CONTEMPORARY ISSUES IN
Human
Resource
Management P. Grobler • R. Bothma • C. Brewster • L. Carey • P. Holland • S. Wärnich
4th edition
OXFORD UNIVERSITY PRESS SOUTHERN AFRICA
Contents
Preface xiv
About the authors xvi
1 Human resource management's role in the evolving
paradigm 1 Learning outcomes 1 Purpose 1 Chapter overview 1 Introduction 2 1.1 The origins of HRM 2
1.2 The new role of HRM 3
1.3 The new employee-employer relationship 6
1.4 Innovative approaches to HRM 8
1.4.1 Self-managed work teams 9
1.4.2 Alternative workplace 12
1.4.3 E-HRM 15
1.4.4 Talent management 18
Summary 21
Key concepts 22
Case study: Just putting you on hold... Protea Bank 22
Review questions and activities 25
Further reading 25
Websites 25
Endnotes 26
Appendix 1A: Teleworking - organisational, societal, and individual advantages and challenges 31 Appendix IB: Addressing the risks of working at home 34 2 Human resources and the competitive advantage 35
Learning outcomes 35
Purpose 35
Chapter overview 35
Introduction 36
2.1 What is a 'competitive advantage'? 36 2.2 Sources of competitive advantage 37 2.3 HR's role in gaining a competitive advantage 39 2.3.1 The resource-based paradigm 40 2.3.2 The best-practices paradigm 42
2.3.3 The process paradigm 43
2.4 The new competitive landscape: How can it be
sustained? 43
Summary 46
Key concepts 46
Review questions and activities 49
Further reading 50
Websites 50
Endnotes 50
3 Human resources and leadership 55
Learning outcomes 55
Purpose 55
Chapter overview 55
Introduction 56
3.1 What is leadership? 56
3.2 What leaders do on the job 60
3.3 Successful and unsuccessful leadership 60 3.4 Individual models of leadership 62
3.4.1 Traits-based approach 62
3.4.2 Behavioural-based approach 62 3.4.3 Situational-based approach 63
3.5 Group models of leadership 63
3.5.1 Cross-functional teams 64
3.5.2 Self-managed teams 65
3.5.3 Executive teams 65
3.6 Organisational models of leadership 68 3.6.1 Transactional-based approach 68 3.6.2 Transformational-based approach 68 3.6.3 Charismatic-based approach 68 3.6.4 Managerial-based approach 70 3.6.5 Strategic-based approach 71 3.6.6 Institutional leadership 72 3.6.7 E-leadership approach 72
3.7 Techniques for leadership training and development....73
3.8 The leadership role of HRM 76
Summary 77
Key concepts 78
Case study: Sam Magubane - Sun Sporting Goods 79
Review questions and activities 80
Further reading 80
Websites 81
Endnotes 81
4 The strategic role of human resource management 87
Learning outcomes 87
Purpose 87
Chapter overview 87
Introduction 88
4.2 The relationship between strategic management and
SHRM 92
4.2.1 The technical system 95
4.2.2 The political system 95
4.2.3 The cultural system 95
4.3 The design of an HR strategy 96
4.4 Models of SHRM 101
4.4.1 Organisational SHRM content models 101 4.4.2 Functional SHRM content models 101 4.4.3 Organisational SHRM process models 104 4.4.4 Functional SHRM process models 104
4.4.5 General SHRM models 107
4.4.6 Models of 'fit' versus 'flexibility 107
4.5 Where do we go from here? 108
Summary Ill
Key concepts Ill
Case study: Happy Sky Company Ill
Review questions and activities 113
Further reading 114
Websites 114
Endnotes 114
Appendix 4A: SHRM in the city of Clearwater, Florida (USA) ..119 5 Managing flexible patterns of work for competitive
advantage 123 Learning outcomes 123 Purpose 123 Chapter overview 123 Introduction 124 5.1 What is flexibility? 124 5.1.1 Functional flexibility 125 5.1.2 Numerical flexibility 125 5.1.3 Work-time flexibility 125 5.1.4 Financial flexibility 126 5.1.5 Procedural flexibility 126 5.1.6 Regulatory flexibility 127 5.1.7 Mobility flexibility 127 5.1.8 Cognitive flexibility 127 5.1.9 Organisational flexibility 127 5.2 HR checklist - Organisation readiness for flex work 127 5.3 Flexibility and organisational design 128
5.3.1 The flexible-firm model or core-periphery
model 128
5.4 The changing dynamics of flexibility 130 5.4.1 New workers - the changing dynamics of the
5.4.2 New organisations - the changing dynamics of the flexible organisation 132 5.4.3 Contemporary flexibility - High-Involvement
Work Systems 134
5.4.4 New perspectives - flexible workers need
flexible managers 137
5.5 Advantages and disadvantages of flexible patterns
of work 138
5.5.1 The employer perspective on flexible
patterns of work 138
5.5.2 The employee perspective on flexible
patterns of work 140
Summary 141
Key concepts 142
Case study: Flexibility at ComputerCo 143
Review questions and activities 144
Further reading 145
Websites 145
Endnotes 145
6 Talent management-An HR challenge 153
Learning outcomes 153
Purpose 153
Chapter overview 153
Introduction 154
6.1 Attraction and retention - a theoretical perspective 154 6.2 Talent management and the demographic
time-bomb 155
6.3 Building a new paradigm 158
6.3.1 Embrace a talent mindset 158 6.3.2 Craft a winning employee value proposition
(EVP) 158
6.3.3 Rebuild your recruitment strategy 160 6.3.4 Weave development into your organisation...,162 6.3.5 Differentiate and affirm your people 163 6.4 Workforce advisory: Superior talent = tomorrow's
competitive advantage 165
6.4.1 Acquiring new talent 165
6.4.2 Leveraging existing talent 165
6.4.3 Retaining talent 166
Summary 166
Key concepts 166
Case study: AgencyCo 167
Review questions and activities 168
Further reading 168
Websites 168
7 Measuring human resource management within organisations . 173 Learning outcomes 173 Purpose 173 Chapter overview 173 Introduction 174
7.1 The Balanced Scorecard 175
7.1.1 Compiling the Balanced Scorecard - who is
responsible? 178
7.1.2 Implementing the Balanced Scorecard
within an organisation 179
7.2 The HR Scorecard 179
7.2.1 Building an HR Scorecard 180 7.2.2 How does the HR Scorecard work? 181
7.3 The Workforce Scorecard 183
7.3.1 The composition of the Workforce Scorecard .183 7.3.2 Implementing the Workforce Scorecard 185
Summary 188
Key concepts 189
Case study: IBM's HR takes a risk 189
Review questions and activities 194
Further reading 194
Websites 194
Endnotes 194
Appendix 7A: Assessing the need for a Balanced Scorecard..l96 8 Ethical issues and challenges in human resource
management 199
Learning outcomes 199
Purpose 199
Chapter overview 199
Introduction 200
8.1 Ethics and the South African business environment ....200 8.2 Ethical dimensions of a strategic HRM paradigm 203 8.2.1 The problem of dual loyalties 204 8.2.2 HR professional codes of conduct 205 8.2.3 An integrity-oriented approach to strategic
business partnership 207
8.3 Ethical decision-making frameworks 211 8.3.1 The consequences of actions:
Teleologica! theory 211
8.3.2 The importance of duty to others:
Deontological theory 214
8.3.3 Fairness: The idea of justice 215 8.3.4 Individual entitlements: Rights 218
8.3.5 Convergence across normative ethical
theories 218
8.4 Ethical issues and challenges in the workplace 223
8.4.1 Selection 225
8.4.2 Compensation 227
8.4.3 Promotion and performance management ....230 8.5 The role of HR professionals in the operationalisation of
corporate ethics programmes 231
Summary 233
Key concepts 233
Cases study: News of the World 234
Review questions and activities 236
Further reading 237
Websites 237
Endnotes 237
9 Corporate responsibility and governance:
Implications for HRM 243 Learning outcomes 243 Purpose 243 Chapter overview 243 Introduction 244 9.1 Corporate responsibility 247
9.1.1 The narrow classical economic view of CR 248 9.1.2 The socio-economic view of CR 252 9.1.3 The broad maximal view of CR 256 9.1.4 Current developments in CR 257
9.2 Corporate ethics programmes 258
9.2.1 Operationalising corporate ethics
programmes 259
9.2.2 Effectiveness of corporate ethics
programmes 263
9.3 Corporate governance 265
9.3.1 Corporate governance and its importance 265 9.3.2 Theories of corporate governance 268 9.3.3 Global governance systems, principles and
practices 269
9.4 Corporate citizenship: Implications for the
HR function 278
9.4.1 Corporate responsibility and HRM 278 9.4.2 Corporate ethics programmes and HRM 280 9.4.3 Corporate governance and HRM 282
Summary 284
Key concepts 284
Case study: Starbucks 285
Further reading 289
Websites 289
Endnotes 289
10 Human resource management in the electronic era 297
Learning outcomes 297
Purpose 297
Chapter overview 297
Introduction 298
10.1 The impact of the electronic era on business 298 10.1.1 What does e-business mean? 298 10.1.2 Where does a company start on the
e-business path? 299
10.1.3 Formulating an e-business strategy 299 10.1.4 Implementing the e-business strategy 300 10.2 The impact of the electronic era on HRM 302
10.2.1 Describing E-HR 302 10.2.2 Advantages of E-HR 304 10.2.3 Disadvantages of E-HR 305 10.2.4 HR intranet sites 305 10.2.5 E-HR in practice 307 Summary 318 Key concepts 318
Case study: Training at Sunrise Ine 319
Review questions and activities 320
Further reading 321
Websites 321
Endnotes 321
Appendix 10A: Guiding principles regarding the protection of information that human resource
professionals should consider 324
11 Change management and building the learning
organisation 327 Learning outcomes 327 Purpose 327 Chapter overview 327 Introduction 328 11.1 Change management 328
11.1.1 The triggers to organisational change 329 11.1.2 Barriers to organisational change 329 11.1.3 Overcoming barriers to change 330 11.1.4 A strategic organisational change (SOC)
framework 330
11.2.1 Characteristics and benefits of a learning
organisation 335
11.2.2 Building a learning organisation 336 11.3 The chief learning officer (CLO) 342 11.3.1 Characteristics of a chief learning officer 342 11.3.2 The role of the chief learning officer 345
Summary 345
Key concepts 345
Case study: The role of HR in re-engineering and change at
Siemens Rolm 346
Review questions and activities 347
Further reading 347
Websites 347
Endnotes 348
12 Human resource management - An international
dimension 351
Learning outcomes 351
Purpose 351
Chapter overview 351
Introduction 352
12.1 Four key debates 352
12.1.1 The universalist and contextual paradigms in
HRM 352
12.1.2 Comparative and International HRM 354 12.1.3 Cultural and institutional explanations of
differences in HRM 354
12.1.4 Convergence and divergence in HRM 356 12.2 IHRM: What is special about 'international'? 357 12.2.1 The drivers of global HRM 360 12.2.2 The enablers of global HRM 362
12.3 International transfers 362
12.3.1 International transfers: Cheaper and/
or better 363
12.4 Strategy and attention to detail 369
Summary 370
Key concepts 370
Case study: Global HR at McDonald's 370
Review questions and activities 372
Further reading 372
Websites 372
13 The role of human resource management in the twenty-first century 379 Learning outcomes 379 Purpose 379 Chapter overview 379 Introduction 380
13.1 The workplace of the twenty-first century 380 13.1.1 The virtual organisation 381 13.1.2 The just-in-time workforce 382 13.1.3 The ascendancy of knowledge workers 383 13.1.4 Computerised coaching and electronic
monitoring 383
13.1.5 The growth of worker diversity 385
13.1.6 The ageing workforce 385
13.1.7 The birth of the dynamic workforce 385 13.2 The redesign of the HRM role 385
13.2.1 Contracting new roles 386
13.2.2 Competencies 389
13.2.3 Redesign of the HRM process and structure ...389 13.3 The competencies the future HR professional will
require 389
13.3.1 Strategic Positioner 389
13.3.2 Credible Activist 389
13.3.3 Capability Builder 390
13.3.4 Change Champion 390
13.3.5 HR Innovator and Integrator 391
13.3.6 Technology Proponent 391
13.4 The structure of the HR department of the future 392
Summary 395
Key concepts 396
Case study: A change in HR 396
Review questions and activities 397
Further reading 397
Websites 398
Endnotes 398
Appendix 13A: HR risk management 401
Case studies 402
Glossary 415
Author index 418
