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H UMAN R ESOURCE M ANAGEMENT AND P ERFORMANCE Alex Vanderstraeten

HUMAN RESOURCE MANAGEMENT AND …3A%2F%2Fdb.meta4books.be...1 TABLE OF CONTENTS CHAPTER 1 INTRODUCTION: THE FOUR DIMENSIONS OF HUMAN RESOURCE MANAGEMENT 7 1.1. The use of metaphors

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HUMAN RESOURCE MANAGEMENT AND PERFORMANCE

Alex Vanderstraeten

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© Academia PressEekhout 29000 GentTel. 09/233 80 88 Fax 09/233 14 [email protected] www.academiapress.be

Alex VanderstraetenHuman Resource Management and PerformanceGent, Academia Press, 2014, 286 pp.

ISBN: 978 90 382 2411 4D/2014/4804/227NUR 805U2274

Niets uit deze uitgave mag worden verveelvoudigd en/of vermenigvuldigd door middel van druk, fotokopie, microfilm of op welke andere wijze dan ook, zonder voorafgaande schriftelijke toestemming van de uitgever.

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TABLE OF CONTENTS

CHAPTER 1INTRODUCTION: THE FOUR DIMENSIONS OF HUMAN RESOURCE MANAGEMENT 7

1.1. The use of metaphors for Human Resource Management . . . . . . . . 8

1.2. The four dimensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

1.3. Four roles for the Human Resource Manager . . . . . . . . . . . . . . . . . 13

CHAPTER 2THE INSTRUMENTAL DIMENSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Alex VANDERSTRAETEN

2.1. The history of administrative control towards internal service . . . . . 17

2.2. The role of social partners in setting up instrumental systems . . . . . 20

2.3. The core business of the instrumental approach . . . . . . . . . . . . . . . 21

2.3.1. The administrative service: the necessity of paperwork . . . . . . . 22

2.3.2. The organizational service: from simple to complex work organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

2.3.3. The judicial service: the legal framework of Human Resource Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

2.4. The 5 E’s in instrumental Human Resource Management . . . . . . . 35

2.5. To a more transparent, legitimate, forward-looking and result driven service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

2.5.1. Transparency is more than objectivity . . . . . . . . . . . . . . . . . . 38

2.5.2. The search for justice in Human Resource Management . . . . . 412.5.2.1. Procedural justice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412.5.2.2. Distributive justice . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422.5.2.3. Interactional justice . . . . . . . . . . . . . . . . . . . . . . . . . . . 452.5.2.4. Human Resource Management as responsible for

reaching organizational justice . . . . . . . . . . . . . . . . . . . 45

2.5.3. Less administration and more strategy . . . . . . . . . . . . . . . . . . 46

2.5.4. Towards more result-oriented approaches of the Human Resource Management department. . . . . . . . . . . . . . . . . . . . . 49

2.6. Solutions to the delivery of Human Resource Management services 51

2.6.1. Human Resource Management and continuous improvement . 51

2.6.2. Human Resource Management and reengineering . . . . . . . . . 52

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2.6.3. The use of ICT in Human Resource Management . . . . . . . . . 542.6.3.1. Electronic Human Resource Management . . . . . . . . . . 55

2.6.4. HRMIS: the way to an ICT driven expert system in Human Resource Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

2.6.5. Outsourcing, insourcing or co-sourcing. . . . . . . . . . . . . . . . . . 66

2.6.6. Shared Service Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

2.7. Conclusion: the necessity and merit of the Human Resource Management service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

CHAPTER 3THE PEOPLE DIMENSION OF HUMAN RESOURCE MANAGEMENT . . . . . . . . . . . 83

Mieke AUDENAERT & Alex VANDERSTRAETEN

3.1. History: from discipline to participative management . . . . . . . . . . . 83

3.2. Motivation of employees: the core problem of organizations . . . . . . 87

3.2.1. The big challenge to motivate employees . . . . . . . . . . . . . . . . . 87

3.2.2. The importance of social exchange between leader and employee. 91

3.2.3. From compliance to commitment in Human Resource Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

3.2.4. The old theories of motivation . . . . . . . . . . . . . . . . . . . . . . . . 96

3.2.5. Actual motivation: a complex mix of behavioural influence. . . 1003.2.5.1. Money as motivator . . . . . . . . . . . . . . . . . . . . . . . . . . . 1003.2.5.2. More autonomy as a motivator for the employee . . . . . 1033.2.5.3. More participative management in Human Resource

Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1073.2.5.4. Goal setting motivate employees . . . . . . . . . . . . . . . . . . 1093.2.5.5. Contextual factors for performance management . . . . . 1103.2.5.6. Feedback as a reinforcing mechanism for HRM . . . . . . 112

3.3. The role of leadership in motivating employees . . . . . . . . . . . . . . . . 114

3.3.1. The changing role of executives and managers. . . . . . . . . . . . . 114

3.3.2. From transactional to innovative leadership . . . . . . . . . . . . . . 1153.3.2.1. Transactional leadership . . . . . . . . . . . . . . . . . . . . . . . . 1163.3.2.2. Social leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1173.3.2.3. Situational leadership . . . . . . . . . . . . . . . . . . . . . . . . . . 1193.3.2.4. Transformational leadership . . . . . . . . . . . . . . . . . . . . . 1203.3.2.5. Innovative leadership . . . . . . . . . . . . . . . . . . . . . . . . . . 121

3.3.3. Leadership and management . . . . . . . . . . . . . . . . . . . . . . . . . 121

3.3.4. Towards strategic leadership in organizations . . . . . . . . . . . . . 123

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3.4. The core tasks of the people dimension . . . . . . . . . . . . . . . . . . . . . . 124

3.4.1. The supportive role of HRM for line managers . . . . . . . . . . . . 125

3.4.2. Social-technological service . . . . . . . . . . . . . . . . . . . . . . . . . . 126

3.4.3. Internal communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127

3.4.4. Working on flexible working conditions . . . . . . . . . . . . . . . . . 128

3.4.5. Team management as a system of intensive collaboration . . . . 130

3.4.6. Towards a safe, comfortable and challenging working environment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131

3.5. Conclusion: the attention to the human being as added value for the organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133

CHAPTER 4THE STRATEGIC DIMENSION OF HUMAN RESOURCE MANAGEMENT . . . . . . . . . 143

Adelien DECRAMER & Alex VANDERSTRAETEN

4.1. History: from ad hoc personnel management towards a proactive Human Resource Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143

4.2. Human Resource Management: strategic thinking and acting in relation to the environment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145

4.2.1. The outside-in perspective in Human Resource Management. . 1464.2.1.1. The inside-out approach. . . . . . . . . . . . . . . . . . . . . . . . 151

4.3. What is strategic HRM and what is the difference with personnel management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154

4.3.1. The debate on strategic Human Resource Management versus personnel management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154

4.4. Basic models in strategic Human Resource Management . . . . . . . . 157

4.4.1. Two models of strategic HRM . . . . . . . . . . . . . . . . . . . . . . . . 157

4.4.2. Towards a strategic value chain for Human Resource Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159

4.4.3. The focus on human resource capabilities and organizational success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163

4.5. Strategic Human Resource Management and Human Resource Management strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164

4.6. Strategic Human Resource Management from four approaches. . . . 167

4.6.1. The universalistic approach: a one best way of HRM? . . . . . . . 1674.6.1.1. Basic assumptions of the universalistic approach. . . . . . 1674.6.1.2. Consequences of the universalistic approach . . . . . . . . . 171

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4.6.1.3. Critique on the universalistic approach . . . . . . . . . . . . . 174

4.7. The contingency approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

4.7.1. Assumptions: the environmental challenge . . . . . . . . . . . . . . . 175

4.7.2. Critique on the contingency approach . . . . . . . . . . . . . . . . . . 180

4.8. The configuration approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181

4.8.1. Assumptions: the power of bundles of Human Resource Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181

4.8.2. Critique on the configuration approach . . . . . . . . . . . . . . . . . 186

4.9. The contextual approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187

4.9.1. The main features of the contextual approach . . . . . . . . . . . . . 187

4.9.2. Critique on the contextual approach . . . . . . . . . . . . . . . . . . . 189

4.10. Human Resource Management as a mix of approaches . . . . . . . . . . 189

4.11. Strategic Human Resource Management: vertical as well as horizontal integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192

4.11.1. The realization of vertical integration: Human Resource Management as contribution to the organizational strategy . . . 193

4.11.2. Horizontal integration: from practice to policy . . . . . . . . . . . . 196

4.11.3. Requirements with regard to strategic integration . . . . . . . . . . 1984.11.3.1. Completeness: are all Human Resource Management

practices applied? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1984.11.3.2. Internal systematics: is Human Resource Management

systematically integrated in the organization? . . . . . . . . 1994.11.3.3. Internal range: is everyone covered by Human Resource

Management? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2004.11.3.4. Internal consistency: are there no contradictions in the

implemented Human Resource Management? . . . . . . . 2004.11.3.5. External consistency: is the implemented Human

Resource Management in accordance with the environment? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201

4.11.3.6. Pragmatics: is the implemented Human Resource Management workable?. . . . . . . . . . . . . . . . . . . . . . . . . 201

4.11.3.7. Acceptability: Does everyone support the Human Resource Management?. . . . . . . . . . . . . . . . . . . . . . . . . 202

4.11.3.8. Visibility: is the added value clear for everyone? . . . . . . 202

4.12. Strategic Human Resource Management from a multiple stakeholder approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203

4.13. Conclusion: More strategic thinking and acting . . . . . . . . . . . . . . . 206

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4.13.1. Performance management as Human Resource Management enhancement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206

4.13.2. To a goal- and results-oriented Human Resource Management 208

4.13.3. To a measurement culture in Human Resource Management . 210

CHAPTER 5ORGANIZATIONAL DIMENSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219

Alex VANDERSTRAETEN

5.1. Human Resource Management is more than managing employees . 219

5.2. Organizational structures and cultures as preconditions for an effective Human Resource Management . . . . . . . . . . . . . . . . . . . . . 220

5.2.1. The actual challenge for organizations . . . . . . . . . . . . . . . . . . 220

5.2.2. The importance of organizational cultures for Human Resource Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2245.2.2.1. Tools for understanding organizational cultures . . . . . . 2275.2.2.2. Other cultural aspects of HRM. . . . . . . . . . . . . . . . . . . 229

5.2.3. The importance of organizational structures . . . . . . . . . . . . . . 230

5.3. Facilitating organizational designs . . . . . . . . . . . . . . . . . . . . . . . . . . 231

5.3.1. Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231

5.3.2. The instrumental organization . . . . . . . . . . . . . . . . . . . . . . . 232

5.3.3. The quality organization . . . . . . . . . . . . . . . . . . . . . . . . . . . 233

5.3.4. The results-oriented organization. . . . . . . . . . . . . . . . . . . . . . 237

5.3.5. The client centred organization . . . . . . . . . . . . . . . . . . . . . . . 245

5.3.6. The people organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248

5.3.7. Team organizations as a results-oriented form of cooperation. . 249

5.3.8. The learning organization . . . . . . . . . . . . . . . . . . . . . . . . . . 255

5.3.9. The flexible organization . . . . . . . . . . . . . . . . . . . . . . . . . . . 257

5.3.10. The innovative organization . . . . . . . . . . . . . . . . . . . . . . . . . 259

5.3.11. Conclusion: The search for facilitating structures and cultures . 260

5.4. The organization of the Human Resource Management function . . 263

5.4.1. From a staff to a strategic and dynamic position in the organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2645.4.1.1. HRM: less control and more strategic positioning of

HRM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2645.4.1.2. The devolution of Human Resource Management . . . . 2665.4.1.3. The individualization of Human Resource Management 267

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5.4.1.4. The development of more accountability of Human Resource Management . . . . . . . . . . . . . . . . . . . . . . . . . 268

5.4.1.5. Organizational solutions for building a performant Human Resource Management. . . . . . . . . . . . . . . . . . . 269

5.4.2. The role of Human Resource Management in the organization 2725.4.2.1. The traditional views on the role of Human Resource

Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2725.4.2.2. The actual role definition of Human Resource

Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2745.4.2.3. Human resource Management role from a four

dimensions approach . . . . . . . . . . . . . . . . . . . . . . . . . . 277

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CHAPTER 1

INTRODUCTION: THE FOUR DIMENSIONS OF HUMAN RESOURCE MANAGEMENT

‘Everything changes and nothing remains still’, an expression used by Heraclitus, aGreek philosopher (535-475 BC) expressing the fact that the world is in constantflux of change. This reflects more or less the situation of Human ResourceManagement of the last decades, a period of constant change and upgrade of themanagement of personnel and organization. Human Resource Managementevolved from a simple administrative function towards a complex function, byintegrating specific managerial elements in the fulfillment of its general mission.It could be considered as one of the fastest evolving managerial functions withinan organization. Until some decades ago, there hardly existed a personnel func-tion or department in many organizations. If there was in fact a personneldepartment, it mostly concerned an administrative service provider or controlfunction to manage the necessary paperwork of personnel matters. The lasttwenty to thirty years we noticed the development of mere administrativeservices toward full departments of Personnel & Organization, where the depart-ments applies knowledge management, organization development, managementdevelopment, performance management, competency and talent management,or career management.

This functional development concerns particularly an increased versatility of theHuman Resource Management function. Where the average Human ResourceManager was previously an administrative specialist, the contemporary HumanResource Manager fulfills a versatile management function with room formultiple ‘specialisms’. In short, the function of the Human Resource Managerevolved from administrative ‘clerk’ to ‘change architect’ (Tyson & Fell, 1986).

The fact alone that many Human Resource Managers work as personnel manager,Human Resource Manager, Manager Personnel and Organization, Head of thePersonnel Department, and so on, leads us to presume that the function coversmany realities. In my own research in the late ‘90s, we found more than 30different function titles (on 156 organizations) to cover the Human ResourceManagement function (Vanderstraeten, 1999). To capture this complex reality ofHuman Resource Management, we start from the idea that Human ResourceManagement is a complex and multidimensional reality and therefor the urge tobuild models and metaphors to understand and reduce the complexity of thefunction.

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1.1. The use of metaphors for Human Resource Management

Because of the multidimensional aspect, different frames of reference are createdand can be used to implement Human Resource Management. Certain presuppo-sitions about man and organization can be expressed with the help of a multidi-mensional approach. Is the organization a fixed system or can we believe in thefeasibility of organizational structures in order to adapt organizations to evolvingcircumstances? Can people in their professional career change their positionbecause of other organizational requirements, or do people have little changepotential? Is learning possible in an organization or are we confronted with inertcreatures who are disturbing factors in the processes of change? Can administra-tive procedures be modified in function of new strategies or do we have to putaside the infallibility of certain rules and procedures?

The answers to these questions determine to a great extent the attitude of theHuman Resource Manager in his daily practice of managing personnel and organ-ization. Many problem solutions will be generated out of the logic and presump-tions of the used perspective. When Human Resource Managers believe in thefeasibility of organizational structures, organization development can be consid-ered a viable Human Resource Management practice. The underlying human andsocial views determine the frame of reference of the Human Resource Manager,and serve as a basis for building the specific position of the Human ResourceManager in the organization.

The preconceived problem solutions and used methods make an appeal to scien-tific insights. The best way to approach organizational difficulties is by means ofinsights from organization theory, while administrative problems have more possi-bility to be solved from an instrumental or technical approach based on opera-tional research. The motivation of employees often appeals to psychological theo-ries, whereas the construction of a sustainable Human Resource managementrequires a strategic and economic approach. The Human Resource Manageradopts a certain approach within a paradigm of problem solving systems in theimplementation of Human Resource systems and practices.

One of the most important skills of a Human Resource Manager is the flexible useof these multiple approaches and corresponding basic views of man and organiza-tion and the appropriate use of problem solving models. The insight in the multi-dimensional character of Human Resource Management preserves the HumanResource Manager from a unilateral approach of man and organization. Especiallythe fact that this multiple character refers to fundamentally different point ofviews and different ways of approaching problems does not make the task of aHuman Resource Manager easy. The successive opinions about personnelmanagement throughout history make clear that being tied down to a certain

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dimension makes the Human Resource Manager blind to certain problems and/orsolutions. The followers of the scientific management approach, such as Taylor(1939, orig. 1911), discovered that the increase of productivity was a problem ofphysical weariness. They laid emphasis on the physiological basis of human beingsand looked for mere physiological answers. As a consequence, the researcherssuggested to introduce breaks in the production process for employees to regaintheir strength. They created physiological solutions to physiological problems.They were blinded by the fact that not only exhaustion but also boredom can playa role in the functioning of employees. Boredom gives rise to a reduced motiva-tion and commitment of the employee and will affect the productivity. However,boredom is not a physiological problem but a psychological question of job moti-vation and interest in and for the job. This can only be solved by looking with asocial-psychological point of view towards the question of personnel management.

Morgan (1993) referred in his standard work ‘Images of Organizations’ to themultiple ways of looking at organizations. The reality of organizations strikes us asdifferent realities by which different interpretations are established. They deter-mine the method of approach that we develop in order to look at people andorganizations. Ideas about organizations are always based on implicit images ormetaphors that persuade us to see, understand, and manage situations in aparticular way. Metaphors create insight, but they also distort. They havestrengths, but also limitations. In creating ways of seeing, they create ways of notseeing. There can be no single theory or metaphor that gives an all-purpose pointof view, and there can be no simple “correct theory” for structuring everything wedo. The challenge facing modern managers is to become accomplished in the artof using metaphor to find new ways of seeing, understanding, and shaping mana-gerial actions (Morgan, 1993).

The art of a good Human Resource Manager consists of the ability to handle thesedifferent metaphors in the approach of an organization. When we consider anorganization as a ‘machine,’ every problem solution is translated into mechanicalterms, what comes down to introducing the employees into the mechanism of theorganization. An organization as an ‘organism’ lays emphasis on informal ways ofcooperation, on humans as living systems with their needs and interests, humanconflicts or the unpredictability of human actions. Organizations as an ‘opensystem’ or the relationship between the organization and her environment hasimportant implications for the organization, among which the emphasis on theability of understanding the environment and on the possibility to develop stra-tegic answers to changes in this environment. The reflection upon strategicmanagement is the product of this approach where the organization is consideredto be dependent and sensitive to changes in her immediate social and economicenvironment.

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Human Resource Managers formulate problem solutions out of a particular back-ground of a specific dimension. The emphasis is then laid on the vision, themethod of approach and the methodological rules that professionals andmanagers employ in solving particular problems of management in the organiza-tion. Besides this problem solving capacity, the insight into underlying models orvisions offers the advantage of being able to realize certain goals. It presents arefreshing frame by which the Human Resource Manager is able to develop his orher Human Resource Management.

The advantage of a consistent framework makes it possible for Human ResourceManagers to manage with more vision and structure to communicate theirHuman Resource Management towards the organization. The framing ofdifferent Human Resource practices and systems in a synthetic framework makesit easier to work with man and organization. By this way of managing, a crum-bling and low consistent Human Resource Management can be avoided. Theconstruction of a Human Resource Management ‘story’ is in this respect an impor-tant condition for success, because Human Resource Management always workswith human beings. People do not like unclear and incoherent managementsystems and practices, without any vision or direction. When an underlying visionis missing, the organization risks using Human Resource practices that are notinterdependent and incoherent. A vision creates a consistent story, trying tocombine different perspectives in a coherent manner and making clear thatcomplex problems do not automatically lead to simple solutions. The consciousmanagement of different perspectives can be considered as an important compe-tence of the Human Resource Manager. A Human Resource Manager’s profes-sionalism relies partly on the ability to cope with different problems, and managethese on the basis of different frameworks and visions.

1.2. The four dimensions

Basically, we discern four perspectives or dimensions of Human ResourceManagement. This means that an approximation of Human Resource Manage-ment takes places from a particular dimension or way of thinking, which is in linewith our idea of metaphorical thinking. We also assume that the different dimen-sions more or less can equally exist next to each other. These perspectives solvecertain Human Resource Management problems that cannot be identified as suchfrom another dimension. There is no fixed solution for all problems butdepending on the perspective multiple solutions can be put forward.

It is not difficult to trace the origins of the different Human Resource dimensions.Any historical overview from personnel management to Human ResourceManagement gives us enough material to discover the four dimensions.

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The implemented Human Resource Management is the result of the four dimen-sions, where every dimension has an important added value, but by which thejoint added value is more than the sum of the single contribution of the fourdimensions. In this sense it resembles the notorious marketing mix in which thejoint contribution of the various P-elements (Product, Place, Prize, Promotion) isalso more than the sum of its parts (McCarthy, 2001). This holistic perspectiveseems important in the approach of a Human Resource Management in a modernorganization.

The four dimensions include the whole of activities that the Human ResourceManager can develop. In short, the first dimension handles the instrumental andadministrative aspects of Human Resource Management, whereas the seconddimension to a large extent approaches the ‘human side of enterprise’ (McGregor,1960). The third dimension mainly deals with the strategic and the goal-directedaspects of the Human Resource Management, whereas the fourth dimension moreprofoundly goes into the cultural and structural elements of the organization.

Every dimension includes a specific role pattern that gives rise to the developmentof the professionalism of a Human Resource Manager. This approach comprisesthe pure administrative and technical sides of the Human Resource Managementas well as the human relationships. By adding the forward-looking and strategicexpectation and the structural and cultural factors of the organization we get amultifunctional design of a professional Human Resource Manager.

From a particular dimension, the Human Resource Manager picks up a specificrole in the organization. With reference to the multidimensional aspect we wouldlike to emphasize the underlying notions of man, society, methods and proceduresthat direct the role expectation of the Human Resource Managers. Some of themare not aware of this, while others know and use these underlying notions explic-itly. Even more than that, in the end one can define the added value from the rolefulfillment that employees and the management expect from the HumanResource Manager and the Human Resource Management department.

The first dimension is called the instrumental dimension because of its strongemphasis on rules, systems and procedures. It lays, as it were, the foundations forthe cooperative collaboration of people in the context of an organization. Thisdemands clear appointments, rules, systems and routines by which an unpredict-able social reality is made predictable and controllable.

The second dimension is labeled the people dimension, as man is never far away inan organization. We have to deal with real people in organizations. Emotions orconflicts can severely disrupt the rationally developed production and serviceprocess, but it can also have a positive influence. Emotions lays at the heart of ourenthusiasm and motivation to achieve results and contribute to a shared goal.

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The third strategic dimension lays emphasis on the presence of strategies and objec-tives in an organization. In this case it is up to the planners. The presence of anenvironment of clients, other organizations, a government and possible competi-tors gives rise to the development of strategies and objectives in order to grow andbecome a successful organization. Especially the response to a dynamic environ-ment requires strategic decisions, whereby one works proactively towards the real-ization of the mission statement and strategic goals of the organization.

The fourth organizational dimension clarifies to what extent the organizational andstructural factors fundamentally determine the job of a Human ResourceManager. We come to the conclusion that the organizational structure and culturecan facilitate the achievement of results by the employees. It also deals with theprimate of structure and culture over people and the extent to which structuresand cultures determine the mindset and activities of people.

In short, we can develop the next model with two large opposites. The first oppo-site deals with the control of man and organization on the one hand and changeand development on the other hand. Control means establishing things andcontrolling them, and is aimed at stability and predictability. Development standsfor the change with an eye to improving or renewing the management of man andorganization. Management means maneuvering constantly between stability andchange, between establishing and changing things, between rest and movement.

Figure 1: The four-dimensional model of Human Resource Management

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Next to the first opposite we can place the second opposite that deals with peopleand systems. The management of people and organization deals with the atten-tion to systems, objectives and strategies as abstractions of the human conduct,against the concrete reality of individual and collective collaboration betweenpeople. The system aspect directs us towards patterns of human conduct, aimed atproducing goods and services. They exist on their own and create a productionenvironment in which actual people proceed to action. Job specifications, organi-zation charts, procedures, shift systems and strategic objectives are examples ofsuch systems where people proceed to united action.

People remind us of the fact that organizations exist out of actual people andactual community relations. Social structures exist as a consequence of the actualcollaboration between individuals. Here it deals with employees and organizationsas living systems that in one way or another are adapted to abstract organizationalsystems.

1.3. Four roles for the Human Resource Manager

Hence, every dimension refers to a particular role of the Human ResourceManager. As with every role fulfillment, extreme fulfillment can lead to malad-justed and non-effective behavior. Too less or too much attention to one or theother dimension inevitably will lead to unilateral and incomplete HumanResource Management.

The instrumental dimension bears the most resemblance to the image of the tech-nocrat. The technical and administrative type dominates in this dimension. TheHuman Resource Manager functions is a technical expert and rule maker whobrings stability and clarity into the organization. This Human Resource Managerhas an eye for rules and legislation. Did we follow the correct procedures? Willthere be complaints? Did we check the text again for mistakes? Sometimes hebecomes the caricature of the hairsplitter or the one who drives the other enthusi-astic employees to despair. The exaggerated attention to rules and proceduresleads to a bureaucratic organization in the negative meaning of the word, namely asynonym for rigidity and impersonality. On the other side, the lack of instru-mental systems in an organization leads to chaos, a kind of jungle of cooperationwhere people are constantly looking for regulations, setting up informal ruleswhich fade away the next day, ambiguity and unpredictability. Some people caneasily cope with this kind of system (or absence of systems) because they are self-regulators but most people want to work within the framework of clear regula-tions and work systems.

In the people dimension we are confronted with the people manager who workson the social added value of the organization. This Human Resource Manager

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has an eye for the social and psychological aspects of the human being in theorganization. It is the sociable Human Resource Manager who is sometimes moreopen to employees than to the imperatives of management. The people managertakes care about the employees, if they feel good about their job. This attentiveHuman Resource Manager pays attention to the smaller things in social life thatsometimes perform miracles. ‘Fun in the job’ is considered to be one of the mostimportant human value in the organization. In the exaggerated version, the atten-tion to man becomes so dominant that the performance of the organization hasto yield to sociability and humanity. The syndrome appears when everybodyrather ends happily ever after than searching for a strategic solution to make theorganization more successful. Results give way to the concern for the employees.Sometimes the organization only sympathizes with the well-being of employeesin the organization with neglecting the financial and nonfinancial results of theorganizations.

The future-oriented Human Resource Management that predominates the stra-tegic dimension has an eye for the competitive and turbulent environment. In thisdimension, the strategic decision process reflects upon the strategic objectives andfocuses on the strategic choices of the Human Resource Manager. Here thepassionate Human Resource Manager comes along with his ambitious plans andsometimes thinks faster than most other employees. It is the visionary HumanResource Manager who drives the organization in a new direction with strategicHuman Resource Management plans. In an extreme version, he turns out to be adreamer, who cherishes ambitious plans and invents strategies but does not havehis feet on the ground. On the other side, the lack of strategic plans means thatorganization survive from day to day, are constantly subject to changes from theenvironment. They wait and see and these organizations never surmount dailywork life. They work basically ad hoc and without any pre-constructed path ordirection.

Ultimately, within the organizational dimension the organizational architectdominates. The Human Resource Manager is then a protector of facilitatingstructures where employees can achieve results. Nothing can be organized whenthere are no structures or organizational systems that create conditions for a quali-tative service. It results into a facilitating organization, with structures andcultures that hinder or motivate in order to achieve results. It constitutes thedomain of the organization expert or sociologist who is aware of the extent inwhich living structures and culture can influence or even determine the humanconduct. The interplay between structure and culture plays a major role in influ-encing human behavior. In a bureaucratic and authoritarian organization modelcreative employees are removed or hindered because the structure does not antici-pate on the innovative contribution of employees. In this way, submissiveemployees are shaped and eventually become the emanation of the bureaucratic

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structure. Other organizations work disorderly, where people take initiatives, havecreative insights and reach a strong entrepreneurship.

In extreme cases this can lead to a structural thinker who reduces every problem toorganizational or cultural factors. When employees are placed in a different struc-ture or culture they will reach totally different results. The human dimensiondisappears at the expense of a deterministic vision of organizational collaborationstructures and the faith that structures will solve any problem.

Out of these four dimensions the Human Resource Management can realize itsadded value. For this purpose it can use the known practices, systems, workingareas, instruments and methods of Human Resource Management to realize anadded value upon these four dimensions. Every dimension still proves its value byinventing the development of new techniques of control and concepts to generatespecific problem solutions. This way the present automation and excessive use ofcomputers can give rise to the re-evaluation of Human Resource Managementprocesses in order to select the most efficient approach. In this case, it matches theinstrumental approach with its emphasis on analysis, on the search for the bestsolution and on a more or less reductionist view. The generative value of everydimension is not yet worn out: there are still new elements that can be added toone or the other specific dimension.

The Human Resource Management forms the arena in which the four dimensionscome together to a greater or lesser extent: they compete with each other but atthe same time cooperate.

On the basis of the presentation of the four dimension, it will become clear whatwe mean by this way of thinking. We shall analyze every dimension profoundly, inorder to evaluate the added value of an integral approach of Human ResourceManagement.

Further reading

McCarthy, J. (2001). Basic Marketing: A managerial approach. 13de edition. Boston,Irwin, Homewood Illinois.

McGregor, D. (1960). The human side of enterprise. New York, McGraw-Hill.

Morgan, G. (1993). Imaginatie, de kunst van creatief management. Schiedam, Scriptum.

Taylor, F. W. (1911, 1939). The principles of scientific management. New York, Harper &Row.

Tyson, S., & Fell, A. (1986). Evaluating the Personnel Function. London, HutchinsonRadius.

Vanderstraeten, A., (1999). Intersectoriële vergelijking naar het personeelsmanagement inVlaanderen en Brussel. Doctoral dissertation, Vrije Universiteit, Brussel.

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CHAPTER 2

THE INSTRUMENTAL DIMENSION

Alex VANDERSTRAETEN

The instrumental dimension is the most traditional and best known approach ofHuman Resource Management. It forms more or less the fundaments of thepersonnel function and fits perfectly with the first preoccupations of managersduring the first industrialization in the second half of the 19th century and thebeginning of the 20th century. Efficiency, discipline and hard work at a low pricewere at the beginning of the construction of an industrial society. The search forefficient work systems is an important preoccupation of the entrepreneur toachieve successful results in a competitive environment. Above this efficiencyorientation, a lot of initiatives went to the discipline issue in controlling people atwork and the pursuit of obedience and total respect for the managers in an organ-ization. It raised questions about procedures, discipline, regulations, pay roll andother basic issues in delivering essential services to the workforce on the one hand,and building up an efficient workforce on the other hand.

2.1. The history of administrative control towards internal service

Since the industrial way of production at the end of the 19th and the beginning ofthe 20th century managers and scientists were actively engaged in the organizationof the production process. The objective that the first management theories ofTaylor (1911, 1939), Fayol (1916) and others had set forward was to find the ‘onebest way’ to produce as efficiently as possible and to deploy employees asadequately as possible.

In a first approach academics and managers focused on the efficiency questionand revealed themselves as organizational technocrats. Taylor is preoccupied withthe technical organization of the production process, while Fayol pays more atten-tion to the administrative and managerial aspects of the organization. Weber as asociologist is considered to be the father of the theory of bureaucracy, that isregarded as the ideal image and blueprint of the industrial organization.

To this end the most obvious metaphor of the 19th century was used, that is manand organization as a machine. The mechanic reasoning is reflected in the imageof man as a radar in an industrial and/or administrative machine (Morgan, 1993).Thinking in function of machines means mechanical reasoning, where predicta-

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bility and security by means of tight rules and procedures and the creation ofautomatisms in the functioning of man and organization.

Ritzer (2008) uses this metaphor in the seventies when he draws a link with thecontemporary mode of production and talks in an original way about theMcDonaldization of society. This way of thinking emphasizes the permanentpresence of the mechanical thinking in specific sectors of our society. Especiallythe Tayloristic approach on service organizations as McDonalds shows convinc-ingly that this approach is never far away. This means that McDonalds aims atcomplete controllability, the specialization of labor, uniformity, mass productionand the use of routine as much as possible in the production of services.

Recently, Dustin (2007) has applied the concept of McDonaldization to thecontext of social work. Health and elderly care management is analysed as anexample of the managerial application of efficiency, calculability, predictabilityand control to health care and social work practice. These principles are beingincreasingly applied in non-profit and public sector organizations where theoutcomes require more and more tangible outputs such as profit, measurableoutput, performance indicators and tight service control and quality standards.

Taylorism looks at the worker from his physiological contribution and limitations.The problem of man in the production process is a technical problem of move-ment, time, effort, rest, and so on. Since the 70’s Taylorism is translated in leanmanufacturing or lean management systems where the focus on efficiency is basedon optimizing the production system or service delivery. It is sometimes translatedas Toyotism, referring to the successful production concept of Japanese car industrybased on increasing efficiency, decreasing waste, creating value for the customerand using scientific methods to decide for production or service improvement.

The increased rationalization (cfr. Weber) of society is described by Ritzer as‘McDonaldization’. McDonaldization is ‘the process by which the principles of thefast food restaurant are coming to dominate more and more sectors of AmericanSociety as well as the rest of the world’ (Ritzer, 2008). It is characterized by thefollowing elements:

• Efficiency: the emphasis on the optimal employment of means, translatedby Ritzer as the realization of a task as quickly as possible;

• Calculability: the tendency to express everything in quantitative terms;• Predictability: by employing standardized and uniform systems, products

and services, predictability will increase. Having a meal in McDonalds inNew York, Ghent (Belgium) or Shanghai will in most cases not surprisebecause of the predictability of the offered products and services;

• Control: by using technology control systems that run automatically andmake total control possible, are introduced.

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