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THE UNIVERSITY OF NORTHAMPTON
NORTHAMPTON BUSINESS SCHOOL
MASTER OF BUSINESS ADMINISTRATION PROGRAM
BUSINESS RESEARCH PROJECT
STRM044 AUTDL 16/17
RESEARCH PROPOSAL
RESEARCH TOPIC
LEADING SUSTAINABLE SYSTEMS: A STRATEGIC HUMAN RESOURCE MANAGEMENT
APPROACH
This is a qualitative study designed to explore the effects of change on emerging business organizations in
Jamaica and the role of Strategic Human Resource Leaders in addressing these.
Name: Sasha-Lee Sommers
Student ID#: 16443745
Name of Supervisor: Jane Elliott-Poxon
Date of submission: February 28, 2017
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ABSTRACT
The study explored the strategies (decisions, actions, tools and techniques) that Strategic
Human Resource Managers can use to sustain change-capable, competitive, productive and
profitable small and medium sized businesses (SMEs) in the new global market place. Critical
review of literature, questionnaires and interviews were used to investigate and draw
conclusions about prevalent concerns and solutions. Mixed method research was introduced
to analyze the data. 40 workers were surveyed and decisions-makers in SMEs interviewed in
selected industries.
Early findings showed that:
(1) The general goals of SMEs are to achieve and maintain profitability productive workforce;
employee retention; organizational growth; competitiveness in the local and global markets,
and preparing the workforce for the internal and external factors of change.
(2) The reasons why SMEs are so are important to the Jamaican economy are: they make up
90% of jobs in the Jamaica economy, these jobs provide economic and social stability and
give people the resources and tools they need to empower themselves. However, there are
challenges in the local and global markets that threaten their sustainability.
(3) If they are to succeed, knowledge is the most important factor in growing a business and
SMEs must foster competitive environments in which they can thrive by using available
resources, technology to improve knowledge through-out their organizations to hone talent
and develop new ways of thinking.
(4) There are two Strategic Human Resource Management concerns that will directly influence
these goals: (1) human capital and (2) the organizational systems (policies and practices) in
which they are employed.
(5) These resources must be managed with vision, creativity and care if SMEs want to
differentiate themselves and succeed in the local and global market in which they operate.
3
TABLE OF CONTENTS
INTRODUCTION………………………………………………………………. PAGE 4
CRITICAL LITERATURE REVIEW………………..………………..………PAGE 5
METHODOLOGY…….………………………………………..……………….PAGE 9
DISCUSSION……………….………………………………..………….………PAGE 11
PROVISIONAL WORK SCHEDULE…….…………….…………..…….PAGE 13
REFERENCE PAGE…………………………….……………………….…….PAGE 14
4
INTRODUCTION: PURPOSE AND SCOPE OF THE RESEARCH
Purpose
This research is undertaken to explore the strategies (decisions, actions, tools and techniques)
that Strategic Human Resource Managers can use to sustain change-capable, competitive,
productive and profitable small and medium sized businesses (SMEs) in the new global market
place. The research aim therefore is to study the roles, functions, policies and practices of
SHRM toward people management and leadership and identify the appropriate strategies for
SMEs in Jamaica to differentiate themselves and compete locally and in the global markets in
which they operate.
Specific research objectives identified are to:
1) Assess the specific issues, needs and requirements of SMEs is its local and global
markets.
2) Determine how the challenges and opportunities SMEs face in their environments can
be resolved and optimized through effective SHRM for innovative, productive,
competitive, profitable and sustainable business enterprises.
3) Explore how specific SHRM tools, techniques and strategies can be applied and
monitored in case specific sectors to both establish key performance indicators and
gauge their long-term success in the SMEs studied.
Scope
Topics to be investigated in the critical review of literature, discussion section and primary
study will support the research aims and objectives to make SME’s more sustainable through
SHRM. These cross disciplinary areas include: the importance of small and medium sized
enterprises in Jamaica, their impacts on the country, and the tools and techniques of Strategic
Human Resource Management that can be employed in case specific situations to align the
people practices to fulfill the business goals and simultaneously resolve the prevalent issues
that threaten their sustainability: economic concerns, business models, leadership approaches,
human relations practices, government legislation, technology and competition.
Examples will be drawn from specific business cases in the education, tourism, agriculture and
manufacturing sectors because on their importance to the local economy.
5
CRITICAL REVIEW OF LITERATURE
The Problem: Assessing the specific issues, needs and requirements of SMEs is its local and global markets
Early criterion to identify small and medium sized businesses (SMEs) in Jamaica as per the
Private Sector Organisation Of Jamaica is total sales. This was later expanded by Ministry Of
Industry, Investment, and Commerce and Mona School Of Business to include the number of
employees with the total sales to define small business (Micro, Small & Medium Enterprise and
Entrepreneurship Policy, 2013). The importance of SMEs today in Jamaica cannot be overstated
but the challenges they face both in their local and global markets threaten their sustainability.
Golding (2011) proposed that the reasons why SMEs are important to Jamaica are: Jobs,
economic and social stability, and giving people the resources and tools they need to empower
themselves. To support this, in 2007 there were 22, 618 small businesses registered with the
Companies Of Jamaica (Jamaica Information Service, 2007), and in 2013, small and medium
sized businesses made up 90% of jobs in the Jamaica economy (Ministry of Industry, Investment
and Commerce, 2015). Without dispute, the economic and social potentials of the country are
wholly dependent on successful SMEs. However, with declining economy and limited financing
options available to current and emerging entrepreneurs, the country is in a serious
conundrum. Golding (2011) noted out that: “Jamaica's debt was $1.6 trillion, or 130 per cent of
gross domestic product (GDP), the value of all goods and services produced in Jamaica…The
poverty rate has increased over the last three years from 344,000 in 2008 to 482,900 in 2010.
The youth unemployment rate is 30.5 per cent, and among the volatile 15-24 age group, the
rate is 28.7 per cent” (par. 4). To make a bad situation worse, alongside the staggering debt
that impedes government’s functionality and ability to help SMEs to access financing, (Fisher,
2015) noted other factors such as competition, technology, performance of the economy, and
changing customers’ needs as other prevalent issues that plague them.
To address the findings, Golding (2011) stressed that knowledge is the most important factor in
growing a business and SMEs must foster competitive environments in which they can thrive by
using available resources, technology to improve knowledge through-out their organizations to
hone talent and develop new ways of thinking. This, he pointed out, does not exonerate other
important stakeholders from their responsibilities to the development of SMEs in Jamaica:
Government – to ensure an environment that is pro-business for current and emerging
innovators and entrepreneurs; colleges and universities to teach relevant skills and
technologies to enable knowledge to improve business performance and success; and the Small
Business Association Of Jamaica to help current and emerging business to access the
information and knowledge that they need to start, grow and sustain their business.
6
Solving The Complex Current Issues Faced By SMEs In Jamaica: Determining how the challenges and opportunities SMEs face in their environments can be resolved and optimized through effective SHRM for innovative, productive, competitive, profitable and sustainable business enterprises
What is Strategic Human Resource Management (SHRM)?
Kaplan and Hurd (2002) described Strategic Human Resource Management as the processes
that businesses employ to solve prevalent issues and which (Kostova and Roth, 2002) identified
as the roles, functions and approaches positioned at the macro levels of the organization for
managing people to strategically differentiate the actions of the organization from the
competitors (Leung, 2003). Dessler and Varkkey (2011) defined Strategic Human Resource
Management as the creation and implementation of human resource policies and practices that
produce the employee competencies needed for an organization to achieve its strategic aims.
Goals of SMEs
Root (2014) posited that the general goals of SMEs are to achieve and maintain profitability
productive workforce; employee retention; organizational growth; competitiveness in the local
and global markets, and preparing the workforce for the internal and external factors of
change. Delery and Roumpy (2017) however observed that there are two Strategic Human
Resource Management concerns that will directly influence these goals: (1) human capital and
(2) the organizational systems (policies and practices) in which they are employed. Because
change impact businesses in both positive and negative ways (Fedor, Caldwell and Herold,
2006), Walsh, Sturman and Longstreet (2010) cautioned that SHRM is shaped by four
overarching goals/challenges that will likely impact SMEs ability to succeed in achieving these
goals: (1) using the knowledge and skillset of employee’s to the best advantage of the business;
(2) using human resource initiatives to gain a competitive advantage; (3) determining how the
HR initiatives of the organization can collaborate to support the organizational goals; and (4)
applying HR tools, strategies and techniques to aid in strategic decision making.
Preparing For Change
Bennis (2009) stated that adaptability is a key requirement of emerging leaders. So, SHRM
must be willing to develop people that are innovative, flexible, motivated and engaged to
successfully move the organization through periods of change (Samuels, 2016) but change is
not always easy, it can be chaotic (Marsh and Stern, 2008), disruptive (Christensen and
Overdorf, 2000), impact job security and leave people in the organization vulnerable (Stark,
2010). So, developing an adaptable workforce provides the small business with the leverage to
be bold and innovative and thus bring new ideas to the sector to compete and succeed
(Samuels, 2016).
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The literature identified two Strategic Human Resource Management concerns that will
directly influence SMEs; (Delery and Roumpy, 2017)
Human Capital:
SHRM is a comprehensive set of managerial decisions and actions toward hiring, developing
and maintaining a workforce that is qualified to enable organizational effectiveness as key
indicator of the organization’s ability to achieve its strategic goals (Fottler, Khatri and Savage,
2010). This workforce or human capital of the business has the knowledge, skills and abilities
that can be used to generate value for the organization (Becker, 1962; Bontis, 1998; & Coff,
1997). Organizations that invest in the recruitment & selection, training and development,
employee motivation and performance management systems create ‘invisible assets’ that
enhances the capabilities of the business (Becker and Gerhart, 1996). Through the investment
in these systems, employees are encouraged to improve their skillset, are more motivated to
work and their overall productivity improves (Delaney and Huselid, 1996; Youndt et al., 1996).
Thus successful SHRM strategies in SMEs will include developing organizational core
competencies for: intrinsic and extrinsic motivation of its people, sustaining transactional as
well transformational engagements in the organization, and hiring the right mix of people
based on demonstrate traits and competencies for development (adaptability) are key to SMEs
(Samuels, 2016).
Organizational systems (policies and practices): We can safely say that for SHRM to be effective, SMEs leaders must think outside of a box and
not merely adhere to particular schools of thinking. However, there are strategic human
resource tools that may be applied to grow small and medium sized businesses. These are:
recruitment & selection, training and development, motivation, performance management
systems (Becker and Gerhart, 1996; Shapiro et al., 2013; & Gluck, Kaufman and Walleck, 1980);
compensation and rewards and employee relations (Cania, 2014; Fottler, 2010); and knowledge
management (Halawi, Aronson, McCarthy, 2005; & Omotayo, 2015). The proper application of
these tools will enable the SME to differentiate itself through innovative leadership practices
and strategies that embrace a leader’s personal leadership style (Peretomode, 2012) and the
adaption of these styles successfully to the specific demands of the situation (Yukl and Mahsud,
2010).
Concerns and solutions in developing organizational efficiency systems in SMEs:
There are competing views on how these policies and practices are implemented and systemic
efficiency achieved in SMEs. Frederick Taylor's view of work for example, established
systemizing efficiency which puts the primary focus on the managers. Bell DeTienne (1998)
argued that this resulted in the dehumanized of the workers and the culture of work which is
the cause of conflict between workers in the process. Taylor's scientific management not only
dehumanizes but gives autonomy to the manager which stands in direct contrast to SHRM
which proposes a better vision for SME that ties humanistic values into its corporate goals and
8
where systemic efficiency and success is the outcome of: shared vision (Bennis, 2009 & Kotler,
2006); shared values (McKinsey cited by Kaplan, 2005); balancing the interest of people -
shareholders, leaders, managers, workers, and customers- in the organization (Samuels, 2016);
cultural change (Lewin, 1935); and people and systemic transformation (Bass and Riggio, 2006).
Golding (2011) concluded that indeed SHRM can help SMEs to develop the knowledge, talent, innovation and new leadership thinking to be change-capable, productive, profitable and competitive in today’s marketing environments and despite the prevailing external pressures, grow and be sustainable.
9
RESEARCH METHODS AND APPROACHES
Research Methods
To carry out this study the mixed research method is used to achieve the stated objectives of
the paper: to assess the specific issues, needs and requirements of SMEs is its local and global
markets; to determine how the challenges and opportunities SMEs face in their environments
can be resolved and optimized through effective SHRM for innovative, productive, competitive,
profitable and sustainable business enterprises; and to explore how specific SHRM tools,
techniques and strategies can be applied and monitored in case specific sectors to both
establish key performance indicators and gauge their long-term success in the SMEs studied.
Literature review (using secondary data) and surveying and interviewing real people (primary
data) were the primary methodology selected to accomplish the research objectives.
Research Design And Methodologies
The paper is using various methodologies and approached to achieve the said objectives:
Secondary Study.
This is the critical review of published literature: books, journals, dissertations, computer
databases, and internet material were evaluated and used (Learning, n.d.). Google scholar was
used to find contemporary books on SHRM; various articles and websites on SMEs in Jamaica
were identified. These provided useful sources for literature on SHRM in SMEs that enabled
robust and critical discussion around the topical areas.
Primary Study.
1. Questionnaires/Surveys: In the qualitative portion of the study, 40 employees of various
SMEs across Jamaica completed the Survey on their experiences of SHRM in their
organizations and if these policies are effective. The participants for the survey were
selected through industry networking, and social media over an eight-week period. The
inquiry assessed the participants on how the SHRM department in their company
effectively prepare them for specific changes in the internal or external environments; the
quality and frequency of the development programs provided by the companies; their
degree of job security, motivation and active engagement in the roles and success of the
SMEs; and if there are ample opportunities for professional mobility and personal
development.
2. Case Study: Observations supported with specific examples are used to illustrate SMEs
cases from the education, tourism, agriculture and manufacturing sectors. In these cases,
leaders of SHRM were interviewed and inquiries made into the strategies, tools and
techniques used to: train the workforce; prepare the staff for changes resulting from
10
globalization, advancement of technology, economy and other external factors; assess the
currency of the HR policies and how these impact employees’ motivation, participation
and general attitude towards their work; and prepare future leaders to support the
organization goals and build a culture that supports a change-capable workforce.
Collating, Evaluating, Analyzing And Presenting The Research Data
Both qualitative and quantitative research techniques are being used to evaluate and share the
important findings from the research. The Qualitative method is used to interpret the findings
from the surveys and interviews. For the interview the following steps were followed (Bcps.org,
2015):
1. Transcription and organization of the data as the first stage of the analysis.
2. After, there is the systematical analyzing of the transcripts,
3. Grouping together comments on similar themes and
4. Attempting to assess, compare and interpret them. Discourse Analysis allows for a number of different approaches to analyzing the written, spoken and sign language assessed.
5. Finally, drawing conclusions and making recommendations.
The data was further grouped and analyzed using quantitative methods to identify the
frequency of common themes and trends. The implications of this mixed method are that both
qualitative and quantitative research techniques are used to analyze, find common themes,
compare, and share the important findings that emerged to achieve the research objectives
(Learning, n.d.).
Ethical Concerns Addressed In The Research
Ethical concerns such as how to protect the participants’ confidentiality were addressed by
allowing participants in the survey to remain anonymous and those being interviewed assigned
a code name that we used consistently in labelling and transcribing the conversations (Learning,
n.d.).
11
DISCUSSION
The Emerging Research Question:
The emerging and refined question from the literature is: What strategies (tools, techniques, policies and practices) can leaders of SHRM use to build human capital and organizational systems to help SME’s to grow and remain sustainable?
Significance Of Proposed Research:
The findings in the research showed that small and medium enterprises (SMEs) are the employer of over 90% of Jamaicans. Thus, SMEs are very important to the country and its citizenry for their productive capacities for sustainable economic and social development. It is important then to have successful, diverse and competitive SMEs for a strong economic performance, innovation and new industries, and increasingly good paying jobs. When SMEs are succeeding, only then will Jamaica and its people succeed. Because knowledge is key to building the productive capacity of SMEs, SHRM through its focus on building human capacity and organizational systems will find and develop the right people to achieve this goal. As per Golding (2011): SHRM can help SMEs to develop the knowledge, talent, innovation and new leadership thinking to be change-capable, productive, profitable and competitive in today’s marketing environments and despite the prevailing external pressures, grow and be sustainable. Research Limitations and Generalizations:
Lack of available and/or reliable data on SMEs in Jamaica - The lack of available and updated
data on small and medium sized businesses in Jamaica poses an obstacle for the research to
ensure currency and form a meaningful relationship with the data found.
Validity of Primary Data Collected - Through the collection of qualitative data from Surveys and
Interviews, there is no way to validate if the information being collected is accurate and truthful
to the reality of the organizations involved in the research. There will also be no way to verify if
the research conducted is congruent with data from other sources as no other research on the
organizations used can be found in other material.
Generalizations – This is mixed method research but generally the evaluation of the primary
study is interpreted and evaluated using qualitative methods. This means that broad inferences
will be drawn from the responses and observations. This leaves room for bias because of
foundational assumptions that the researcher has as will be evident in reasoning through the
findings, even despite good efforts to be ethical and unbiased.
Foundational Assumptions - From the critical review of literature, a number emerging issues
and concerns are identified based on foundational assumptions about how people work, what
they value, and how they develop. For example, a thoughtful definition of SHRM from (Fottler,
12
Khatri and Savage, 2010) such as: “Strategic human resources management (SHRM) is the
comprehensive set of managerial activities and tasks related to developing and maintaining a
qualified workforce. This workforce contributes to organizational effectiveness, as defined by
the organization’s strategic goals” leads to an assumption that if SHRM can hire, develop, and
reward people well, and they are motivated to work, this will lead to high productivity. There
are other schools of thinking such as trait leadership, that notes that people must be born with
the required competencies to excel in the said field and this refutes the developmental claims
central to SHRM. There are also contradictions between transformational views
(humanistic/relational) verses those presented by transactional (task oriented/management)
and the contingency model vs. situational that will challenge the core premise and claims made
in this work through the SHRM framework.
13
PROVISIONAL WORK SCHEDULE
Timeframes Research Activities Costs
(JMD)
JAN 16- Feb 22 Reviewing literature on: Strategic Human Resource Management,
Change Management, Small Businesses in Jamaica, SHRM Strategies
Tools & Techniques, Impact of Change on Small Businesses, Functions
of SHRM and the approaches used by SHRM to manage change.
Completing Research Proposal for submission.
Discussing and agreeing on appropriate research methods and
methodology for the assignment.
Agreeing on the Resources Availability and Cost
Reviewing Secondary Literature for the ‘Critical Review Of Literature’
Section of my paper.
Developing Questionnaires for the Survey *
* $50
FEB 23-APR 7 Contacting participants for the Study via Social Media and Phone*
Conducting the Field Research*
*250
*4,000
APR 8 - APR 22 Collating and analyzing the Literature collected
Writing up the report in the Literature Review
Organizing the Findings from the survey and transcribing the interview
notes
APR 23-JUL 1 Completing Dissertation
Submission of the First Draft
JUL 2-AUG 4 Reviewing and editing per corrections Submission of Dissertation
TOTAL COST: $4,300
14
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