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CIPD Diploma in HR Management
Oakwood International Ltd. All rights reserved
MANAGING AND COORDINATING THE
HUMAN RESOURCES FUNCTION
Workbook Unit 5HRF
(Guided Learning Hours 32)
Designed and delivered by
Oakwood International Ltd
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Workbook Guide Contents:
Introduction
Overview of 5HRF
Section one the purpose and key objectives of the HR function in contemporary organisations
Section two how HR objectives are delivered in different organisations
Section three how the HR function can be evaluated in terms of value add and contribution to
sustained organisational performance
Section four the relationship between organisational performance and effective HR management
and development
Section five workshop activities
Section six guidance for referencing
Learning Outcome:
On completion of this unit, learners will:
1. Understand the purpose and key objectives of the HR function in contemporary organisations.
2. Understand how HR objectives are delivered in different organisations.
3. Understand how the HR function can be evaluated in terms of value added and organisation
performance.
4. Understand the relationship between organisation performance and effective HR management and
development.
Assessment Criteria
1.1 Summarise the organisational objectives that the HR function is responsible for delivering and how these are
evolving in contemporary organisations
1.2 Explain the major theories of effective change management and how these are implemented and evaluated
1.3 Evaluate the business case for managing HR in a professional, ethical and just manner
2.1 Explain the different ways in which HR objectives can be delivered in organisations
2.2 Analyse how the HR function varies between organisations in different sectors and of different sizes
3.1 Discuss the main criteria and methods used to evaluate the contribution of the HR function
4.1 Identify and evaluate research evidence linking HR practices with positive organisational outcomes
4.2 Explain how high-performance working and investment in human capital impact on organisational practice
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Resources & Bibliography:
A list of any publications, websites and articles referenced in the workbook.
Studying Human Resource Management, Taylor & Woodhams, CIPD 2012.
CIPD factsheet History of HR and the CIPD December 2012
An Introduction to Strategic Human Resource Management, Budhar & Ayree CIPD 2002
CIPD 2013 Next Generation Report: http://www.cipd.co.uk/hr-resources/research/next-generation-hrtime-for-change.aspx
CIPD HR Profession Map: http://www.cipd.co.uk/cipd-hr-profession/hr-profession-map/
CIPD factsheet The role of line managers in HR (April 2012):
http://www.cipd.co.uk/hr-resources/factsheets/role-line-managers-hr.aspx
CIPD factsheet on the Shared Services/3 legged stool model:
http://www.cipd.co.uk/hr-resources/factsheets/hr-shared-service-centres.aspx
CIPD factsheet and support resources covering HR as a strategic business partner:
https://www.cipd.co.uk/knowledge/fundamentals/people/hr/business-partnering-factsheet
3 legged stool model and also some essential reading on HR service delivery models, including
outsourcing: http://www.cipd.co.uk/NR/rdonlyres/6ED61983-0123-4885-AA59-
51505F553297/0/9781843983149_sc.pdf
CIPD factsheet on HR service outsourcing :
http://www.cipd.co.uk/hr-resources/factsheets/hr-outsourcing.aspx
Hofstedes theory: http://www.mindtools.com/pages/article/newLDR_66.htm
HR Outlook view of our profession (CIPD 2016 – 2017)
http://www.cipd.co.uk/hr-resources/survey-reports/hr-outlook-winter-2012-13-views-profession.aspx
CIPD research article that introduces the term insight-driven HR:
http://www.cipd.co.uk/hr-resources/research/next-generation-hr-insight-driven.aspx
CIPD research paper entitled Business savvy giving HR the edge:
http://www.cipd.co.uk/hr-resources/research/business-savvy-giving-hr-edge.aspx
CIPD factsheet on change (includes CIPD 7C model):
http://www.cipd.co.uk/hr-resources/factsheets/change-management.aspx#link_0
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Article useful in explaining Lewins change theory:
http://www.change-management-coach.com/kurt_lewin.html
Useful article explaining Lewins change theory:
http://www.change-management-coach.com/kurt_lewin.html
Kotters Eight Step change model: http://www.mindtools.com/pages/article/newPPM_82.htm
Brief video explaining CIPD 7C model: : https://www.youtube.com/watch?v=taD87iKvXN4
McKinseys Seven S model: http://www.mindtools.com/pages/article/newSTR_91.htm
Useful article on managing the change process: http://www.epmbook.com/orgchange.htm
Kubler-Ross Change Curve (with video): https://www.mindtools.com/pages/article/newPPM_96.htm
Organisational ethics: The Open University – http://www.open.edu/openlearn/moneymanagement/management/business-studies/creating-ethical-organisation/content-section-2
CIPD factsheet that explains the concept of high performance working and the role of the HR function in
supporting this: http://www.cipd.co.uk/hr-resources/factsheets/sustainable-organisationperformance.aspx
CIPD factsheet: http://www.cipd.co.uk/hr-resources/factsheets/employee-engagement.aspx
CIPD factsheet covering the principles and practicalities of flexible working:
http://www.cipd.co.uk/hr-resources/factsheets/flexible-working.aspx
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The purpose of this workbook and how to use it
The primary purpose of this workbook is to guide you in your research, to stimulate your interest and equip
you with the knowledge needed to tackle the written assignment for this unit. The workbook contains
guided learning, which are based on the requirements described in the learning outcomes (what you are
required to learn) and the assessment criteria (detailed statements against which your written assignment
is assessed). The workbook is structured to cover each of the four learning outcomes in order:
1. Understand the purpose and key objectives of the HR function in contemporary organisations.
2. Understand how HR objectives are delivered in different organisations.
3. Understand how the HR function can be evaluated in terms of value added and organisation
performance.
4. Understand the relationship between organisation performance and effective HR management and
development.
Selected reading and hyperlinks to online resources
Each section includes selected reading, or hyperlinks to online resources, which have been chosen to
provide you with a clear idea of the underpinning concepts and, where appropriate, alternative views for
you to analyse, interpret and apply as you consider appropriate. One of the key aspects of this Level 5
programme is the requirement for you to develop and practice your ability to absorb concepts and views
from literary sources, to critically analyse these in the light of your professional experience, and to
formulate and apply your own theories. You should aim to read as much as you can and develop a critical
approach to your reading. What this means is that based on your reading and research you are able to
argue with the theory and put forward your own ideas.
Broaden your reading beyond the workbook
You should read the selected reading articles and online links; but, you should also read further, using the
suggested reading list from the previous section, in order to broaden further your knowledge of the
subjects under review. It is important that you show evidence of wider reading by including references to
relevant literary sources in your written assignment; this workbook will help guide you towards these
additional resources.
Workbook Guided Learning
The guided learning has been designed to enable you to consolidate your learning and to develop your
understanding.
Guided learning hours
This workbook represents 32 guided learning hours. This means that you should aim to cover the reading
within the workbook, the broader reading provided through the links to the internet.
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Introduction
Purpose and aim of unit
The purpose of this unit is to introduce learners to human resources (HR) activity and to the role of the HR
function in organisations in general terms. It focuses on the aims and objectives of HR departments in
contemporary organisations and particularly on the ways that these are evolving. Different ways of
delivering HR objectives and emerging developments in the management of the employment relationship
are explored as well as the methods that can be used to demonstrate that the function adds value for
organisations. The unit also aims to inform learners about published research evidence linking HR activity
with positive organisational outcomes. The case for professionalism and an ethical approach to HR is
introduced as is the role played by HR managers in facilitating and promoting effective change
management.
This unit is suitable for persons who:
seek to develop a career in HR management and development
are working in the field of HR management and development and need to extend their knowledge
and skills
have responsibility for implementing HR policies and strategies
need to understand the role of HR in the wider organisational and environmental context.
Learning outcomes
On completion of this unit, learners will:
1. Understand the purpose and key objectives of the HR function in contemporary organisations.
2. Understand how HR objectives are delivered in different organisations.
3. Understand how the HR function can be evaluated in terms of value added and organisation
performance.
4. Understand the relationship between organisation performance and effective HR management and
development.
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Section One understand the purpose and key objectives of the HR function in contemporary
organisations
1.1
1.2
1.3
Summarise the organisational objectives that the HR function is responsible for delivering and how
these are evolving in the contemporary environment
Explain the major theories of effective change management and how these are implemented and
evaluated
Evaluate the business case for managing HR in a professional, ethical and just manner
HR and organisational objectives
HR as an integral part of the business
The purpose of the HR function is to support the delivery of the organisations strategy and objectives
through the effective management of people and performance. As such, an organisations HR strategy and
all activities should be clearly aligned with the strategy and activities of the business
Source: Studying Human Resource Management, Taylor & Woodhams, CIPD 2012.
What is Strategic HRM (SHRM)?
Broadly speaking, SHRM is about systematically linking people with the organisation; more specifically, it is
about the integration of HRM strategies into corporate strategies. HR strategies are essentially plans and
programmes that address and solve fundamental strategic issues related to the management of human
resources in an organisation (Schuler, 1992). They focus is on alignment of the organisations HR practices,
policies and programmes with corporate and strategic business unit plans (Greer, 1995). Strategic HRM
thus links corporate strategy and HRM, and emphasises the integration of HR with the business and its
environment
Source: An Introduction to Strategic Human Resource Management, Budhar & Ayree CIPD 2002.
The role of HR today and in the future
The recent recession has seen a number of searching questions being asked about the purpose and future
sustainability of organisations, and about the values, practices and leadership required to deliver enduring
performance. CIPD is clear that HR has a fundamental role to play in contributing to sustainable
organisation performance, and to the substantial social and economic benefits this bring. The CIPD is
committed to playing a leading role in ensuring that HR professionals, organisations and the profession as a
whole are able to grasp the very real opportunities available now and in the future.
Source: CIPD factsheet History of HR and the CIPD December 2012
Linking Strategic Human Resource Management to organisational performance
Due to increased free market competition at a global level and the growth of technology and knowledgebased industries, the importance of people to company success was elevated. The workforce, having
previously been promoted from cogs to resources were now to be viewed as assets a valuable source
of competitive advantage. This marked the elevation of the HR function to a strategic player in the
organisation, responsible for aligning individual and team goals with organisational objectives, facilitating a
participative culture, and even directly shaping organisational strategies. Activities in the SHRM department
include the following:
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Linking HR practices to organisation strategy
Fostering a healthy psychological contract in a context of short-term employment rather than job
security
The linking of compensation to contribution
Training and development linked to encouraging innovation
Knowledge management and talent development planning
Employee participation
Motivation through enriching the work experience
Performance and talent management as opposed to appraisal
Cross-cultural issues
Measuring the value add by HR strategies
Source: Studying Human Resource Management, Taylor & Woodhams, CIPD 2012.
Guided Learning (AC 1.1)
Consider your own organisation, or one with which you are familiar.
To what extent does your HR function follow a SHRM model?
Take 3 of the activities listed above and, for each, provide some practical suggestion on how the
intended outcome might be achieved.
CIPD 2013 Next Generation Report
You will find this very useful reading in defining the role of HR focusing on the future fit of the HR function
and the need for the HR function to be insight driven.
You will find this report (pdf download)at: http://www.cipd.co.uk/hr-resources/research/next-generationhr-time-for-change.aspx
Guided Learning (AC 1.1)
Having read the CIPD 2013 Next Generation Report, consider your own organisation, or one that you are
familiar with.
How might the HR function help future-proof the organisation?
What is meant by being insight-driven, in the context of the report, and how might this be applied in
the context of the organisation?
Why is it important for organisations to embrace the concept of change?
Read the CIPD factsheet at:
http://www.cipd.co.uk/hr-resources/factsheets/change-management.aspx#link_0
This factsheet highlights the importance of change for organisations
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Guided Learning (AC 1.2)
Consider the key messages about the importance of understanding and embracing the concepts of change,
then:
List at least six positive factors that will arise from effective change management
List at least six implications for an organisation that fails to take account of and manage effectively the
drivers of change
The factsheet goes on to discuss the importance of effective leadership and management.
Guided Learning (AC 1.2)
Again, think about the reality of your own organisation, or an organisation with which you are familiar.
To what extent do you think management is prepared for and able to manage change?
What are the factors that lead to your conclusions?
Major models of planned change
Concept and examples: main components of change theory and different approaches to change; definitions
and examples of organisational change and innovation, for example change in products and services;
expansion of customer base; changes in physical location; different types of change strategy; different
reactions to change, for example expectation, anticipation, acceptance, mistrust, scepticism, cynicism,
rejection; role of different players involved in change, including HR personnel.
Contextual factors: organisational culture and leadership; organisations products, services and customers
and relationships with other stakeholder groups.
Change can take many forms and there are several models. It is useful to have some definitions. The first of
these are planned change and emergent change.
Planned change where change is deliberate and prompted by the organisation
Emergent change change seems to evolve in a less structured and planned way haphazard
different managers having unrelated input
More definitions
Ackerman (1997) distinguished three types of change:
Transitional seeking to achieve a known future state that is different from the current situation
Developmental – this improves an existing situation such as a process or skill
Transformational – this relates to a situation where fundamental change is required outcome will be a
significant change to the current situation e.g. strategy, culture. State that this situation may be very
difficult to control and could be chaotic.
Kurt Lewin (1951) devised a model of change that is still used today as a lead theory. This focuses on the
transitional type of change, later picked by Ackerman. You will find the following article useful in explaining
Lewins change theory.
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http://www.change-management-coach.com/kurt_lewin.html
You will see that Lewins theory is based on three key stages, these being:
Unfreezing the current situation
Moving to a new position
Refreezing the new state
Consider the following analogy:
If you have a large cube of ice, but realize that what you want is a cone of ice, what do you do? First you
must melt the ice to make it amenable to change (unfreeze). Then you must mold the iced water into the
shape you want (change). Finally, you must solidify the new shape (refreeze).
Now relate this to the context of organisational change and consider how these three stages apply
Guided Learning (AC 1.2)
In the context of your organisation and a change example that you are aware of apply Lewins model
How did the unfreezing apply? How did this happen?
What were the considerations during moving to a new position
How did the refreeze phase work?
Kotters Eight Step change model
John Paul Kotter (born 1947) is a professor at the Harvard Business School and author, who is regarded as
an authority on leadership and change. A key contribution of Kotter to the theory of change management is
his 8 step change model. You will find a useful article on this at
http://www.mindtools.com/pages/article/newPPM_82.htm
Kotters essential eight steps are:
Step One: Create Urgency
Step Two: Form a Powerful Coalition
Step Three: Create a Vision for Change
Step Four: Communicate the Vision
Step Five: Remove Obstacles
Step Six: Create Short-term Wins
Step Seven: Build on the Change
Step Eight: Anchor the Changes in Corporate Culture
McKinseys Seven S model
Read the article at: http://www.mindtools.com/pages/article/newSTR_91.htm which explains McKinseys
Seven S model. The underpinning theme of this theory is the fact that a change in any one of the Ss will
have an impact to a greater or lesser extent on the other 6 x Ss. The link above includes a useful video with
the supporting transcript, which gives a very useful summary of the model and its practical application.
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CIPD 7 C Model
The CIPD have created their own model for managing organisational change, which they have called the 7C
model. The 7Cs are:
1. Choosing a team meaning that it is important to ensure that you have the right people on the change
team, representing key areas of the organisation
2. Creating a compelling vision of change meaning that you need to get people excited by the prospect
of change you need to sell the idea!
3. Connecting organisation-wide change meaning that you need to be aware of the impact of change
across every part of the business (compare this concept with the main ideas behind the McKinsey 7 S
model: change in one S will impact on the other 6 Ss to some extent
4. Consulting stakeholders meaning that you need to identify all of the stakeholders affected by change
(stakeholder analysis) and consult with them at all stages of the change process
5. Communicating change meaning that you need to keep everyone informed on progress
6. Coping with change meaning that you need to be aware of the fact that people may have difficulties
in coping with change and will need help
7. Capturing learning meaning that so much learning is lost during the change process because there i
not a proper evaluation or review
See: https://www.youtube.com/watch?v=taD87iKvXN4
The role played by the HR function in managing change
Think about the range of skills you need as a change manager. You might start by considering the difference
between the related activities of:
Organisational change management
Organisational design
You will find a useful article on managing the change process, where you will find also an explanation of the
difference between the above terms at http://www.epmbook.com/orgchange.htm
HR professionals have a significant role to play in any change management process.
CIPD research has also identified that HRs involvement in various aspects of change can make the
difference between successful and less successful projects by, for example, their:
involvement at the initial stage in the project team.
advising project leaders in skills available within the organisation identifying any skills gaps, training
needs, new posts, new working practices etc.
balancing out the narrow/short-term goals with broader strategic needs.
assessing the impact of change in one area/department/site on another part of the organisation.
being used to negotiating and engaging across various stakeholders.
understanding stakeholder concerns to anticipate problems.
understanding the appropriate medium of communication to reach various groups.
helping people cope with change, performance management and motivation.
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What are the typical reactions to change?
Consider, for a moment, your own reaction to an example of change that had some kind of impact on you.
Your reactions probably triggered at various points on a spectrum from positive to negative and may have
included:
Expectation
Anticipation
Acceptance
Mistrust
Skepticism
Cynicism
Rejection
The following article and video on Kubler-Ross covers typical reactions to change:
https://www.mindtools.com/pages/article/newPPM_96.htm
The business case for an ethical approach to HR management
It is absolutely vital that the HR function takes an ethical approach in all its actions. Ethical behaviour is a
core element of the required standards of an HR professional.
There is a clear business case for ethical HR management.
Sternberg (1995: 125) argues that treating employees ethically is not an optional extra but an essential
ingredient in maximising long-term value:
Treating employees ethically simply means treating them with ordinary decency and distributive justice.
The ethical business rewards contributions to the business objective, and is honest and fair to its staff; it
avoids lying, cheating and stealing, coercion, physical violence and illegality. And crucially, since trust is so
dependent upon expectations, the ethical business is extremely careful about the expectations it
engenders.
Ethical business, according to this argument, is built on relationships. Ethical activity is concerned with
human activity and so is business. From this perspective bad ethics is bad business customers, suppliers
and employees ultimately all leave. However, are there special moral rights accruing to employees in their
own right? Sternberg argues not. She suggests that that constitutes ethical conduct in business depends on
business’s definitive purpose. Business is, for Sternberg, about maximising long-term owner value through
selling goods and services. It may do other things, but this is its core activity and using business resources
for non-business purposes constitutes theft, according to Sternberg. She argues (1995: 96) that:
An organisation which pursued moral goodness simply because it was good, would simply be not acting as a
business.
Sternberg argues that moral principles are appropriate in so far as business presupposes a context where
lying, cheating, stealing and so on are absent. Honesty and fairness, refraining from coercion and physical
violence and respecting the law are its guiding principles, termed ordinary decency. Sternberg goes on to
argue the virtues of distributive justice such that he or she who contributes most to owner value should be
rewarded accordingly. This is not as straightforward as is assumed, since who owns performance is often
unclear. Sternberg treats individuals basically as productive units in terms of what they contribute to longterm owner value. In other words, Sternberg’s view of the ethical organisation is determined by the ends of
the organisation. For her, ethics has a place as long as it contributes to long-term value. She does accept
that individuals should only be measured on things that are within their control and not determined by
external events (1995: 154):
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Fairness demands that people should only be held accountable for those things that are under their
control.
In contrast to Sternberg’s approach, Miller (1996) takes the view that ethics is concerned with means rather
than ends, with how as much as what.
In the HR context, Miller describes a number of deliverables to employees and these are indivisible. He
also argues that for these employment conditions to be met the organisation must pursue a good
strategy. Intuitively, this does seem to make sense and is congruent with theories of motivation.
We do tend to compare ourselves with others who have similar jobs, backgrounds, education and so on.
We also use the core elements of distributive justice, explicitly and implicitly, even where there are no
absolute standards for making judgements. In discussing rewards, for example, we may use criteria of
merit, effort, contribution and so on to judge ourselves against others. Miller argues that we can identify
unethical employment practices from these perspectives.
Miller concludes by arguing that there must be a fit between the organisation’s strategy and its HR strategy
for it to be ethical. Individual and organisational goals need to be harmonised. This requires a two-way
relationship between the individual and the organisation, expressed through a combination of rights,
duties, obligations and loyalty. Rights at work might include:
the right to be treated fairly and honestly
the right to be treated as an individual, with roles recognised and adequate training provided
the right to be given feedback on performance at work and the opportunity to improve skills
the right to be paid a fair and equitable rate in relation to skills, the labour market and the financial
position of the firm
no restrictions on rights as a citizen
the right to have health and safety protected
the right to a personal life outside work
the right to take part in activities which are of benefit to society
the rights to work, and to free association and to strike.
Some of these rights may be enshrined in law (health and safety), while others may have the status of
aspirations (the right to adequate training). At the same time organisations may have certain duties
towards their employees which correspond to rights outlined above and may include the duty to inform
and consult workers, to accept criticism without holding a grudge, and so on.
However, the relationship cannot be all one way. In return for certain rights we would expect employees to
fulfil certain duties, which might include:
the duty of loyalty
the duty to give a fair day’s work for a fair day’s pay
the duty to strike only as a measure of last resort
a duty to contribute to the best of their ability to the organisation’s goals
a duty to work flexibly, using their skills to the full
a duty to accept personal responsibility for developing skills to increase their effectiveness.
Duties, rights and obligations are not givens. No doubt you will agree with some of those listed above but
not others. Also, individuals will have other loyalties which may come into conflict with those to the
organisation. For example, professionals may perceive their duty to be to their patient, client or student
rather than to the organisation. They may also believe that they have professional duties to colleagues and
to the profession as a whole rather than to the specific organisation that they happen to be working for.
Conflicts of loyalties can cause real dilemmas.
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The issue of employees’ commitment to perform for the organisation is a key one, and it has a number of
components:
the extent to which the individual has internalised the values of the organisation which, in turn, will
depend on how congruent individual values are with organisational values
the extent to which organisational objectives reflect individual objectives
the extent of individuals’ involvement and psychological immersion in their work
the extent to which individuals value the organisation as a place to spend their time.
We have outlined above two opposing views of ethics and strategic SHRM. The first view, associated with
Sternberg, sees ethics as a means to an end. The second view, discussed by Miller, sees ethics and strategy
as inseparable and based on the relationships between key stakeholders. This view accords with the
concept of strategic fit: the ethical organisation consists of a mutual interrelationship between purposes
and the implementation of those purposes. Means and ends are inextricably interwoven and exist in a
dynamic tension.
Source: The Open University:
http://www.open.edu/openlearn/money-management/management/business-studies/creating-ethicalorganisation/content-section-2
Guided Learning (AC 1.3)
Conduct some research and compile a business case for an ethical approach to HR management. Cover this
in brief bullet points will suffice. Make sure that you address:
Positive relationships with the workforce
Employer brand (organisational image and reputation)
Practicing what you preach!
Link to overall business performance
HR role in promoting key philosophies
Consider the role of HR in promoting the following:
Equality of opportunity
Diversity
Dignity at work
Work-life balance
Health and well-being
Legal compliance
Guided Learning (AC 1.3)
Take two of the key philosophies listed above and, for each, briefly
Explain what they mean in the context of your organisation, or one you are familiar with
Explain how HR promotes these philosophies
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Section Two understand how HR objectives are delivered in different organisations
2.1
2.2
Explain the different ways in which the HR objectives can be delivered in organisations
Analyse how the HR function varies between organisations in different sectors and of different sizes
Generalist and specialist roles
HR Generalists
The Human Resources Generalist is responsible for managing all the HR operations and strategies within a
company. The HR generalist oversees the administration of all people related matters such as:
attendance management
compensation and benefits
employment law
employee relations
organisational development
performance management
recruitment
reward and recognition
succession planning
training and development
In larger organisations, the Human Resources Generalist works in conjunction with human resource
specialists to ensure a comprehensive HR service is delivered to the business. When working for a smaller
business, HR generalists often work on a standalone basis.
The HR objectives of a company are originated and led by HR generalists. These HR objectives should result
in an employee-oriented, high performance culture that emphasizes quality, high standards, productivity
and the recruitment and ongoing development of a superior workforce.
Guided Learning (AC 2.1)
Conduct some research into the role of the HR Generalist, focusing on the following:
What might the advantages be of having a whole team of HR generalists as opposed to specialists?
What do you consider to be the key qualities of a good HR generalist?
Specialist HR Roles
There are a number of specialist roles in the field of HR, which are carried out a various levels of seniority
and levels of experience and expertise. The CIPD HR Profession Map (HRPM) uses specific labels for these
specialist areas; you may be familiar with different versions in the context of your own organisations, but,
broadly speaking, the labels used on the HRPM capture the essence of these roles.
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The HRPM identifies 10 functional areas of HR. There are two core functional areas, which cover activities
relevant to all HR practitioners, no matter what their level of seniority or experience. The core areas are:
1. Insights, strategies and solutions essentially meaning that HR practitioners all have a role which
includes supports the aims and objectives of the business
2. Leading HR essentially meaning that all HR practitioners have a role in and responsibility for flying
the flag for the HR function in support of the organisation.
The HRPM then provides eight further labels for HR specialist areas. These are:
1. Service delivery and information
2. Organisation design
3. Organisation development
4. Resourcing and talent planning
5. Learning and talent development
6. Performance and reward
7. Employee engagement
8. Employee relations
You will be exploring the CIPD HRPM in depth when we cover 5DPP; it is also an integral part of the entire
programme, so you need to familiarise yourself with its purpose, structure and how it is used. You will find
the HRPM at http://www.cipd.co.uk/cipd-hr-profession/hr-profession-map/
Guided Learning (AC 2.1)
Familiarise yourself with the CIPD HR Profession Map, focusing at this stage on the specialist HR functional
areas:
Write a brief summary explaining the role of the eight specialist areas (the ones listed around the
perimeter of the map) and how they support the organisations aims and objectives
Which area(s) do you consider to be your own area of specialisation? If you consider yourself to be a
generalist, which areas do you tend to tend to devote most time to?
The role of line managers
The whole purpose of the HR function is the effective management of people and performance issues in
the business. However, each employee will have their own line manager (or several people to whom they
report e.g. in matrix management structures). The line managers have with employees
and are likely to be the first point of call when an employee has any questions or concerns. It is essential,
therefore, that the HR department and line managers work together to manage people issues effectively
and consistently.
Adapted from Studying HRM, Taylor & Woodhams, CIPD 2012
You should read the CIPD factsheet The role of line managers in HR (April 2012), which you will find at
http://www.cipd.co.uk/hr-resources/factsheets/role-line-managers-hr.aspx
This provides an interesting, detailed summary of the considerations that underpin the effective
involvement of line managers in HR, and the role of the HR function in supporting them.
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Guided Learning (AC 2.1)
Familiarise yourself with the CIPD factsheet The role of line managers in HR. Relate the details covered to
the context of your own organisations, or one with which you are familiar.
To what extent have HR responsibilities devolved from the HR function to line managers? Provide some
examples of the sort of activities line managers are responsible for that, in the past, would have been
undertaken by HR
What sort of activities does the HR function retain and why?
How can the HR function ensure that the line managers get it right when taking on HR-related
activities?
Shared Services Model (of delivering HR)
The shared services model of HR service delivery was proposed by David Ulrich in the late 1980s. It is a
model used, or adapted, by many organisations. The model applies, generally, to large, multi-site
organisations, sometimes stretching across international boundaries. The shared services refers to a single
point of contact for day-to-day transactional HR activities. If you think of a call centre, this is pretty much
what the shared services consists of.
Ulrichs model of HR service delivery, incorporating the shared services aspect, is often referred to as the
three legged stool. It consists of three key areas:
1. Shared services area
2. HR Business Partners
3. Centres of expertise
You will find a useful CIPD factsheet on the Shared Services/3 legged stool model at:
http://www.cipd.co.uk/hr-resources/factsheets/hr-shared-service-centres.aspx
Another explanation of the 3 legged stool model and also some essential reading on HR service delivery
models, including outsourcing (see below) is at http://www.cipd.co.uk/NR/rdonlyres/6ED61983-0123-
4885-AA59-51505F553297/0/9781843983149_sc.pdf
Guided Learning (AC 2.1, 2.2)
Having familiarised yourself with the Shared services model/3 legged stool model of HR service delivery,
discuss, briefly, the following in the context of your organisation, or one with which you are familiar:
If your organisation has adopted the Ulrich model, how does this work in practice?
If your organisation does not use the model, could it usefully be adopted?
Briefly explain the potential advantages of adopting the model.
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Outsourcing HR services
The practice of HR outsourcing refers to purchasing a service from an external source rather than
performing it in-house. Typical areas of HR service provision that is outsourced include payroll, training and
recruitment.
According to the CIPD Executive Briefing (2005), this is the practice of transferring some, or all, of the HR
service provision from an in-house team to one or more external providers. It is also utilised by a number of
small organisations that, unable to carry their own internal resource, form an agreement to finance a
common service to which they all have an equal, or agreed, access. HR services may be transferred on an
anticipated long-term basis, or may be outsourced for the completion of a specific piece of work or project.
Source: Human Resource Service Delivery, Gail Swift, CIPD 2012
You will find a useful CIPD factsheet on HR service outsourcing at http://www.cipd.co.uk/hrresources/factsheets/hr-outsourcing.aspx
Guided Learning (AC 2.1, 2.2)
Read the sources of information covering the outsourcing of HR services and conduct some of your own
research then discuss:
What are the benefits and potential challenges of outsourcing HR services?
Consider options for outsourcing elements of HR services in the context of your own organisation, or
one with which you are familiar. If this already happens, what is the business case for this?
Consultancy
Some organisations may choose to hire specialist HR consultants to provide advice on certain issues or
develop specific strategies or policies (but not usually implement them). A consultant would work for a
consultancy firm or be self-employed, and would be contracted by an organisation to enter the business,
perform a specific task and then leave. As consultants engage with multiple and changing clients, they can
bring deeper levels of expertise than a company could hope to have in-house, and each client only has to
purchase as much service as they need.
Source: Studying HRM, Taylor & Woodhams, CIPD 2012
Approaches to the management and co-ordination of HR management and development
Different types of organisation are likely to have organise their HR function in different ways and the
function will have different primary objectives in different contexts.
Consider the context of the following organisational types:
Large private sector companies
Small and medium-sized enterprises (SMEs)
Public sector
(Third) Voluntary sector
Networked organisations (organisations working in collaboration to develop products or deliver
services
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Consider the following questions for each:
What is the primary purpose of each organisation type?
How do they measure success?
How are they managed?
How are they financed?
What will be the primary focus for HR in supporting each type of organisation?
Large private sector companies
Shares usually traded on the Stock Exchange
Senior managers focus on how shares are trading metrics influencing company performance
Subsidiary companies degrees of autonomy
Approach to people management considerations:
Companys product life cycle
More prosperous investment in good HR
Less prosperous harder to get good HR ideas adopted issues such as redundancy
HR/LD should focus on:
Understanding the business imperatives, pressures (anticipate these)
Being able to sell the concept of good people management/value of LD to the business
Small and medium sized enterprise (SME)
Owner personal capital invested considerable risk
Seeks significant financial gain
Activities desirable but do they produce income?
Will have a vision (may not be all around profit)
HR/LD should focus on:
Activities relating to profit, productivity, risk reduction, assistance with business growth
Examples:
Recruitment and retention of talent
Reward schemes
LD activity focusing on enhanced productivity/lean processes/quality enhancement (e.g. customer
service)
Public Sector
Ask the group what issues are faced by the public sector, look for:
Public service ethos and specific requirements on public servants
Government policy changes in government
Constant change and reorganisation
Inspections and regulation
Influence of professional bodies on activities (e.g. on NHS)
Must comply with European directives
Need to attract funds in line with statutory requirements
HR should be aware of:
Conscious of risks need for accountability as public servants
Focus on quality, good governance, documentation
Familiarise with funding arrangements and control processes
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3rd Sector
Examples:
Charities
Employers of volunteers
Social enterprise e.g. Princes Trust, Sea Cadets, National Trust
3rd sector organisations must adopt a business approach they need to be realistic about business
because of funds
Delivering HR across cultural boundaries
When considering HR in a global context, there are a number of different issues to bear in mind:
Different countries have different cultures these affect the employment relationship
Different countries have different employment legislation
Different countries have different tax arrangements
Different countries have different labour markets availability of talent recruitment pools
Different countries have different standards of living pay expectations
Different countries have different education systems affects skills levels
Adapted from Studying HRM, Taylor & Woodhams, CIPD 2012
Hostedes national cultural variations
See pages 30 31 of Study HR Management for a fuller explanation of this.
Hofstede developed four main factors of cultural differentiation:
Power distance
Uncertainty avoidance
Individualism/collectivism
Masculinity/femininity
You will find a useful explanation of Hofstedes theory at
http://www.mindtools.com/pages/article/newLDR_66.htm
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Section Three understand how the HR function can be evaluated in terms of value added and
contribution to organisation performance
3.1
Discuss the main criteria and methods used to evaluate the contribution of the HR function
Evaluating the contribution of the HR function
In order for the HR function to demonstrate that it adds value, it must have in place robust systems for the
evaluation of its activities both at an individual level and cumulatively.
The most commonly used evaluation tools include the following:
HR statistics examples: recruitment spend; number of job applications; number of new recruits;
grievance/disciplinary statistics; L&D training days delivered
Key Performance Indicators (KPIs) identifying the aspects of HR performance that are the most critical
for the achievement of business objectives, expressed in SMART terms.
Balanced scorecard a document that lists and agreed set of performance measures in a series of
tables four perspectives: customer; financial; internal business process; and learning and growth.
Adapted from Studying HRM, Taylor & Woodhams, CIPD 2012
It seems to be an obvious point that HR professionals should measure the performance of HR using metrics.
However, a recent CIPD survey found that:
The majority of HR professionals (66%) agree that HR data informs business decision making. This is the
case across both the private and public sector and all sizes of organisation. There is also strong agreement
from HR professionals that HR uses measures to review and improve the HR functions effectiveness (65%
agreed), that HR draws insight from data to stimulate change and improvement in the organisation (63%
agreed) and that HR uses people measures which are aligned with strategic priority areas for the
organisation (62% agreed).There is opportunity for improvement around how HR communicates and
interprets people measures for relevant stakeholders in pursuit of competitive advantage, with only 49% of
HR professionals saying they do this effectively.
HR Outlook view of our profession (CIPD 2016 – 2017)
The full research report can be found at: http://www.cipd.co.uk/hr-resources/survey-reports/hr-outlookwinter-2012-13-views-profession.aspx
Guided Learning (AC 3.1)
Consider how the output of the HR function in your organisation adds value. Provide a brief explanation
covering the following:
What areas of HR performance are measure
How are these areas measured?
How are the metrics used in terms of organisational performance improvement?
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Insight-driven HR service delivery
HR professional need to look beyond people-performance metrics to assess their own abilities and consider
whether they personally possess the three savvies that are:
Contextual savvy: being alert to the external factors and macro trends that affect the organisation now
and in the future
Organisation savvy: having a sophisticated understanding of the people and cultural aspects of the
organisation how to get things done with these unique individuals in our very particular context
Business savvy: having a true understanding of how the organisation makes money and what
matters when looking at its current and future commercial health
Source: Studying HR Management, Taylor and Woodhams, CIPD 2012
You will find a useful CIPD research article that introduces the term insight-driven HR at:
http://www.cipd.co.uk/hr-resources/research/next-generation-hr-insight-driven.aspx
You will find an interesting CIPD research paper entitled Business savvy giving HR the edge
at:http://www.cipd.co.uk/hr-resources/research/business-savvy-giving-hr-edge.aspx . This paper discusses
the following, which is relevant to a forward looking HR function:
Understanding the business model at depth
Generating insight through evidence and data
Connecting with curiosity, purpose and impact
Leading with integrity, consideration and challenge.
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Section Four Understand the relationship between organisational performance and effective
HR management and development.
4.1 Identify and evaluate research evidence linking HR practices with positive organisational outcomes
4.2
Explain how high-performance working and investment in human capital impact on organisational
practice
High performance working
You will find a useful CIPD factsheet that explains the concept of high performance working and the role of
the HR function in supporting this at http://www.cipd.co.uk/hr-resources/factsheets/sustainableorganisation-performance.aspx
Guided Learning (AC 4.1, 4.2)
Having read the CIPD factsheet, consider and discuss, the following in the context of your organisation, or
one with which you are familiar:
The link between sustained organisational performance and HR activity
Your view on how effective the HR function is in helping o support high performance working
Employee Engagement
So what is employee engagement? It can be seen as a combination of commitment to the organisation and
its values and a willingness to help out colleagues (organisational citizenship). It goes beyond job
satisfaction and is not simply motivation. Engagement is something the employee has to offer: it cannot be
required as part of the employment contract.
Source: CIPD factsheet: http://www.cipd.co.uk/hr-resources/factsheets/employee-engagement.aspx
Read the rest of the factsheet, which provides a clear summary of the significance and practicalities of
employee engagement.
Guided Learning (AC 4.2)
Having read the CIPD factsheet on employee engagement, consider and discuss, the following in the
context of your organisation, or one with which you are familiar:
What is the level of employee engagement in your organisation?
How is this measured?
What practical steps are used (or could be used) to improve the level of employee engagement?
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Consider the following:
Becoming an employer of choice
Being an ’employer of choice’ can make a huge difference to your organisation’s performance. If you create
a great working environment, not only do great people want to work for you but everyone will strive to
deliver their very best. But how do you become an employer of choice? The companies that the Sunday
Times has listed as the ‘best places to work’ can tell you. From ASDA and Microsoft to Timpson and
Bromford Housing Association, all these organisations have one thing in common. They have created an
environment in which employees feel valued and respected; in which they feel so connected to the
company that they willingly give the effort required to deliver great results.
Discretionary effort
See CIPD factsheet on employee engagement at: http://www.cipd.co.uk/hrresources/factsheets/employee-engagement.aspx
Flexible working
You will find a useful CIPD factsheet covering the principles and practicalities of flexible working at
http://www.cipd.co.uk/hr-resources/factsheets/flexible-working.aspx
Guided Learning (AC 4.2)
Consider and explain in brief the approach of your organisation, or one with which you are familiar, in:
Becoming an employer of choice
Encouraging discretionary behaviour getting employees to go the extra mile
Flexible working arrangements
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Section Five Workshop activities
Workshop Activity 01 Future of HR
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Workshop Activity 02 Case study Tarmac
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Workshop Activity 03 Outside-in HR Dave Ulrich
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Workshop Activity 04 HR and business ethics
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Workshop Activity 05 Emergent and planned change
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Workshop Activity 06 HR business partnerships
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Workshop Activity 07 Shared services model
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Workshop Activity 08 Balanced scorecard
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Section Six Referencing conventions used in written assignments
In order to avoid any suggestion of plagiarism (using someone elses words as your own) it is important that
you acknowledge all sources of research material that you have used in your assignments. When quoting
directly from a source, or adapting to suit the requirements of your assignment, you must provide a clear
indication of where the words used came from. You should provide a clear reference at the point in your
narrative where you have used or adapted the words from the source. The source then needs to be
identified again at the end of your assignment narrative in a Reference List.
If you are familiar with the Harvard Reference method, or other accepted forms of referencing used in
academic papers, you can use these. Similarly, if you are familiar with the conventions for using footnotes,
you can use this method of referencing. However, if you are not familiar with some of the more complex
models of referencing you should use the method devised by Oakwood, which is explained below.
Whichever method you use, please ensure that you reference at the point where you use the source in
your narrative, and also in the Reference List at the end.
Oakwood referencing method
Oakwoods referencing method is essentially a cut-down version of the Harvard Referencing method. It
takes account of the fact that, for the purposes of your Level 5 written assignments you are likely to draw
upon the following sources for research:
1. Textbooks
2. Factsheets e.g. CIPD and ACAS
3. Web-based sources
Examples for each of these sources are as follows:
Textbook:
In the text:
The line managers role is thus vital to facilitate learning (Hutchinson 2007)
Reference list:
Hutchinson, S (2007), Learning and the line. The role of line managers in training, learning and
development, CIPD.
Factsheet:
In the text:
Such a process should flow from business strategy, and its aim is to produce a plan for the organisation to
make sure there is sufficient capability to sustain business performance. (CIPD factsheet: Identifying
learning and development needs, April 2015)
Reference list:
CIPD factsheet: Identifying learning and development needs (April 2015)
Web-based:
In the text:
The uses of neuroscience depend on the question being asked. www.theguardian.com/…/neurosciencedavid-eagleman-ray)
Reference list:
www.theguardian.com/…/neuroscience-david-eagleman-ray)
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General guidance:
Never pass off someone elses words as your own: if in doubt, use a reference!
Aim for between 3 5 reference in an assignment between 500 and 1500 words; a few more for longer
assignments
Any references used in the narrative text must be listed as shown above in the reference list at the end
of your assignment
Do not include details of sources in your reference list if these have not been included as references in
the narrative
Avoid overlong quotations keep to 1 2 sentences .
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