HUMAN RESOURCE MANAGEMENT
Line managers play a crucial role in bringing policies to life
Employees are more likely to go that "extra mile" for the organisation if line managers behave in ways that "stimulate and encourage positive attitudes". Their managerial behaviour -- everything from implementing HR and reward policies to showing leadership by involving staff -- can help make the business "a great place to work" in the eye of employees. That is one of the main conclusions to emerge from a wide-ranging investigation in 12 organisations by Bath University on behalf of the Chartered Institute of Personnel and Development.
A raft of studies by the CIPD and others has already demonstrated the powerful statistical impact of people management practices on overall business performance. But in this latest study the CIPD wanted to understand more about why and how such practices influence business performance -- to unlock what has been termed the "black box".
Some HR policies and practices were shown to be particularly important in terms of influencing levels of commitment, job satisfaction and motivation. The key policy areas, in descending order of importance, were:
Significantly, the researchers found no place for "pay satisfaction" on this list.
| Key findings of CIPD report |
| The 88-page study, the most in depth of its kind to date, confirms the powerful relationships between HR practices, employee commitment and operating performance. It tracks organisational performance over a three-year period and finds that where effective HR practices are not in place, levels of employee commitment are up to 90% lower. Other key conclusions include: |
| 1. Front line management has a crucial role in "bringing HR policies to life" |
| One of the critical conclusions is that the most carefully thought through HR strategy is a waste of time unless it is embraced by line managers who have the skills and understanding necessary to engage and motivate employees. Key quote: "It is not enough just to have performance-enhancing HR policies and practices -- what also matters is the way they are implemented. Managers have discretion in the way they practice good people management in the sense of, for example, communicating, solving problems, listening to employee suggestions, providing coaching and guidance, treating employees fairly, and showing respect." |
| 2. One of the keys to the HR-performance link is the existence of a "Big Idea" |
| An organisation needs a clear direction and purpose, beyond the bland mission statement or generic goal of financial returns, which engages, enthuses and unites people. This "Big Idea" appears essential in motivating and directing people behind the strategy of the organisation. At the Nationwide Building Society this is a commitment to mutuality in Jaguar the "Big Idea" is quality. Key quote: "Organisations with a Big Idea displayed five common characteristics -- the idea was embedded, connected, enduring, collective and 'measured and managed'." |
| 3. HR policies and practices must "fit" with or be appropriate for the business strategy |
| The research confirms that there is no universal "best HR practice". It is all about having a broad and integrated "bundle", tailored to the needs of the organisation. Key quote: "Organisations must create and transmit values and culture which are unique to themselves, which bind the organisation together, and which can be measured and managed." |
| 4. Employee dissatisfaction with existing policies has a greater impact in terms of lowering commitment than absence of policies |
| It's better to ensure that existing policies are properly implemented than to try to develop new policies. Key quote: "Policy application or enactment comes through as a major issue. Developing yet more policies may be a waste of resources: getting existing policies to work better will be likely to pay dividends in increasing organisational commitment." |
A final word
"Strong attention to team working, extensive employee communications and involvement, and positive perceptions of training and careers emerge as common ingredients in this performance-driving HR mix." -- Angela Baron, CIPD adviser on organisation and resourcing.
Want to know more?
Title: Understanding the People and Performance Link: Unlocking the black box, John Purcell, Nick Kinnie, Sue Hutchinson, Bruce Rayton, Juani Swart, published by Chartered Institute of Personnel and Development.
Methodology: Major three-year investigation which looks at the HR practices, staff views and performance in 12 organisations including Jaguar Cars, Nationwide Building Society, Selfridges and Tesco. Purcell and his team gathered performance data and collected a wealth of attitudinal data from a cross-section of employees in the companies studied. The researchers have also produced a detailed model of the people and performance relationship and the cause and effect of practice.
Availability: To order a copy, tel: 0870 800 3366 or via the CIPD web site: www.cipdpublishing.co.uk
The Chartered Institute of Personnel and Development has over 117,000 members and is the "leading professional body for those involved in the management and development of people". To find out more, jump to www.cipd.co.uk
Posted 20 June 2003