Human resource management solutions for IT industry organizational restructuring

¶ … Human resources play an integral role in any organization. The allocation of human capital is critical to the overall success of the organization. Depending on the particular industry, talent and its subsequent retention is directly correlated to the overall profitability of the firm. In many instances, as is the case in our current economic cycle, improper human resource activity can have a profound effect on our overall society. By employing and retaining the correct individuals for the corresponding position, both the business and society benefit. For example, the most creative individuals will be placed in the positions that utilize their talent most effectively. This talent will thus be cultivated in the position allowing the individual to grow and develop. This development allows the individual to create products or solutions that another individual with less talent may overlook. This is primarily how Microsoft, Google, Intel, and IBM continue to generate new and innovate products decade after decade. They simply have the right people in the right places through the use of HRM. Within the case, many flaws arose that provided insight into the companies dismal performance. Many of these issues centered on inadequate personnel, who were unmotivated. Below are the HRM issues addressed within the case.

Human Resource Issues for Case

1) Management out of touch with the company objectives and goals. (Point 2, Point 5)

2) Too much bureaucracy and separation of powers. Business functions should be streamlined. Individuals should be empowered to be proactive and compensated based on that behavior (Point 1, Point 4)

3) Disgruntled employees with lack of motivation and initiative (Point 2, Point 3, Point 5, Point 6)

4) Lack of competent employees (Point 9, Point 10)

Objectives to Handle the Issue

The first objectives I would use to handle this issue would be based on articulating a vision to all stakeholders involved. It is evident from the case, that many employees are unaware of their business function and how it impacts the organization as a whole. Furthermore, I would streamline the business in order to better align company objectives with the personnel best suited to handle those objectives. For example, payroll, accountancy, client database, expenses, client billing and consultancy time recording would all be under one or two jurisdictions. It would not be under separate supervision each. This structure just adds to the bureaucracy and layers of decision making within in the organization. In addition, my objectives would focus on skill enhancement of current employees. The IT industry is characterized by a fast-moving, ever changing environment. As such, the employees within the organization must also have this same characteristic. I would empower all employees within the organization to grow and develop to address the changing needs of the IT profession. This will also aid with employee retention which is also lacking within the company. Not only is the company's talent becoming obsolete but in many instances, our competition is attracting the company's talent as well.

CULTURE

Even though it is my opinion that the matching principle is the best for the organization, I believe it important to address other models that are equally as beneficial as the matching models. One of which is the Universal Model. The universal model implies a "One best way," approach in regards to HRM policies. As we have seen above, that simply is not the case. In some domestic firms that operate in the U.S. entirely, the universal model may be of interest. However, it is my belief, that American and the globe are becoming more interrelated. As such, it is imperative to adopt HRM practices that can help circumvent the problems associated with this inevitable occurrence. A universal approach simply doesn't accomplish this. Now, to be fair, smaller business may find the universal approach beneficial as they are very small and don't have the time nor inclination to adhere to cultural requirements. Through a universal approach, small business can have a simplified strategy that works fairly well within the confines of the United States. However, as I stated earlier, the world is now becoming interrelated. It is only a matter of time before small businesses must adhere to the culture demands imposed on them through their international counterparts.

Finally, the Andrew Mayo Matrix can be used as a strategy in regards to HRM practices. This method focused on the underlying business operations of a firm and thus can be very beneficial in regards to initiating change within the organization. This model is very goal oriented and allows the organization to set an achievable action plan in which to achieve those goals. In model consists of various areas or departments for improvement which include, structure, culture, resourcing, HR policies, learning, rewards and employee relations. Many of these elements are lacking within the IT firm altogether. Below is a portion of the Andrew Mayo Matrix used to describe the strategy above.

ANDREW MAYO'S MATRIX

Type of Organization

IT Firm

Business goal

Increase employee buy-in to corporate initiatives, Become a customer centric organization

Groups of employees / managers involved

Implications for People and People Management

Structure and culture

Resourcing

HR Policies

Learning and Development

Rewards and Motivation

Employee Relations and Communication

Cash and other store staff

Provide a profound emphasis on customer-focused solutions to business problems

Empower the staff to be proactive with customers and stakeholders

Create a staffing mechanism to provide solutions during all hours of operations.

Staff all available positions with competent, passionate individuals. Be sure to align employee goals with those of the organizations

Continually coach and motivate both employees and management. Contiunally provide incentives for which employees to learn and stay with the company

Reward good behavior and shun inappropriate behavior

Build an inclusive environment

Management

Create a customer focused environment and culture. Establish metrics to help facilitate the customer-employee relationship.

Create a culture of management involvement and influence in the day-to-day activities of the business.

Increase teamwork and camaraderie between working teams.

Provide continuous coaching to help managers influence the associates reporting to them

Reward managers who help facilitate corporate objectives

Build an inclusive environment with all stakeholders

As is depicted from the sample portion of the matrix, emphasis is placed on employee and management development. The case study indicated many opportunities for improvement in this field. Namely, management was out of touch with technology used within the underlying business operations. To address this, a strategy of innovations has been initiated to keep executives abreast to the ever changing environment of technology. Furthermore, the case study indicated numerous examples of employees having a disconnect with both management and their particular job duties. To address this issue, the strategy of employee and management development has been implemented to increase both team work and camaraderie amongst these individuals.

Change Management Issues

In regards to change management, a particular theory that would have a profound influence on the company within the case would be that of John M. Fishers change model. Here, the model addresses the process of transition. This model goes hand in hand with the two other HRM models listed above. In order for the HRM models to be initiated properly, all employees must be receptive to change. By applying Fisher's change model, the transitions in company objectives and culture can be smoother. Fisher created and identified eight stages in which average humans go through doing a change process. These stages are:

1. Anxiety and Denial

2. Happiness

3. Fear

4. Threat

5. Guilt and Disillusionment

6. Depression and Hostility

7. Gradual Acceptance

8. Moving Forward

By knowing before hand how employees will react, the company is in better position to mitigate the accompanying risks. People are naturally unresponsive to change, as was evident in the case. Individuals didn't care for IT personnel. Managers were out of touch with technology within their own field. Business processes were out of date, or had too many layers. In order to change these aspects, the entire company culture must be changed, which will inevitably lead to resistance. As such, steps should be taken to quell the naysayers. This model also aims to provide a foundation for which the company can change more efficiently in the future. As point 1 within the case indicated, business processes within the back office functions of the business were outdated. This is simply unacceptable in a business predicated on quick change. Technology is always changing. In order to stay in business, IT companies must be in a position to capitalize on this change. By initiating Fishers model, change in the future will be much smoother and profitable for the business as a whole.

Fisher model in regards to HR issues

In regards to the HR issues presented above, the Fisher model addresses both employee relations and the innovative change within the organization. With innovative change, a culture within the firm must be established to change the prevailing views on innovation. The firm must change from an archaic and antiquated organization to that of a robust and flexible one. To help facilitate this change, the Fisher model will be needed. First the Fisher model will provide a means of streamlining business processes to make the firm more flexible as I mentioned in the sections above. Further, the model will help the organization adapt to the rapidly changing technology industry which is characterized by swift innovation. In regards to employee relations, the Fisher model also provides ample means of help employees deal with change within the organization with a positive attitude. Undoubtedly, unrest will arise within the general ranks due to uncertain policy decisions. With help from the Fisher model, the company can better adapt and alleviate the added costs of inefficiencies. The inefficiencies are usually the result of poor communication and poor employee buy-in. As such the Fisher model can help facilitate a working knowledge and relationship between both employee and manager.

Implementation of Change Strategy in the IT firm

To implement this strategy, similar to that of the HRM policies, I would first create a clear vision within the IT firm. This vision should be communicated throughout the entire company to all associates. Furthermore, I would also articulate WHY this vision has occurred and its implications for the overall direction of the business. Second, I would empower others to act on this new IT firm vision. By empowering others, the entire company will benefit as individuals feel they have a vested stake in the overall goals and objectives of the company. Third, I would create short-term objectives in regards to the vision of the IT firm. These objectives have the main purpose of providing insight as to the visions progress within the company. This process will also allow time for feedback to see what is going wrong with the objectives and actions needed to correct it. Finally, I would institutional the vision once all the shortcomings of the vision have come to light.

References:

1) "Employment Situation Summary." U.S. Bureau of Labor Statistics. Web. 14 July 2011. .