Organization design, HR and line manager roles and responsibilities and high-performance work systems (HPWS)
Organisation design denotes how an organisation is structured, including the coordination of activities. It reflects how individual activities are coordinated under leadership towards the achievement of organisation goals. One important lesson I learnt is that organisations are not static hence organisational reviews are important to evaluate the organisation design. The organisation design defines the clarity of the overall objectives of the organisation, the key activities required to achieve the goals, coordination of the activities, clarity of individual roles, among other aspects.
HR managers have the responsibility of establishing HR policies while line managers execute the HR practices and supervise staff. Thus, the line managers have a key influence on the performance of employees. Bowen and Ostroff (2004) argues that a strong HR system is associated with a consistent application, distinctiveness as well as consensus between HR and line managers. Employees’ commitment to the organisation is improved when there are consistency and distinctiveness in HR and line managers’ roles (Sanders and Frenkel, 2011).
High Performance Work System is a strategy for improving the performance of the organisation through maximising the quality and performance of human capital. According to Becker et al. (2001), implementing high-performance work system involves aligning the HR policies and practices to the organisation’s strategic and operational goals. Implementing a high-performance work system involves establishing a creative and open culture that is people-centred. Another important aspect is the investment in people. An organisation must invest in its human resources through training, building loyalty, enhancing workplace flexibility and promoting inclusiveness. This improves the skills of human resources as well as their commitment to organisational goals. It also involves setting measurable performance outcomes and innovation.
HPWS is beneficial to organisations since it leads to a sustained competitive advantage. It links the HR practices such as selection and promotion, among others, to proven competency models. Thus, the promotion and selection of employees are based on competency. It also requires the implementation of strategies to support skills required by the organisation to achieve its strategic objectives (Boxall and Macky, 2007). Besides, it promotes the establishment of performance management and reward systems that enable the organisation to attract and retain competent employees.
HPWS improves the performance of the organisation by enhancing the skills, motivation and commitment of human resources in an organisation. For instance, Starbucks has successfully implementing HPWS. Its recruitment and other HR practices are linked to its strategic goals. It has also invested heavily in the training of its baristas and other employees with training programs such as Barista Basics Training Program, Shift Supervisor Training Program, District Manager Training Program, among other programs (Starbucks Coffee Company, 2016).
Aspects of HPWS that most improve HR and business performance
Important aspects of HPWS are the investment in employee training and development, appropriate reward and performance management systems and employee involvement. These improve the performance of employees in the organisation. Besides, linking HR practices to organisational strategies and enhancing innovation are key to business performance.
Aspects of organisation design that may be changed
Implementing a high-performance work system involves changes to the organisation design. The organisation may need to decentralise to enhance employee involvement, innovation as well flexibility. Besides, the organisation must delayer (switch to a flat structure) by removing unnecessary layers of management and supervision. This is to enhance flexibility and coordination.
Responsibility for changes and implication to HR and line managers
The introduction of HPWS in organisations is the responsibility of the top executives though the initiative must come from the HR managers. The top management must also be involved since it requires a change in the organisation design.
HPWS introduction affects HR and line managers. HR and line managers must improve their relations with employees and enhance their involvement HR and line managers must improve coordination in their duties and consider each other as strategic partners. HR and line managers can work together to implement HPWS by ensuring employees have clear job designs, appropriate compensation schemes, proper information flows, performance appraisals, among other HR practices and systems.
Bibliography
Bowen, D. and Ostroff, C. (2004). Understanding HRM-Firm Performance Linkages: The
Role of the "Strength" of the HRM System. The Academy of Management Review, 29(2), p.203.
Boxall, P. and Macky, K. (2007). High-performance work systems and organisational
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Huselid, M., Becker, B. and Ulrich, D. (2001). The HR Scorecard: Linking People, Strategy
and Performance. Boston, MA: Harvard Business School Press (2001). Management Research News, 32(3), pp.297-299.
Starbucks Coffee Company. (2016). Learning And Development. [online] Available at:
http://www.starbucks.com.hk/about-us/become-a-partner/learning-and-development [Accessed 3 Sep. 2016].
Sanders, K. and Frenkel, S. (2011). HR-line management relations: characteristics and
effects. The International Journal of Human Resource Management, 22(8), pp.1611-1617.
