Chapter 5 Theory, research and practice
5.6 Summary
The literature review has identified a number of workforce challenges: ageing populations, changed labour markets, drivers and demand for work-life balance and generational differences in the workplace. Academic literature also identified the current challenges for organisations in arranging and structuring their workforces in light of changing employee needs, including the identification and examination of the drivers for flexible work arrangements, work-life balance provisions and changes to the components of the employment contract. Adapting to these challenges has been necessary in order to attract, engage and retain the right employees. The necessity here is for organisations to realign their HR practices and policies to meet employee needs and, at the same time, ensure their workforce structures meet their requirements and outcomes. This has occurred in both the private and public sectors, even in times of tight and competitive labour market demands and the ongoing drive and requirement to deliver their services expediently. In the private sector this means sustaining a competitive advantage in the market and returning a profit, whilst in the public sector it has meant trying to align the competing demands for services with finite resources and, as noted earlier, being accountable for their actions to the government and parliament. SHRM theory is broad, and does not come with a one-size-fits-all approach, nor does it come with a ready-made application or measurement kit. There are many SHRM theories that further extend the scope of SHRM, including best practice and best fit theories. Best practice theory holds that organisations should adopt the practices and policies that are deemed to be the most valuable across the discipline or HR field at any given time. Best fit theory is similar, in that it may adopt policies and practices deemed to be valuable, but it does so in light of a number of contingent factors including current labour market conditions, the market within which the organisation operates, the longer-term goals of the organisation and other environmental factors. SRHM theory holds that SHRM is the key to organisational performance, and contains the notion of selecting ‘bundles’ of HR policies that support the overall or principal organisational strategy, culture and other functional plans. Selection, design and implementation of these policy ‘bundles’ are extremely important; as is the need to consider the environment, organisational culture and longer-term goals, challenges and barriers (Kramar, 2006; Boxall & Purcell, 2008). The literature reveals that SHRM theory has not fully addressed the need for a clear alignment of cultural, environmental and institutional factors. Therefore, in SHRM, if an organisation doesn’t have effective
policies and practices then the ultimate goal of aligning its workforce with organisational goals will not be achievable or sustainable.
The test of the effectiveness and value of a theory is undertaken by a number of measures. Discourse about the theory’s aims and elements and the theory itself are also tested (and further refined or enhanced) through empirical research. SHRM research continues to develop tools and methods from empirical research activities in order to measure HR effectiveness and efficiency. However, a substantial proportion of this research is quantitative and confined to looking at micro areas (e.g. narrow occupational groups in a specific work setting, studies involving private sectors in a competitive market, etc.). Given the specificity of this type of research, it is only possible to draw minimal linkages to the overall potential of SHRM. Measuring SHRM performance against the principles of SHRM has shown varying results and no single universal method provides an adequate measurement that can be adopted across a wide range of organisations.
Quantitative-based research elicits data, usually drawn from interviews with managers or external stakeholders, and usually excludes employees’ views (Edgar & Geare, 2005a). Employees’ views are predominantly drawn from structured surveys, in which participants are unable to add additional information. Surveys require a selection from predetermined answers, or answers on a rating scale, which are all based on specific questions. This type of survey does not provide for the views of employees to be obtained openly or allow employees an opportunity to make links between the employment elements from either their own personal experiences or preferences. The focus or scope of a question can be isolated from other elements that participants may believe to be related to their choice of answers. Using survey tools may provide for generalisations to be drawn, but the research in this area is limited to rigid questions about the effectiveness of the organisation’s HR section and performance. It is true that some published research seeks to identify what employees perceive to be the benefits of their actual employment in terms of leave provisions or applying for leave. This, too, is limited in its ability to effectively measure HR performance and the quality of HR policies and practices in terms of content and how these assist in employee attraction, engagement and retention. Separation surveys provide valuable information in assessing why employees decide to leave but it may not always be relevant to gather information at the time of separation about how employees valued their employment experience. Surveys can be limited by being quantitative, and there is not a measurement tool to drive the collection, analysis and reporting of free-field comments to use for evaluating HR practices, policies or HR performance.
If SHRM is to be effective, the policies and practices actually employed warrant attention. Legislation, industrial relations and financial capacity to offer above-minimum remuneration, leave provisions, flexible working arrangements and training and development need to be considered in determining an effective bundle of HR policies and practices. In SHRM, HR policies and practices are driven down from the top or senior management level, presumably on the advice of senior HR people, though little is written about the capability or calibre of senior HR to be able to do this well. Measurement of HR policy and practice is limited to the research areas of stakeholder views, activities related to return on investment formulae and narrow elements confined to specific areas such as the HR group’s performance.
Research has, as identified in the literature, been undertaken in the public sector to examine or analyse specific areas of HR or to examine, for example, commitment, gender or elements of recruitment or performance. Additional research needs to examine the role of the central Agency in determining employment policies and practices and where a line Agency has autonomy in these matters. Reforms in the APS and other jurisdictions are aimed at increasing flexibility and agility across Agencies to meet Agency demands and needs Ogle, 2009). This chapter has briefly reviewed the importance of organisational culture and differences between public and private sectors, which will influence how SHRM and HR policies and practices are developed, implemented and evaluated. Reform factors are instrumental to the adoption of SHRM in the public sector and further research and analysis is warranted.
Drawing on the writings of Guest (1999), Gibb (2001) and Edgar and Geare (2005 & 2005a), there is an opportunity to measure HR impact and effectiveness by drawing on the perceptions or views of employees. The ability to obtain information about employees’ perceptions about their employment provides an opportunity to explore what HR policies and practices are valued. As noted in this chapter, the quality of policies and practices appears to be more highly valued than the simple quantity. Given the HR challenges of ageing workforces, generational differences of employees, managing work-life balance and flexible work arrangements, it is valid to consider these factors in terms of an organisation’s ability to attract, engage and retain their employees. This encompasses motivation, commitment, engagement, high work performance and other topics that have been empirically researched. The essence of SHRM excellence is having the right people doing the right jobs at the right time and contributing effectively and as planned to meet organisational goals.
The literature review identified a number of key employment provisions including salary, interesting work and flexible work arrangements (for example) as important to employees’ attraction, engagement and retention. Finally, it demonstrated the need for additional research to further explore the role and importance of employees’ voices. “Employee voice’ will be of major importance for organisations to address these contemporary challenges. Research about ‘employee voice’ is of value, as it contributes to the organisational level of HR by incorporating employee-derived information, which relates directly to the organisation in which they are employed. Further, research of this type provides for a better level of measurement and evaluation in that it is not considered only from a legislative or industrial perspective. This applies to current policies and practices, but it is also valuable in assessing future workforce requirements and, in turn, providing for a better or more considered approach to aligning the workforce with the organisation’s goals.
The literature review noted and described the differences between public and private sectors and examined the level of fit between theory and practice for workforce management. An example of theory in practice was described using the Tasmanian State Service and involved the identification of how competing priorities affect workforce management and the drivers that impact on effective allocation of resources. The challenges described and examined in Chapters 2 to 4 were also considered from HR and SHRM theoretical and practical perspectives. The importance for organisations to structure workforce management in light of these challenges identified a clear need to address attraction, engagement and retention. It is clear that there is a need for HR policies and practices to better reflect the change factors in the workforce. To that extent, the literature has identified a concern of how the ageing of the workforce will impact on organisations in the coming decades. A higher level of understanding is needed about the structures and practices of organisations’ workforces in light of the ageing factors identified in the literature if organisations are to maintain appropriate levels of employee participation and productivity. Additional research to assess the differences attributed to different generations, as noted in the literature review, is needed in order to determine what common aspects exist and where differences lie across the different age groups. Being able to identify the differences and similarities of the different age groups is important in determining the appropriate HR policies and practices and, in turn, will contribute to having effective practices and policies in the future. In addition to this was the identification of the increasing need for workplace flexibility to meet employees’ work-life balance needs and organisational efficiencies and requirements. Organisations need to understand the drivers from both
perspectives if they are to structure their workforces through appropriate and responsive policies and management practices.
5.7 Conclusion
This chapter reviewed a body of literature from academic and practitioner sources. It described and examined HR and SHRM theory and practice from a number of different perspectives. It highlighted the challenges and approaches for both theory and practice and how the complexity and effectiveness of HR can affect organisational and employee outcomes. It considered how the different theoretical perspectives address workforce management, structures and practices. This chapter also examined the complexity of aligning HR with organisational goals.
Further, this chapter discussed how employees’ perceptions can inform the development of policies and practices, and is therefore a valuable element of SHRM. It highlighted the need to research employee perceptions about employment in terms of attraction, engagement and retention and how this may contribute to developing effective HR practices and policies to meet current and future work needs. The important role of managers and the levels of management discretion in implementing and managing HR policy and practices were also identified in this chapter.
Section 5.6 presented a succinct summary of a number of theoretical frameworks with which to describe and understand HRM and SHRM. The summary further demonstrated a clear need to undertake research to examine how organisations could approach and address the identified contemporary challenges and have effective HR policies and practices for a productive and sustainable workforce.
The literature also highlighted the differences between public and private sector workforce management structures and approaches. Given that public sector jurisdictions’ structures and legislative frameworks differ from those of the private sector and they face different imperatives, goals and possible challenges because of policy and service changes, then it is an appropriate setting in which to place the research. This will have benefits in that the research will be considered from the whole- of-service and at the individual Agency levels and therefore may be able to consider what level or type of a centralist approach would best address the identified challenges. Given how age was highlighted in the literature review, this research can consider the implications of an ageing workforce at the public sector level. As such, it can provide real data or evidence as to how public sector organisations approach their workforce management practices and policies to meet the responses and needs of an ageing
workforce. Similarly, the research aims to ascertain what types of flexible work arrangements are of value to employees (across all age groups) and how managers and public sector organisations can use this information to inform their decision-making processes about HR policies and practices. Placing the research in the public sector will allow for a better understanding of how public sectors can structure and manage their workforces and consider the effective bundles of HR practices and policies. The importance of placing the research in the public sector is that findings of the research will contribute to identifying components of employment contracts and management practices for future workforce sustainability.
It is the intention of the research to identify the degree of alignment about workplace policies and practices across the three research groups of employees, managers and organisations. The research questions are:
1. What attraction, engagement and retention factors do employees perceive as being valuable? Do these factors vary depending on employees’ age?
2. What do managers believe their employees value about their employment in terms of attraction, engagement and retention?
3. Which attraction, engagement and retention factors are evidenced in Agency HR policies and practices?
The research findings will contribute to SHRM theory about how HR policies and practices can be informed by employees’ perceptions. They will provide a contribution for identifying and understanding what is valued by employees with regard to their employment. The research is important in that it considers the views of employees of different age groups and therefore goes beyond provisions set in industrial awards, agreements or legislation and the importance of how this in turn contributes to organisational performance and, in turn, sustainability.