HRM in SSreview

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    Human Resource Management

    in the Service Sector

    Review of the course

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    2

    Overview

    Course examines the HRM challenges in the knowledge-intensive service sector

    1. Introduction: characteristics of the service sector and

    identifying the knowledge-intensive section of thissector (1 week)

    2. Develop theoretical frameworks and perspectives foranalysing the HR challenges (2 weeks)

    3. Investigation of HR challenges in four types of

    organisations in this sector: call centres, managementconsulting, law and creative (8 weeks)

    Summary and review (second half of final week)

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    Course design

    HRM

    challenges

    theory

    Call

    centres

    Theory

    Management

    consultancies

    Theory

    Law

    Firms:

    theory

    and case

    Creative

    Firms:

    Theory and

    case

    Managing

    knowledge

    workers

    Call

    centres

    Case

    Management

    consultancies

    Case

    Law

    Firms:

    theory

    and case

    Creative

    Firms:

    Theory and

    case

    Charact

    eristicsofthese

    rvicesector

    Summaryandrev

    ision

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    Literature focus for the course

    HRM & knowledge-intensive services

    Services sector Professional

    Services

    http://images.google.co.uk/imgres?imgurl=http://images.pearsoned-ema.com/jpeg/large/0273687131.jpg&imgrefurl=http://www.pearsoned.co.uk/Bookshop/detail.asp%3Fitem%3D100000000056122&h=648&w=474&sz=69&hl=en&start=7&tbnid=RtZX6MW174E4CM:&tbnh=137&tbnw=100&prev=/images%3Fq%3Dhuman%2Bresource%2Bmanagement%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DGhttp://images.google.co.uk/imgres?imgurl=http://www.infosentry.com/Law_Firms_files/image002.jpg&imgrefurl=http://www.infosentry.com/Law_Firms.htm&h=233&w=308&sz=13&hl=en&start=7&tbnid=4w-VLBUaUnIySM:&tbnh=89&tbnw=117&prev=/images%3Fq%3Dlaw%2Bfirms%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DGhttp://images.google.co.uk/imgres?imgurl=http://images.amazon.com/images/P/0333971124.01._AA240_SCLZZZZZZZ_.jpg&imgrefurl=http://www.amazon.com/gp/product/customer-reviews/0333971124&h=240&w=240&sz=11&hl=en&start=13&tbnid=An-ex_PGasUGuM:&tbnh=110&tbnw=110&prev=/images%3Fq%3Dmanagement%2Bconsultancy%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DGhttp://images.google.co.uk/imgres?imgurl=http://www.stgiles.hcareers.co.uk/public/profile/stgiles/image.gif&imgrefurl=http://www.stgiles.hcareers.co.uk/&h=200&w=250&sz=84&hl=en&start=41&tbnid=kHqtRZxnfwfdXM:&tbnh=89&tbnw=111&prev=/images%3Fq%3Dhotel%2Bindustry%26start%3D40%26ndsp%3D20%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DNhttp://www.dol.gov/esa/whd/AS/images/figure14.gifhttp://images.google.co.uk/imgres?imgurl=http://www.sheraton-skyline.hcareers.co.uk/public/profile/sheraton-skyline/logo.gif&imgrefurl=http://www.sheraton-skyline.hcareers.co.uk/&h=186&w=230&sz=12&hl=en&start=72&tbnid=H2acO68CCdYmiM:&tbnh=87&tbnw=108&prev=/images%3Fq%3Dhotel%2Bindustry%26start%3D60%26ndsp%3D20%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DN
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    Week 1: Introduction to the service

    sector: objectives

    Outline the importance of the service sector in

    modern economies

    Identify the key characteristics of service work

    and the areas of the sector for detailed study:knowledge intensive work

    Outline the research in the area

    Introduce the HRM challenges posed byknowledge based service sector working

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    Converting Human Capital into

    Intellectual Capital

    Human Capital

    Employee

    KnowledgeSkills

    Experience

    Conversion

    Process

    Intellectual Capital

    Human Capital

    Role of HR

    practices in this

    conversion process

    Productsand

    services

    which have

    market value

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    Implications for HRM

    Intangible

    Knowledgebased

    Customised

    Professional

    Measurement

    Standardisation

    Performance

    management/reward

    Training andDevelopment

    Recruit and retain

    Staff

    allocation

    Renewal

    Organisational

    commitment

    Nature of Work Managerial problem HRM issue

    (Drawn from Suddaby and Greenwood (2006) Maister (2003) and Batt (2006))

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    Week 2: HR practices in knowledge

    intensive firms: objectives To understand the distinctive characteristics of

    knowledge intensive service firms

    To identify the key resources (forms of capital)that knowledge intensive firms draw on for their

    success To identify the challenges for managing people

    and managing knowledge faced by knowledgeintensive firms

    To explore the ways in which HR strategy,structure, delivery and practices can be used tocreate valuable products and services

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    Pressures on knowledge intensive firms

    Product market -Customers and clients

    Financial success

    short and long term

    Employment market

    needs of employees

    KIF

    (Maister, 2003)

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    IntellectualCapital

    Human

    capital

    Social

    capital

    Structural

    capital

    Network

    Capital

    Client

    Capital

    Organizational

    Capital

    Forms of Capital

    Knowledge skills

    and experience of

    staff

    Knowledge

    embedded in

    values, culture

    and

    relationships

    Ways ofstructuring

    work

    Procedures, policies

    and processes

    Knowledge of

    and

    relationships

    with clients

    Knowledge ofand

    relationships

    with network

    members

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    Human

    capital

    Social

    capital

    Structural

    capital

    Network

    Capital

    Client

    Capital

    Organizational

    Capital

    IntellectualCapital

    Resourcing

    Pay and Reward

    Delivery

    The HR

    Wheel

    Kinnie et al 2006

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    Week 3: Managing knowledge

    workers: objectives Define a knowledge worker

    Identify the characteristics of knowledge workers andunderstand the human resource managementchallenges presented by them

    Explain how knowledge workers are managed Identify and discuss the dilemmas associate with the

    management of knowledge workers

    Understand how social identity can resolve some of the

    tensions involved in the management of knowledgeworkers

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    Managerial challenges

    How can organisations retain and develop theirprofessionals?

    Presents three dilemmas that sit between theemployee and the organisation

    Retention Employability

    Organisation specific Transferable

    Value capture Ownership of value

    MultipleIdentityperspective

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    Multiple sources of identity

    Organisation

    Client

    Professional

    Team

    EE

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    Weeks 4 and 5: Call Centres:

    objectives Define call centres and understand the reasons for their

    growth

    Identify the key characteristics of the nature andmanagement of call centres

    Analyse their forms of human capital and consider theimplications for HR especially recruitment, selection andretention

    Examine recent changes in call centres especially themoves towards outsourcing and off-shoring

    Apply the 4 ID model to gain insights into the nature ofwork in call centres with reference to the NorwichUnion case

    (Refs: Deery and Kinnie, 2004; Korczynski, 2002, Frenkel et al, 1999, Homan, 2004)

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    Weeks 6 and 7: Management

    Consulting: objectives To understand the characteristics of the management

    consulting industry History

    Types of organisations

    Types of consultancy activities

    Typology of human capital According to the client interface process

    Career structures within management consultancy

    The role of consultants as knowledge brokers

    Typology of client capital The consulting firm client relationships

    The HRM practice focus: Recruiting human capital

    Managing across boundaries

    Humancapital

    Socialcapital

    Structuralcapital

    NetworkCapital

    ClientCapital

    OrganizationalCapital

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    Using external facilitators poses a challenge to many

    forms of intellectual capital flows

    Clients Facilitators

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    Facilitator network: HC viewpoint

    External pool of

    facilitators

    Focal

    Practice

    Group

    Regions

    Other

    Practice

    Groups

    Clients

    Clients

    Clients

    ClientsFacilitatorswithin

    clients

    External skill experts

    External skill expertsExternal skill experts

    HC

    boundary

    W k 8 d 9 L Fi

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    Weeks 8 and 9: Law Firms:

    objectives

    Understand the basic characteristics of thesector

    Identify the traditional model of organisingand management of HR

    Consider some of the key changes in thesector and the responses of law firms

    Identify the challenges this presents for HRMand for knowledge management

    Focus on the key issue of remuneration andreward, especially variable reward

    Analyse a practical case drawing on ourknowledge of theory

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    Traditional HR practices

    Up or Out

    Elite

    recruitment

    Apprenticeship

    model

    Partner in 6 years or leave the firm

    High reward for

    equity partners

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    High Trust

    Local law firm - medium sized and growing fast

    Strong emphasis on culture and values inclusive

    and mutual respect building social capitalsharing work and knowledge

    Issue of how to reward their staff who contribute

    to the success of the firm while reinforcing their

    values

    W k 10 d 11 C ti

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    Weeks 10 and 11: Creative

    Firms: objectives

    Understand the basic characteristics of thesector and establish our focus onadvertising/marketing agencies

    Identify the key forms of capital present in

    these firms Identify the challenges this presents for HRM

    especially the development and retention ofstaff

    Draw contrasts between two practical caseson the way they manage these HRchallenges

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    Building network capital

    Client

    Marketing

    manager

    Agency

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    Key challenges and tensions facing

    HRM in marketing agencies External Resourcing

    Attraction and retention of staff valuable to the firm and to existing and potential clients

    Recruiting for internal development recruiting experienced staff

    Internal Resourcing Promotion and career building efficient allocation of staff

    Rotation of staff - building and maintaining client and network relationships

    Training and Development

    Developing human capital - developing client capital Importance of coaching, feedback and development importance of serving client needs

    Reward Intrinsic rewards linked to development extrinsic rewards linked to client success

    Longer term rewards through promotion shorter term linked to targets

    Our focus: the interaction between the need to develop employees, serve the

    needs of clients and achieve financial success

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    Revision

    Essential to understand the basictheoretical frameworks underlying thecourse (weeks 2 and 3 especially)

    Need to be able to apply these to the foursectors studied (eg how does the reactormodel apply to creative firms)

    Facility to move between theory andpractice (to understand the theory inpractice and the practice in theory)

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    Revision continued

    Cases studied in class are important along

    with other cases and your own experience

    Key is to build up your understanding of

    the issues at a sector level and at a

    macro/cross sector level

    Use the frameworks and models to guide

    your analysis to help you understand the

    issues/problems/cases

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    Examination structure and rubric

    Unseen paper in 2 hours no additional

    materials

    6 questions one from each sector

    studied plus two others

    Answer three questions

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    Sample questions

    What are the most important external pressureson the managers of knowledge intensive firms?How might HR strategy and practice help tomanage these pressures?

    How might the concept of multiple identities helpmanagers of HR contribute to the creation oforganisational value in professional servicefirms?

    With reference to the High Trust case studydiscuss the problems associated with designinga variable reward system in law firms. Howmight these problems be resolved?

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    Advice

    All the basics apply: plan your answer/focus onthe question/refer to relevant theory andexamples/pull it together

    Thorough revision understanding not rotelearning test yourself out use the models toanalyse cases; use the cases to ask: what is thisan example of?

    See links between the models and sectors Use contemporary examples if you can showsengagement with the material