Communication on a personal level requires an integrated perspective. Careful planning pre-cedes the contact sessions and nothing is taken for granted. Key determinants of quality communication must be properly understood and applied in planning and preparation for contact sessions. Key determinants in this regard are: • • • •

Intention – referring to the intent driving the communication effort

Connection – aspects of communication that facilitate connecting with the target audience Physicality – this is important and refers to the visibility of communication

Language – excellence in communication requires the selective application of language.

Herewith a schematic layout of the above communication determinants in a framework for personal communication: Intention

Connection

• Growth/development/correction

• Acknowledgement (individuality)

• Influence/direct/inspire

• Listening (attentive/responsive)

• Collaboration

• Encourage/support

Physicality

• Interactivity (dialogue, questions)

• Trust (transparent, honest sharing) Language

• Posture/body language/dress

• Relational (openness, intimate)

• Movement (comfortable/confident)

• Prescriptive (instructional)

• Voice (tonality, clarity)

• Facial expressions (eyes/mouth)

• Transactional (exchange information) • Expressive (evoke feelings)

Figure 5.2: Framework for personal communication

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Argyris (1994) puts communication at a deeper level in that all the communication techniques, even if used correctly, actually inhibit communication and learning. Communication techniques potentially prevent executives “from getting the deep information, insightful behaviour and productive change they need to cope with the much more complex problem of organisational renewal” (Argyris, 1994:77). Superficial communication and feedback, almost like going through the motions, do not open up the underlying value systems supporting and maintaining dysfunctional organisational behaviour. Employees can for example, learn very quickly how to condition management into doing their work and giving in to their whims and desires. When put on the spot, they shift into entrenched organisational defensive routines. Individual accountability then disappears in the context of blame shifting and procrastination around deadlines and objectives. Therefore, the need exists for a deeper level of communication to expose and remedy the value systems upholding the dysfunctional behaviour, which impedes assertive relations and positive productive energy.

More on the systems side of communication, it is important to capitalise on the increasing popularity and usage of social media. It is of the utmost importance for HR practitioners to have a solid grasp on how to leverage social media platforms as an engagement and communications tool. It can also be used to develop the company brand as an employer of choice and to recruit employees. As an internal communication tool with employees it is already widely in use. Lastly, herewith an overview of the benefits of effective internal communication: •

•

•

•

•

Good communication processes help people to understand where they fit in the big picture, and how their job and team contributes towards achieving the organisation’s goals. Good leaders are often good communicators – great communication skills and practice help leaders set direction and maintain morale. As a consequence they are more credible to their team.

People have more opportunities to speak up about concerns, as well as ideas and suggestions. As a result a more trusting relationship can be created with colleagues and managers. Since employees are the organisation, if they’re well informed and motivated it stands to reason that the organisation’s internal and external reputation can only benefit.

Change is never easy, but good communication does make it easier for people. They understand what’s going on, why and, as far as possible, how it will affect them. It won’t make everyone like change, but people will feel more comfortable and better able to continue with their job while change happens.

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Communities Traditionally businesses operated alongside communities in the vicinity of their operations, but there was no relationship with the communities. Their employees resided in the communities, and as individuals they were involved in societal structures. With the capitalist system being under siege and business increasingly being viewed as a major cause of societal, environmental and economic problems, drastic new thinking is called for. Businesses are seen to be prospering at the expense of the broader community, and the legitimacy of business has fallen to levels not seen in recent history. Very few businesses are successful in closing this divide and in South Africa legislation has been introduced to force the hand of business.

Corporate social responsibility (CSR) is now one of the factors in the Broad Based Black Economic Empowerment (BBBEE) scorecard. It is too early to fully assess the success of CSR, although early indications are not positive. Trust levels between communities and businesses remain low and the few CSR projects that have been introduced do not do much to positively impact the situation. The HR department’s only involvement here is to provide input for the BBBEE scorecard and the requirements of the employment equity legislation. Nobody from within the organisation really addresses the dynamics of community relationships. Some consulting firms specialise in this area though, and render selected services to businesses. Therefore, it is our contention that this is one of the areas in which the HR department should step into the gap. It will require some strategising and capacity building for the HR practitioners, but that will be a very worthwhile exercise. The research work by Porter and Kramer (2011) in their concepts of creating shared value (CSV) as opposed to corporate social responsibility (CSR) is worthwhile pursuing. “Creating shared value (CSV) should supersede corporate social responsibility (CSR) in guiding the investments of companies in their communities. CSR programmes focus mainly on reputation and have only a limited connection to the business, making them hard to justify and maintain over the long run. In contrast, CSV is integral to a company’s profitability and competitive position. It leverages the unique resources and expertise of the company to create economic value by creating social value.” (Porter & Kramer, 2011:16)

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The concept of shared value can be defined as policies and operating practices that enhance the competitiveness of a company, while simultaneously advancing the economic and social conditions in the communities in which it operates. Shared value creation focuses on identifying and expanding the connections between societal and economic progress. There are three distinct ways to do this: • • •

Reconceiving products and markets

Redefining productivity in the value chain Enabling local cluster development

CSV opens up many opportunities for the HR Department in building their professional esteem and credibility, especially since nobody really knows the way forward. In order to provide more insight on the topic find herewith a table depicting the main differences between CSR and CSV.

Table 5.1: Comparison between Corporate Social Responsibility (CSR) and Creating Shared Value (CSV) Corporate Social Responsibility (CSR)

▪ Values: doing good.

▪ Citizenship, philanthropy, sustainability. ▪ Discretionary or in response to external pressure.

▪ Separate from profit maximisation. ▪ Agenda is determined by external

reporting and personal preferences.

▪ Impact limited by corporate footprint



and CSR budget.

Creating Shared Value (CSV)

▪ Value: economic and societal benefits relative to cost.

▪ Joint company and community value creation.

▪ Integral to competing.

▪ Integral to profit maximisation.

▪ Agenda is company specific and internally generated.

▪ Realigns the entire company budget.

Customers Traditionally customer relations fall outside of the scope of the HR function. They reside mostly under the sales department and, to some extent, under the marketing department. Nowadays, with the ever increasing changes in demographics, globalisation, generational differences and cultural diversity, the situation is more complex. It is no longer a case of one size fits all in servicing the customer channels. 75

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The envisaged positioning of the HR function in people and relations makes customer relations an area in which the HR function can add real value. It is therefore crucial for the HR function to really make people in their multitude of relations their business. The HR department obviously needs to develop an own customer ethic in servicing their internal client base, but can and should also provide professional input to the broader organisation, especially to those directly involved in servicing external customer channels. Staying abreast of research and development in this regard is a very rewarding exercise which the HR department needs to embrace as part of their repertoire. Brain research on the topic is, for example, beginning to become quite relevant. The development of a service orientation requires thorough understanding on the teaching of emotional competencies, which is radically different from teaching business skills.

Mindsets are a critical aspect of understanding people and helping people to understand themselves. We have spent many years and studied numerous articles, books and research papers on the subject of mindsets and mindset development. In the event of organisations it is also important to understand collective mindsets which all members of the organisation must internalise and display. Herewith some notes on this subject: •

• •

The identity of the firm in the mindset of its customers becomes a firm brand and demonstrates the impact of a mindset on customer value. Firm brands are tied not to a single product, but to the identity of the firm.

Investors and customers gravitate towards firms with positive identities, and rush from those with negative reputations.

Every contact with the company must reveal the same mindset – this shared mindset sends a powerful message. “Customer dissatisfaction is widespread and, because of customers’ empowerment, increasingly dangerous. Although companies know a lot about customers’ buying habits, incomes and other characteristics used to classify them, they know little about the thoughts, emotions and states of mind that customers’ interactions with products, services and brands induce. Yet unless companies know about these subjective experiences and the role every function plays in shaping them, customer satisfaction is more a slogan than an attainable goal.” (Meyer & Schwager, 2007:11)

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One of the key customer relations initiatives is referred to as Customer Relationship Management (CRM). The world of CRM is dynamic and exposed to numerous variables such as complexity of commodities, increasing options, e-commerce, changing

Chapter 5: Relationships

lifestyles, and social media amongst others. It requires huge sensitivity towards the changing national and international people dynamic. Unfortunately, today’s CRM systems, designed by information technology professionals, are optimised for information management. They do little to help managers decode how the brand fits in the person’s life. There is a big difference between a system that’s attuned to purchase, and demographic data and one that takes into account what individual consumers are feeling, what they value and how they conduct their days. You can know a purchaser by collecting purchase and demographic data, but to establish a relationship you really need to understand what makes the person tick. At issue is the distinction between having information and constructing meaning. Having information involves disintegrating and reducing complex ideas into small, manageable bites. But finding meaning involves assembling information bites into larger, more abstract wholes. Ironically, information and meaning tend to work at cross-purposes. For meaning, context is everything; with information, context is noise. The reality is that individual context significantly shapes a person’s brand relationships. Contextual clues may be scattered, but if a company pays attention, it can leverage them to build stronger relationships. Of course, companies need to be listening for the right kind of data. Any company with a CRM budget can collect and manage purchase data and calculate costs to serve. But to achieve a differentiated advantage, companies need more robust data to assemble a more complete story of peoples’ needs and expectations, and how the brand helps them live their lives. Developing this understanding involves scanning for, listening to and interpreting the subtle signals that customers send during transactions. However, true understanding involves more than just developing insights that are specific to purchase and consumption. It also means developing empathy for the individual’s broader emotional life and understanding how an experience feels from the customer’s perspective It therefore speaks for itself that a standardised approach to CRM is not possible. It requires a very unique intelligence which is referred to as customer intelligence. Sensitivity towards peoples’ inclinations during different phases of a sales transaction is, for example, a key ability.

Customer relationship management has devolved into customer profitability management; a one dimensional, company-centric practice based on economics and costs that provides little insight into why and in which ways people form relationships with companies and brands. It is obvious that the business of the future is dependent on the relationships being opened up, or closed, based upon how you treat your customers today. So if you want to build a business case for customer centricity, including correlations between the experiences that customers have today on business performance, its critical to recognise that the results won’t occur until a 77

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later date and that these expectations must be built into the forecast models. Most business metrics and financial goals are, however, product-centric and focused on the current period, for example quarterly earnings and sales targets. Some of the reasons for the failure of CRM are: •

•

•

•

First, companies seem to forget that their relationships are not just with consumers but with people: people who live rich and complicated lives. CRM programmes rely on purchase information and do little to address deeper relational needs. Second, because relationships come in different shapes and sizes, companies need to be cognisant of the requirements of diverse types of relationships beyond the loyalty ideal.

Thirdly, companies don’t recognise that relationships evolve with each interaction as dynamic works in progress, from positive uplifting experiences to the breakdown of relationships. Lastly, there is insufficient appreciation of the distinction between customer satisfaction and customer experience. “Companies seeking to improve the overall value of their customer relationships cannot rely on the standardised solutions and off-the shelf analytics that have defined the practice of CRM to date. For most companies, the transition to a relationship-based approach will require a significant shift in mindset and practice.” (Fournier & Avery, 2011:71)

Again, this is an area in which the HR function can and should add real value. The objective of this section in the book is not to provide detailed insights and training on the various issues and subjects raised, but to provide an overview of the reinvention of the HR function. With regard to customer relations it will require further in-depth understanding of key aspects thereof, and then for HR practitioners to become internal consultants on the subject matter. CRM is one area which needs to be rethought. Effective CRM systems should help companies understand their own roles in shaping relationships, for good or for bad. Whether companies are willing to admit it or not, many unwittingly encourage bad customer behaviour. Based on research, there seem to be a lot worse customer relationships than there are bad customers. Another issue that is worthwhile taking note of is the customer value proposition (CVP). It is a strategic positioning and refers to the customer value discipline which the organisation intends to represent.

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“Companies that have taken leadership positions in their industries in the last decade typically have done so by narrowing their business focus, not broadening it. They have focused on delivering superior customer value in line with one of three value disciplines – operational excellence, customer intimacy and product leadership. They have become champions in one of these disciplines while meeting industry standards in the other two. Companies that push the boundaries of one value discipline while meeting industry standards in the other two gain such a lead that competitors find it hard to catch up.” (Treacy & Wiersema, 1993:1)

Lastly, and hopefully it will trigger some more interest on the topic of customer relations from HR practitioners, it is fascinating to follow research on emotional factors driving the purchasing behaviour of customers. A person’s unconscious relentlessly desires increasing emotional fulfillment. Emotional transactions are present not only in the retail and service settings analysed, but likely in all transactions that individuals engage in, commercial and otherwise. Consumers obtain some degree of wholeness, completeness and/or fulfilment by purchasing an emotional commodity attached to a material good or service, because no matter what we consciously buy, we are always unconsciously buying emotion. Over the last fifty years the economic base has shifted from production to consumption. It has gravitated from the sphere of rationality to the realm of desire; from the objective to the subjective to the realm of psychology. These realities are being controlled by the marketing world and the media – a frenzy of consumer activities to have, to own, to be accepted, to belong.

Diversity management

Globalisation and generational differences are causing a continuous rethink and repositioning of societal and economic models as they relate to people dynamics. It brings diversity to relationships in our communities and workplaces which one cannot shy away from. Historically, sameness was relevant to our lives and people of the same ethnic group, race, religion, language and social structures shared the same spaces. All thought alike, dressed alike and acted alike. This is obviously no longer the case and diversity is the order of the day.

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“Diversity encompasses more than just race and ethnicity, but rather the full spectrum of differences represented in the general population which, among others include, age, ability, gender, religious affiliation, personality, social status and sexual orientation. An expanded concept of diversity also places emphasis on multiculturalism, which brings us to the concept of culture and organisational culture.” (Erasmus, Loedolff, Mda & Nel, 2010:274)

The challenge facing organisations is that employees bring their cultures, attitudes, assumptions, perceptions and habits into the workplaces. There is nothing that can be done to prevent this. Any attempt to address this very sensitive issue must be well thought through and well-constructed. In our experience here there are two broad approaches in the development of a diverse workforce: •

•

The first approach is towards the establishment of cultural awareness amongst the various cultures sharing an economic space. Representatives from the different cultures share information on their cultures with employees from other cultures. Issues such as birth rites, funerals, marriage ceremonies and various social practices are shared between the groups. It is quite informative and innocent but can easily get out of hand. One careless remark in such a strange context of sharing about fundamental cultural differences can cause the exercise to literally explode into emotional chaos. The facilitator must be mature and experienced in this line of work.

The second approach is towards building congruence between all the dimensions and aspects of diversity, whilst fully acknowledging the differences. Congruence is the state achieved by coming together, the state of agreement (in flow). The focus is not on accentuating the differences, but on enabling flow between potentially disruptive elements within a system. A system is defined as a set of elements or components that work together in relationship for the overall good and objective (or vision) of the whole. Thus, the focus of all system elements in an organisation should be the relationships with each other that assist attainment of organisation-wide shared vision and objectives. A system is not the sum of its parts – it is the product of their interactions. The organisation’s value charter is an ideal mechanism from which to build the sense of commonality referred to above.

There is nothing fundamentally wrong with sharing cultural differences and thereby creating cultural awareness. Diversity however, must not only be talked about, but requires a procedural practice through which differences are acknowledged and institutionalised. Codification of the organisation’s value charter of, for example, a code of conduct is one way of achieving this. Another excellent way of achieving the 80

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sense of commonality in the face of diversity is to really drive the issue of shared meaning and shared vision home.

These are such powerful issues and the HR function cannot, and dare not, miss this opportunity to make the management of relationships in this area one of specialisation. It is an ever increasing urgency in operational efficiency in which the HR function can add huge value.

Conflict

Changing negative conflicts into positive engagement is crucial for organisations to perform well. High performing leaders are able to deal with disputes, disagreements and diverse points of view about strategy and implementation to create energy, bring about change, stimulate creativity and help form strongly bonded teams in full alignment. Organisations that encourage people to raise difficult issues find that doing so leads to innovation, new goals and the changes needed to achieve them. (Kohlrieser, 2008:1)

Conflict is inevitably part of human relations. The objective is not to avoid conflict but to work with conflict towards the establishment of a greater good. In great teams conflict becomes productive. Through dialogue, a safe zone – a context of shared meaning – is created by the leadership. Outside of this zone one normally finds two manifestations of conflict: • •

Manipulating behaviour: attacking, aggressive, controlling, labelling and even violence Submissive behaviour: silence, withdrawal, avoiding, masking and depression

Obviously the best way to deal with conflict is to get the emotion out of the way and focus on the problem. It sounds deceptively easy but can become quite a daunting task in the arousal of emotions issues, accusations, and avoidance and blame shifting. Herewith a problem solving checklist which can be helpful: • •

Clearly identify the problem and set an objective

Fact finding: obtain all relevant information and other viewpoints - -

•

Do not argue – only obtain facts Do not judge – LISTEN

Determine the desired outcome - -

Keep focus Remain calm and keep the end result in your mind

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•

Generate ideas – possible solutions - - -

• • • •

Again, do not argue and do not judge Encourage innovative thinking Do not force your point of view

Evaluate all the ideas and information Implement the best solution Monitor progress

Corrective action/repositioning/replanning, if required

General disagreements are also subject to emotional influences and therefore must be dealt with decisively. Herewith a few basic ideas: • • • • • • • • •

Acknowledge the disagreement

Distrust your first reaction to defend yourself Control your temper Listen first

Look for areas of agreement Be honest

Promise to think over and carefully study his/her concerns/ideas/input Thank him/her sincerely for his/her concern

Postpone action to give both of you time to think through the problem

In a Harvard Business Review interview, Xavier Amador (2013:1), made the following profound statement on conflict: When you are faced with resistance you never win on the strength of your argument, you win on the strength of your relationship.

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Some of the best researched work on conflict and the consequences related thereto have been performed by Chris Argyris and his colleagues (Argyris, 1985). They found that the differences between great teams and mediocre teams lie in how they deal with conflict and deal with the defensiveness that invariably surrounds conflict. Leaders need to understand the interplay between individual defensive reasoning and organisational defensive routines. The purpose of individual programmed defensive routines is to avoid vulnerability, risk, embarrassment and the appearance of incompetence. We are programmed to create defensive routines and cover them up with further defensive routines. Most of us are consistently inconsistent in the way we act.

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Argyris (1994) states that individual inconsistencies in reasoning, strengthened by organisational defensive routines, inhibit genuine learning in organisations. In an organisational context they refer to all the policies, practices and actions that prevent people from having to experience embarrassment or threat and, at the same time prevent them from examining the nature and causes of that embarrassment or threat (Argyris, 1994:81). The impediment on organisational performance as a result is not only limited to organisational growth and learning, but blocks the flow of positive productive energy. Argyris refers to the major technique to unblock this phenomenon as double-loop learning. During this process the governing values which uphold the inconsistency are exposed, re-examined and corrected. Herewith examples of defensive routines in an organisational context: • • • • • • • • •

Aggression Avoidance

Accommodation Covering up

Blame shifting Withdrawal Distancing

Personal agendas Procrastination

The leadership role in the event of the playing out of defensive routines is crucial, some of the things they can do are: • • • • •

Use yourself as an example – personalise, do not lecture Avoid symptomatic solutions

Interrupt defensive patterns and coach appropriate behaviour Draw out and challenge dysfunctional role interactions Move beyond blame and blame shifting to solutions

Collaboration (teamwork)

Collaboration is more than working together with each other to realise shared goals, but comprises a deep, collective determination to reach an identical objective by sharing knowledge and learning, and building consensus. Leadership control and co-ordination are major requirements. Teams that work collaboratively can obtain greater resources, recognition and rewards when facing competition for finite resources.

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Ken Blanchard proposes five steps to high-performing teams in his book Leading at a Higher Level (2010): • • •

• •

Clear sense of purpose and objective (line of sight on how the team’s work fits into the bigger picture) Vision of the future ideal

Norms as standards in conduct. This is referred to as a team charter which comprises a set of agreements that clearly state how the team will work together to achieve results, but more importantly it links the team’s purpose to the organisational purpose and values Diagnose team’s current performance level based upon alignment, motivation and productivity Design and implement a phased capacity building programme based upon enablement and empowerment as variables

The theme’s purpose, vision, norms and learning are echoed by various writers and researchers on the subject of successful team performance. Most noteworthy in this regard is the contribution by Peter Senge in his acclaimed book The Fifth Discipline (2006). Two of the disciplines relate directly to the team dynamics referred to in this section, namely shared vision and team learning.

Remember that a shared vision is a force in people’s hearts; a force of impressive power. At its simplest level, a shared vision is the answer to the question “What do we want to create?” A shared vision is a picture that everyone in the team carries in their heads and hearts. The development of a shared vision is important in motivating the team members to learn, as it creates a common identity that provides focus and energy for learning. The most successful visions build on the individual visions of the team members, and in a broader context all the employees in the organisation.

The accumulation of individual learning constitutes team learning. The benefit of team or shared learning is that staff grow more quickly and the problem solving capacity of the organisation is improved through better access to knowledge and expertise. Team learning requires individuals to engage in dialogue and discussion; therefore team members must develop open communication, shared meaning and shared understanding. Teams need to develop the ability to think insightfully about complex issues. They need to learn how to tap the potential for many minds to be more intelligent than one mind. Teams also need to develop an operational trust where each team member remains conscious of other team members and can be counted on to act in ways that complement each other’s actions. 84

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Recently the issue of emotional intelligence as it applies to teams has also been receiving a fair amount of attention. It is certainly an issue that needs to be followed up. Kohn and O’Connell (2013) deal with the issue in their book 9 Powerful Practices of Really Great Teams. Herewith an overview of those practices: • • • • • • • • •

Strengthen the team member’s emotional capacity Expand team self-awareness

Practice empathy and respectfulness

Manage external relations (customers, for example) Establish and regulate team norms

Think laterally (aligning thinking about an issue)

Apply high team emotional quotient (EQ) to conflict among members Entrust team members with appropriate roles Integration of new members

References

Aktouf, O. 1992. Management and theories of organizations in the 1990s: Towards a critical radical humanism. Academy of Management Review. 17,407-431. Argyris, C. 1985. Strategy, change and defensive routines. Boston: Pitman.

Argyris, C. 1994. Good Communication that Blocks Learning. Harvard Business Review JulyAugust 1994: 77-85.

Amador, X. 2013. Practical tips for overcoming resistance. HBR Interview. July 1. Retrieved February 26, 2015 from https://hbr.org/2013/07/practical-tips-for-overcoming-r

Bakker, A.B., Demerouti, E. & Schaufelli, W.B. 2003. Dual processes at work in a call centre: An application of the job demands-resources model. European Journal of Work and Organizational Psychology, 12:393-417. Blanchard, K. 2010. Leading at a Higher Level. Upper Saddle River, N.J: Prentice Hall.

BlessingWhite Research. 2013. Employee Engagement Research Update. Retrieved February 26, 2015 from https://blessingwhite.com/wp-content/uploads/2014/10/EmployeeEngagement-Research-Report-2013UK.pdf Erasmus, B.J., Loedolff, PvZ., Mda, T.V. & Nel, P.S. 2010. Managing Training and Development in South Africa. Cape Town:Oxford University Press.

Fine, D. 2008. The Fine Art of Confident Conversation. London: Piatkus.

Fournier, S. & Avery, J. 2011. Putting the Relationship back into CRM. MIT Sloan Management Review: 62-73. Retrieved February 26, 2015 from http://sloanreview.mit.edu/article/ putting-the-relationship-back-into-crm/

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Groysberg, B. & Slind, M. 2012. Leadership is a Conversation. Boston, MA: Harvard Business Review.

Periyakoil, V.J. 2012. The single biggest problem in communication is the illusion that it has taken place. Journal of Palliative Medicine.February 24. Retrieved February 26, 2015 from http://palliativejournal.stanford.edu/?p=5351 Kahn, W.A. 1990. Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal. 33:692-724.

Kohlrieser, G. 2008. Leading at the Edge. Retrieved February 26, 2015 from http://www.imd. org/research/challenges/TC090-08.cfm

Kohn, S.E. & O’Connell, V.D. 2013. 9 Powerful Practices of Really Great Teams. NJ: Career Press. May, D.R., Gilson, R.L. & Harter, L.M. 2004. The psychological conditions of meaningfulness, safety and availability and the engagement of the human spirit at work. Journal of Occupational and Organizational Psychology, 77:11-37.

Meyer, C. & Schwager, A. 2007. Understanding Customer Experience. Harvard Business Review. Boston, MA: Harvard Business School Publishing Corporation. Pink, D.H. 2011. Drive. London: Canongate.

Porter, M.E. & Kramer, M.R. February 2011. Creating shared value. Harvard Business Review. Boston, MA: Harvard Business School Publishing Corporation. Senge, P. 2006. The Fifth Discipline. London: Random House.

Senge, P. 2006. The Fifth Discipline. London: Random House.

Shaufeli, W.B., Salanova, M., Gonzàlez-Romà, V. & Bakker, A.B. 2002. The measurement of engagement and burnout: A two sample factory confirmatory factor analytic approach. Journal of Happiness Studies, 3:71-92.

Treacy, M. & Wiersema, F. 1993. Customer Intimacy and Other Value Disciplines. Harvard Business Review. January. Retrieved February 26, 2015 from https://hbr.org/1993/01/ customer-intimacy-and-other-value-disciplines Ulrich, D., Ulrich, W. & Goldsmith, M. 2010. The Why of Work. New York: McGraw-Hill.

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CHAPTER 6 WORKPLACE SOCIALISATION Sustained organisational success in a context of shared meaning

Leadership and meaning

Relationships

Workplace socialisation

Productivity

Organisational transformation

Personal wellness

Foundational understanding: HR competence and business acumen Figure 6.1: Reinventing HR: transitional framework

As a transitional pillar, socialisation refers to a process through which we learn to become members of a society. It develops through communication and interaction between people. In similar fashion, workplace socialisation refers to the process by which we learn to become members of a work society, both by internalising the norms and values of the society, and also by learning how to perform our roles in the work society or community.

Socialisation from the organisational perspective requires a new definition of work roles, free flowing information, mental and social skill development, the development of a business community and meaning and relatedness in the work context, both in a group and on an individual basis. The workplace dynamics follow social patterns in that people are more connected than ever, mixing and mingling in new ways. In this regard workplaces become an expression of societal life (becoming communities). The culture becomes more informal, less structured, more innovative and more productive.

This arrangement is in stark contrast to the controlled context typical of a bureaucratic culture in which control is centralised and decision making difficult and cumbersome. Procrastination, poor relations and silo functioning are all symptoms of such a culture. Although we are critical of such an arrangement, it has carried production processes to some measure of success to this day. 87

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The challenge, however, is that the world of work and life itself is changing through, amongst other things, social media and free access to information. People are connected and informed and they judge people, situations and organisations based on their understanding. Working with this social dynamic just makes sense.

The organisational leadership must set and develop the context in which workplace socialisation can occur. The process must not be forced, but must rather be allowed to find its own expression within the culture.

Some developments in this regard are open work spaces, chat rooms, integrated task teams, change coalitions, matrix organisational structures and open social spaces in the workplace. They are relatively new concepts in the evolution of the workplace and HR needs to get on top of this development, both in research and application. An example of the kind of research needed is a study by Handzic and Chaimungkalanont (2004) on enhancing organisational creativity through socialisation. The objective of their study was to conduct an empirical examination through an industry survey on the impact of socialisation on organisational creativity. The results of the study show a strong and significantly positive relationship between informal and organised forms of socialisation and creativity. The results also indicate that informal socialisation had a stronger positive effect on creativity than organised socialisation. These findings confirm the value of socialisation in innovative organisations and suggest the need for strategies that would provide for its encouragement. Other advantages of the introduction of workplace socialisation dynamics are: •

•

•

•

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Welcoming and introducing new employees to the organisation (also referred to as on boarding). Newcomers become socialised, they learn about the organisation and its people, history, values, jargon, culture and procedures in an informal setting.

It enhances teamwork in that it opens up and encourages dialogue. The basis for such interaction is outside traditional authority structures with leaders, if present, acting as discussion leaders and facilitators. They must not assume a directive role in this setting.

An opportunity for updates on projects that may otherwise be missed or delayed arising from bureaucratic processes. It also gives employees exposure to perspectives on changes in policies or projects. These exchanges also allow leaders to mentor and coach their staff. Stress release through relaxing in an informal setting, and accessing ‘buddy support’ via offloading and gaining ideas, perspectives and insights.

•

Chapter 6: Workplace socialisation

Builds alliances between departments and functions through networking and open dialogue. Challenges, concerns and feedback follow unstructured pathways between different role players and need not follow cumbersome formal channels. .

•

•

Increases employee engagement in that the input from people is acknowledged and acted upon. Freely sharing perspectives and offering pointers in a more casual setting, such as the break room, puts people at ease. With regard to knowledge management (KM), informal workplace socialisation is an ideal opportunity for the transfer of tacit knowledge between individuals through shared experience, space and time. It also opens up peoples’ perspectives and ideas through exposure to different viewpoints.

The SECI model proposed by Nonaka and Takeuchi (1995) is probably the most widely cited theory in KM. The premise in their model is that the basic source of innovation is tacit knowledge, which needs to be explicated in order to be transformed into knowledge that is useful at the levels of the group and the whole organisation. Tacit

Tacit

Internalisation

Combination

Tacit

Externalisation

Explicit

Socialisation

Tacit

Explicit

Explicit

Explicit

Figure 6.2: Nonaka and Takeuchis Model of Knowledge Creation Source: http://reganmian.net/wiki/seci_model

In the Nonaka and Takeuchis model socialisation in the workplace is key in that knowledge creation spirals from socialisation through four phases:

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•

•

•

•

Socialisation: Knowledge is passed on through practice, guidance, imitation and observation (tacit to tacit). In this phase, a close interaction and collaboration within a group is needed. The aim of the socialisation process is to create common understanding and trust within the group.

Externalisation: This is deemed as a particularly difficult and often particularly important conversion mechanism. Tacit knowledge is codified into documents and manuals so that it can spread more easily through the organisation (tacit to explicit). This is the central phase since tacit knowledge is explicated and conceptualised by means of metaphors, analogies and concepts. Combination: This is the simplest form in that codified knowledge documents are combined to create new knowledge (explicit to explicit). At this stage units of already existing explicit knowledge are combined and exchanged.

Internalisation: Finally, to have real effects in an organisation, the explicit knowledge of the group or organisation must be internalised by individuals and transformed into tacit knowledge. As explicit sources are used and learned the knowledge is internalised, modifying the user’s existing tacit knowledge (explicit to tacit). After internalisation, a new round of the knowledge spiral will begin.

With regard to workplace socialisation, an issue which must be well controlled is the governing of people’s behaviour. Outside of formal structures and with the added complexity of an increasingly diverse workforce, relationships can become volatile with high conflict potential. The added difficulty is that once introduced and encouraged, workplace socialisation practices cannot be withdrawn. The damage in trust and alignment to organisational objectives will be enormous. Therefore, the processes must be well thought through and then introduced in a phased manner.

Since societal processes cannot be regulated by policies and procedures, it can best be controlled by agreement on norms in acceptable and unacceptable behaviour by the members of the workplace society. Ethics become relevant here as they are to do with correct and acceptable behaviour to everyone. Dessler (2008:553) defines ethics as “the principles of conduct governing an individual or a group; specifically, the standards you use to decide what your conduct should be.”

At its most basic, ethics is deciding what is wrong or right in a particular situation based upon clear ground rules. Ground rules are described as personal or organisational governing values that embody what an individual, community or organisation stands for. It forms the basis for all behaviour, as well as for judgments about what is important for the individual, community or organisation to succeed in pursuing its mission and objectives. 90

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Values represent an ideal to which the individual or collective entity subscribes and they form the basis for relations, opinions, decisions, perceptions and attitudes towards an object or situation. They contain a judgmental element in that they carry perspectives on what is right, good, or desirable in the broader societal context. What I regard as acceptable might not be seen as such by the broader community to which I belong. The key functions of values are that they: • • • • • •

Determine the correctness of direction/execution Define appropriate behaviour

Are the basis for decisions and judgments

Determine allocation of time and resources Establish and maintain relationships

Are the cornerstones of organisational culture

Values are the basis upon which decisions are made, the underlying motive (why things are done or decided upon). Ethics, on the other hand, involve a decision based upon values which lead to certain conduct/behaviour (what is done).

It is important for such processes to be very specific with regard to acceptable behaviour. For example, to act with respect needs to be more specific in the group’s collective understanding and practical expression, for example, to not insult people and to greet everyone. Such processes are normally captured in a code of behaviour (COB) or code of conduct (COC) which is drawn up with the involvement of all internal stakeholders within the organisation. In the South African context excellent work regarding the practical implementation of ethics in an organisation was done by the King Commission under the chairmanship of judge Mervyn King (Institute of Directors, 1994, 2002, 2009).

Governance of ethics

The King Commission on Corporate Governance differentiated between the ethics of governance and the governance of ethics. The ethics of governance means that every aspect of corporate governance is a response to the moral imperative and responsibility to create and maintain an ethical company, or be a good corporate citizen. The governance of ethics concerns the management of ethics performance in the company by means of a corporate ethics-management programme. 91

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The governance of ethics requires specialised attention by the HR department. It deals with the behaviour of the members of the enterprise expressed in ethical terms. Herewith proposed steps:

1

Assess organisational ethics risks

3

Codify the values (chosen values or standards are formulated in a code of ethics/ conduct to provide the foundation and direction for business practice, to guide staff in the desired conduct and to formally express standards to all stakeholders)

2

4

5

Develop collective values

Integrate the chosen values: the values/standards set should become an integral part of the company’s identity (who we are) and culture (how we do things)

Assessment/audit of the company’s alignment of its strategies and operations with its chosen ethical standards

6 Disclosure of company’s ethics performance needs internal and external stakeholders 7

Independent verification and assurance of company’s ethics by external auditors

With regard to these steps, the codification of values is, in our experience, the one step holding the process together. Its enactment requires an integrated approach involving key stakeholders through skillful facilitation.

Lastly, reference must be made to the ground breaking work by Weick (1995) regarding the idea of sense-making as a collective meaning creation which has slowly protruded into the world of organisational cognitive science and decision-making. Workplace socialisation enables people to create and share their realities and context, and not just to transfer discrete information or data. Through interaction and dialogue they reinterpret the world and the environment they live in. Workplace socialisation is an ideal platform from which individuals can establish trust relationships and reflect and create meaning based on their interpretations from their shared reality. Meaning in a personal and organisational context is one of the main issues forthcoming from the changing socio-economic context with which HR practitioners need to proactively become involved as a strategic thrust.

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References

Chapter 6: Workplace socialisation

Dessler, G. 2008. Human Resource Management. 11th edition. Upper Saddle River, NJ: Pearson.

Handzic, M. & Chaimungkalanont, M. 2004. Enhancing organisational creativity through socialisation. The Electronic Journal of Knowledge Management, 2(1):57-64. Institute of Directors. 1994. King report on Corporate Governance for South Africa. Retrieved February 26, 2015 from http://www.mervynking.co.za/downloads/CD_King.pdf

Institute of Directors. 2002. King II report on Corporate Governance for South Africa. Retrieved February 26, 2015 from http://www.mervynking.co.za/downloads/CD_King2.pdf Institute of Directors. 2009. King III report on Corporate Governance for South Africa Retrieved February 26, 2015 from http://www.mervynking.co.za/downloads/CD_King3.pdf

Nonaka, I. & Takeuchi, H. 1995. The knowledge creating company: how Japanese companies create the dynamics of innovation. New York: Oxford University Press. Weick, K. 1995. Sensemaking in organisations. Thousand Oaks, CA: Sage.

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CHAPTER 7 PRODUCTIVITY Sustained organisational success in a context of shared meaning

Leadership and meaning

Relationships

Workplace socialisation

Productivity

Organisational transformation

Personal wellness

Foundational understanding: HR competence and business acumen

Figure 7.1: Reinventing HR: transitional framework

Productivity is generally regarded as anything that makes an organisation function better. Productivity improvement therefore implies the improvement of effectiveness towards increased efficiencies expressed in outputs. When HR is properly practised, the work and effort of employees will become more efficient and of higher value to the organisation, thereby increasing their productivity level (Stavrou-Costea, 2004).

Productivity is a crucial dynamic in an organisation and a country’s economic sustainability and growth. A country’s ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker. Key themes in productivity which we will reflect upon are: 1.

Productivity management

4.

Performance management

2. 3. 5. 6. 7. 8.

Economics

People development Coaching

Mentoring Tutoring

Work practices (eg job rotation) 95

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The above practices have all either had a direct or indirect influence on productivity in improved personal and team effectiveness.

1. Productivity management

Productivity is commonly defined as a ratio between the output volume and the volume of inputs. In other words, it measures how efficiently production inputs, such as labour and capital, are being used in an economy to produce a given level of output. Inputs

People (their labour, skills, knowledge, attitudes) Plant and equipment

Outputs

Transformation process

Goods and/or services Satisfied customers

Materials

Information Energy

Figure 7.2: Model for productivity Source:http://cdn.sandboxadvisors.com/insights/wp-content/uploads/2011/03/productivityimprovement1.png?643fb1

-

-

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Organisational productivity is about assessing and improving effectiveness throughout the organisation to improve overall organisational efficiency of outputs. Increasing effectiveness is the only area in which we can hope to significantly raise performance.

Organisational efficiency is when the goal of the organisation is to create shareholder value; maximisation of the shareholder value occurs when the organisation is competitive. High performance organisations are more likely to achieve and maintain competitiveness in the changing macro environment with an increased ability to be flexible and responsive.

Creating and sustaining a high performance organisation in this rapidly changing environment, is stretching business practice in the use of organisational efficiencies to create a high performance organisation. This is aggravated by the change in the types of staff members employed, and the change in the way that they interact and contribute to the organisational whole.

• Productivity models: -

-

-

-

-

Chapter 7: Productivity

Efficiency model: At process level, improving productivity of higher (or same) output for the same (or less) input of resources, or same (or increased) output with less (or same) input. Inputs in this case can include labour, capital assets, materials and energy. Outputs relate to products provided. Quality model: Focusing on the efficiency in the way resources are used, and the effectiveness of outputs/outcomes to meet or surpass customer/citizen expectations. In this respect productivity is focused on improving quality, for example, Six Sigma.

Soft productivity: Focuses on both direct and indirect issues affecting organisational performance such as leadership, role performance, organisational structures, risk management and governance issues. SEE sustainability: Integrates productivity within the context of social, environmental and economic issues. In this respect productivity takes a cost benefit approach to how the organisation impacts both internally and externally.

Organisation energy: Measures and manages the level of productive organisation energy through identified key drivers on an individual, team and organisational level. Organisational energy is central to a company’s performance, and closely connected with its success.

Organisational energy is the force with which a company works. Companies differ in both intensity and quality of energy. Energy is the result of interaction between individual energy, team energy and organisational energy. Individual energy is driven by individual behaviour, whereas team energy is driven by social interaction within the team and organisational energy is driven by organisational infrastructure. Highly productive energy then produces high-performing companies. The following drivers of the organisation energy productivity improvement model have been identified by researchers:

- - -

Individual level: engagement, trust, confidence

Team level: leadership, teamwork, communication

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• Productive organisation energy: enablers and inhibitors In a research study at two coal mines, Louw, Sutherland and Hofmeyr, (2012), the enablers and inhibitors of productive organisational energy, the findings were as follows: - -

The main enabling factors of productive organisational energy were found to be recognition, job security and management support. The major inhibitors were found to be bureaucracy, lack of discipline and lack of resources.

The two measurement factors or scales of organisational energy are intensity and quality. These scales combine to categorise and quantify levels of organisational energy within the organisational entity. High

Corrosion zone

Productive zone

Resignation zone

Comfort zone

INTENSITY Low

Negative

QUALITY

Positive

Figure 7.2: Organisational energy Source: http://tudleadership.wordpress.com/2012/06/17/high-positive-energy-levels-the-key-toorganisational-culture/

• Engagement and productive organisational energy “Based on the empirical data from this study, the key focus areas for organisational leadership to focus on in order to create and maintain a climate of productive organisational energy are the engagement factors which act at an individual employee level. Statistically, the engagement driver of the people influence factors of productive organisational energy is the most relevant and statistically significant predictor.” (Lamberti, 2010:92)

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2. Economics

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Since productivity is an economy’s long-run growth engine, we have felt it necessary to give an overview of economics. The word is derived from the Greek word, Oikonomia, meaning household management, and it has come to mean the study of the way we manage our resources, and more specifically, the production and exchange of goods and services (Kishtainy et al., 2012:12-13).

At the heart of economics lies the law of supply and demand. Conway (2009:66) suggests that the way these two forces interact determines the prices of goods in stores, the profits a company makes and how one family becomes rich while another remains poor. It is also important to note that economics actually comprises two subjects: - -

Microeconomics which refers to how and why people take certain decisions. Macroeconomics refers to the broad study of how governments improve growth, tackle inflation, maintain their finances and ensure unemployment does not climb too high.

The business of producing goods and providing services is as old as civilisation, but the study of how the process work in practice is comparatively new. “Human needs are infinite, yet there are only a finite amount of resources. As

one need is fulfilled, another one takes its place. There are, however, only limited resources available to fulfil these desires. The tension between unlimited needs and limited resources is the basis of economics. Economic choice refers to the fact that resources have alternative uses, an example is a field used for grazing livestock cannot produce a crop at the same time.” (Kishtainy et al., 2012: 171)

The most fundamental measurement used to evaluate our success in allocating our resources is economic growth. Individuals monitor their income and the changing value of their assets. Businesses track their profits and their market share. Nations monitor a variety of statistics to measure economic growth such as national income (the total income from all sources earned in a nation over a specified period of time) and gross domestic product or GDP (the total market value of all goods and services produced within a country during a specified period). Success in maximising the allocation of our resources is also determined by productivity. Productivity measures how much we produce for every unit of

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labour or capital that we invest or, as economists say, the value of our output for every unit of input. For economists, this is a crucial measurement of how efficiently we utilise our resources.

Moving beyond growth and productivity, some economists argue that any assessment of the nation’s economy must also include measurements of distribution and equity – that is, it’s not enough for the economy to grow in aggregate terms, the wealth generated must also be equitably distributed. For these economists, a different set of questions and statistics is important. What is the nation’s per capita income and how close is this figure to the actual personal distribution of income? To determine the per capita income economists simply divide the national income by the population. But to determine the personal distribution of income economists must examine how the nation’s total income is actually distributed. They must determine what share of the nation’s wealth is owned by various sectors of the economy. In this short overview of economics a last reference is made to green economy which is becoming very topical. This is defined as an economy that results in reducing environmental risks and ecological scarcities, and that aims for sustainable development without degrading the environment.

3. People development

“The success and ultimately the survival of every business, large or small, depend in the last analysis on its ability to develop people. This ability is not measured by any of our conventional yardsticks of economic success; yet, is the final measurement.” Peter F. Drucker. (November 19, 1909 – November 11, 2005)

People development is a key component of productivity since it enables individuals to perform their allotted activities with increased competence and confidence. It involves education and technical skills development, as well as capacity building in softer competencies such as leadership development. One of the main benefits of a well-executed people development strategy is increased productivity and quality of work (Erasmus, Loedolff, Mda & Nel 2010:4).

Some of the other benefits acknowledged by the authors are: - - - 100

The job knowledge and skills of employees at all levels are improved Improved profitability and (or) better service Improved workforce morale

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- -

Helps to keep costs down

Improved relationships between supervisors and employees

An organisation that evokes a culture of learning is one that provides systematic, sustained and continuous opportunities for employees to acquire knowledge, skills, attitudes, or values that ultimately lead to individually or collectively improved performance.

Human Resource Development (HRD) often takes the employee as the starting point in contrast with Managing Development (MD) and Leadership Development (LD) that generally take the employer’s perspective as a starting point. The direct supervisor plays an essential role in the development of an employee with regard to:

- - - -

Motivation - Stimulating employee development initiatives

Facilities and resources – facilitating development through financial resources (budget) and time available for attending programmes Knowledge and experience – sharing of knowledge and experience

Coaching – supporting the candidate during the development programme through regular feedback sessions, communication and progress monitoring

• Learning organisation:

In his book The Fifth Discipline (2006), Peter Senge, identified five component technologies essential to the creation of a learning organisation: - - - - -

Systems thinking

Personal mastery Mental models

Building shared vision Team learning

Personal mastery and mental models deal with individual development and team learning deal with team development. All three components are relevant to people development:

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Senge (2006:7) describes personal mastery “as the discipline of continually clarifying and deepening our personal vision, of focusing our energies, of developing patience and of seeing reality objectively.” Mental models are described as “deeply ingrained assumptions, generalisations, or even pictures or images that influence how we understand the world and how we take action. Turning the mirror inward – learning to unearth our internal pictures of the world, to bring them to surface and hold them rigorously for scrutiny” (Senge, 2006:8)

The trend nowadays in people development is towards team learning and it is described by Senge (2006: 9, 10, 223), as follows: “Team learning is the process of aligning and developing the capacity of a team to create the results its members truly desire. The discipline of team learning starts with dialogue, the capacity of members of a team to suspend assumptions and enter into a genuine thinking together.” These aspects of people development fall outside conventional training, and organisations need to encourage and facilitate the growth of their people in this manner.

4. Performance management

Performance management can be seen as a broad range of activities that create a bridge between managing employee performance and enhancing overall organisation performance. It is a high performance work practice (HPWP) that can be to inform, guide, monitor and evaluate employees to achieve organisational goals. “Traditional performance management – the annual process of rating employee performance and ranking them against their colleagues – is widely considered to be broken.” (Deloitte Consulting LLP and Bersin by Deloitte (2014:45). In today’s high-performing teams, employees must take ownership of their performance and act on their own to improve their capabilities. In order to improve productivity HR should assist managers in answering the following questions related to performance management: - - - 102

What is expected from individual workers with respect to their job performance? What kind of corporate norms and values are important for employees in their daily work? What are the targets of the department

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- -

What is the potential individual’s contribution?

What are my employees’ key performance indicators (KPIs)?

It is important to note that each stage of the performance management, for example the system development, appraisal process and feedback, should ensure fairness in procedural systems, interpersonal relations and in outcomes. Acceptance of feedback will be better if the manager is fair and transparent in allocating work, measuring performance and deciding on rewards, clearly conveys the organisational objectives, jointly sets the goals by being open to suggestions and divergent viewpoints, gives periodic feedback, maintains a record of critical incidents to back up annual ratings, professionally conducts the feedback interview and provides personal and organisational help through mentoring and coaching to improve performance. Managers become coaches, rather than evaluators.

-

-

-

- -

-

Deloitte Consulting LLP and Bersin by Deloitte (2014) suggest the following starting points to leading-edge performance management:

Get senior leaders involved – and keep them involved: Engage at a senior executive level and discuss questions like what does the organisation hope to achieve as a result of performance management activities? And what system will best reinforce the organisation’s talent management strategy?

Use performance management to build skills: Switch from rigid performance reviews to flexible performance conversations and suggest practical steps to reach the next level of achievement within the organisation. Teach managers to give better feedback: Improve the skills of managers to enable them to have productive but less formal conversations about performance with their employees.

Simplify the process: Split the performance coaching and evaluation process from determinations of compensation and reduce the number of documents.

De-link performance scores and compensation: Think about revising compensation structures to include broader considerations, such as how the outside talent market would compensate an employee or how difficult the employee would be to replace. Coach everyone: Hold everyone accountable, but give everyone coaching, development planning and training to improve. Even the mediocre performer must be treated as a valued contributor to success.

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Apart from the legal and operational processes involved with performance management, it also involves very real psychological dynamics. Everyone wants to be acknowledged, not only in his or her existence, but also in being valuable and special. Feedback on performance, not only in formal processes, but in on going manner, performs this function. Nobody can function productively in isolation. We all want to be recognised and appreciated.

5. Coaching

A coach is someone who supports, explains, demonstrates, instructs and directs others via encouragement and asking questions. Coaching implies the creation of the capacity for continuous improvement, development and success through supporting people and organisations by sharing their knowledge, insights, vision, creativity and sensibility. Questions build rapport, understanding, feedback, listening. The process is centred on goals and deliverables with a directive or non-directive approach.

Through coaching managers employees are able to engage in candid and respectful conversations that foster self-reflective ideas about how to improve performance. Fostering a coaching culture supports continuous individual, team and organisational learning, facilitates effective cultural and organisational change, improves the engagement and empowerment of employees and supports the attainment of the core business strategy. When a coaching framework is followed through to the end, a coaching culture, and coaching, will become embedded within the organisation over time, and survive all the turbulence of the constantly changing world we work in.

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Step 1

Define the rationale for the establishment of a coaching culture. How will the coaching culture support the core business strategy?

Step 2

Describe the appropriate organisation culture to achieve your strategy.

Step 3

Identify internal sponsors who can act as champions to develop the coaching culture.

Step 4

Integrate coaching into leadership development initiatives.

Step 5

Create a pool of coaches (internal/external).

Step 6

Ensure coaching features in processes, metrics and performance measures.

Step 7

Examine how a coaching approach can be implemented by all staff, with both internal and external stakeholders.

Examine the costs and benefits, and anticipate and plan for resistance. The investment in coaching has to be put into perspective in relation to the outcome Step 8 desired.

Step 9

Step 10

Establish ground rules for confidentiality within the coaching relationships. Evaluate and review. Check back with the desired outcomes espoused.

Figure 7.3: Establishing a coaching culture

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6. Mentoring Coaching and mentoring are two ways in which people with vast experience help those in the same job or field of endeavour who have less experience. Coaching usually deals with specific skills and tactics, while mentoring often is a long-term partnership in which a mentee is assisted in the development of his/her potential. The mentor’s wisdom is utilised by the mentee to facilitate and enhance new learning and insight. Mentorship refers to a personal developmental relationship in which a more experienced or more knowledgeable person helps a less experienced or less knowledgeable person with the subject matter. The receiver of mentorship was traditionally referred to as a protégé, but with the institutionalisation of mentoring the more neutral word mentee has evolved and is widely used today.

• Assumptions: -

-

-

-

-

-

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Deliberate learning is the cornerstone. The mentor’s job is to promote intentional learning, which includes capacity building through methods such as instructing, coaching, providing experiences, modelling and advising.

Both failure and success are powerful teachers. Mentors, as leaders of a learning experience, certainly need to share their stories on how to do things so it comes out right. They also need to share their experiences of failure, and how things went wrong. Leader need to tell their stories. Personal scenarios, anecdotes and case examples, because they offer valuable – often unforgettable – insight, must be shared. Mentors that can talk about themselves and their experiences establish a rapport that makes them learning leaders. Development matures over time. Mentoring – when it works – taps into continuous learning that is not an event, or even a string of discrete events. Rather, it is the synthesis of on-going event, experiences, observation, studies and thoughtful analyses. Mentoring is a joint venture. Successful mentoring means sharing responsibility for learning regardless of the facilities, the subject matter, the timing and all other variables. Successful mentoring begins with setting a contract for learning around which the mentor, the mentee and the respective line managers are aligned.

An important element of the mentoring relationship is setting and facilitating clearly-defined learning objectives. The process may begin with a first meeting where both parties can discuss their expectations. More

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detailed objectives can be defined and adopted as the relationship evolves. At the first meeting start-up issues, expectations and initial goals should be addressed. Five major techniques: 1

2

3

4

5.

Accompanying:

This means making a commitment in a caring way. Accompanying involves taking part in the learning process by taking the path with the learner. Sowing:

Mentors are often confronted with the difficult task of preparing the mentee before he or she is ready to change. Sowing is necessary when you know that what you say may not be understood or even acceptable to mentees at first, but will make sense and have value to the mentee when the situation requires it. Showing:

This is making something understandable or using your own example to demonstrate a skill or activity. You show what you are talking about, and you show by your own behaviour. Catalysing:

When change reaches a critical level of pressure, learning can leap ahead. Here the mentor chooses to plunge the mentee right into change, provoking a different way of thinking, a change in identity or a re-ordering of values. Harvesting:

Here the mentor assists the mentee in creating awareness of what was learned. The key questions are “what have you learned?” and “how useful is it?”

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Phases: 1 Orientation – building the base

During the first three to six months, both the mentor and mentee are getting to know each other and building trust. At this time, both are developing expectations of each other. The interaction that occurs at this stage will lay the foundation for a strong and beneficial relationship.

2 The middle period – launching

The middle phase is typically the most rewarding time for both mentor and mentee. The mutual trust which has developed between the two can give the mentee the confidence to challenge the ideas of the mentor, just as the mentee’s ideas will be challenged by the mentor.

3 Dissolving the relationship

Typically, the relationship begins to draw apart after a year or two. It is important, at this stage, for the mentor to step back from the formal relationship and to discuss with the mentee how they wish to continue their relationship.

4 Redefining the relationship

The mentor-mentee relationship enters a new phase in which both parties can regard one another as equals. They continue to have some form of interaction, although it is now on a more casual basis.

7. Tutoring

A tutor is an instructor who gives private lessons on a specific subject or skill to an individual student or small group of students. Such attention ideally allows the student to improve knowledge or skills more rapidly than in a classroom setting. Tutoring can also occur when one adult helps another adult student to study a specific course or subject that he/she is taking in order to obtain better results. The adult can also let the student work on his/her own, and can be there if the student has any questions. Shadow education is a name for private supplementary tutoring that is offered outside the mainstream education system. When private tutoring is provided by a well-trained tutor the effects can be dramatic, with pupils improving performance by two standard deviations Tutors are often privately hired and paid by the 108

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student, the student’s family or an agency. Some are used for remedial students or others needing special attention; some provide more advanced material for exceptionally capable and highly motivated students or are useful in the context of homeschooling. The demand for tutoring in Asia is exploding; by comparison globally, shadow education is most extensive in Asia. This is partly due to the stratification of education systems, cultural factors, perceptions of shortcomings in regular school systems and the combination of growing wealth and smaller family sizes.

Online private tutoring offering online learning education, support and materials are other offerings in this regard. Online tutoring is a new way for a student to receive help, either scheduled or on-demand. Sessions are done through an application where a student and tutor can communicate. Common tools include chat, whiteboard, web conferencing, teleconferencing and other specialised applets which make it easier to convey information back and forth. For example, there are applets designed specifically for mathematics which allow the use of mathematical symbols. Online tutoring has been gaining popularity over the past couple of years because of the ease associated with being able to connect to a tutor at moment’s notice when help is required This is especially effective when a student is studying for a test scheduled for the next day at school and is stumped on a particular problem. Not all online tutoring companies offer an on-demand tutoring service. With regard to effectiveness improvement in an organisational context, tutoring as a development tool can be utilised on an individualised basis. It is especially beneficial to executives or members of specialised services that cannot afford to be away from work for long periods of time. They can, however, make time available in between their organisational activities for a personal tutoring session on a topic which has been identified as a development area, like leadership, for example. The technology exists for online tutoring services offering scheduled work sessions, and supported by on-demand tutoring services.

8. Work practices (Job design)

“Too often employees feel emotionally disconnected from the work they do; their work may capture their talents and time, but not their heart and soul. Great leaders personalise work conditions so that employees know how their work contributes to outcomes that matter to them. Beyond the level of challenge, people want to work at the type of challenge they care about and under the conditions that make that challenge enjoyable.” (Ulrich, Ulrich & Goldsmith, 2005:157-158)

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Job design refers to the process by which management creates a job by specifying duties and responsibilities. It is essential that the quality of work life must be taken into consideration to enhance employees’ dignity, well-being and development. Work/family balance, job enlargement, job rotation and job enrichment as part of job design will be discussed below. Work/Family balance

Organisations need to direct more attention and resources towards helping employees balance work and family demands. The number of women and single parents entering the workforce is expected to increase even more. Examples of flexible work arrangements include job sharing, flexitime and telecommuting. Job or work sharing is a work arrangement where two or more employees divide the a job’s responsibilities, the hours, salary and benefits of the job among themselves. Organisations can use job sharing arrangements as an alternative to layoffs. Flexitime occurs when an employee can choose when to be at the office. This arrangement should not be too unstructured and will only work if the employees have a clear idea of what they need to accomplish in their jobs. Telecommuting allows employees to work in their homes part or full time. They are connected to the office through smart phone, laptop, texting, instant messaging, video conference meeting software and email. Job enlargement

The number of tasks of an employee is increased. This practice may require longer training periods but boredom is usually decreased. Job rotation

This practice involves moving employees from job to job to reduce boredom and increase motivation and performance. Employees usually see this as enjoyable because it increases task variety. Job enrichment

Managers can provide employees with greater opportunities and challenges so that they can exercise good judgment and discretion. This practice motivates employees and enhances productivity.

In conclusion, organisational performance is linked with the way human resources are managed, and innovative HR will result in both organisational and individual improvements. (Stavrou-Costea, 2005).

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References

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Conway, E. 2009. 50 Economics ideas you really need to know. London: Quercus.

Deloitte Consulting LLP and Bersin by Deloitte. 2014. Global Human Capital Trends: Engaging the 21st-century workforce. Deloitte University Press.

Drucker, P.F. Retrieved February 26, 2015 from http://blog.gaiam.com/quotes/authors/peterf-drucker?page=3

Erasmus, B.J., Loedolff, PvZ., Mda, T.V. & Nel. P.S. 2010. Managing Training and Development in South Africa. Cape Town: Oxford University Press.

Kishtainy, N., Abbot, G., Farndon, J., Kennedy, F., Meadway, J., Wallace, C. & Weeks, M. 2012. The Economics Book. London: Dorling Kindersley (DK)

Louw, K., Sutherland, M. & Hofmeyr. K. 2012. Enabling and inhibiting factors of productive organisational energy. South African Journal of Labour Relations, 36(2):9-29. Lamberti, H. 2010. The drivers of productive organisational energy. Gordon Institute of Business Science. University of Pretoria. Senge, P. 2006. The Fifth Discipline. London: Random House.

Stavrou-Costea, E. 2005. The challenges of human resource management towards organisational effectiveness: a comparative study in Southern EU. Journal of European Industrial Training, 29(2):112-134. Ulrich, D., Ulrich, W. & Goldsmith, M. 2010. The Why of Work. New York: McGraw-Hill.

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CHAPTER 8 ORGANISATIONAL TRANSFORMATION Sustained organisational success in a context of shared meaning

Leadership and meaning

Relationships

Workplace socialisation

Productivity

Organisational transformation

Personal wellness

Foundational understanding: HR competence and business acumen Figure 8.1: Reinventing HR: Transitional framework

Organisational transformation is an important pillar. Not only in its service offering but also in its own internal function and positioning. The topic is divided in two sections; business/ organisational strategy and leading change.

Business strategy

The challenge of developing or re-establishing a clear strategy is often primarily an organisational one and depends on leadership. With so many forces at work against making decisions and trade-offs in organisations, a clear intellectual framework to guide strategy is a necessary counterweight. Moreover, strong leaders willing to make choices are essential. (Porter, 2011:34)

Strategy is the direction and scope of an organisation over the long-term, which achieves advantage for the organisation through its configuration of resources within a challenging environment to meet the needs of markets and to fulfil stakeholder expectations. In contrast to long-term planning, which begins with the current status and lays down a path to meet estimated future needs, strategic planning begins with the desired-end and works backward to the current status.

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Key elements of strategic planning: • • • • • • • • •

Stakeholder (expectations)

Direction (desired end result)

Scope (opportunity, focus area)

Advantage (competitive positioning) Resources (application)

Environment (positioning, alignment) Execution (project design, coalition) Institutionalise (imbed, evaluate)

Follow through (monitor, feedback)

Strategy design

In Blue Ocean Strategy, Kim and Auborgne (2005:6-7) state that industries never stand still and are continuously evolving. Operations improve, markets expand and players come and go. History teaches us that we have a hugely underestimated capacity to create new industries and re-create existing ones. Yet the overriding focus of strategic thinking has been on competition-based red ocean strategies. Part of the explanation for this is that corporate strategy is heavily influenced by its roots in military strategy. The history of industry however shows that the market industry has never been constant; rather, blue oceans have continuously been created over time. To focus on the red ocean is therefore to accept the key constraining factors of war – limited terrain and the need to beat an enemy – and to deny the distinctive strength of the business world: the capacity to create new market space that is uncontested. Strategy design requires a visionary perspective, understanding, openness, discipline and focus. In this section we will only present an overview of the process and not deal with the subject in any great detail. Much has been written on the subject of strategic planning (design) and we trust that HR practitioners will give further attention to the topic. A number of important issues related to the design of strategy will, however, be discussed.

Sigmoid (S) Curve

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The S-Curve describes a sigmoid function, a mathematical function that produces a sigmoid or S-shaped curve. The S-curve, a mathematical model, is also known as the logistic curve and describes the growth of one variable in relation to another variable over time. S-curves are found in fields from biology and physics to business and technology. In business, the S-curve is used to describe, and sometimes predict, the performance of a company or a product over a period of time. Below is an

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illustration of the S-curve depicting an existing life path which is leading to extinction, in whichever context; it can relate to the product, service, business, relationship or performance of an economy. Strategic planning in this context is to preempt the inevitable path of extinction depicted by curve 1 and to design the transitional model towards continued growth as per curve 2. All processes, products and concepts have a shelf life and therefore strategic planning is not only applicable to organisations, but to life in all its facets. It most definitely applies to businesses and tracks performance over time as continuum. Curve 2

Transition A

Curve 1

Curve 1: Existing life path Curve 2: New life path

Figure 8.2: Sigmoid curve (S-curve) Source: http://mitchanthony.com/eNewsletter/articles/2012-09-Kim.html

Once the new direction has been determined, the decision of when to jump to the new model and leave the old processes behind requires careful planning as many factors are involved. What is of note is the fact that the cycles of change are becoming shorter due to the tempo of change and renewal in a broader socio-economic context. Below is an illustration of the process towards the future curve. Note that the present curve cannot just be abandoned – it requires a careful blend of stabilisation and departure.

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Trajectory paths to the next curve G r o w t h

Future curve

Stabilising Replicating and improving

Present curve

Dying

Starting

Time Figure 8.2: Departure from present S-curve to future curve Source: http://enantiodromian.blogspot.com/2011/12/s-curves.html

Herewith some key pointers with regard to the S-curve: • •

•

•

Being able to jump to a new S-curve over and over again is the key ingredient to obtaining sustained business growth.

In Stall Points by Olson and Van Bever (2008:21) it is stated that once an organisation hits a stall point within their S-curve, it has a less than 10 per cent chance of full recovery.

According to Jumping the S-Curve by Nunes and Breene (2011), there are three hidden S-Curves that companies should pay attention to as they have a determining influence on the success of an organisation’s financial well-being. Companies that successfully reinvent themselves tend to broaden their focus beyond the financial S-curve and manage the three much shorter but vitally important hidden S- curves: - - -

•

Tracking the basis of competition in their industry Renewing their capabilities

Nurturing a ready supply of talent

With the S-curve dynamic, conventional wisdom is effectively turned on its head and the organisation learns to focus on fixing what doesn’t yet appear to be broken.

It is worthwhile noting the role and relevance of emerging technology in the context of strategic planning (see below). The rationale behind this methodology is that current 116

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processes or technologies are so dysfunctional that designing a second (future) curve is not worthwhile. Again, this is a strategic positioning based upon careful and integrated planning. In this regard, alternative processes or methodology are then designed apart from the main stream of activity. Once the project stage has been concluded it can then be revealed and picks up from the present curve into whichever new organisational process requirements are involved.

G r o w t h

Current technology Emerging technology

Time Figure 8.3: Jumping the S-curve Source: http://yourbrandisshowing.tumblr.com/post/5451861988/strictly-business-jumping-the-scurve-acquisition

Each HR practitioner needs to plan his or her approach to the HR function. The requisite strategy will depend on whether your present curve is strong enough to serve as a platform for the future curve, or whether it will be necessary to design new HR dynamics and technology off the radar in a project environment. It is a crucial decision.

Scenario planning

Strategic planning is often pre-empted by the creation of scenarios based upon broader, most often, international trends. An example is a report, Moon Shots for Management (Hamel, 2009), on the grand challenges faced by management. It was compiled by scholars and practitioners who spent time together debating the future of management. Hamel (2009) mentions three challenges that stood out: 1

Ensure that the work of management serves a higher purpose. Management, both in theory and practice, must orient itself to the achievement of noble, socially significant goals.

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2

3

Most companies strive to maximise shareholder wealth – a goal that is inadequate in many respects. As an emotional catalyst, wealth maximisation lacks the power to fully mobilise human energies. And it’s not specific or compelling enough to spur renewal. For these reasons, tomorrow’s management practices must focus on the achievement of socially significant and noble goals. Fully embed the ideas of community and citizenship in management systems. There is a need for processes and practices that reflect the interdependence of all stakeholder groups.

In tomorrow’s interdependent world, highly collaborative systems will outperform organisations characterised by adversarial win-lose relationships. Yet today, corporate governance structures often exacerbate conflict by promoting the interests of some groups – like senior executives and providers of capital – at the expense of others, usually employees and local communities. In the future, management systems must reflect the ethos of community and citizenships, thereby recognising the interdependence of all stakeholder groups.

Redefine the work of leadership. The notion of the leader as a heroic decision maker is untenable. Leaders must be recast as social systems architects who enable innovation and new collaboration. Natural hierarchies require natural leaders – individuals who can mobilise others without relying on formal authority. In this new paradigm, leaders will no longer be seen as grand visionaries, all-wise decision makers and iron fisted disciplinarians. Instead, they will need to become social architects, constitution writers and entrepreneurs of meaning. In this new model, the leader’s job is to create an environment where every employee has the chance to collaborate, innovate and excel.

These issues facing the HR department are worth exploring and following through in their unique organisational and operational environments. Tracking strategic planning developments and trends are also advisable for HR practitioners, as is keeping their executives teams sighted on any new developments.

Forces that shape strategy

One of the important issues in strategy design is the understanding of the forces that shape strategy. Porter (2011:46) defines these forces as follows: • • • • • 118

Threat of new entrants

Bargaining power of buyers

Threat of substitute products or services Bargaining power of suppliers

Rivalry among existing competitors

Strategic positioning

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What consistently separated winners from losers in creating blue oceans was their approach to strategy. The companies caught in the red ocean followed a conventional approach, racing to beat the competition by building a defensible position within the existing industry order. The creators of blue oceans, surprisingly, didn’t use the competition as their benchmark. Instead, they followed a different strategic logic that we call value innovation. Value innovation is the cornerstone of blue ocean strategy. We call it value innovation because instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space. (Kim & Mauborgne, 2005:12) An important issue related to strategy design has to do with the organisation’s strategic positioning. It deals with the organisation’s attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company. Strategic positioning emerges from the interplay between customers and services. For example, do you provide broad services to few customers or few services to many customers? The differentials are in presenting similar activities as rivals to customers performed in different ways, or in presenting totally different activities. An organisation can also focus on a specific market segment, like retail for example, and not on specific customers. Either way, the strategic positioning decided upon will require trade-offs in competing – to choose what not to do. It will also require organisational alignment to the requisite positioning decided upon.

Whilst a company’s practices and strategies should change continually, its core ideologies should not. Positioning can change over time but core ideology defines a company’s timeless character. It is the glue that holds the enterprise together, even when everything else is up for grabs. Core ideology is something you discover – by looking inside. It’s not something you can invent, much less fake.

According to Collins and Porras (2011:78), a core ideology has two parts:

•

•

Firstly, core values are the handful of guiding principles by which a company navigates. Owing to its intrinsic value they require no external justification, and are important only to those inside the organisation. Secondly, core purpose is an organisation’s most fundamental reason for being.

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As in the Renaissance, it will be an exciting time, a time of great opportunities for those who can see and seize them, but of a great threat and fear for many. It will be more difficult to hold organisations and societies together. The softer words of leadership and vision and purpose will replace the tougher words of control and authority because the tough words won’t bite anymore. Organisations will have to become communities rather than properties, with members not employees, because few will be content to be owned by others. Societies will break down into smaller units but will also regroup into even larger ones than now for particular purposes. (Handy, 1995:7)

Application

We have extensive experience in the design of organisational strategy and it is our contention that it is often addressed in too complex a manner. The executive leadership becomes inundated with data resulting in analysis paralysis. Another factor to keep in mind is building execution into strategy from the start. If need be, obtain inputs from organisation members before embarking on the design. This helps to build trust and commitment and their cooperation in the eventual execution. Understand the fundamental truth that your people, your employees, are going to implement the strategy, or not. You cannot force or threaten them. In view of our experiences (positive and negative) in this regard, we have adopted a very basic design framework comprising of five phases:

• Phase 1: Strategic perspective:

Obtain and build shareholder expectations into the process, develop a vision as picture of a future ideal, develop the business framework, design the strategy map (strategic thrusts) and develop a strategy scorecard. The latter is crucial as the process needs to be tracked and evaluated in execution and effectiveness.

• Phase 2: Required behaviour:

This phase is often neglected and is crucial since people will effectively implement the strategy. The required behaviour of executive and operational leadership, employees, stakeholders and support/specialist services must be defined. This then forms the basis for the organisational values and a code of behaviour.

• Phase 3: Desired corporate culture:

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Culture refers to the organisational lifestyle and is evidenced in aspects such as relationships, communication and decision making. It is also an expression of shared meaning shared by all members of the organisation. Main differentials are centralised control and autonomy.

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• Phase 4: Current reality:

Once the desired future state has been given form, the focus shifts to understanding and analysing the organisation’s current reality. This consists of the internal or organisational context (policies, systems, procedures) and the external environment. The process is best summarised as enablers and inhibitors.

• Phase 5: Action plan:

Once the above steps have been concluded, an action plan on strategy implementation is then drawn up; plan to action strategic thrusts with due cognisance of current and envisioned reality, as well as training/development requirements and required behaviour. The process is best captured in a project plan detailing the prioritised steps with clear deadlines and accountabilities. The action plan must provide for a communication plan to the organisation of the organisational strategy. Strategic perspective

Action plan/roll-out

Current reality

Required behaviour

Desired culture

Figure 8.4: Strategy design framework

The difference between strategy design and execution is best demonstrated in the following layouts. As can be seen, design is a function of organisational leadership and execution is a function of operational leadership.

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Design: Strategy

Leadership

People/Culture Execution: People/Culture

Leadership

Strategy

Figure 8.5: Strategy design versus strategy execution “As long as companies continue to attack their execution problems primarily or solely with structural or motivational initiatives, they will continue to fail. They may enjoy short-term results, but they will inevitably slip back into old habits because they won’t have addressed the root cause of the failure. Such failures can almost always be fixed by ensuring that people truly understand what they are responsible for and who makes which decisions - and then giving them the information they need to fulfill their responsibility. With these two building blocks in place, structural and motivational elements will follow.” (Neilson, Martin & Powers, 2011:166)

Strategy execution There is a huge difference between strategy design and strategy execution. Design requires certain processes and skillsets, but execution requires a totally different approach. In the past executive teams might have gone away for a week, designed their strategy and force fed execution into the organisation upon their return. This 122

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is no longer possible as organisation members, the people, must execute the strategy and unless they buy into it, nothing will happen. “Studies have shown that 90 per cent of companies consistently fail to execute

strategies effectively. When strategy makers neglect the critical connections between words and deeds – between ideas and action – they are almost guaranteed to fail. Many executives understand this instinctively, but they lack a systematic approach for identifying and implementing the right array of action.” (Malek, 2008:1)

For a variety of reasons execution of strategy and execution in general are both problematic. The main and underlying reason is resistance and pushback on any change. It challenges the status quo and people become very insecure and uncomfortable. Furthermore, the end result of a strategic planning process can leave the leaders in a state of confusion if the processes requiring implementation are complexity. McChesney, Covey and Huling (2012), presents the following discipline in facilitating change: •

First discipline: Focus on the wildly important.



Focus your finest effort on the one or two goals that will make all the difference, instead of giving mediocre effort to dozens of goals.



Define the daily or weekly measures, the achievements of which will lead to the goal. Thereafter, identify the most important actions that will drive those measures.

•

•

Second discipline: Act on the lead measures.

Third strategy: Keep a compelling scorecard.



Make sure everybody knows the score at all times so that they can tell whether or not they are winning. Make the format simple and exciting.



Introduce a frequently recurring cycle of accounting for past performance and planning to move the score forward.

•

Fourth strategy: Create a cadence of accountability.

The discipline act on lead measures referred to above is especially noteworthy. The efficiency measurement of most organisations is based upon lag measures which report on historical data. Identifying and managing lead measures on the other hand gives leverage for achieving the lag measures. Lead measures must be predictive (measures something that leads to the goal) and something you can influence.

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A simple example of a lag measure is to repair your car when it is broken, whereas a lead measure is to service your care according to a service plan, in other words, a proactive action. The issue of lead indicators is something that HR practitioners need to take seriously. Virtually all organisational measurements are based on lag measures leaving little leverage as it is reporting on historic data. Once properly understood, the HR function needs to take all organisational processes in this regard under review. Keep studying the concept – it is extremely important. The reference that we have used is worthwhile obtaining as a personal reference and education tool (McChesney, Covey & Huling, 2012). Below is a comparison between the two approaches.

Table 8.1: Comparison between lag measures and lead measures of performance

Conventional measurement based upon

Proactive management system based

• Keep your eye on the lag measures

• Focus on moving the lead measures.

lag measures as standard.

– the quarterly results, the sales numbers and the production figures.

• Stress out.

• Bite your finger nails while you wait.

upon lead measures.

• These are the high-leverage actions

you take to get the lag measures to move.

In the execution of business strategy, or in any change for that matter, the above points are worth keeping in mind. Do not rush in and do not attempt to do too much. Pace yourself and maintain disciplined focus. Whereas strategy design broadly follows a rather fixed approach, execution is completely different. It is difficult in the sense that the whole organisation gets involved and mobilises informally either for or against the strategy. It is not a visible organised process, but is almost like a tide building up. Leadership requires enormous skill and patience as they feel their way into the process. Presentations, workshops, discussion groups and even focus groups can be utilised here. The real test of implementation is how robust the organisation is in dealing with the challenges and in re-adjusting strategic processes and steps early enough. Sensitivity and flexibility is crucial, and although the overall strategic framework needs to remain in place, many detailed steps may well change during implementation. If the workforce was involved in the process prior to the design of the strategy by organisational leadership, it will be of tremendous help during the implementation 124

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process. It does require a different approach but it is still a very meaningful process. People are more open, receptive and relaxed about the process. We obviously prefer this approach where practically possible.

One of the best contributions to aligning strategic execution with strategic design has been made by Kim and Mauborgne (2005:174-176). In their much acclaimed book Blue Ocean Strategy, they describe this practice as fair process comprising of three mutually reinforcing elements:

• Engagement:

Engagement means involving people in the strategic decisions that affect them by asking for their input and allowing them to refute the merits of one another’s ideas and assumptions. It communicates management’s respect for individuals and their ideas. Engagement builds collective wisdom and commitment from all involved to execute those decisions.

• Explanation:

Explanation means that everyone involved and affected should understand why final strategic decisions are made as they are. An explanation of the thinking that underlies decisions makes people confident that managers have considered their opinions and have made decisions impartially in the overall interests of the company. It also serves as a powerful feedback loop.

• Expectation:



Expectation implies clarity on execution. After a strategy is set managers must clearly state the new rules of the game. Although the expectations may be demanding, all involved should know up front what will be expected of them. Goals, targets, milestones and responsibilities must be clearly understood so that people can focus on executing the strategy rapidly. Through our experience with regard to the execution of strategy, we identified the following phases: Phase 1: Strategic alignment:



Ensure that the execution plan or framework is indeed aligned to the executive strategy. Alignment is also a requirement in the event of divisions and service departments within the organisational context. Phase 2: Leadership capacity building:



Execution is mainly a function of operational leadership which means that leadership will have to become extremely skilled in communication, conflict handling, assertiveness and emotional and social intelligence.

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Phase 3: People engagement:



Implementation of strategy must, in the end, be owned and implemented by the workforce. This requires a very good understanding of employee engagement and the enactment thereof. Engagement is leadership initiated and maintained. Phase 4: Organisational alignment:



As the implementation process gains momentum, the bureaucracy becomes challenged and pushes back. The organisation, through its support services, policies and procedures must, however, be aligned with the evolving culture resultant from the change process. The leadership needs to be determined and focused during this phase, whilst still remaining flexible. Phase 5: Operational effectiveness:



Mechanisms used in the development, driving, evaluation and recognition of team and individual effectiveness need to evolve with the change. This includes functional processes, and people and relationship dynamics. Overall, organisational efficiency and effectiveness must be tracked, reported on and corrected continuously.

These 5 phases appear to be quite simple on the surface, however, the underlying concepts and processes are very powerful.

Monitoring mechanisms

The implementation of the strategy must be monitored very closely, but even more important are the effects on the organisational culture and performance. Concerns and problems need to be picked up early enough so that remedial processes can be put in place. Vigilance and flexibility are called for. “Organisations need to institutionalise the connection between strategy, operations and targets as well as performance consequences. This connection needs to create a seamless thread to take to take strategy into the organisation and to support the performance and behaviour that will result its achievement. HR leaders, in particular, have an enormous role to play in facilitating the connection between strategy and individual performance.” (Meyer, 2012:58-59)

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In terms of their allotted strategic activities as per the organisational strategy, the HR executive needs to develop a mechanism against which to introduce and manage the process of implementing the strategy. This process involves an understanding of the broader context, as well as detail on the interventions and their intent. It is important that the people science be understood and utilised. For research purposes this is

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recorded in professional fields such as psychology, sociology, industrial psychology and even physiology.

Below is an example of a grid that was developed and introduced into one of our projects: Table 8.2: Strategic grid Psychological

Social conditions

Environmental

Strategic

Acknowledgement

Participation

Engagement

Leadership-

Meaningfulness

Role clarity

Task/job design

Confidence

Competence

Learning/growth

HR-Engagement

Community

Work-/task teams

Leadership-

conditions

Encouragement Relatedness Sighted

Respected

(context)

Appreciation

Communication Togetherness

conditions

Recognition

Flow of information Commonality

interventions Engagement

Leadership-HR

Leadership

Engagement

HR-Communication Leadership-

Engagement

It serves as an example to understand how to put strategic interventions into context. As can be seen the four main interventions were related to leadership, engagement, communication and the HR function. The interventions were then cast into a project plan with detail on the various activities of each of the strategic interventions. This was also very helpful in gaining the support, understanding and respect of the executive team. Such a scientific process supporting and sustaining change contributes much to the professionalism of the HR function. Note that the table above is not a model but serves as an example showing how a grid of this nature supports strategic change execution in relation to the people function. Lastly, it is of critical importance to institute a quality control (QC) procedure against which the total process, and the various interventions, can be assessed in light of a defined set of quality criteria, and in meeting the requirements of the executive team. QC is similar to, but not identical with, quality assurance (QA). QA is defined as a

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procedure or set of procedures intended to ensure that a product or service under development (before work is complete, as opposed to afterwards) meets specified requirements. QA is sometimes expressed together with QC as a single expression, quality assurance and control (QA/QC). Bringing quality control into their operations will most assuredly add to the professional upliftment of the HR function. Careful thinking and planning will be required in drawing up the quality criteria for the various processes and interventions that the HR department will be involved with. It is best, then, to develop a project plan from which such processes and interventions can be managed. This should include the quality criteria referred to above. Executive teams have demonstrated to us their appreciation of and validation for such projects. This is best set up through external partnerships with researchers from tertiary institutions.

Leading change

Leading change, or change management, has become much more of a continuous process with less clarity on the exact outcomes. It is no longer an added activity that can be managed by separate teams in parallel with the normal business. Leading change is now a constant part of everyday business. The initiation and leading of projects, task forces, new initiatives and related mindsets and skills has become a much more integrated part of the daily operating mode of successful organisations. And this requires senior leaders to also change their operating methods.

Interestingly, senior leaders are often not aware of their changing roles. They tend to see their roles as limited to defining the strategy and priorities and clarifying the decisions taken, but they expect they expect their line management to take over the actual execution. And maybe that is exactly why companies today are struggling with change fatigue? Maybe senior leaders expect too much from line managers, and should not see them as being ultimately responsible for the execution of change? Maybe they underestimate the fact that leading change today requires a different relationship between senior and middle management? What are the key characteristics of this changed relationship? •

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The need for shorter lines between senior and middle management: changes and complexity triggers a need for clarity. People want to control the change, they want peace of mind by being able to understand and oversee what is happening. This applies to senior leaders, line managers and employees. It requires

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•

closeness between senior leaders and their management to optimise explaining the changes, discussing potential ways to manage them successfully, initiating the right focus and right actions, and guiding the desired behaviour and results.

Successful leaders are transparent in their actions, bring more clarity to the topics they are discussing and provide more information on what is happening at the top. They spend a lot of time together as senior leadership in defining strategy and focus, but they create a direct link with their management teams and keep up a high level of openness and frequent communication, rather than keeping distance and maintaining radio silence until they are able to show white smoke. The importance of leading by coaching: of course senior leaders need to lead by example, especially in times of turbulence. But leading by example requires more than showing what you do to others and expecting them to take over. Today’s leaders need to be able to coach their managers; coaching in understanding the challenges, strengths and weaknesses of the manager, investing time together to explore areas for improvement, supporting the manager in finding answers and taking decisions that improve effectiveness and motivation.

Successful leaders invest more time than ever before in coaching their managers on both individual and team levels. They pay explicit attention to their own role as coaches and they support their managers in dealing with today’s challenges. They reflect on their own effectiveness as coaches, they seek feedback or coaching from others without hesitation, and they never confuse coaching with micro-managing.

It is our mental approach towards change that defines whether leading change becomes a painful burden or a challenging learning experience. Change itself has not become more complex, but the average time to absorb it has decreased. In the past decades organisational changes could be boxed into time-bound projects. Roll it out, perceive it as an assignment, get it over with and return to doing normal business again. Nowadays that seems less and less possible. Change has become a structural part of business reality and it is here to stay. So the challenge for leaders is to adopt this mental model themselves before they can lead change successfully. Not just by talking about it, but also by doing it. The more they support cultures in which change is approached as something continuous – in which flexibility, resilience, vigilance, proactive behaviour and innovation are embedded – the more their teams will be able to embrace and achieve successful change. It starts with the leader’s mind set.

Let’s put it into more black and white terms: there two kinds of leaders, those who lead change as a continuous learning experience, and those who do not … yet. Their mental models are reflected in the successes their people achieve. The differences between these two leaders are:

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• • • • • • • • •

Those who see change as being continuous versus those who see it as a one-off assignment. Those who see their success as something temporary versus those who are fighting to keep it. Those who believe everything is possible versus those who believe their future depends on the past.

Those who let change evolve versus those who hide in procedures to keep everybody between the lines. Those who live life as a non-stop learning experience versus those who believe they have reached their destination and don’t want to move anymore. Those who keep their teams alert for change versus those who let their teams nod off.

Those who radiate energy and personal motivation versus those who show fatigue and negative emotions. Those who see resistance to change as fuel for dialogue, improvement and insight versus those who regard it as disturbing and annoying. Those who believe they can gain something versus those who believe they will lose something.

Change management comprises the tools and techniques to manage the people-side of change processes, to achieve the required outcomes and to realise the change effectively within the individual change agent, the inner team and the wider system. The introduction of operational improvement methodology and techniques are best dealt with in change management and not as stand-alone activities. This implies the full involvement of people from initial conception right through to implementation. There are a multitude of concepts around change management and it is very difficult to distil a common denominator from all the sources that are applying the phrase to their mental maps of organisational development. But obviously there is a tight connection with the concept of learning organisations. Only if organisations and individuals within organisations learn, will they be able to master a positive change. In other words, change is the result of an organisational learning process that underlies such questions as what are the procedures; what is the know-how we need to maintain; where do we need to change in order to sustain and grow as an organisation and as individuals within; how can we manage a change that is in harmony with the values that we hold as individuals and as organisations. The methods used in successful transformations are all based on one fundamental insight: that major change will not happen easily for a long list of reasons. At the core 130

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there is a lack of leadership, paralysing bureaucracy, a lack of teamwork, low levels of trust and the general human fear of the unknown.

Successful change therefore requires a multistep process that creates power and motivation sufficient to overwhelm all the causes of inertia. Second, this process is never employed effectively unless it is driven by high-quality leadership, not just excellent management.

Understanding

Sustain (measure/improve)

(context – internal and external)

Transfer

Ownership

(leadership/HR

(leadership) Design (interactive)

Figure 8.6: Phases of change

The above dimensions of change are enacted in sequence starting with understanding the operating environment. A variety of tools are used in this regard to ensure an open and honest baseline understanding. The data obtained from the various tools and instruments are then carried over to the next phase; that of developing ownership through project planning and leadership development.

The design, transfer and sustain phases are all backed up with state of the art change management interventions, customised to local conditions, and treated with the utmost sensitivity for the changing social landscape in and around work places. The phases flow quite naturally under skilful process facilitation. Be careful of getting stuck or procrastinating as momentum and initiative will be lost. When the going gets tough – trust the process, it will carry you. Remember that as change agent or facilitator you do not represent yourself; you represent the process. You are not the star of the show.

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The process will lead to an implementation model for the change initiative which is best captured in a project plan with clear deadlines and accountabilities. It is important to understand that the project is built upon three pillars: • • •

Future ideal (visionary perspective)

Current reality (current perspective)

Congruence (flow or fit) between organisational elements

Congruence

The congruence model for a business is a change management process that examines the performance of an organisation based on how it operates as a system. The company is broken down into separate elements, and the congruence model examines those elements and looks to improve the organisation by improving each part. In order to recognise how the congruence model works, though, it is necessary to first understand the elements that make up a company’s overall ability to perform. In many cases an organisation is not able to achieve its strategic goals because of a lack of congruency between the various elements. The obvious and critical tasks for executives are to identify and, consequently, implement corrective actions aiming at re-establishing the new congruence.

Currently, one of the hardest HR challenges is to support an organisation in its transformation process from a declining condition into a competitive one.

One of the key transformation models is the congruence model and the commensurate corporate and business strategy. Congruence is the state achieved by coming together, the state of agreement. The Latin congruō meaning ‘I meet together, I agree.’ As an abstract term, congruence means similarity between objects. A system relies on the interdependence of its components, and so these elements need to be working together to achieve the outputs of the system efficiently and effectively, and to ensure the system is successfully adapting to its external environment (Amos et al., 2008). Congruence, as opposed to approximation, is a relationship which implies a model of equivalence, harmony, conformity and correspondence. The congruence model for a business is a change management process that examines the performance of an organisation based on how it operates as a system. The company is broken down into separate elements, and the congruence model examines those elements and looks to improve the organisation by improving each part. 132

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During a macro-economic crisis period, the following declining company models may be observed: ●

Former market leader



It is not unusual to meet declining firms that were previously in positions of leadership. Often something changed dramatically in the market and they were unable to re-invent their competitive advantage.

● ● ●

● ●

●

Lack of leadership in the management team

In a critical situation management may not have enough leadership to move out of the crisis. This usually happens because when you are a part of a problem it becomes extremely difficult to find the solution. Low level of people engagement

The engagement level of people in a crisis is usually very low. Although it is difficult to understand the relationship between low performance and low engagement, a lot of scientific research demonstrates a connection. Company targets unknown to employees

In many unsuccessful companies its common to find a lack of communication about company strategy and targets. Employees are not able to align themselves to any strategy simply because they don’t know anything. In many firms the strategy is well known and shared within the management team, but the drill down process is absent or does not work properly. Employees are afraid of losing their jobs

The biggest worry of any employee is to lose their job. This creates a vicious circle as worries about job loss result in low engagement which result in a performance decrease, thus reinforcing the crisis. Low level of meritocracy

The level of meritocracy in a declining firm is usually low. There are different causes for this phenomenon, first of which will be the HR budget shortage. In addition, when cost reduction actions are implemented, it becomes impossible to provide incentives to individuals by means of promotions or special rewards. Low empowerment

In this situation, people are only focused on their tasks with no interest for functional processes or common targets. This is explained by a corporate culture that avoids individual initiatives instead of stimulating personal efforts.

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●

Inadequate compensation system



Compensation systems are based on variables which are not connected to results, depending only on the role and on contract type. Performance management is absent, or not very significant.

●

High level of unionisation

In a crisis situation or in a static firm the unionisation level tends to grow. This is another vicious circle because unions are typically focused on protecting employment rather than creating a basis from which to move out of the crisis. In addition, unions prefer to negotiate contract clauses for all the employees, thus neglecting individual efforts.

An organisation’s inability to transfer strategy into action is, in most cases, because congruence between the organisation’s objectives, key functions and the HR dynamics do not work properly.

It is therefore necessary to understand the elements that make up a company’s overall ability to perform. Incongruence between the elements is a likely cause of performance gaps: • • • • • • •

Core ideology (core purpose and core values)

Relationships (leadership, engagement, communication) Formal culture (decision making, control, policies)

Environmental alignment (stakeholders, communities, customers) Operational effectiveness (competence, collaboration, systems) Efficiency (outputs, performance management, incentives)

Transformation (change management, innovation, courage)

Incongruence between these elements must be successfully addressed in the short term so that strategic congruence between them can be established in the longer term. This will enable the organisation to achieve its objectives as a total and integrated system. •

Corrective measures take place in four steps: -

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Firstly, identify the incongruence between corporate strategy and the critical tasks on the one hand, and the other elements (core ideology, relationships, formal culture, environmental alignment, operational effectiveness, efficiency and transformation) on the other hand.

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- -

-



•

The second step is to examine each element and to look to improve the organisation by improving each part.

Thirdly, implement corrective actions to change culture, organisation and people, and create a congruent system. This boils down to design and planning. The final step is implementing the corrective actions aiming at reestablishing the new congruence.

The methodology is deceptively simple, but not ordinary. It is not easy to implement the identified actions because they are concerned with the organisation’s most profound characteristics. It is important to communicate a sense of urgency to the workforce and to be persistent in implementation. Penetrating the real issues sitting below the surface also takes time and patience These are the real forces which have to be identified and brought to light. Historically, organisational transformation came as a result of the implementation of a strategic plan, normally in two to three year cycles. In the current fast moving world change is the order of the day and needs to be systemically dealt with on a continuous basis. Change therefore has become an organisational driver with change management being the key.

Within this reality, the HR role is twofold. Firstly, an overall strategic contribution towards organisational transformation is critical, and, secondly, a more specific role in design and capacity building of the relational functions is imperative. Using communication as a change management tool: - - - - - -

Recognise that everything you say and do is part of the communication process.

Develop a communication plan that includes how and when you will tell people what, and by which medium. Use written (memo, e-mail) media to communicate formal things that you want everyone to see. Use verbal means to set the context and explain why.

Be as open as you can and tell the truth – even if this means saying you don’t know yet or can’t say yet.

Consistency is everything. People will look at the sequencing of communication for any hints or hidden messages and read in things that were never intended. Its critical to maintain a consistent message and to ensure continuation from one communication to the next.

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-

- - - - - -

Communicate on a regular basis, even if there is little to say. It is much more important to keep the regular channels open than to only say what you need to say when you need to say it.

Ensure the right level of urgency is communicated along with the compelling case. Work with the leadership team of the area concerned to ensure a consistent message is conveyed. Focus on the benefits of change and the consequences of not changing. Tune in to different stakeholder groups’ needs and preferences. Seek feedback at every opportunity to encourage involvement.

Use every opportunity (formal and informal) to communicate the case for change - it is better to introduce the idea of change through informal discussions, focus groups and updates on the business outlook, and to widen the business environment.

According to Weiner (2009), readiness for change entails the following: •

•

•

Change valence: value put to change or to solve an organisational problem; the more organisational members value the change, the more they will want to implement the change. Change ability (efficacy): cognitive appraisal of implementation capability; three determinants of implementation capability are: task demands, resource availability and situational factors. Contextual factors: organisational culture (openness, innovation, trust) and organisational conditions (policies, procedures, etc.)

The most widely used model for change is Kotter’s eight step change model (Kotter, 2002). It is well researched and documented and shows that there are eight critical steps an organisation or service needs to go through to ensure that change happens and remains in place. Kotter (2002) suggests the eight steps below to accelerate change:

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Step 1

Establish a sense of urgency through open and honest dialogue with relevant people.

Step 2

Build the guiding team with the credibility, skills, connections, reputations and formal authority required to provide change leadership.

Step 3

Get the vision right and set strategies. Visions must be sensible, clear, simple and uplifting in order for to shape the future ideal.

Step 4

Communicate the vision and strategies for buy-in as they apply to all aspects of operations. Code into simple, heartfelt messages to liberate energy from a critical mass of people; symbols speak loudly and repetition is key.

Step 5

Empower action by identifying and removing obstacles that stop people from acting on the vision. Pay particular attention to the boss and system barriers.

Step 6

Plan and create short-term wins to provide credibility, resources and momentum to the overall effort.

Step 7

Don’t let up – consolidate early changes and create wave after wave of change until the vision is a reality; don’t do too much at once and don’t quit too soon. Build on the change – real change runs deep.

Step 8

Make change real by nurturing a new culture. Anchor (insitutionalise) the changes in all aspects of organisational life.

Figure 8.7: Eight step change model (Adapted from Kotter (2002)) In a later version of the eight step change model Kotter rephrased the steps to accelerators. He argues that traditional hierarchies and processes, which he refers to as the operating system, are optimised for day-to-day business and can’t handle the challenges of mounting complexity and rapid change. The solution is a second operating system, devoted to the design and implementation of strategy that uses an agile, network-like structure and a very different set of processes. The new operating system continually assesses the business, the industry and the organisation, and reacts with greater agility, speed and creativity than the existing one. It complements rather than overburdens the hierarchy, thus freeing the latter to do what it is optimised to do. It makes enterprises easier to run and accelerates strategic change.

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Mounting complexity and rapid change create strategic challenges that even a soupedup hierarchy can’t handle. That is why the dual operating system – a managementdriven hierarchy working in concert with a strategy network – works so remarkably well. Furthermore, change must be owned by the organisation and this is best achieved by the strategy network interfacing with the hierarchy. The eight accelerators or processes that enable the network to function are as follows:

1

Create a sense of urgency around a single big opportunity.

3

Formulate a strategic vision and develop change initiatives designed to capitalise on the big opportunity. The vision will serve as a strategic true north for the dual operating system.

2

4 5 6

7 8

Build and maintain a guiding coalition (GC). The GC is selected to represent each of the hierarchy’s departments and levels, with a broad range of skills. It must be made up of people trusted by the leadership and must include at least a few outstanding leaders and managers. This ensures that the GC can gather and process information as no hierarchy ever could.

Communicate the vision and the strategy to create buy-in and attract a growing volunteer army. Accelerate movement towards the vision and the opportunity by ensuring that the network removes barriers.

Celebrate visible, significant short-term wins. Obvious and unambiguous wins that are clearly related to the vision will boost the strategy network’s credibility. Never let up. Keep learning from experience. Don’t declare victory too soon. When an organisation takes its foot off the gas, cultural and political resistance arise.

Institutionalise strategic changes in the culture. No strategic initiative, big or small, is complete until it has been incorporated into day-to-day activities. A new direction or method must root itself into the very culture of the enterprise – and will do so if the initiative produces visible results and sends your organisation into a strategically better future. “The inevitable failures of single operating systems hurt us now. They are going

to kill us in the future. The 21st century will force us all to evolve toward a fundamentally new form of organisation. I believe that in the ‘Accelerator’ model I have basically described that form. We still have much to learn. Nevertheless, the companies that get there first, because they act now, will see immediate and long-term success – for shareholders, customers, employees and themselves. Those that lag will suffer greatly, if they survive at all.” (Kotter, 2012:13)

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Herewith a comparison between the two approaches:

1.

2.

3.

4.

5.

6.

7.

8.

Eight-step methodology

Eight accelerators

Building the guiding team

Build and maintain a guiding coalition (GC)

Establish a sense of urgency

Get the vision and set of strategies right Communicate the vision and strategies Empower action by identifying and removing obstacles Plan and create short-term wins

Don’t let up – consolidate early changes Make change stick

Discussion

Create a sense of urgency

Formulate a strategic vision and develop change initiatives Communicate the vision and strategies

Network identifies and removes barriers Celebrate short-term wins Never let up

Institutionalise change

In the accelerator model referred to above, setting up an execution network is crucial. One of the key functions of the HR role is indeed the development of networks. In this regard Battilana & Cascario (2014:82), distinguish between cohesive networks and bridging networks. In a cohesive network the people in the network are connected to one another. This builds trust and mutual support and facilitates communication and coordination. In a bridging network the network contacts are not connected to one another. The HR executive is the bridge between disparate individuals and groups, giving you control over what, when and how you communicate with them.

By now it should be apparent that change has much more to do with so-called soft issues, and much less to do with hard, structural issues. In effect, leadership and change are one and the same thing – change will simply not happen without effective leadership and anything less than good leadership will lead to ineffective change. Very few organisations can afford that – which is why leading change is such an important issue. One of the challenges is that people generally perceive change to be 80 per cent structure and 20 per cent people issues, whereas in reality it is the other way round – and most organisations only find this out the hard way, by making mistakes and learning from them.

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The role of leaders during change cannot be overstated. They play a pivotal role in making change happen. What is more, employees look to leaders for guidance particularly when situations are uncertain and change is likely.

Consequently it should be no surprise that the ability to understand, believe in and role model effective leadership behaviours is crucial. During change situations people will only really believe and buy into what credible leaders tell them – and the reality is that many people in lead positions are not able to do this effectively. So what should leaders do to help make change more effective? • • •

• • • • •

Recognise that you are a role model, whether you like it or not.

Be visible and listen to concerns – encourage constructive debate and feedback.

Even if you don’t buy-in fully to what is happening, you still have a responsibility to help employees through the process in a supportive, positive and constructive way. Be consistent in what you say, and never speculate – if you don’t know or can’t say, then say so.

Be empathetic to concerns, and help people understand what is actually happening, not what they think is happening.

Ensure that business keeps running smoothly during the change process – keep your eye on the ball. Go out of your way to involve people and explain what is happening. Focus on team working and team development needs.

Leaders at all levels need to be aware that people respond differently to change hence a different approach may be needed. For instance, change champions may only need occasional encouragement and support, but people struggling with the changes are going to need a much larger investment of time and effort to help them come to terms with the new way.

Above all, leaders need to remember that people can never be told to change – this may appear to bring short term benefit but invariably brings no lasting value, and in many cases leads to a worse situation than existed in the first place.

Only by guiding people and role modelling the kind of behaviours and culture needed can leaders make change work effectively. 140

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Culture has to do with relationships; how people relate to one another, work together, communicate and deal with adversity and diversity. Policies, procedures and systems do not resemble organisational culture, although they can indirectly have an influence.

In his book Leading at a Higher Level, Ken Blanchard (2010), outlines the following reasons why change efforts typically fail: • • • • • • • •

People leading the change think that announcing the change is the same as implementing it. Those being asked to change are not involved in planning the change.

A compelling vision that excites people about the future has not been developed and communicated. Organisational systems and other initiatives are not aligned with the change. People are neither encouraged nor enabled to build new skills.

Those leading the change are not credible – they give mixed messages, under communicate and do not model the behaviours that the change requires. People are not held accountable for implementing the change.

People leading the change fail to respect the power of the culture to kill the change.

Resistance to change

Kohlrieser (2014) poses the question whether people naturally resist change? He comes up with the following helpful pointers: • • • • •

People do not naturally resist change; they resist the pain of change and the fear of the unknown. The neuron system of the brain is hardwired to seek expansion through curiosity, exploration, learning and change. When leaders provide a secure and trustworthy base, followers will trust the leader to guide them through the change.

When understanding and seeing the benefit of the change, most will embrace the pain of it. There is always a benefit in every change – the question is: can we find it?

An excellent and simple contribution is made by Maurer (2009) on the levels of resistance to change: 141

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• • •

Level 1: I don’t like it (emotional)

Level 2: I don’t get it (intellectual)

Level 3: I don’t like you (personal)

How to turn resistance into support • •

•

Level 1: Make sure that people know why a change is needed. Before you talk about how you want to do things, explain why something must be done.

Level 2: Emphasise what’s in it for them. People need to believe that the change will serve them in some way. For example, you could explain that work will be easier, relationships will improve, career opportunities will open up or job security will increase.

Level 3: Allow yourself to be influenced by the people that resist you. This doesn’t mean that you give in to every demand, but rather that you can admit that you may have been wrong and that they may have ideas worth considering. Engage the people in the process. People tend to support things that they have a hand in building. Build pillars into the change process to institutionalise the change by integrating it into organisational life, i.e. making it part of the institution (figure 8.7 below as illustration in this regard). 30 25 20

Progress

15

Progress

10

5 0 1

3

5

7

9

11

Figure 8.7: Change progress over time

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17

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Overcoming resistance to change •

• •

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One of the most effective ways of dealing with resistance to change is by allowing individuals within an organisation to voice their concerns. Open resistance can be addressed and channelled. On the other hand, passive resistance is more insidious as people tend to sabotage change (for example through passiveaggressive behaviour and delaying tactics) without expressly manifesting any dissenting unease. Acknowledge that employees will need some time to grieve the loss of their status quo. Not everyone reacts to change at the same pace.

Be honest from the very beginning about the hurdles that change will entail. It is not unusual for senior managers at the beginning of the change process to have a view of a fantastic journey that will lead to a better situation in the near future.

When in senior executive meetings, try sometimes to talk not from the HR perspective, but rather from the entire company context. You will be excluded from many conversations if you only ask HR-related questions. Show your curiosity and critical thinking skills whenever you have the opportunity. When developing an HR strategy, don’t ask the CEO and senior executives what they want from HR. Ask them about the critical issues and priorities they face, then go back to them with a strategy that may help them achieve their business objectives, and just happens to be based around leveraging people. A last word on change is simplistically put by the Chinese philosopher Lao-tzu (Pascale & Sternim, 2014:58): Learn from the people Plan with the people Begin with what they have Build on what they know Of the best leaders When the task is accomplished The people all remark We have done it ourselves.

References Amos T., Ristow A., Ristow L. & Pearse, N. 2008. Human Resource Management. Juta: Cape Town.

Battilana, J. & Cascario, T. 2014. The Network Secrets of Great Change Agents. Harvard Business Review on Point: Winter 2014. Page 8- 85. Blanchard, K. 2010. Leading at a Higher Level. Upper Saddle River, NJ: Prentice Hall.

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Collins, JC & Porras, JI. 2011. Building your company’s vision. HBR’s 10 Must Reads on Strategy. Harvard Business Review Press. Boston. P 77 – 102.

Hamel, G. Moonshots for Management. HBR February 2009 edition. Retrieved February 26, 2015 from https://hbr.org/2009/02/moon-shots-for-management Handy, C. 1995. Beyond Certainty: The Changing Worlds of Organisations. London: Hutchinson. Kim, WC & Mauborgne R. 2005. Blue Ocean Strategy. Massachusetts: Harvard Business Review Press.

Kohlrieser, G. 2014. Leading at the Edge: How to Unlock Exceptional Performance. Growth 2014 Summit. April 30, 2014: Amsterdam, The Netherland. http://sparkeducation.nl/wpcontent/uploads/2014/05/Growth-Summit-Europe-2014-George-Kohlrieser.pdf Kotter, J.P. 2002. The Heart of Change. Boston, MA: Harvard Business Review. Kotter, J.P. 2012. Accelerate! Boston, MA: Harvard Business Review.

Malek. W. 2008. Executing your Strategy: How to Break it Down and Get it Done. Management Forum Series. Retrieved February 26, 2015 from http://www.executiveforum.com/PDFs/ MalekSynopsis.pdf Maurer, R. 2009. Introduction to Change without Migraines. E-Book. Maurer and Associates.

McChesney, C., Covey & S., Huling, J. 2012. The 4 Disciplines of execution. London: Simon and Schuster.

Meyer, T. 2012. Strategy, Leadership and Change. Randburg, RSA: Knowledge Resources Publishing.

Neilson G.L., Martin K.L. & Powers E. 2011. The Secrets to Successful Strategy Execution. HBR’s 10 Must Reads on Strategy. Harvard Business Review Press. Boston. P 143 – 166.

Nunes, P. & Breene, T. 2011. Jumping the S-Curve. Retrieved February 26, 2015 from http:// www.accenture.com/sitecollectiondocuments/pdf/accenture_jumping_the_s_curve.pdf Olson, M.S & Van Bever, D. 2008. Stall Points. Yale University Press.

Pascale R.T. & Sternim J. Your Company’s Secret Change Agents. Harvard Business Review on Point: Winter 2014. Page 49 – 58.

Porter, M.E. 2011. The Five Competitive Forces. HBRs 10 Must Reads on Strategy. Harvard Business Review Press. Boston. Weiner, B.J. 2009. A theory of organisational readiness for change. University of North Carolina Chapel Hill, Chapel Hill, North Carolina.

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CHAPTER 9 PERSONAL WELLNESS Sustained organisational success in a context of shared meaning

Leadership and meaning

Relationships

Workplace socialisation

Productivity

Organisational transformation

Personal wellness

Foundational understanding: HR competence and business acumen

Figure 9.1: Reinventing HR: Transitional framework

Wellness, a positive approach to life and health and involves the whole person – physically, emotionally and on the psychological level. A personal wellness lifestyle is associated with good physical health, emotional stability, improved personal relationships and increased career satisfaction. Good health has traditionally been viewed as freedom from disease; thus, if you were not sick, you were considered healthy. Whilst the absence of illness is one part of being healthy, it doesn’t indicate whether you are at an optimal level of physical and psychological health. Research shows that people who take care of themselves and manage their lifestyles are healthier, more productive, have fewer absences from work and make fewer demands for medical services. Key concepts in wellness: • • • • •

Wellness is about YOU

Wellness is the loving acceptance of yourself

Wellness is a choice – a decision you make to move towards optimal health

Wellness is the realisation and appreciation that everything you do, think, feel and believe has an impact on your wellbeing

Wellness is a way of life – a lifestyle you design in order to achieve your highest potential for wellbeing

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Traditional perspectives on healthcare are reactive and treatment based; they identify and correct problems and go for regular check-ups. Intervention continues until the problem is corrected. A wellness perspective is a proactive lifestyle in which you are responsible for your health and the quality of your life by being proactive through health promotion, lifestyle change, risk reduction, information and education.

Key themes

Physical wellness





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This deals primarily with the establishing of a healthy digestive system and requisite behaviour that helps in the early detection or prevention of illnesses. It also measures the degree to which one chooses foods that are nourishing and balanced. Exercise, nutrition and supplements support not only freedom from illness, but also feelings of vitality, energy and enthusiasm. They also include the capacity to cope with stress as a physiological reaction. At no time in recorded history has the human body been exposed to such extremely high levels of toxins from within our own environment. Daily we are barraged with harmful, potentially carcinogenic pollutants through the air we breathe, the water we drink and the foods we consume.

Between 50 and 100 hundred years ago, the nutrients derived from the foods we ate were significantly higher and more diverse because the mineral-rich soil they were grown in had not yet been depleted by the commercial agro-chemical industry. Vital nutrient content in the foods consumed today can be as much as 30–90 per cent less than what it once was. Our lifestyles do not allow for proper food preparation and enjoyment, and we indulge in a variety of techno-foods rich in empty calories, filled with refined carbohydrates and woefully inadequate in nutrition. Most pre-packaged and fast-food products overload our bodies with adulterated fats and refined sugars like those found in candy, baked goods and refined grains. Furthermore, we spend most of our lives indoors without an adequate supply of fresh air and limited exposure to life enhancing sunlight. Stressed full lives also cut into time for exercise and relaxation. These and numerous other factors call upon us to take control of our lifestyles. We cannot take health and wellbeing for granted.

Chapter 9: Personal wellness

• Key aspects of physical health wellness that need to be considered -

-

-

Nutrition:

Nutrients are extracted from the food we eat as it passes through our digestive systems. They are essentiall for cell growth, maintenance and repair; they also provide energy to enable the body to function effectively and to ward off infection and disease. Digestion:

Digestion keeps our systems regular. Some tips in this regard are to not skip breakfast, do not eat when stressed, start a meal with something raw or uncooked, eat three meals and two snacks per day and avoid refined carbohydrates and sugar. Hydration:

The body needs at least 8 glasses of water per day to keep it hydrated; approximately two-thirds of the body is water (brain 85 per cent, muscles 75 per cent and bone 22 per cent). The main functions of water are: ° ° ° °

-

-

To keeps us hydrated

To help move food through the digestive system To carry nutrients to the cells

To remove waste products from the cells

Medication:

Preventative strategies (proper nutrition, healthy digestive tract and supplements) are preferred to the use of pharmaceuticals, which should be used as a last line of defence. Lifestyle changes include improved diet, sufficient rest, stress reduction, detoxifying the body, boosting the immune system, healing the digestive tract, correcting hormonal imbalances and improving cardiovascular functioning through regular exercise. Supplements:

Most minerals and vitamins are destroyed during food processing in order to increase shelf life. These products are made safe from contamination by being heated and/or pasteurised. Food producers also add dizzying amounts of preservatives and chemically altered flavourings to their food products. The net result is that our food supply is dominated by empty calories – foods containing high amounts of caloric energy and fat, but low in essential vitamins, minerals and proteins. This implies that supplements must be taken, with care and responsibility, to assist the bodily functions. 147

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-

Activity:

The advantages of low-to-moderate intensity training are as follows: ° ° ° ° ° ° °

-

-



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Light weight training protects bones and strengthens muscles Cell renewal (reverse/prevents aging) Improves gene profile

Bone mineral loss halted/reversed Improves brain functions

Counters depression and anxiety

Improves metabolism and cardiovascular functions

Rest:

Vital tasks are carried out during sleep to help maintain good health, enabling us to function at our best. In addition, during sleep, the body produces valuable hormones. Sleep needs vary from person to person, and they change throughout the lifecycle. Most adults need 7-8 hours of sleep each night. Not only the quantity but also the quality of your sleep is important. Insufficient sleep leads to concentration and health problems, decrease immune functionality, irritability, hypertension and psychiatric disorders such as depression and bipolar disorder. Stress:

Stress can be defined as a psychological state which is part of and reflects a wider process of interaction between the person and their work environment. The stress state is a conscious state but the level of awareness of the problem varies with the development of that state. Coping is an important component of the stress process but one which is relatively poorly understood. Stress may be experienced as a result of exposure to a wide range of work demands and, in turn, contribute to an equally wide range of health outcomes. It is one link between hazards and health. There is evidence that the experience of stress at work is associated with changes in behaviour and physiological function, both of which may be detrimental to the health of employees. Much is known about the possible mechanisms underpinning such effects, and particular attention has been paid to pathologies possibly associated with impaired immune activity as well as those more traditionally linked to stress, such as ulcers, coronary heart disease and rheumatoid arthritis (Cox, Griffiths & Rial-González, 2000). Stress is an area demanding urgent attention, and one to which the HR department can have an enormous impact on the lives of their executives and managers. The pressure on managers and executives is ever increasing

Chapter 9: Personal wellness

and it affects their wellness and performance. The HR department can, for example, present short courses on the issue of wellness and circulate reading material. Herewith some practical tips on the management of stress: °

°

°

°

°

°

°

Know what stresses you out and manage it correctly. Recognise the symptoms that lead you to experience your highest calibre of stress, whether its headaches, lack of energy, being irritable, or not being able to concentrate.

Walk around and exercise. If you don’t have time to work out, regardless if you’re in a suit or jeans, step outside and take a 30-minute walk during your break. This will invigorate you for the rest of your day. Get out of your chair. When you feel yourself heating up, get up and walk around before you have a major meltdown. Whether it’s having a conversation with a co-worker across the office or grabbing a cup of water, get up and momentarily distract yourself. Learn to meet challenges with humour. Humour in the workplace can immediately drop or diminish stress, so be sure to enjoy a joke from time to time – and with a boost in mood, productivity may actually increase. Strategise your to-do list.  Grid your tasks so that you can easily find the home runs, and hit them first. These include the tasks that are both easy and will have a large impact. Organise by difficulty (easy, medium, hard) and then by potential impact (large, medium, small). Just by doing 20 per cent of the work, you can potentially meet 80 per cent of your goals. Pat yourself on the back, even if no one else does. You’ll easily drain yourself of energy and motivation if you are constantly seeing the negative. Work hard and be proud.

Quote of the day (or week). Get a dry-erase board and write something that motivates you (you, not your co-workers) and re-read it throughout your day. Whether its comical/strange or educational/serious, words go a very long way.

Emotional wellness

This is the measure of awareness and effective management of one’s own emotions. This includes dealing with the past, as well as the extent to which one feels positive and enthusiastic about oneself and life. From a context of personal stability, one is able to meaningfully engage in interpersonal relationships and work through conflict. This 149

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brings about emotional maturity and peace, irrespective of changing and turbulent circumstances.

• Emotions:

Emotions are feelings directed at someone or something. They are controlled by the limbic system in the amygdala of the brain – separate pathways from rational thought. We all have emotional tanks which are drained and filled continuously. This is especially relevant in the development of children and is a crucial element in the relationships between partners. The tank represents our emotional capacity and stability. When the emotional tanks are full, we function optimally. When the level in the tanks diminishes – literally when we are drained – we can function for a while, but eventually we reach burn out, the stage where we have nothing left to give and very little left to live for. It is also important to note that leaders today rarely fail because they back the wrong product or make a misstep in an acquisition. They fail because they are emotionally weak; being unable or unwilling to harness the power of their own emotions and those of others. The single most powerful force in the domain of leadership is emotion; the emotions of the leader and his or her constituents.

• Emotional learning:

Emotional learning begins in life’s earliest moments and continues throughout life. During childhood, and especially during the first 3-4 years when a toddler’s brain grows to about two-thirds of its adult size, is when the most emotional learning takes place. All the small exchanges between parent and child have an emotional sub-text. -

Pillars of emotional health:

Pillars of emotional health are developed by loving, caring, supportive and present parents: ° ° °

-

Value (loved, valuable) – focused attention

Significance (special, unique) – words of blessing

Forgiveness: ° ° ° °

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Belonging (inner security) – loving touch

The Hebrew word for forgiveness, salach, means to send off or to let go

Not a matter of the emotions but of the will

Free us from being a passive victim, negative influence/bond Cannot live in the now and cannot embrace the future

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Forgiveness is NOT: ° ° ° °

Pretending that it did not happen Saying sorry for what happened Trying to suppress or forget Finding excuses

Forgiveness IS: ° °

A choice to be free, to turn your back on the past Honestly expressing emotions, letting go

Researchers have documented the many benefits of forgiveness. Holding a grudge, it turns out, can literally kill you. Forgiveness is the antidote.

• Emotional intelligence:

The effective handling of emotions is expressed in emotional intelligence. EQ refers to the ability of an individual to understand and manage oneself, to successfully interact with other people, and appropriately respond to the everyday environment. People generally possess technical skills but most of us lack the ability to deal with our emotions in a healthy and constructive manner. We simply don’t know how to understand, perceive, express and manage our emotions effectively.

• Emotional dissonance:

The disparity between having to project one emotion while feeling another is referred to as emotional dissonance. If not properly dealt with it takes a heavy toll over time, resulting in stress and burnout, for example. Emotions must not be suppressed and must be dealt with.

• Relationships:

Key concepts in relationships are needs satisfaction, role clarity, communication, trust, openness, value alignment and conflict handling. Conflict is of particular importance and requires both parties to approach the conflict as a mutual problem, allowing them to discover alternatives that satisfy their concerns. With this approach, there is a belief that there is a solution which will satisfy both parties. Both parties are to trust one another and be open with one another regarding their needs and goals. Take your focus off yourself. Herewith some ideas with regard to the building of good relationships: - -

The potential for good relationships increase dramatically when you begin focusing on others Care a lot about them

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- - - - - - - - - - -

Know a lot about them

People have personalities, interests, hobbies and ideals

Don’t underestimate the value of any individual you deal with

Treat people in light of their potential and not their behaviour, then you will help them to become who they were destined to be Make the other person feel important Talk of the other person’s interest

Be considerate of people’s feelings

Be alert to provide support to others Be a good listener

Set up clear boundaries

•

Leadership:



Leadership requires emotional maturity and control since because a leader is vulnerable outside formal positional authority. Excellent research in this regard was performed by Jim Collins, author of Good to Great, (Collins, 2005). Eleven companies were selected out of 1 400 that had been listed in Fortune 500 at one point or another. Each of the selected companies had mediocre results for 15 years and then went through a transition. From that point, they outperformed the market by at least three to one – and sustained that performance for at least 15 years. Each of these was compared with companies in the same industry and about the same size. Using hundreds of interviews, Collins identified key factors that enable companies to move from mediocre to great institutions. The comparison companies lacked these factors and failed to become great. Perhaps the most important component of the transition from good to great is what Collins designated as Level 5 Leadership. Level 5 leaders exhibit huge emotional maturity in that their behaviour reflects inner focus and control. Herewith an overview of the characteristics of a level 5 leader: -

- -

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People don’t care how much you know until they know how much you care

Every one of the good-to-great companies had Level 5 leaders in the critical transition phase. They rely on instilling inspired standards and not inspiring charisma to motivate.

All of them created high professional standards and doggedly kept to those standards for the years of their tenure.

When things do not go well, Level 5 leaders take responsibility for the failures and never blamed other people, external circumstances or bad luck (even if they could).

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-

-

They channelled their ego needs away from themselves and set out on a path to improve long term results that go unnoticed from the outside for years. They then suddenly appear, well on their way to becoming great. The ability to improve requires an uncompromising commitment to honesty and truth.

Psychological wellness

Our age has shifted all emphasis to the here and now and has brought about an international trend towards the democratisation of people and their liberation. The postmodern value system is dominant in society and implies that everything is relative. There is no absolute wrong or right and I can decide on my positioning towards any and all issues. Even Christianity is regarded as one of many myths and God is confined to the Bible, church interpretations, articles of faith and church buildings. Within this context of existence people strive for instinctual gratification of their needs and therefore often find themselves achieving victories that are empty. They become blinded to the things that really mattered most and now are gone. The only conscience that is marginally operational is a social conscience that indicates socially acceptable behaviour. Good and evil are, however, not self-evident, since each represents individual judgment. Moral evaluations founded upon the apparent certitudes of social norms cannot distinguish for us between good and evil. It is tragic to see individuals constantly and anxiously looking around for external rules, regulations and guidelines for direction and guidance.

The result of this is a society filled with own interest, lack of individual identity, stress, competiveness, hatred, envy and jealousy in which people are living quiet lives of desperation, hanging onto a deep sense of insecurity in a relentless race. Inadequacies, hurt and confusion are suppressed and a life of pretending takes center stage. Increases in dependency on pharmaceutical products like anti-depressants are indicative of the situation. Inadequacies, hurt and confusion are hidden and to the world a false self is portrayed which come across as content and confident. Increasing socio-economic pressure, however, makes it increasingly difficult to remain coherent as a human being.

Psychological wellness is therefore a bit of a paradoxical condition. On the one hand the conformity to external socio-economic conditions is real, and on the other hand we need to acknowledge and celebrate the fact that we are also individually special, unique and gifted. Divine endowments will be released within our nature, enabling us to fulfil the purpose of our creation, to the degree to which we align ourselves with correct principles. If we understand this and feel that here in his life we already 153

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have a link with the infinite, desires and attitudes change. In our consciousness we experience ourselves as limited and eternal, as both the one and the other.

In psychological wellness, a measurement of the current understanding and acceptance of one’s personal identity, as well as future perspectives, need first to be obtained. At its deepest level psychological wellness implies a deep appreciation for the depth and expanse of life in all its variety, and forms the basis from which one charters one’s direction in life and engages in creative, stimulating mental activities. The satisfaction gained is related to individual attitudes about work, balance, direction, purpose and a sense of fulfillment. It also requires a solid and well founded sense of identity which is made up of a clear sense of purpose and a set of governing values.

Sense of purpose is an enigmatic concept and one difficult to understand. One of the people who wrote profusely on the subject was the late Myles Munroe. Exploring his ideas through his teachings on the subject is a rewarding experience. Based upon our endeavours towards demystifying the concept we have come to realise that one of the keys to understanding one’s purpose is to find and understand one’s uniqueness. Through your uniqueness – the combination of your mental ability, skills, competencies and personality traits – your purpose (and potential) has been built into you. Values, on the other hand, are an easier concept to understand since they represent ideals to which an individual subscribes. They form the basis of opinions, decisions, perceptions and attitudes towards an object or situation. They contain a judgmental element in that they carry an individual’s ideas regarding what is right, good, or desirable. Apart from a sense of identity, psychological wellness also requires a life of intent: of focus, vision and objectives. The most crucial element in this regard is an honest and realistic assessment of where you are before setting goals of a future ideal. The categories used in this regard are: • • • • •

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Personal (health, focus, joy, contentment, financial independence) Familial (spouse, parents, children, brothers, sisters)

Professional (career, growth, fulfillment, development)

Community (friends, society, support, projects, significance)

Spiritual (inner peace, solitude, spiritual understanding, growth)

Because of the subjective and even spiritual nature of psychological wellness, it can be difficult to fully comprehend. Therefore, HR practitioners need to mature and settle into the process in order to be of assistance to executive and organisational leaders. Mature and settle refer to the internal process with HR practitioners and assistance refers to the external processes. It is normally best dealt with in a mentorship process.

Success and significance

Chapter 9: Personal wellness

An intriguing issue is that of finding a balance between a life of success and significance. It is also a very topical issue. Whilst there is nothing fundamentally wrong with being successful, it can potentially become a trap from which it is difficult to escape. One’s own safety net in this regard is the balancing act represented by significance. Nelson Mandela’s life was exemplary in that he used his international profile to significantly support his passion; caring for and educating children.

As mentioned in different chapters in this book, significance, or meaning, is an enduring theme in organisational and individual existence. It opens up the debate of the real why of existence in the sustenance of the how of our daily living, and is a most satisfying issue to pursue. As stated above, these issues are best dealt with in a mentorship process and relationship.

Lastly, note must be made of an excellent contribution towards understanding meaning which was provided by Ulrich, Ulrich and Goldsmith (2010) in their book The Why of Work. They argue quite strongly that meaning is tied less to belongings and more to emotional bonds where we are able to use our skills to serve the needs of others. Finding your balance will greatly increase your understanding that success deals with outcomes and significance with the process.Thus success deals with tangibles (job, car, money) and significance deals with the journey (relationships, love, support etc.)

Sense of Coherence

Israeli-American sociologist, Aaron Antonovsky, coined the coherence between life inside and the world outside as the sense of coherence, and he hypothesised this coherence to be the major predictor of health (Flensborg-Madsen, Ventegodt & Merrick, 2006).

While trying to understand what it is that keeps people healthy, his main question was: why do some people, despite stressful situations in their lives, manage to stay healthy and others do not? The Sense of Coherence (SOC) concept was developed as an answer to this question (Lindstrom & Eriksson, 2007) and was defined as a way of helping people to view the world as “making sense cognitively, instrumentally and emotionally.” (Antonovsky, 1996:15). According to (Antonovsky 1996), a sense of coherence involves three key components: • • •

Meaningfulness (wanting to cope)

Comprehensibility (understanding the challenge)

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Antonovsky (1996) states that it is not necessary to feel that all of life is highly comprehensible, manageable and meaningful in order to have a strong SOC. It is indeed possible to have a strong SOC and at the same time not see the entire world as coherent. This is because all people set boundaries, and what goes beyond these boundaries simply does not matter to us, whether comprehensible, manageable, meaningful or not. However, it is crucial that there are spheres of life that are of subjective importance in our lives, and that these spheres are seen as comprehensible, manageable and meaningful (Flensborg-Madsen, Ventegodt & Merrick, 2006). Antonovsky (1987) defines four spheres from which it is not possible to narrow the boundaries; these are your inner feelings, immediate interpersonal relations, major activities and existential issues.

Building on Antonovsky’s work, Robbins, Judge, Odendaal and Roodt (2009:504) define SOC as “an integrated perception of one’s life as being comprehensible, manageable and meaningful.” Robbins et al. (2009) also state that people with a strong sense of coherence tend to not only manage the stresses of life better, but experience more overall well-being than people with a weak sense of coherence.

An article on SOC by Bezuidenhout and Cilliers (2010), further expands on the three behavioural experiences identified by Antonovsky. The first experience refers to stimuli deriving from ones internal and external environments from which the individual makes sense of stimuli, which is referred to as comprehensibility. The second experience refers to whether the individual is able to cope with the demands of the environment, which is called manageability. The third experience refers to the belief that these demands are challenges worthy of investment and work engagement. This is called meaningfulness, where the individual is able to identify emotionally and commit effort in handling these demands.

Employees that have a weak sense of coherence probably find it difficult to structure their world to be understandable, orderly and consistent. They tend to experience life events as unmanageable and perceive that they lack the resources to meet the demands, and they might feel that life does not make sense on an emotional level. Research supports the fact that a sense of coherence can be developed. In this regard research by Nel, Crafford and Roodt (2004) indicates a positive relationship between the dimensions of a sense of coherence and goal setting, implying the potential opportunity for management in the workplace to initiate actions which will contribute to an individual’s sense of coherence. By involving staff in the goal setting process it also adds to the meaning the individuals have. 156

Chapter 9: Personal wellness

A sense of coherence of life on the inside and life on the outside is an area in which the HR department needs to, urgently, become au fait. A person’s sense of coherence has an effect on his or her health and wellbeing and needs to be well understood and managed.

References

Antonovsky, A. 1987. Unravelling The Mystery of Health: How People Manage Stress And Stay Well. San Francisco: Jossey-Bass Publishers.

Antonovsky, A. 1996. The salutogenic model as a theory to guide health promotion. Health Promotion International, 11(1):11-18.

Bezuidenhout, A. & Cilliers, F.V.N. 2010. Burnout, work engagement and sense of coherence in female academics in higher-education institutions in South Africa. SA Journal of Industrial Psychology, 36(1) Art. #872, 10 pages. DOI: 10.4102/sajip.v36i1.872. Flensborg-Madsen, T., Ventegodt, S. & Merrick, J. 2006. Testing Antonovsky’s Theory. TSW Holistic Health & Medicine, 1:248–255.

Collins, J. 2005. The Triumph of Humility and Fierce Resolve. Boston, MA: Harvard Business Review Press.

Cox, T., Griffiths, A. & Rial-González, E. 2000. Research on Work-Related Stress. European Agency for Safety and Health at Work. Luxembourg: Office for Official Publications of the European. Retrieved February 26, 2015 from https://osha.europa.eu/en/publications/ reports/203Communities, 2000. Flensborg-Madsen, T., Ventegodt, S. & Merrick, J. 2005. Why is Antonovsky’s Sense of Coherence Not Correlated to Physical Health? Analysing Antonovsky’s 29-item Sense of Coherence Scale (SOC-29). The Scientific World Journal, 5:767–776. Lindstrom, B. & Eriksson, M. 2007. Antonovsky’s sense of coherence scale and its relation with quality of life: a systematic review. Journal of Epidemiology and Community Health, 61:938–944.

Nel, DJ, Crafford, A. & Roodt, G. 2004. The Relationship between Sense of Coherence and Goal Setting. SA Journal of Industrlal Psychology, (30) 2:46-55.

Robbins, S.P., Judge, T.A., Odendaal A & Roodt, G. 2009. Organisational Behaviour. Port Elizabeth: Pearson Education. Ulrich, D., Ulrich, W. & Goldsmith, M. 2010. The Why of Work. New York: McGraw-Hill.

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CHAPTER 10 THE FUTURE ORGANISATIONAL TRANSFORMATION

Sustained organisational success in a context of shared meaning

Leadership and meaning

Relationships

Workplace socialisation

Productivity

Organisational transformation

Personal wellness

Foundational understanding: HR competence and business acumen

Figure 10.1: Reinventing HR: Transitional framework

Finally, our description of a future ideal for organisations is built upon alignment of the ideals and perspectives of all stakeholders. The main stakeholders are the organisational leaders (executive and operational) and the employees. Their main area of commonality is the organisation’s success in its intent and objectives. The issue then for discussion and debate is not the what but the how of execution. This always opens up interesting dialogue and is a process that the HR function must own and manage. Very few organisations, however, understand the why of their organisational existence. Ultimately, the issue of the why, or the meaning of organisational life, becomes the common denominator, determining both strategic intent and operational performance on the team and individual basis. Herewith our desire for a future organisational ideal which must be owned and nurtured to fruition by the HR practitioners as part of their strategic positioning: Sustained organisational success through aligning people’s aspirations with organisational intent in a context of shared meaning.

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The need for confidence and competence within the HR function has been stressed throughout the book. The operational context in which organisations are functioning is changing at an ever increasing rate. Escalating conflict levels arise out of generational and cultural mixes, as well as through challenging the status quo. Added hereto is the ever increasing relevance of shared meaning as the common denominator between management and its employees. All these issues are people related and therefore it is obvious that at the heart of organisational life is ‘its people’ - both in the execution of strategy, as well as in their functional effectiveness. These critical aspects, which are escalating in relevance, are a natural point of migration for the HR function of the future. As mentioned earlier in the book, the HR discipline must shed its current and historic perspectives which are based on their ever shrinking models emerging from the silo mentality. This situation has disadvantaged the HR discipline to such an extent that its professional image has, by enlarge, been dented and scathed.

CONCLUSION

“It ought to be remembered that there is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things.” Niccolò Machiavelli, (May 3, 1469 – June 21, 1527) Source: http://en.proverbia.net/citasautor.asp?autor=14595

Our argument that the HR function needs to be renamed and repositioned in terms of ‘People Management’ in an organisational context will be followed up in our next book. This book will serve as application guide as to how this reinvention should take place.

The application should be contextualised within organisations in terms of requisite strategies aligned with stakeholder expectations, as well as internal- and external operating environments. Organisational strategy needs to release innovation, collaboration, meaning, engagement, energy and leadership at all levels within an organisation. It is into this transformational dynamics between the past and an uncertain future that the PM function needs to find its professional space in terms of impact, influence and significance. The requirements in this regard are strong leadership, deep confidence, team cohesiveness, competence and a readiness for change from the PM function to enter into a transitional phase from a reactive positioning to a proactive, game changing audacity. The alternative hereto in terms of a slow and steady decline into obsolescence and oblivion for the PM function is not an option. 160

Chapter 10: The future – organisational transformation

End the negativity. The opportunity exists for the HR discipline to step out of a reactive human resources mindset and reinvent itself as People Management – owning and managing all the current and evolving people related concepts and processes of corporate strategy and organisational life. With People Management as the overarching theme, main activities (professional streams) and accompanying outputs need to be identified. Based upon research findings and international trends we have proposed six transitional pillars, built upon foundational HR competencies and business acumen, which the HR function can use to reinvent itself into a professional discipline acknowledged and respected as People Management: • • • • • •

Leadership and meaning Relationships

Workplace socialisation Productivity

Organisational transformation Personal wellness

This HR reinvention and repositioning in terms of ‘people’ as core theme, has the ‘sustained organisational success through aligning people’s aspirations with organisational intent in a context of shared meaning’ as the end in mind.

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INDEX

A adversity 47, 141 alignment iv, 5, 52, 68, 81, 84, 90, 114, 125, 159 analytics 14, 17, 19, 31, 55, 61 aspirations, aligning people’s 159, 161 assessments 13, 23, 25, 100, 154 authentic 45 leaders 46, 56 authenticity 45–46, 60 authority 47, 120 traditional iii, 57 B

balance sheet 24–25 barriers 138–139 basic HR functions 8, 14 basic leadership 57 behaviour vi, 24, 27, 48, 50, 73, 79, 83, 90–92, 107, 126, 129, 140–141, 148, 152 acceptable 90–91, 153 effective leadership 140 organisational citizenship 28 people’s 90 positive relationship 60 required 120–121 Behaviourally Anchored Rating Scale (BARS) 22 beliefs 38, 45, 60, 62, 151, 156 biology of leadership 49 boundaries 36, 79, 156 people set 156 brain 49, 51, 141, 147, 150 Broad Based Black Economic Empowerment (BBBEE) 74 building community 49 building teams 7, 60 business v, vii–ix, 5–8, 13, 15–16, 18–19, 23–26, 28, 34–36, 54–56, 61–62, 74, 76–77, 113–115, 137 advisor 19 case 77 challenges 43 community 87 competence 14

162

core 60 decisions 24, 35 development vi digital 39 business acumen 8, 12–14, 18–20, 23–26, 43, 54, 60, 65, 87, 95, 113, 145, 159, 161 cash 24–25 customer 24 developing 25 financial acumen 24 following 24 growth 25 increasing 54 margin 25 market orientation 24 strategic perspective 24 velocity 25 C

capitalist system viii, 74 change iii–iv, vi–vii, 6–7, 9, 11, 15, 29–30, 54, 58, 73, 107, 115, 123–124, 128– 131, 135–143 ability 136 advocacy 19 attitudes 154 champions 18, 140 coalitions 11, 88 cultural 53 culture 135 fatigue 128 ineffective 139 initiatives 132, 138–139 institutionalise 139 leadership 137 management 7, 19, 27, 29–30, 128, 130, 134–135 organisational 27, 54, 104, 129 process 11, 69, 126, 130, 140, 143 productive 73 change agent 20, 31, 132 individual 130 internal 23 chief executive officer (CEOs) vii, 6, 24, 29, 32, 35, 38, 44, 54–55, 143 coaches v, 51, 57, 83, 88, 103–105, 129

Index

coaching 9, 58, 95, 101, 103–106, 129 culture 104–105 leadership 61 relationships 105 coherence vii, 9, 46, 155–157 collaboration vii, 9, 15, 60, 65, 72, 83, 90, 134, 160 commitment 43, 49, 56–57, 66, 107, 120, 125 commonality 80–81, 127, 159 communication 7, 9, 17–18, 48, 52, 55–56, 65, 69–73, 97, 101, 120, 125, 127, 133–135, 139 open 56–57, 84 personal 72 plan 69, 121, 135 process 71 skills 17, 39, 51 techniques 73 communities viii, 9, 49, 58, 60, 65, 74–75, 79, 87, 90–91, 118, 120, 127, 134, 154 companies vi, viii, 14–15, 19–20, 22–23, 26–27, 33, 35–36, 38–39, 44, 71, 74–79, 118–119, 132, 152 ethical 91 company-wide reorganisation 35 compensation 7–8, 14, 21–22, 26, 31, 55, 103 specialists 33 competence 14, 59, 68, 134, 160 competencies 15–16, 20, 31–32, 60, 154 core 17 congruence 9, 80, 132, 134 consultants vi, 4, 30, 53 skilled business viii tuned business 55 context iv, vii, 1–2, 45–46, 56–58, 62, 70, 73, 77, 80, 84, 88, 92, 115–116, 126–127 changing 43 conversational style 70–71 conversations 56–57, 71, 104, 143, 149 personal 71 core ideology 119, 134 corporate social responsibility (CSR) 74–75 corporate strategy v, vii, 54, 59, 67, 114, 134, 161 creating shared value (CSV) 74–75, 78 creativity 60, 81, 88, 104, 137 crucible experiences 46–47 crucibles 45–47, 56 crucibles of leadership 8, 46

culture iv, vi, 6, 11, 15–16, 51, 54–55, 63, 80, 87–88, 92, 120–121, 126, 138, 140–141 formal 134 change steward 15 discipline vi innovation 36, 55 curve 22, 114–117 present 115–117 customer relations 75–76, 78–79 customer relationship management (CRM) 76–78 customer value proposition (CVP) 78 customers ix, 9, 19, 24–25, 55, 61, 65, 75–79, 85, 119, 134, 138 D

dashboards 23, 33–34 data demographic 77 personal 28 defensive routines 73, 82–83 Deloitte Consulting LLP and Bersin viii, 19–20, 22, 34, 39, 44, 56, 59, 63, 102–103 demography 34 denominator, common iv, 130, 159–160 developing leadership ability 8, 55 development phases 30 dialogue 71–72, 81, 84, 88, 92, 102, 130, 159 digestive systems 147 direction iii, 30, 92, 113–114, 153–154 leaders set 73 organisation’s 30 disagreements 81–82 discipline iv, vi, 11, 15, 22, 62, 69, 79, 84, 98, 102, 114, 123 diversity vi, viii, 34, 79–81, 141 drive 19, 49, 51, 54, 81, 123 business performance 31 organisational change 54 E

economics 77, 95, 99–100 economists 100 economy 8, 96, 99–100, 115 emotional competencies personal 50–51 social 50–51 dissonance 151

163

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health 150 learning 150 maturity 60, 150, 152 tanks 150 emotional quotient (EQ) 85, 151 emotions 47, 50, 56, 76, 79, 81, 149–151 negative 130 empathy 48, 50–51 employee benefits recruitment 21 champion 31 communications 7 cost 34 development initiatives 101 engagement 19, 52, 54–55, 66, 126 engagement levels 67 expense trend 33 experience 28 intranet 28 meaning 63 participation 68 performance 33–34, 102 relations 19, 22 retention 54 satisfaction 31 self service 29 skills 28, 100 value propositioning 43 well-being 23 Employment Equity Act (EEA) 22 endocrine systems 51 energy vii, 62, 67, 81, 84, 97, 102, 130, 146–147, 149, 160 individual 97 engagement vii–viii, 7, 9, 19, 34, 57, 65–68, 71, 73, 97–98, 104, 125–127, 133–134, 160 level 57, 133 project 67–68 ethics vi, 9, 17, 48, 90–92 governance of 91–92 execution vi, 2, 38, 53, 59, 114, 120–125, 128, 159 strategic change 127 executive leadership understanding 67 expectations 32, 58, 63, 67, 77–78, 106–107, 114, 125 external customer 15 F fit 35, 73, 132 flexitime 110

164

focus 27, 29, 34–36, 38, 52, 80–81, 84, 114, 116, 118–119, 123–125, 129, 136, 151, 154 groups 124, 136 strategic 26 followers 47, 49, 56–57, 60, 67, 141 food processing 147 foods 146–147 forgiveness 150–151 foundational understanding 13 foundation iii, 13, 38, 92, 108 framework iii, 39, 43, 49, 72, 125 G

General Electric 19 generation alpha 53 generation gap 53 generations 7, 35, 53 global business acumen 59 leaders 58 governance 9, 91 corporate 91 groups 48, 60, 72, 80, 87, 89–91, 108, 118, 124, 139 stakeholder 118, 136 growth 25, 30, 36, 44, 48–49, 68, 95, 99–100, 102, 114–115, 154 economic viii, 99 obtaining sustained business 116 guide 54, 61, 102, 119, 141 guiding coalition (GC) 138–139 H harmony 130, 132 Harvard Business Review 82 healing 48, 147 health 8, 14, 21, 23, 145–146, 148, 154–155, 157 health and medical services 3–4 helping employees balance work 110 hierarchy iii, vi–vii, 52, 137–138 high performance organisations 96 leaders 56, 81 work practice (HPWP) 102 high performance work practice (HPWP) 102 HR iv–v, vii–ix, 5–8, 13–16–17, 19, 21–35, 37–39, 53–55, 88, 95, 97, 126, 139, 143 analytics 23, 34, 53

Index



broader international perspectives 7, 11 business leaders 61 business partner model 54 business-relevant 13 competence/competencies 8, 12–13, 43, 65, 87, 95, 113, 145, 159 competencies 15–16, 18–19 competency model 17–18 demographics 6, 34, 53, 75 discipline v, 10, 12, 59, 160–161 embedding HR vi executives 6, 13, 38–39 expectations of CEO’s 6, 32 function iii–vii, 1–2, 8, 11–13, 20–21, 30, 32, 52–53, 55, 65, 75–76, 78, 81, 127–128, 159–161 function perspective 31 function’s competence base 12 function’s relevance 2 future ideal 1, 8, 11–12, 84, 120, 132, 137, 154, 159 future of HR in Europe 6 knowledge 18, 20–21 leaders viii, 20, 28–29, 35, 38, 56, 126 leadership 35, 63 managers viii, 20–21, 36, 39 metrics iv, 8, 14, 23, 31, 35 organisation, great 38 performance dashboard 33 planning 8, 14, 21, 27 planning perspective 27 positioning iv practitioners 1, 11–12, 26, 39, 62, 73–74, 78–79, 92, 114, 117–118, 124, 154, 159 processes 29 profession 5–6, 28 professionals 5, 13–16, 19, 23, 28, 49, 53, 55 reinvention vii, ix, 10–12, 43, 65, 78, 160–161 research 23 role 5–6, 13, 31, 135, 139 scorecard 31–32 specialists 4, 24–26 strategic HRM 23 strategy 23, 30, 35, 63, 143 systems 26, 31, 34 technology viii, 8, 14, 23, 28, 54 transactional vii, 5, 21, 23, 35, 37, 39, 54, 72 transformation 13, 37 HR Information System (HRIS) 28

Human Resource Management (HRM) iv, 14–15, 17, 20–21, 23, 28 Human Resources Development (HRD) iv, 101 Human Resources Institute of New Zealand (HRINZ) 39 Human Resources Professionals Association and Knightsbridge Human Capital Solutions 6–7

I

identity 44, 46, 63, 76, 107, 154 illness 46, 145–146 impact business strategy 14 impact organisational life iii implementation 17, 26, 32, 59, 67, 81, 91, 123–124, 126, 130, 135 capability 136 processes 29 Implementing organisational assessment summaries 27 incentives 133–134 incongruence 134 indicators, organisational metrics/analytics/business 25 induction 8, 14, 22 Ingersoll Rand 19 innovation vii, 8, 14, 17, 36, 55, 58–59, 81, 89, 118, 129, 134, 136 driving 60–61 performance 36 institutionalise 11, 114, 126, 138 institutions 11, 49 intelligence emotional 49–51, 85, 151 social 8, 49, 51–52, 125 internalisation 89–90 International human resource management (IHRM) 14, 20 interpersonal 17, 39, 60 competencies 51 interventions 25–26, 28, 68, 126–128, 146 art change management 131 strategic 127 interviews iv, 21, 23, 152 J

job 14, 21, 23, 37, 54, 73, 102, 106, 110, 133, 142, 155 analysis 8, 14, 21 leader’s 118

165

Reinventing HR



K

design 109–110 enlargement 110 enrichment 110 evaluation 8, 14, 22 rotation 26, 95, 110 satisfaction 68

key business acumen skills 24 HR functions 5 performance indicators (KPIs) 103 knowledge iv, 8, 14, 20–23, 31, 36, 39, 84, 89–90, 96, 101, 104, 108 basic 21–22 management (KM) 9, 36, 89 business operations/logistics 25 L

166

labour relations 8, 14, 19, 21 Labour Relations Act (LRA) 22 Leader Development and Succession 19 leaders 43–49, 52, 55–61, 67, 69–71, 82, 88, 106, 118, 123, 129, 138, 140–141, 150, 152 best 143 coach 19 credible 140 deployment 30 developing 35 effective 44 great 45 high performance 56 ideal 45 identifying high-potential 21 market 133 natural 118 organisational 68–69, 154, 159 political viii role of 29, 140 senior 103, 128–129 servant 48 strong 113 leader’s mind set 129 leadership 8–9, 12–13, 19–20, 43–47, 49, 55–60, 67–68, 97, 113, 122, 124–127, 131, 133–134, 152, 159–161 ability 56 action plan 59 authentic leadership 8, 45–46 biology of leadership 49 capacity building 125



control 83 conversations 70 crucibles of leadership 8, 45–46 developing leadership ability 55 development vii–viii, 7, 44–45, 54, 56, 58, 60, 100–101, 131 effective 49, 51, 139 emotional intelligence 50 empathy 48 evolving leadership 57 executive 120 function 9, 43 gaps 44 high-quality 131 interaction 56 model 57 performance 56 personal awareness 8, 44 pipelines 55 portfolio leadership 52 positions 79 practice 52 principles 45 product 79 programmes 56 progression 34 qualities 60 relationship 57 role 83 senior 129 servant leadership 45, 47 shared vision 58, 80, 81, 84, 101 social intelligence 51 strategic 57 talent 27 team 32, 136 understanding 49 Leadership Development (LD) vii–viii, 7, 44–45, 53–54, 56, 58, 60, 100–101, 105, 131 initiatives 105 platform 60 engagement 127 leadership skills 35, 58 critical 60 new 59 success 45 support 67 leadership support groups (LSG) 58–60 Leading change/change management 9, 29–30, 51, 113, 128–129, 139 congruence 132 Kotter’s model 136–137

Index

phases of change 131 resistance to change 141–142 learning 44, 46, 48, 59, 73, 83–84, 87, 101–102, 106–107, 138–139, 141 emotional 150 experience 58, 60, 106, 129 leaders 106 organisation 6, 27, 101, 130 process 107 leverage 73–74, 77, 123–124 lifestyle changes 146–147 line managers 24, 28, 32, 34, 128 organisations 14 logic, strategic 32, 119

model 12, 16, 18, 30–31, 39, 56–57, 89, 96, 127, 132, 136, 141 accelerator 138–139 congruence 132–133 integrated change 12 organisation energy productivity improvement 97 portfolio leadership 52–53 step change 136–137 transitional 11, 115 motivation 26, 38, 46, 49, 51–52, 66, 84, 101, 110, 129, 131, 149 employee’s 61 personal 130

management iii, vii–viii, 1, 14, 19, 22–23, 29–30, 70, 77, 91, 110, 117, 149, 156, 160 middle 4, 128 modern iii senior 3, 55 systems 118 teams 129, 133 Management by Objectives (MBO) 22 managers iii, v, 22–23, 26, 29, 33–34, 57, 63, 66, 73, 102–103, 110, 125, 129, 148 managing demographics 6, 53 Managing Development (MD) 101 managing people 16 maturity 47, 50, 53 Meaning meaningfulness 61–62, 68, 127, 155–156 second half why of work 62–63 measurement 8, 14, 17, 23, 31–33, 100, 124, 154 media, social 7, 23, 73, 77, 88 medical services 3–4, 145 mental models 101–102, 129 mentee 106–108 mentor 51, 88, 106–108 mentoring 9, 24, 95, 103, 106 mentorship 106 meritocracy 133 metrics 23–24, 33–35, 105 Micro human resource management (MHRM) 14, 20 mindsets 20, 32, 76, 78, 128

network 22, 138–139 bridging 139 cohesive 139 neural circuits 51 new economy viii Non-Profit Organisation 4 norms 84, 87, 90 nutrients 146–147 nutrition 146–147

M

N

O

OB (organisational behaviour) v oceans blue 35, 114, 119 red 35, 114, 119 on-demand tutoring services 109 openness 47, 49, 71–72, 114, 129, 136, 151 operating skills 39 system 137–138 operational leadership 120 function of 121, 125 organisational design and selection 19 capabilities 16 organisation culture 105 energy 97 productive 97–98 function 95 members 120, 123 performance 102 practices 55 structure 55 design 15, 19

167

Reinventing HR

168

organisational 9, 23, 36, 82–83, 90, 92, 96, 110, 113, 155, 159 activities 109 alignment 56, 119, 126 awareness 51 behaviour (OB) v capabilities 17, 31 competitiveness 24 conditions 136 context vi, 8, 83, 92, 109, 121, 125, 160 conversation 70–71 creativity 88 culture vi, 29, 80, 91, 126, 136 design 15, 19, 31, 36 development 8, 14, 19, 23, 26, 29–31, 130 differentials 62 driver 135 effectiveness 19, 26 efficiency 96, 126 elements 32, 132 energy 97–98 enhancing 88 entity 98 entrenched 73 environment 30 existence 8, 62, 159 hierarchy 34 infrastructure 97 innovation 36 intelligence 36 intent 12, 159, 161 leadership 88, 98, 121, 124 learning process 130 meaning 62–64 measurements 124 members value 136 metrics 24 mission 62 model vii objectives 90, 103 outlook 44 performance 83, 97, 110 perspective 87 practices 43 problem 136 productivity 96 psychologists 34 purposes iii, 84 strategy design 9, 120 strategy execution 9 structures 97 systems 141

transformation 9, 12–13, 30, 43, 65, 87, 95, 113, 135, 145, 157, 159, 161 unique 118 values 120 organisations iii–vii, 14–16, 21–23, 26–27, 29–36, 46–49, 52–55, 61–63, 65–68, 88–91, 95–96, 101–104, 119–124, 132–139, 159–160 command-and-control 39 employers 22 goals 55, 73 government 25 innovative 88 internal 15 mission 68 outperform 118 public 28 outputs iv, vi, 95–97, 100, 132, 134, 161 ownership 28, 30, 102, 131 P participation 34, 52, 66–67, 127 partners 13, 53, 150 measuring HR business 34 passionate HR business 54 strategic 6, 31, 53 partnerships, people-centric 8 payroll v, 22–23, 33 people iv–vi, 46–49, 51–52, 62–63, 69–71, 73, 78–79, 87–89, 122–123, 125–126, 128–130, 135, 137–143, 151–156, 160–161 best 28, 35 component vii, 2 confident 125 culture 122 development 9, 95, 100–102 dynamics 79 engagement 126, 133 experience 62, 72 feelings 152 function 10, 12, 127 international 77 leveraging 143 motivated 38 optimise 27 strategist 5, 7 strategy 5 trends 7 trust 45 understanding 76 People Management iv–vi, 8, 59, 160–161

Index

performance 26–27, 31, 33–34, 36, 47–48, 57, 60, 102–104, 110, 114–115, 124, 126, 132–133, 149, 152 leader’s 57 management 5, 7–9, 19, 22, 36, 95, 102–104, 134 traditional 22, 102 personal awareness 8, 44 credibility 17 mastery 101–102 wellness 9, 12–13, 43, 65, 87, 95, 113, 145, 157, 159, 161 personal wellness 145 emotional wellness 149 physical wellness 146–147 psychological wellness 153 sense of coherence 155 perspectives vii, 5, 11–12, 26–27, 29, 43, 56, 70, 88–89, 91, 105, 154, 159 employer’s 101 leader’s 56 visionary 12, 114, 132 persuasion 48–49 physicality 72 pillars 11–12, 17, 132 transitional 10–12, 43, 65, 87, 161 emotional health 150 planning 37, 72, 123, 128, 135, 141 succession 7, 21, 27 positioning vi, 113–114, 119, 153 strategic 30, 52, 57, 78, 117, 119, 159 universal vii process drivers 67 facilitation 131 information 26, 138 perspective 27 processes iv–vii, 11–13, 15–16, 20–22, 29–30, 43–44, 71, 87–88, 90–92, 102–106, 114–115, 117–118, 120– 126, 131–132, 137–138 annual 102 appraisal 36, 103 budgeting 29 bureaucratic 88 carried production 87 change management 132 cognitive 59 continuous 128 emotional 52 evaluation 103 functional 126, 133 goal setting 156 improving 26

infuses HRM 28 inner 44–45 internal 52, 154 key 52 mentorship 154–155 operational 104 organisational 38, 124 recruitment 6 remedial 126 simplified vii societal 90 staffing 6 strategic 124 stress 148 systematic classification 1 transactional iii transitional 11 various 128 productive organisation energy 98 productivity 7, 9, 12–13, 54–55, 65–66, 84, 87, 95–97, 99–100, 110, 113, 145, 149, 159, 161 respect 97 management 9, 95–96 coaching 95, 104 economics 95, 99 mentoring 95, 106 people development 95, 100 performance management 95, 102 tutoring 95, 108 work practices 95, 109 professional streams iv, vi, 161 professionalism 8, 14, 16–17, 37, 127 profits 99 project plan 121, 127–128, 132 projects 15, 19, 53, 58–59, 88, 127–128, 132, 151, 154 Q

qualitative content analysis 1 quality 28, 33–34, 56, 97–98, 100, 110, 146, 148 assurance (QA) 127–128 control (QC) 127–128 criteria 127–128 focus and change advocacy 19 questionnaire/s 2, 4, 8, 21, 31 R

race 27, 79–80 recognition 46, 58, 60, 83, 98, 126

169

Reinventing HR

leadership 127 recruiting 7, 19–20, 54 recruitment v, 14, 21–23, 36, 54 business partner 55 reinvent v, vii–viii, 59, 116, 161 reinvented HR function 29 reinvention vii, ix, 10–12, 43, 65, 78, 160 relations 56, 61, 76, 87, 91, 105, 114, 127 relationship building 39, 55–56, 63 relationships vi, 7, 12–13, 36, 57–58, 62–63, 65, 69, 77–82, 90–91, 107–108, 132–134, 141–142, 150–151, 155 changed 128 collaboration 65, 72, 83 communication 65, 68–69 communities 65, 74 conflict 65, 81 customers 65, 75 diversity management 65, 79 employer-employee 67 engagement 65–66 good 151 people form 77 positive 88, 156 trusting 73 workplace 69 resistance 9, 82, 105, 123, 130, 141–142 resources iv, 56, 61, 83, 91, 97–101, 110, 113–114, 136–137, 156 human iv, viii, 52, 54, 110 limited 99 responsibilities iii–iv, 24, 35, 37, 49–50, 52, 54–56, 91, 110, 122, 125, 140, 147, 152 corporate social 74–75 retention 27, 33–34, 54 Return on Investment (ROI) 24, 31, 55 revenue 30, 34–35 revolution iii–iv silent iii–iv risks 16–17, 35, 46, 50, 82 organisational ethics 92 role model 140 roles 38, 49, 51, 54–55, 57, 68, 71, 76, 78, 85, 87, 116, 126, 128–129, 134–135 changing 128 S

170

S-curve 114–117 safety 3–4, 8, 14, 21, 23 safety and health 21 security 3–4, 142

selection 14, 20–22, 36 self-awareness 45, 48–50 self-reflection 46–47 Sense of Coherence (SOC) 155–156 Sense of purpose iii, 6, 84, 154 servant–leaders 47–49 servant–leadership 48–49 shared meaning 81, 84, 120, 160–161 context of 12–13, 43, 65, 81, 87, 95, 113, 145, 159 shared value 74–75 shared vision 58, 84, 101 organisation-wide 80 shareholder value 96 sigmoid (S) curve 114 silent revolution iii, iv skills 6–7, 14, 19–20, 22–24, 26, 31, 37, 39, 101, 103, 106–108, 124, 128, 137–138, 154–155 social 51 technical 24, 59, 151 social circuits 49, 51 context 16 intelligence framework 44, 50 landscape, changing 131 socialisation 9, 14, 22, 87–90 developing organisational culture/workplace 7 process 90 society vi, 17, 49, 87, 120, 153–154 Society for Human Resource Management (HRM) iv, 14–15, 21, 23–24, 28, 32, 35, 37–38 Society for Human Resource Managers (SHRM) 5, 14–15, 18, 20–21, 24, 35 socio-economic context, changing 92 sourcing people 22 South African Board for People Practices (SABPP) 17 South African HR competency model 17 staffing 8, 14, 31, 33–34, 55 stakeholders iii, 23, 32, 54, 92, 120, 134, 159 key business 55 stall points 116 standards 61, 84, 90, 92, 152 meeting industry 79 statistics 19, 99–100 Strategic HR 8, 14, 18, 35 perspective 24, 35, 120–121 planning 28, 54, 113–117

Index

planning process 123 positioning 119 strategy vii, 15, 17, 29–31, 35, 38, 88, 92, 113–114, 119–120, 122–126, 128, 133, 137–139, 143 architect 15–16 blue ocean 114, 119, 125 corporate v, vii, 54, 67, 114, 134, 161 design 114, 118–119, 121–122, 124 effective communication 69 execution 5, 26, 29, 122–123, 125, 160 forces that shape strategy 118 implementation of 15, 121, 126, 137 implementation skills 38 military vii, 114 monitor 126 organisation’s v organisations talent management 103 people-based 26 quality control 127, 128 requisite 117, 160 shape 118 sigmoid (S) curve 114 well-executed people development 100 stress 29, 124, 146, 148–149, 151, 153, 156 success and significance 155 successful change 131 leaders 58, 129 mentoring 106 people management 63 supplements 147 survey viii, 1, 7, 11, 14, 21, 37, 39, 63 Survey results 2 Current performance of HR 5 HR’s relevance to business strategy 5 Ideal HR 5 Preventing HR to perform ideally 5 sustained organisational success 12–13, 43, 56, 65, 87, 95, 113, 145, 159, 161 systems v, 16, 26, 31, 38, 68, 77, 80, 103, 121, 130, 132, 134, 141, 147 T

tacit knowledge 89–90 talent acquisition function, strategic 22 talent management (TM) 6–8, 14–15, 17, 19, 26–28, 35, 53–54, 103 employee engagement 19 process 27 strategies focus 27 TM initiatives 27

Talent Manager/Organisational Designer 15 tasks 69, 81, 107, 110, 133, 143, 148–149 team energy 97 learning 84, 101–102 level 97, 129 members 56–57, 68, 84–85 teams 29–30, 32, 47, 52, 54, 56–58, 61, 68, 73, 83–85, 97, 102, 104, 126, 128–130 executive 5, 56, 122, 127–128 great 82, 85 guiding 137, 139 teamwork 9, 36, 51–52, 58, 65, 69, 83, 88, 97, 131 technology 16–17, 25, 29, 35, 53–54, 62, 109, 114, 117 emerging 116–117 self-service 19, 28 telecommunications 3–4 telecommuting 110 thrusts, strategic 11, 92, 120–121 tools 7, 29, 35–36, 39, 130–131 communications 7, 73 traditional employee value propositions 43 traditional HR functions v training and development 8, 14, 21 transactional vii, 21, 35, 37, 39, 54, 72 transformation iv, vi, 48, 54, 131, 134 process 12, 96, 132 transition 11, 28, 78, 115, 152 framework 12, 13, 43, 65, 87, 95, 113, 145, 159 Transitional pillars 11 models 11, 115 framework 12, 13, 43, 65, 87, 95, 113, 145, 159 transparency 60 trends vii, 33–34, 53, 102, 118 trust 47, 49–50, 56–57, 60, 63, 70–72, 90, 97, 114, 120, 131–132, 136, 139, 141, 151 trust relationships 92 turnover 33–34 tutoring 9, 95, 108–109 online 109 private 108–109 Twitter 22–23 U

uniqueness 154 unit 1, 99–100, 120

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Reinventing HR

V

Value/s changing 99 disciplines 79 innovation 119 systems 73 vision vi, 15, 54, 58–59, 80, 84, 104, 120, 137–139, 141, 154 strategic 138–139 W

wellbeing 145–146, 157 wellness vi, 7, 145, 149 psychological 153–154 Work/Family balance 110 work society 87 workforce iii, viii, 20, 29, 32–34, 52, 60, 80, 90, 110, 124, 126, 135 workplace socialisation 9, 12–13, 43, 65, 87–88, 90, 92, 95, 113, 145, 159, 161 SECI model 9, 89 governance of ethics 91–92 world iii, 28, 35, 43–45, 58, 62, 76, 88, 92, 102, 153, 155–156 changing 104

172

Strategic and Organisational Relevance of the Human Resources Function

Revolutions are typically huge and dominating events in the world’s history accompanied by radical, visible change. The current revolution is in this regard ‘silent’ yet change is everywhere. The changes in organisational life are affecting management and the way in which businesses are being run.

1. 2. 3. 4. 5. 6.

Leadership and meaning Relationships Workplace socialisation Productivity Organisational transformation Personal wellness

These pillars, as strategic focus areas, are built upon foundational HR competence and business acumen. The intention behind the project is to enable the HR function to reinvent itself into a discipline which is acknowledged and respected for its relevance, competence and professionalism. Reinventing HR will provide you with the context in which the HR function needs to find its strategic and operational relevance. Content includes: • • • • • • • • • •

Research report and findings Transitional pillars Foundational understanding: HR competence and business acumen Leadership and meaning Relationships Workplace socialisation Productivity Organisational transformation Personal wellness The future

ISBN: 978-1-86922-530-8 

Strategic and Organisational Relevance of the Human Resources Function

CECILE SCHULTZ • HUGO VAN DER WALT

In this volatile context the Human Resource (HR) function need to be strategically correctly positioned. It needs to be ‘reinvented’ and positioned in terms of all aspects of people and relations in an organisational context, with clearly identified main activities (professional streams). In order to understand the current state of affairs of the HR function and to give definition to a future ideal positioning for the function, the authors conducted a survey. It was sent out to members of management, as well as to HR practitioners. Based upon the findings of the survey, as well as an analysis of international trends and developments, the authors propose six transitional pillars for the HR function:

Reinventing HR

Reinventing HR

Reinventing HR

CECILE SCHULTZ • HUGO VAN DER WALT