Human resource management frameworks and transformational leadership

Strategy and Human Resource Management

Human Resource Management (HRM) frameworks must be both agile enough to respond to the increasing pace of disruptive change while at the same time strong and hardened to sustain organizational structures to strategic initiatives and plans can be achieved (Kevin, Groves, Pat, Winny, 2008). The intent of this analysis is to evaluate how HRM frameworks make a significant contribution to the strategic plans and long-term performance of companies. Beginning with an application of concepts and theories of an HRM framework, following by an analysis of the pragmatic value of HRM frameworks in competitive market, this analysis evaluates how leaders need to encompass both transactional and transformational leadership styles to be effective in their roles. The contributory effects of Emotional Intelligence (EI) are also explored throughout this analysis as is the proactivity of agile, market focused HRM frameworks and their contributions to the long-term viability of a firm. The attributes of transformational leadership that contribute to team cohesion and consistency of performance are also critical for the development of trust over the long-term as well. With trust emerging as the catalyst of effective transformational leadership, the need for creating and sustaining a strategic approach to creating and maintaining HRM frameworks is also crucial. Trust is also critical for the cultural fit of leadership, emotional intelligence and an HRM framework into the changing ethical landscape companies are operating in globally today as well.

Introduction

The development of Human Resource Management (HRM) best practices and frameworks for the 21st century vary drastically from their 20th century counterparts, with a focus being more on integrative knowledge management and integration throughout each functional and strategic area of the enterprise. As a result, there is an overwhelming need to create HRM frameworks and models that are agile enough to scale to the needs of organizations as they grow, yet stable and secure enough to withstand significant shifts in external environmental factors and market conditions (Drew, Kelley, Kendrick, 2006). The combining of these factors in the context of any HRM framework or model defines the type and brand of leadership in the firm, and the leadership of the senior managers including the CEO and chief strategies of the firm (Dave, Norm, 2007).

Implicit in the development of any effective HRM model or framework is the comparative value of transformational vs. transactional leadership. The value of these two approaches to leadership are analyzed from an HRM strategy perspective, with specific focus on the hybrid model approach to using transactional leadership to ensure the performance and attainment of short-term goals and transformational leadership relied on for creating greater commitment and buy-in to a given company's vision, mission and values. The ability to have a hybrid leadership style that can scale across various situations is crucial for the overall growth of a business and the successful transformation of HRM strategies into competitive differentiators (John, McGuire, Rhodes, 2008). For hybrid transactional/transformational leadership styles to be effective there must be a strong component of emotional intelligence (EI) within any leaders' skill set to successfully determine when to use a specific leadership approach (Joan, Marques, 2007). This analysis covers this aspect of leadership in the context of HRM models designed to balance leadership and the objectives of an organization. This is also critically important to consider when creating strategic plans for future growth, which include incentive plans and staffing levels to attain specific objectives. Finally, there are the many challenges of how to use HRM frameworks and models as a means to continual measure, monitor and improve service (Winston, Patterson, 2006). All of these aspects of HRM strategies taken together need to create a platform of trust within any organization, specifically linking employees and managers, ensuring a high level of communication, collaboration and ongoing accomplishment (Cshawn, Dana, Sims, Eduardo, 2007). The disruptive innovations occurring in HRM frameworks have more to do with the advances made in transformational leadership practices, accentuated by social media and social networking technologies that enable greater levels of communication and collaboration over time (Carsten, Uhl-Bien, West, Patera, McGregor, 2010).

Applying Concepts and Theories to the HRM Framework

The HRM frameworks are evolving rapidly due to the disruptive innovations of technology enabling much greater levels of communication and collaboration throughout globally-based organizations (Carsten, Uhl-Bien, West, Patera, McGregor, 2010). The combining factors of disruptive innovation, greater levels of information sharing and exchange predicated on transformational leadership approaches, and the development of flatter yet more market-driven organizational structures are factors forcing HRM frameworks to be more integrated at the system and process level than ever before (Ann, Pamela, Jerry, 2008). HRM frameworks must have an architecture that allow for as many integration points as possible, distributed across a wide variety of human resource strategies, programs, and initiatives all interlinked to the strategic plan of a business. This many integration points throughout an HRM framework are what are also critically important from the standpoint of ensuring governance to both internal requirements and those outside the company as well, especially those required by regulatory agencies and laws in the case of Sarbanes-Oxley (Carcello, 2009).

HRM frameworks are the catalyst of all successful strategic planning and long-range planning efforts, as they integrate the future human resources needs of an organization with the long-range business plans and programs the company plans over time (Marcel van, 2005). There are many examples of this in high technology for example, where the HRM frameworks are used for defining the overall structure and direction of the strategic plans. Google, Twitter, Intel and Hewlett-Packard are all more attuned to their HRM frameworks than they are to the limitations of technologies or even product lifecycles. The focus in these companies, especially those heavily involved in Web-based software development including Google, Twitter, Hewlett-Packard and Microsoft, is on creating a scalable and effective HRM framework that can compensate for drastic shifts in availability of resources and needs by each department. As the speed that each of these companies compete at is formidable for even their secondary competitors, the HRM framework must be designed to allow for support of very unique and difficult requirements for hiring engineers and technical staff. HRM frameworks also must scale to support the elements of corporate governance and align more precisely with the long-term strategic vision of the company as well (Drew, Kelley, Kendrick, 2006). The more rapid and abrupt the changes in product strategy in a given business, the more challenging this becomes over time.

A Strategic Approach to Leading HRM Framework Design

Ethical leadership is the foundation of any effective HRM framework and strategy. It is responsible for integrating the values and vision of a company into each process and strategy relied on for goal attainment RM (Brown, Trevino, Harrison, 2005). This approach to integrating ethical leadership into the functioning of any company must begin with a strong focus on transformational leadership supported by emotional intelligence (EI) (Kevin, Groves, Pat, Winny, 2008). Studies have shown that the greater the EI a leader has the greater is their ability to support both a transactional and transformational Approach to management. This is a strategic advantage to companies who are seeking to create greater synchronization across their HRM frameworks, leadership, and unique differentiators including product and services strategies.

Making these three elements stay in sync with each other over time however is challenging. Having an HRM framework stay coordinated to a leadership approach, all galvanized either around a process or strategy (including the strategy of innovation) takes strong transformational leadership skill sets in managers and the CEO. In these situations where HRM frameworks and management strategies need to stay in sync with one another, the ability of a leader to earn trust is crucial if the business is going to succeed over the long-term (Ceasar, Suzanne, 2008). Trust then becomes a very strong catalyst for ensuring the continued success of any HRM framework and is also the catalyst that ensures it will continue to evolve with the needs of the business. One of the most effective strategies for transformational leaders to use in keeping the HRM framework aligned with the needs of the company is for leaders to regularly illustrate through example how they are willing to make sacrifices of their time to help attain the vision or goal (Niti, Venkat, 2008). The defining of a transformational leader is more in their daily actions and less in their e-mails or company-wide announcements of direction. In fact the validity of an HRM framework must be supported by self-sacrifice in order for it to succeed from an employee adoption standpoint (Niti, Venkat, 2008).

The Cultural Fit of an HRM Framework

The culture of every organization is significantly different and places unique stress and constraints on any HRM framework. The agility of any HRM framework to work with these constraints and still create a level of compliance to internal requirements is critical for the long-term growth is a key success factor that is difficult to attain (Carcello, 2009). Often the cultural constraints of an organization force an HRM framework to change drastically over time, completely redefining its purpose and roles. In addition, an HRM framework can change to such a great extent that the processes systems and approaches to completing work internally to a company go through a massive shift as well (Howard, Bromley, Kirschner, 2007). In the mid-1980s IBM went through a series of these transformations in an attempt to get its HRM framework better aligned to the needs of the market, including the need to catch up to the innovations inherent in the Internet and Web application development. Microsoft is another company who had to face the same daunting challenge and with the same predictability as IBM, turned to modifying its HRM framework to ensure competent Internet and Web application developers were brought on board over time.

This also led to the development of a more distributed organizational culture that placed greater value on the knowledge and capacity for self-sacrifice on the part of leaders instead of just relying on their traditional authority (Niti, Venkat, 2008). As IBM and Microsoft went through these transformations, their HRM frameworks served as the catalyst of keeping the company's talented engineers, marketers and executives focused on a common vision and objective. Over time, the pragmatism of transformational leadership began to pay off in these organizations (Howard, Bromley, Kirschner, 2007).

Ethics and Transformational Leadership: Implications on HRM Frameworks

The ethics of transformational leadership have an irony to them; as they must be transparent and honest, consistent and focused continually on a compelling vision to succeed over time (Brown, Trevino, Harrison, 2005). In this context, HRM frameworks have often become the crucible by which the ethics of a company or enterprise are measured against (Marcel van, 2005). An HRM framework needs to have the necessary integration points to specific process and strategy areas to succeed, yet also must be able to be responsive enough to changes in organizational direction and design to ensure the goals and vision of the company are achieved over time.

There is also the need for ensuring the company's HRM frameworks stay consistent in structure and approach to the ethical goals of the company (Marcel van, 2005). Acting as a moral compass, the HRM frameworks that include transformational leadership concentrate on how best to differentiate the company's performance based on its ability to recruit and retain the best possible candidates regardless of their ethnic background, gender, age, or creed. The fact that an HRM framework can create an effective filtering mechanism to ensure that hiring, advancement, management and training are consistent to laws and standards is also critical for any CEO to appreciate as they create their own frameworks over time (Marcel van, 2005). Creating value through the more efficient defining of roles and responsibilities within a company can be achieved using an HRM framework that also anticipates future staffing needs based on long-term strategy. These frameworks, which often have the ability to precisely define staffing requirements by strategic plan component, are invaluable in ensuring consistency of hiring practices and attainment of the best possible staffing levels both from a quality and quantity perspective. In conclusion the reliance on HRM frameworks as a means to ensure ethical and legal compliance while also ensuring the right mix of employees are hired is one of the most complex tasks to undertake strategically yet core to the success of any business long-term.

Conclusion

Combining HRM frameworks supported by transformational leadership strategies can lead to businesses creating entirely new avenues of growth and value. The integration of HRM frameworks including transactional, transformational and emotional intelligence (EI) all contribute to the value of HRM frameworks being able to serve as a strategic catalyst of growth by aligning personnel with the needs of a given goal or objective. The creation of a series of programs for ensuring a high level of productivity and innovation over time is only possible when an HRM framework can be successfully engrained into a company culture as well. As corporate cultures shift and change over time in response to internal and external pressures, it is critically important for a business to have its components of the HRM frameworks aligned to the specific strategies and requirements over time. This can only be accomplished through the use of transformational leadership skills and the frameworks inherent in these approaches to creating value ion any business. Examples of how Indian outsourcers, IBM and Microsoft all responded to the urgent need to strategically change direction by first concentrating on how well they could integrate their HRM frameworks into the strategic plans they had. The role of the HRM framework as a powerful catalyst of strategic change has been explored in this analysis with the finding that it is core to the future growth of any business. Aligning HRM frameworks and their associated leadership strategies to the goals of any business significantly increase the probability of success over time.

In conjunction with these developments are the continual improvement and enhancement of lean process management and Six Sigma programs (Mehrjerdi, Yahia, 2011) companies are learning how to use their HRM frameworks to make the entire platform of processes and strategies more efficient as well (Kevin, Groves, Pat, Winny, 2008). This is possible when the HRM Framework is well integrated into the overall strategic plan and direction of the company. There is also the need for creating an entirely new series of metrics for ensuring each aspect of the HRM framework and its associated leadership approach is as best aligned to strategic plans as possible. The synchronization of HRM frameworks, transformational leadership and innovation in the case of Apple underscores this point. The ability to create a unified strategic plan based on all of these factors is crucial for the long-term success of any business. The concepts of how HRM frameworks are the catalyst of strategic and corporate advantage are increasingly becoming focused more on the ability to transform businesses on knowledge instead of just price or product direction for example.