For decades, HRM was neglected and not associated with organizational effectiveness. The emphasis was on current performance rather than long-term goals, and HR professionals had a traditional and restricted role. However, this approach is now seen as counterproductive, and HR specialists play a crucial role in determining the organization's strategic direction: "[t]he HR department must actively participate in management and strategic planning" (Ivancevich, n/d., sl. 1-47).
Competition and globalization have made strategic HRM a priority for businesses. In Michigan, the transition to the new HRM paradigm became necessary due to various causes. Firstly, new policies implemented in the state resulted in a decrease in tax revenues, which are essential for the functioning of public administration. As noted by Ivancevich (n/d.), the for-profit sector experienced organizational downsizing and redesign, leading to a focus on HRM accountability. This trend appeared to extend to public a
...dministration as well, with the potential downsizing resulting from diminishing tax revenues motivating HR specialists to take on a more active role.
Another contributing factor to the overall slowdown of economic growth in Michigan was the strengthening preference for a smaller government bureaucracy. This preference has also affected the composition and responsibilities of public administration. Additionally, there has been a general shift within state administration from a transactional to a consultative orientation for HR managers. These factors can be considered external drivers.
On the other hand, internal drivers include the introduction of a sophisticated HR information system. This system has enabled HR professionals to fulfill their responsibilities more efficiently and expand beyond their traditional roles.
The transition from transactional to transformational HRM began with a thorough assessment of needs, conducted through an internal survey of employees an
line managers. The survey identified several areas that could be improved, including the enhancement of consistent processes, communication and collaboration among HR departments, strategic partnership with line management, employee and management training, career development, and utilization of best practice knowledge (Mothersell et al. 2008, p. 79). Due to the numerous areas requiring improvement, the State of Michigan Human Resource Training and Development Academy was established.
The state HR specialists were provided with a sense of strategic direction, organizational alignment, and focus on effectiveness by the role of the new vision implemented by the Human Resource Council (HRC). The new vision included five elements: a highly competent diverse workforce, implementing value-added technology, providing customer-driven HR services, functioning as HR consultants, and serving as collaborative HR partners. To achieve this new vision, state HR specialists needed to enhance their skills and adopt a reinvented attitude.
Thus, the Human Resource Training and Development Academy has developed a series of trainings to tackle the crucial challenges faced by HR professionals during times of change. This series of trainings has been specifically designed to address five different categories of training needs. These include enhancing the efficiency of HRM, increasing the technical and subject matter expertise of HR managers, guiding HR employees towards a consultative role within their organizations, enabling them to become strategic business partners and change agents, as well as introducing best HR practices into the HR system.
To fulfill these training needs, a two-part training program was created. The first training focuses on technical aspects such as traditional HR tasks. The second training is dedicated to equipping HR professionals with the skills and knowledge required to offer enhanced value-added services to
their customers. The second training emphasizes the development of fifteen core competencies that are essential for HR specialists to effectively serve as consultants and facilitators of change.The text explains a list of core competencies that includes Analytical Skills, Building Partnerships, Business System Thinking, Dispute Resolution Skills, Customer Service Orientation, Continuous Learning, Effective Communication, Facilitation Skills, Flexibility and Adaptability, Initiative, Innovation and Creativity, Integrity and Ethical Behavior, Negotiating and Marketing Skills, Subject Matter Expertise, and Understanding State Government Environment. The training was designed and implemented with the assistance of an external transformational leadership team. The training had three sessions: the first focused on becoming a strategic business partner, the second on change management, and the third on service improvement.
During the training, participants were divided into four departmental teams, each consisting of four members. These teams remained together for the entire duration of the training. Additionally, a cohort was formed by combining the four departmental teams with a team from either the Department of Civil Service or the Office of the State Employer. Both intact teams and cohorts offer benefits such as collective learning, networking with colleagues from other state agencies, and sharing experiences among group members and the entire cohort. The outcomes of the training have clearly shown that the acquisition, reinforcement, and application of knowledge across project teams have resulted in significant knowledge transfer to the work site (Mothersell et al., 2008, p. ).
83). The training sessions typically included an introduction to a broad theoretical concept, followed by exercises to develop relevant skills. The sessions ended with a review and reinforcement of the acquired skills and knowledge. The main areas of focus were partnering skills,
change management skills, consulting skills, and process improvement skills (Mothersell et al., 2008, p. 82).
Teams were required to collaborate on a change project relevant to their organization, chosen with the help of HR professionals' superiors. It is important to distinguish between developing a change project with upper management input and simply completing assigned tasks. Selecting and justifying change projects is the first step towards becoming change agents and strategic business partners. The projects fit into six categories: developing common practices, HR process improvement, centralized HR services, HR information systems, surveys, and training and development, and HR focus and alignment (Mothersell et al., 2008, p. 85).
The training session discussed the importance of aligning change projects with the organization's strategic direction. The first session covered the concept of five alignments, including strategic alignment, horizontal alignment, vertical alignment, process management alignment, and subordinate development alignment. The second and third sessions focused on change management and service improvement respectively, and introduced a six-step model of change in individual, group, and organizational context.The text discusses the joint diagnosis of content and process, planning and value-adding implementation, and learning and continuous improvement. Furthermore, the third session aims to diffuse the knowledge gained by training participants within their organizations. After providing the context and content of the state HR professionals' transition to a new transformational role, this paper will analyze the strengths and weaknesses of this transition. One significant strength of this transition is that it began with a thorough needs assessment, followed by the establishment of clear training objectives.
According to Mager (2000), a training objective must fulfill three criteria: behavior, condition, and standard. The case study's training objectives contained all of
these elements. The needs assessment followed Sparhawk's (1999) six-step model, which involved identifying the situation requiring the assessment, gathering data, modeling ideal performance, describing the current state, investigating reasons for the gap, and designing a training program to bridge it. Conducting the training in teams and cohorts enhanced knowledge transfer and networking among state HR specialists, greatly increasing their social capital. Cohen and Prusak (2001) have demonstrated that social capital boosts organizational effectiveness.
Furthermore, the training emphasized the importance of knowledge sharing. Lisa Haneberg (2007), a leading expert in management and leadership, suggests that specialists should share their perspective and be open in order to be successful. This, combined with knowledge diffusion, made the training more cost-effective and allowed for the spread of knowledge within and between public administration organizations.
Another strength of the training design was its focus on developing open skills. Instead of providing specific steps for all situations, the training was based on principles. (Mothersell et al., 2008, p. )
85). The focus of the training was on open skills, which has benefitted HR managers by making them more flexible and adaptable. This empowerment has allowed them to become agents of change within their organizations. The training has produced measurable results, and a comprehensive review of its effectiveness was conducted upon completion. Participants experienced a shift in mindset, recognizing the importance of alignment and becoming problem-solving consultants. They also gained an understanding of the need for HR professionals to work directly with customers and the critical role HR plays in organizational effectiveness.
There was widespread acceptance and enthusiasm among HR professionals for organizational change, indicating their eagerness to lead such change. The plan included incorporating
strategic changes in the Human Resource Council to accompany training, with a commitment to gathering and sharing best practices, knowledge, and expertise. The project aimed to optimize HR by creating a central source of information for all state employees, providing answers to HR-related questions and up-to-date information on HR issues. Although line managers were accustomed to one-to-one interactions with their HR specialists, the implementation of an effective strategy helped overcome resistance to change. This strategy involved involving HR professionals in the project's design and implementation, conducting informational and career planning sessions for affected employees, prioritizing work in the service center for HR managers, and offering support and training during the transformation phase for HR departments.
The resistance has been successfully overcome, and the HR optimization savings have reached $24 million in five years. The transformation of HR specialists into strategic business partners and change agents reflects many principles of strategic HRM as presented by Ivancevich (n/d). The training empowered HR specialists to lead, inspire, and understand their colleagues and customers. It motivated them to cultivate open, participative, and empowering organizational cultures. Additionally, it guided them towards a better understanding and utilization of human assets. The emphasis on becoming strategic business partners and improving communication with managers aligns with innovative HR practices. Ivancevich (n/d) highlights the importance of HR specialists working closely with managers, as neglecting managerial participation may lead to significant human resource problems (sl).
1-17). However, there is a significant limitation in the training design. The training took place during a change in governorship, which resulted in five teams being unable to present their final projects. This was because their initiatives, which were initially supported by
their upper management, were discontinued after the strategic orientation of their public administration organization changed. If the timing had been better, all teams would have had equal learning opportunities and effort would not have been wasted on irrelevant projects. Although this limitation was partly compensated by larger departments pursuing multiple projects, resulting in twenty-nine completed projects despite there being only nineteen departmental teams. Training participants have also recognized the importance of involving those affected by their decisions, but unfortunately, this has not been the focus of the training. The participants have independently concluded that involving others is a good strategy. The Human Resource Manager's primary concern is to promote effective teamwork and high levels of satisfaction among individuals. However, employee empowerment and teamwork have received little attention in the training.
Another area that was not extensively discussed is conflict and dispute resolution. According to Ivancevich (n/d.), conflicts may arise between HR specialists and line managers due to differing opinions on employee decision-making, labor relations, strategic planning, and employee recognition and compensation. Giving more attention to this issue would have improved the training's efficiency and comprehensiveness. Drawing an overall conclusion from the case study, it is important to acknowledge that the change was driven by the implementation of a sophisticated information management system. The effectiveness of HRM is indeed dependent on the type of information management system employed within the organization.
Microsoft utilizes its own communication-driven decision support system called Microsoft Office Groove to effectively manage human resources. This system enables colleagues from different departments to collaborate on a shared task without the need for in-person meetings. The core concept of the system revolves around a shared electronic
workspace and easy access to shared documents. The program offers various features such as document collaboration tools, threaded discussions, meeting tools, calendar tools, custom forms for gathering information from project members, presence awareness, alerts for file and information updates, and workspace chat. Through the implementation of this system, Microsoft is able to attract, retain, and efficiently manage a highly talented and diverse workforce.
Speaking of retention, training is an effective tool for both attracting and retaining skilled professionals. It has been proven that the availability of training is a key factor when individuals choose their future workplace (Turban ; Greening, 1997) and plays a significant role in employee retention (Paul ; Anantharaman, 2003). Training has also been shown to notably enhance labor productivity (Bartel, 1991). Cincom, another IT company, previously disregarded training for its staff and management, resulting in issues with productivity and labor relationships. However, after implementing training for HR managers, they were able to attract and retain more qualified HR specialists. The improved HRM subsequently led to increased productivity and greater employee satisfaction. Therefore, the training initiative implemented in Michigan was well-timed and successful.
Enhancing the quality of public service delivery across the state can be achieved by training HR specialists and encouraging them to become strategic business partners and change agents.
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