Introduction
While the globalization has opened up many avenues of opportunity to the companies, the significance of Human Resource Management (HRM) is now felt higher than ever, as human capital is now considered the chief instrument of business and “the key to a firm’s economic success can be attributed to the effective management of its human resources” (Huselid, 1995).
This situation has generated various modules of HRP, because the effectiveness of HRM has a strong bearing on the organizational effectiveness (Dolan et al, 2001). Therefore, this paper applies “High-Performance Work System” (HPWS), a specific branch of HRM, to GM Media’s Publication Division (PD), where I work as a public relations manager. Thus, in accordance with the objective of GM Media (GMM) the proposed HRP applies the strategies of HPWS, covering both the external and internal structures of the PD segment of GMM, with the help of PEST and SWOT analyses.
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Research Methodology
Towards achieving its goal, this paper uses different tools to collect data, the nature of which is placed as below:
Nature of Data
Sources
Company information
Company’s website
Company’s internal reports
Interview with employees and departmental heads
Internal and External business situations
Legal documents, Web documents, News articles and company’s future target reports
Module of HRM
Books and literature on HPWS on Web
Organisational Background
Starting from 1978, GMM has gradually established it position in the print and electronic media with its newspaper, magazines and news related television programs. It is owned by a Belgian national and it operates from Belgium with a total number of 610 employees, out of which 210 are engaged in the Publication Division, the organization in discussion. It has a vast market comprising of all English-speaking communities across the globe, though its print media circulation is limited in Belgium, England, and France. It has already secured an impressive client list and currently holds the third and fourth slots in the print and electronic media among the same players in the respective groups.
Vision & Mission of the Company
In their written statement GMM promises to serve the humanity with all information that would “Inform, Educate, Entertain” the readers, besides “revealing the truth to them”.
Role of My Department
My department processes and publishes the entire content of print media, and its assembly line comprises of three production managers, 95 copy-setters and proof-readers besides other production, marketing, office administration and support staff of various rank and file.
My Role in the Department
I am a public relations manager and I monitor and supervise the proceedings of marketing department, which is the main revenue earning area and my job involves keeping contacts with various advertisement and global news agencies, celebrities and media personalities. Apart from that I look after the employee interest issues under the approved guideline accepted by the unions and management.
Organization’s HRP & Strategy
Strategically GMM wants to achieve the following milestones:
1. Earning 2nd position in print media by 2012 by expanding its base and its services by adding two more magazines for the teenagers and kids, besides raising sales of its current products, “Good Morning” newspaper, “Womanly” magazine and “Market Trend” trade magazine. “Good Morning” has a circulation around 300,000, while the “Womanly” and “Market Trend” have circulations around 85,000 which GMM wants to increase by 25% by the next four years.
2. It aims to rise to 2nd position in its TV segment 2014, by adding entertainment programs in its news channel.
Roles of its Different Departments
There are seven divisions in GMM like below:
1. Policy makers: It contains the Board of Directors and a panel of Advisors.
2. Divisional Heads: There are two separate divisions like Print division and Electronic division , both having separate heads.
3. Administrative Departments: It is a three-tier structure, where the separate administrative departments of Print and Electronic divisions work under a central administration. They deal with office administration and accounts, besides recruitment, though there is a system of acquiring a final approval of the Divisional Heads.
4. Creative Departments: Both Print and Electronic divisions have their own creative wings, though they work together as and when needed.
5. Marketing Department: It is a broad platform where the staff work under specific assignments according to the strategies set from time to time.
6. Advertising Department: It also functions like Marketing Department, where the staffs are utilized for both the divisions.
7. Stringers: This department manages the activities of the freelancers who serve under contract.
This company has no separate HR department, but a section of the central administration performs the jobs of HRM and the other managers are encouraged to help them. This is an irregular arrangement and thus this project would encourage the company to create a separate HR department in order to apply High Performance Work System (HPWS) in it. However, GMM has a written HR policy, which looks like below:
Human Resource Policy of GMM
Manpower
Position, Duties, Responsibilities, Personal information, Job specification, Wage scale, Promotional Avenue, Police history,
Recruiting Process
Advertisement, Test, Interview, Agreement to Terms & Conditions.
Employee Compensation
Annual increments, Promotions on fulfilment of criterion, Medical and other benefits, facilities of Employee Cooperative, other permissible benefits from time to time.
Termination
Gratuity and other permissible benefits, Notice of three months in advance from either side in appropriate cases, No Objection certificate under satisfactory circumstance.
Employee Training
At the discretion of Administration
Integrity Development
Annual Sports, Annual Cultural Meet, Seminars/Symposia
HPWS in Brief
High Performance Work System, popularly known as HPWS is a specific combination of HR practices, work structures, and processes that maximizes employee knowledge, skill, commitment, and flexibility (Bohlander, 2004). It is understood that systems composed of many interrelated parts that complement one another to reach the goals of an organization, large or small. As for example, System design looks like below:
Work Flow
HRM Practices
Support Technology
This package of strategy aims “create an environment within an organization where the employee has greater involvement and responsibility” (Brown, 2006). According to the researchers, HPWS has evolved out of the “crunch period of United States manufacturing environment”, when the fierce global competition necessitated its revival (Barnes, 2001).
Underlying Principles of HPWS
HPWS started with three pillars at the outset, like involvement, training and incentives¸ before adding the fourth, support technology; to take off as a full fledged system.
“Involvement”, contains the idea of providing the employees an “increased opportunity to participate in decisions” (Barnes, 2001). This becomes possible by sharing information among the members of the organization.
“Training”, aims to develop the knowledge and skill on the subjects employees deal with. Thus HPWS prefers a culture of ‘on-site’ or ‘real-time’ training rather than theoretical knowledge, where the employees would be encouraged to apply new approaches or ideas and to enrich the knowledge bank itself.
“Rewards” or “Incentives” are the tools to align the goals of the employees with the goal of the organization. Thus HPWS prescribes to connect the rewards to performance to make both the company and the employee mutually benefited.
Apart from the above, HPWS is guided by Abraham Maslow’s “Hierarchy of Human Needs” (Maslow’s, 2008), which highlights several stages and natures of human needs, like primary needs, safety and security needs, esteem needs and self-accentualization. However, under the modern situation of complexity, HPWS prefers applying “ERG Theory” (ERG, 2007), which is an improvised version of Maslow’s model.
Thus HPWS is a combination of the three, which utilizes “technology” towards achieving an egalitarian work environment that eliminates the status and power differences, besides establishing enhanced collaboration and teamwork.
The Diagram below explains the basic structure of HPWS
Critical analysis of HR Policies and Procedures of GMM
GMM’s HR policies and procedures aim to meet the needs of its three wings in a generalized manner, where the measures should be to cover the needs of all other vital organs of the company, such as Publication Division, where there is a large number of employees who consistently contribute to the sustenance and development of the company, but get a second-rated treatment compared to the coveted Creative Department.
Accordingly this paper applies HPWS to Publication Division where it ‘fits its components into the system of PD. Here HPWS works on two layers, viz., internal and external – where it ensures ‘Internal fit’ and ‘External fit’. Internal fit refers to the situation where all the internal elements of the work system complement and reinforce one another. In the case of External fit, it refers to the situation where the work system supports the organization’s goals and strategies. It looks like below:
EXTERNAL FIT
EXTERNAL FIT
Now the project needs analyses of both internal and external situation and for that matter this papers resorts to using SWOT analysis for internal situation and PEST analysis for external situation.
4.8. SWOT Analysis of PD of GMM Company:
STRENGTHS
The brand name of GMM is well established in its country and in Europe.
It has a background of 20 years experience in the Print Media.
Print Media is well supported by its Electronic Media wing.
It has recorded steady growth over the years.
Employee retention rate is also good.
The company uses high-tech mechanism and in favour of regular upgrading.
Company is eager to improve the overall benefit of the employees.
WEAKNESSES
The communication gap between creative department and publication division creating erroneous productions.
There is irregularity in resource management, selection and training.
Publication Division is somewhat alienated with the creative department.
Interpersonal communication is not up to the mark due to lack of systematic process.
Number of managers are less than it needs.
Motivation is stagnated due to routine promotion and no performance related incentive.
No regular Team Meetings held to evaluate performance and formulate the strategy for the future.
No individual performance evaluation system.
Information sharing and idea exchange do not take place at all levels.
OPPORTUNITIES
Its multicultural base has a definite advantage over its competitors in the environment of globalization.
It has a very good rapport with decision makers through its women’s magazine.
It has more scope with its electronic version.
GMM company holds a common fund for its two wings.
THREATS
Competition is getting stiffer as the other players in the league are coming up with quality production at lower consumer prices.
Unionism is taking advantage of the distance between main office and the Publication Division, which has fewer managers.
The process of Publication is fast changing. Its knowledge bank is inadequate and there is no systematic learning process for the employees.
Analysis of Internal Situation:
This analysis highlights that there is lack of coordination in the internal situation where it needs the planning for the areas like
Data sharing
Enhanced communication
Regular training
Enhanced level of motivation through fresh reward system and
Enhanced uses of technology.
Now the external situation needs to be analyzed and thus PEST analysis is applied to the external situation of GMM.
PEST Analysis
POLITICAL / LEGAL FACTOR
Political situation is stable and the company has never violated the Labour Law of alike.
Locally, the company has three registered unions who have not yet involved in serious differences with management.
There were instances of libel and defamations suits from both the government and the individual for publishing faulty news.
ECONOMIC FACTORS
The regional economy is stable and rate of inflation is low.
Though the company is earning good and steady profits but the margin between expenditure and profit has narrowed down considerably in the last three years.
Liberalization of the global trade has brought in more opportunities than the company can handle at present with its present manpower and skill level.
Unless skill wise developed, the expenditure would rise, especially in the customer expenditure sector.
SOCIAL FACTORS
The Magazine segment of the company is facing stiff challenge from the spurt of sleazy magazines.
There is a gap of culture between the creative department and publication division due to lack of interaction and less scope of attending cultural functions
TECHNOLOGICAL FACTORS
The days of Quark Express are over; far more sophisticated programs are being used by the rival companies.
There is no instance of regular workshops on knowledge improvement.
There is no record of individual analysis of the employees engaged in publication division.
Analysis of External Situation
PEST analysis clearly shows that though the external situation of GMM enjoying the economic stability of the region or volumes of business due to demand in the market, it is suffering from recurrent legal constraints and high expenditure, tough local competition and lack of advanced technological infrastructure, which altogether needs planning in the areas like
Data sharing
Enhanced communication
Regular training
Enhanced level of motivation through fresh reward system and
Enhanced uses of technology.
Proposed HR Plan for the Organisation/Department
HPWS PLAN SHEET
The primary need was to create a chart containing detailed scope of application of HPWS in Publication Division both internally and externally, thus the same has been created and produced as below:
All Components
of
Publication Division of GMM Company
Parameters of HPWS
Shared Information
Knowledge Development
Performance-Reward Linkage
Egalitarianism
Work Flow
Self-managed teams
Supervised Teams
«
«
«
«
«
Staffing
Selective recruiting
Team decision making
«
«
«
Training
Broad skills
Cross-training
Problem Solving
Team training
«
«
«
«
«
«
«
«
«
«
«
Compensation
Incentive
Gainsharing
Profit Sharing
Skill-based Pay
«
«
«
«
«
«
«
«
«
«
«
«
«
Leadership
Few layers
Coaching/facilitators
«
«
«
«
«
«
Technologies
HRS
Communications
«
«
«
«
The above module is specifically prepared for PD of GMM, where it emphasizes on Sharing Information, Knowledge Development, Performance-Reward Linkage and Egalitarianism (which seems very vital in this case, as there are serious differences between Creative department and the rest).
The Impact of HRP
The implication of HPWS on PD of GMM would definitely bring changes in the following areas of operation:
Work Flow: Here the two categories of staff carry the workflow of the department, where both the categories would be helped to reach the egalitarian stage through unbroken flow of information sharing.
Staffing: HPWS would incorporate knowledge development by recruiting experts in modern technology and management, besides inducing the policy on team decision making among staff.
Training: Here HPWS identifies four areas of training with special emphases on knowledge development and team training, Keeping in mind the issues like differences between departments and recurrence of legal disputes due to lack of knowledge of handling debatable contents.
Compensation: Since there was no clear policy of compensation due to the lack of individual assessment or thrust in the required areas, HPWS would incorporate clear cut system of Incentive, Gainsharing, Profit Sharing and Skill-based Pay.
Leadership: Since motivation rolls from the apex of a body, the top rung of the company has to be kept motivated. Thus HPWS would include them in all of its parameters to make them aligned with the underlying principles of HPWS and HRM as a whole.
Technologies: In the case of technology, HPWS intents to utilize both human skill and creativity to enhance the knowledge base and fasten the production process besides enhancing communication among staff-members of the organization, keeping in mind that Publication Division is away from the head office of GMM and needs to be in constant touch with the latest developments there.
Recruitment and Selection Plan
Existing Recruitment Process and Review
Current recruitment plan of GMM looks like below:
Phase 1 – Section heads seek manpower with justification to the departmental head/s.
Phase 2 – Departmental heads examine the requisition and recommend for its approval if they are satisfied with justification.
Phase 3 – The issue occupies place in Board Meeting Agenda for discussion, where the members of the board re-examines the justification and if satisfied, sends note for recruitment to the administration where recruiting personnel serve the role of HR manager.
Phase 4 – Administration executives get back to the section heads to get the details of requirement.
Phase 5 – Costs and other issues are examined and that report is sent to the board for approval
Phase 6 – Upon the approval of the board, advertisements are issued, and tests/interviews are taken on departmental and administrative level.
Phase 7 – results determine the selection, which is then gets the approval of the board members after necessary investigation and the appointment letter is issued with the signed approval by the Chairman of the board.
Gaps Analysis
The above process shows that there is practically no room for applying a cohesive format of HRM, because the higher management is basically dependent on the observation and reference of the section, and there is no scope of reversing this process where the wisdom of the higher management can be exploited in identifying the right place for a suitable man. Also, there is no scope to imbibe the strategies of HRM in the recruitment policies or in its tests/interviews. In short, there is little scope for the recruited person or the company to firmly align their viewpoint with company strategy or objective right from the beginning. In all, the lack of proper HRM practice in current recruitment policy blocks recruitment practice to rise up to the deserving level.
New Recruitment and Selection Plan
At the outset, HPWS creates a demand forecast plan for Publication Division like below:
Rank
Present Staff
Resigned/Sacked
Required
Deficit
Divisional Managers
1
0
0
0
Administrative Heads
1
0
2
2
Sr. Creative Personnel
1
0
4
3
Creative Personnel
3
1
2
3
Marketing Senior Grade
15
2
2
4
Marketing Grade 2
35
1
0
0
Copy-setter
95
0
0
0
Production Controller
15
0
2
2
Office Admin level 1
5
1
2
3
Office Admin level 2
10
0
0
0
Other support staff grade 1
15
2
3
5
Other support staff Grade 2
14
0
1
1
Total
210
7
18
23
Keeping this chart in mind, HPWS takes off by
i) Making a compelling case for change linked to the company’s business strategy.
ii) Making it certain that senior and line managers own the change.
iii) Allocating sufficient resources and support for the change effort.
iv) Ensuring early and broad communication.
Alongside it would incorporate a systematic analysis of the positions on the basis of the company requirement and would create a detailed job description for each post.
Process chart for the Plan
Information Sharing
Knowledge Development
Reward-Link
Egalitarian
Internal Recruitment Plan
Evaluation of ability
Evaluation of attitude
Responsiveness to reward
Attitude/behaviour
External Recruitment Plan
Background of employee;
Evidence of alignment with this idea
Past Evidence
Present Performance
Responsiveness to reward
Attitude /behaviour
HPWS would ensure a reflection of its idea in the advertisement.
Implementation Schedule
Sq.
Process
Duration (Weeks)
Remarks
1.
Initial research by HRD
2
Requires meetings with Company’s policy makers besides study and research.
2
Advertisement
2
Web/Print/Electronic media
3
Screening, Shortlisting and Interview by HRD
2
Screening – 3 days
Shortlisting – 3 days
Applicant’s time – 5 days
Final Process – 3
4
Process of employment
2-6
This is a grey area because the applicant might need time to complete the formalities with her/his earlier workplace
5
Employee Orientation by HRD
2
This is important to imbibe the company philosophy in the newly recruited employee.
Choice of Selection Methods and Rationale
The possible benefits of HPWS can be all-round, touching every nook and corner of the organization.
a) Employee Benefits: They will have more involvement in the organization, besides experiencing growth and satisfaction. More informed and empowered, they are likely to feel that they have a fuller role to play in the organization and that their opinions and expertise are valued more.
b) Organizational Benefits: The organization would gain high productivity, lower costs, more quality, and flexibility. Carmeli and Tischler (2004) reported a positive relationship between job autonomy, cognitive ability, job-related skill, role breadth and individual job performance.
However, to achieve such benefits, the organization should navigate the transition by building a Transition structure on its way to implement HPWS through incorporating HR function as a valuable partner.
Monitoring the Effectiveness of the Proposed Recruitment and Selection Process
Evaluation includes two major categories, viz., ‘Process audit’ and HPWS evaluation. While Process deals with the research on employees, the HPWS evaluation deals with the efficacy of it at various layers of operation.
a). Process Audit: The general questionnaire of it looks like below:
· Are employees truly working together?
· Are employees getting the information they need to make empowered decisions?
· Are training programs developing the knowledge and skills employees’ need?
· Are employees being rewarded for good performance and useful suggestions?
· Are employees treated fairly so that power differences are minimal?
b) HPWS Evaluation: Its questionnaire evolves out of its own operational framework like below:
· Are desired behaviours being exhibited on the job?
· Are quality, productivity, flexibility, and customer service objectives being met?
· Are quality-of-life goals being achieved for employees?
· Is the organization more competitive than in the past?
An Employee from HPWS’s Perspective
The characteristics’ of employees’ competencies from the HPW’S viewpoint stand as below:
1) He is Valuable
2) He is Rare
3) He is Organized
4) He is unparallel.
Therefore it is understood that HPWS incorporates Qualification + Other components at all levels of operation, all aligning with company objective.
The New Recruitment and Selection Plan
The New plan of external recruitment stands as below:
Phase 1 – HRD does research on the validity of the proposed requirement with the help of SWOT, PEST AND GAPS processes.
Phase 2 – If it is all right, then it blends its philosophy with the basic job requirement, emphasizing on a thorough alignment with company objective.
Phase 3 – HRD presents entire layout with logistics before the Divisional Heads for approval.
Phase 4 – If it gets approval from Divisional Heads and the Board of Directors, HRD then conducts the entire process of recruitment, from providing job-advertising concepts, expertise in tests/interviews.
Phase 5 – It takes the new employees into confidence and helps them to adapt in the new environment.
For internal recruitment it takes help of Process Audit and HPWS’s own evaluation.
Conclusion/Recommendation
A relentless study on the dynamics of our company and my proximity to HRM strategy has influenced me to research and formulate the above plan towards achieving the objective of the company to its maximum.
Therefore I have carefully weighed the pros and cons of the current recruitment and training process of PD under the methodical light of various analyses like SWOT, PEST and GAPS, the findings of which clearly shows in the areas like below:
Data sharing
Enhanced communication
Regular training
Enhanced level of motivation through fresh reward system and
Enhanced uses of technology.
Accordingly my proposed HRP utilizes HPWS, which have tailor-made solutions for the above, besides the elements required to analyze the internal and external situations of the company and providing appropriate solution for them, of which, all details are systematically presented in the plan. I hope my effort eventually contributes to the overall development of the company, where it would profit maximum by spending minimum, while providing unlimited job and life-satisfaction to its employees.
References
Barnes, W.F. (2001). “The challenge of implementing and sustaining high performance work system in the United States: An evolutionary analysis of I/N Tek and Kote. Doctoral dissertation: University of Notre Dame.
Bohlander, G. ; Snell, S. (2004). “Managing human resources” (13th ed.). Mason, OH: Thomson/South-Western.
Brown, E. (2006). “Implementing a High Performance Work System Article [Online]. Available from <http://browncg.wordpress.com/2006/08/28/implementing-a- high-performance- work-system/> [accessed March 2008]
Carmeli, A., & Tischler, A. (2004). “The relationships between intangible organizational elements and organizational performance”. Strategic Management Journal, 25, 1257-1278.
ERG Theory. (2007). Internet Center for Management and Business Administration, Inc. Retrieved 26 November 2008, from http://www.netmba.com/mgmt/ob/motivation/erg/
Huselid, M.A. (1995). “The Impact of Human Resource Management Practices on Turnover, Productivity and Corporate Financial Performance”. Academy of Management Journal, 3 (38): 635:672
Maslow’s Hierarchy of Needs. (2008). Internet Center for Management and Business Administration, Inc. Retrieved 25 November 2008, from http://www.netmba.com/mgmt/ob/motivation/maslow/
