Role of Top Managers and Importance of Line Managers - Assignment Example

Introduction The effectiveness of Human Resource Management (HRM) is the key to success of any organization. Today human resource is considered not merely as another resource but human capital, which has to be valued and nurtured. Since they are considered human capital and make a difference to the organization, they have to be managed strategically. This highlights the importance for line managers to be aware of the link between the management of the human resources and the strategic direction of the organization as outlined by the top managers. This literature review aims to establish the roles and responsibilities of line managers in management of human resources and determine to what extent they contribute to organizational effectiveness. It is totally based on secondary research and aims to demonstrate that management of human resources is now considered an activity to be carried out by all managers (Thornhill & Saunders, 1998). Role of top managers and importance of line managers Top managers according to Thornhill and Saunders generally concentrate on formulating corporate goals and objectives. They offer ‘transformational leadership’ and they share their vision for future success with other employees. Budhwar (2000) cites the reasons why devolvement has taken place and why line managers have been entrusted with the primary responsibility of HRM. Certain issues are too complex for the top management to comprehend and it is easier for the local managers to respond fast to it. The middle managers play a vital role in any organization because they are the ones who interact most frequently with the employees (Thornhill & Saunders). They are thus expected to have the ability to inspire, encourage, motive, enable and facilitate change by allowing the employees to become committed to the organization. When middle managers are allowed to use discretion and take decision, it prepares them to be future managers. Besides, the cost to company is reduced with such a practice, contends Budhwar. This may sound convincing in theory but how efficient are the line managers to cope with the different issues that arise concerning the workforce remains debatable. Bond and McCracken (2006) agree that organizations are increasingly adopting the HRM approach where personnel practices have become devolved to the line. This according to Thornhill and Saunders is the responsibility of top managers to introduce organizational structures which enable adaptability to promote positive employee relations but ultimately the line managers have to support the development and practice of flexibility. This confirms Bond and McCracken’s contention that the line managers should become more involved in HRM at the operational level. Level of decision by line managers The practice and level of line managers affects the level and focus of employee commitment and motivation (Thornhill & Saunders) since line managers are constantly in contact with the employees and for most of the employees their immediate superiors represent the management of the company (Brewster & Larsen 1992). This is confirmed by a study of four companies in the financial sector by Bond and McCracken. The studies showed that line managers do take decision when employees make requests for time off at a short notice. This decision depends on several factors which include how committed the employee is to work and to the organization, the nature of emergency, how this leave would affect the work during the period of absence, whether it is keeping in line with the HRP policies, the good impact or the benefit to the employee concerned and if refused whether it would adversely affect the morale of the employee. This in general practice may be a very practical way of handling such issues because the HR personnel may not be in a position to understand the employee and his problems as there is no regular interaction between them. Discretion is a key feature and maturity of the line managers is important. Besides, it is also important that such employees who are granted leave are willing to work extra hours in case of emergencies. Renwick (2003) also found that line managers were happy to play the HR role because it gave them an opportunity to understand the work done, extend appreciation, and grant rewards and recognition to the staff. Some were even keen to take a leading role in the HR initiatives. They also felt that it was important for line managers to talk and have close relations with the people under them. If these managers have the responsibility and authority to control and reward the employees directly under them, it could enhance productivity and effectively work out better for the organization (Brewster & Larsen). The personnel specialists have practically negligible interactions with the employers and it is felt that line managers are appropriate to handle the issues relating to staff under them (Brewster & Larsen). They are suitable to motivate and being out the best from the staff. Along with this, there is an increasing need for the HR to understand how businesses operate. When this happens, devolvement of certain functions to line managers automatically takes place. Besides, downsizing has led to devolution of HRP responsibilities and the middle managers have gained importance (MacNeil, 2003). Involving line managers in designing and implementing HR activities is the key to success at this point. Fast and on-the-spot decisions are possible only when the line managers are involved since they are responsible for creating value. Papalexandris and Panayotopoulou (2006) suggest that recruitment, selection, training, motivating and committing of the workforce, should be a part of the line managers responsibilities. Bond and McCraken however realized that not all managers are competent enough to make the right decisions and it may not be fair to all staff while some felt their responsibilities increased with this added role and besides, they did not feel they had the competency to handle the HR functions (Renwick). Line managers do use mix and match strategy for formal and informal policies. In the case of the four companies in the financial sector, the line managers were not trained and hence lacked discretion and maturity. Devolution of HR work to the line managers needs greater participation from both sides. Line Managers with HR practitioners Whittaker and Marchington (2003) agree that line managers have to work in conjunction with HR practitioners. While HR personnel took the lead in framing policies, they either have the sole responsibility or took it in conjunction with the line managers. Line managers have a significant role in resourcing and employee relations, rewards and recognitions (Whittaker & Marchington) while Cunningham & Hyman (1995) contend that the line managers’ influence on manpower planning is not very strong but in areas of discipline and dismissal they are effective. They are definitely better positioned to evaluate what is essential for the role of the staff (Gibb, 2003). Doubts have also been expressed whether the line managers possess the necessary skills and knowledge. When FoodCo tried to downsize the HR department, they faced problems. HR has to be valued as a function but it has to be integrated with the strategy of the company. The line managers need the HR support, training and advice (Whittaker & Marchington) but they definitely have more opportunity to translate the HRM policies into practices at the operational level (Bond and McCracken ), for instance a study on local pay in the NHS revealed that middle managers used their discretion on a number of issues thereby operationalizing HR strategy. Huselid, Becker & Beatty (2005) contend while the HR professionals are responsible for hiring the staff but performance problem can only be identified by the line managers. The HR views the entire workforce equally but the line managers may prefer a more differentiated system and the firm’s culture may make it impossible to treat execution of the workforce strategy anything more than an administrative core. The costs of such a strategy may not be immediately apparent but benefits are definitely there as the success of workforce indicates firm performance. If all the jobs are treated equally, the firm may under-invest on top performers and over-invest in underperformers. As a result the high performers leave while the low performers stay which eventually leaves a mark on firm’s performance. This justifies the role line manager plays in differentiating and identifying the workforce. There is no market equivalent to determine the strategic value of a job and the workforce strategy requires investing in human capital that have the capability to contribute to the firm’s strategic success (Huselid, Becker & Beatty). The NHS Trusts too have empowered the supervisors who are entrusted with the responsibility of discipline, dismissal, recruitment, issuing contracts and absence as it allows the personnel to develop a future strategy and it empowers the supervisors to have control over the subordinates (Cunningham & Hyman, 1995). An assessment of 45 case studies revealed that performance appraisal of non-managerial staff is the most common employee relations functions that the line managers are entrusted with. Since they are implementing empowerment, Cunningham and Hyman suggest that managers have the potential to develop subordinates. Local authorities demonstrated reluctance among line managers to take on new responsibilities. Line managers also have an important role in the learning and development (L&D) within an organization (Cunningham & Hyman) while Gibb (2003) argues that line managers may not be good at evaluating the learning required or be good instructors or coach. L&D is a critical part of HR because high rates of attrition are often associated with lack of proper training and development of skills. The workplace now requires promotion of positive attitudes towards continuous and lifelong learning. Line managers thus become important here because the employees need their support and motivation to undertake the learning and development of skills. At the same time, line managers, may tend to defer learning when urgent tasks are at hand, which means in the long run the organization suffers. Line managers have also been found to be more effective than the personnel specialists in bridging the gap between the organizational performance needs and individual performance (Cunningham & Hyman). Besides, line managers themselves undergo transformation while executing such responsibilities. In the software industry, fully autonomous work groups are recognized and entrusted with responsibility within an agreed budget to work and perform. Managerial tasks are taken up by team leaders or project managers who determine recruitment, pay, work allocation, and discipline, leaving very little for the HR specialists to deal with (Larsen & Brewster, 2003). Long term issues however are still left to the personnel specialists. The role of HRM in many organizations is more strategic in nature due to systems and software like SAP that can incorporate payroll, performance management, benefits administration, the handling of regulatory-compliance issues, e-recruiting and employee self-service transactions (Shuit, 2006), which is also responsible for devolution of responsibility for implementing HRP policies to line managers (MacNeil, 2003). HR function is now not so much for collecting and processing employment data but more about how to manage teams. Since the routine work is automated, the personnel specialist now has the responsibility to identify the high potential people in the company, create a development plan for them and follow their progress (Shuit). Sharing of responsibilities – HR and line managers Responsibilities are equally shared between the personnel specialists and the line managers. While the recruitment, expansion or reduction of workforce, including the training and development lies with the line managers, the personnel specialists have the other responsibilities. The line managers are concerned with the operational aspects of training and development while the policy and planning activities remain with the personnel specialists (Hearty and Morley, 1995). Shift in the relationship between the personnel department and the line manager is evident but this has not brought about a reduction in the influence of the personnel management at either the strategic level or the operational level (Gennard and Kelly, 1997). The personnel department’s role has been enhanced and the change in the relationship is decided by the top management. The role of line managers in implementing HRM policies and practices has been taken for granted in many organizations (MacNeil, 2003) and line managers would need the support of a measurement and information system to quickly fix or exit problems in the workforce (Huselid, Becker & Beatty). No formal training is provided to the line managers to help them fulfill the HR functions. This is a negative factor which influences the line manager’s performance within their HRM role. The line managers expected to learn their HR roles through experience. Their performance is seldom monitored and nor do they ever reflect on their own performance. Due to downsizing, organizations now have flatter structures and a lot of HRM functions are outsourced or automated. The functions of line managers in the role of HRM also are reduced. The line manager then works more as a facilitator encouraging knowledge sharing useful for developing the teams’ collective learning capability (MacNeil). The line managers have the capability to influence the experience of workers, their attitude towards the teams and the willingness to share knowledge. This requires good communication and interpersonal skills. The line manager may also communicate a negative learning environment by projecting that the team members will be at fault should the expectations not be met. This results in lack of trust and support necessary for a positive learning climate. Such an environment of fear and threat may become a barrier to innovation and creativity. Line managers need to be developed as facilitators but they too require to be trained to do full justice to their role. Conclusion In conclusion it has been established that management of human resources is now considered an activity to be carried out by all managers but as Thornhill and Saunders suggest that the way the personnel specialists and the line managers interact, has an impact on the organization. The discussions above evidence that both these group of managers do not work in harmony with each other. Hence the impact on an organization is bound to be negative. The reasons for change in responsibilities of the HRM have been caused due to advanced technology, involvement of HR in strategic decisions of the firm, automation of routine jobs. Another reason that has been recognized by the companies is that line managers are more in contact with the staff and also are responsible for the achievement of the organizational goals. To attain this, they are more suitable to handle the HR responsibilities pertaining to the staff directly under them. Research further proves that in UK the responsibilities of HR are divided between the personnel specialists and the line managers. The operational aspects can be handled by the line managers but the HR policies and practices are best left to the personnel specialists. Even to handle the operational aspects, the line managers need to be trained otherwise they may negatively influence the team under them. The HR department feels the line managers are not capable of handling any issues like learning and development. Cost is another factor which has led the organizations to devolve certain responsibilities to the line managers. Downsizing makes it necessary for line managers to take added responsibilities, which also prepares them to be future managers. In nutshell, the HR managers and the line managers, both have to equally share the responsibilities because technology is here to stay and downsizing is the order of the day due to increased competition and cost effective measures. All that is required is for the line managers to be trained before they take up such responsibilities. References: Bond, S & McCracken, M (2006), The importance of training in operationalising HR policy, Journal of European Industrial Training Vol. 29 No. 3, 2005 pp. 246-260 Brewster, C. Dr. & Larsen, H H (1992), Human Resource Management in Europe, Cranfield Institute of Management Library Budhwar, P S (2000), Evaluating levels of strategic integration and devolvement of human resource management in UK, Personnel Review, Vol. 29 No. 2. pp 141-161 Cunningham, I & Hyman, J (1995), Transforming the HRM vision into reality, Employee Relations, Vol. 17 No. 8, 1995, pp. 5-20 Gennard, J & Kelly, J (1997), The unimportance of labels: the diffusion of personnel/HRM function, Industrial Relations Journal, 28:1 Gibb, S (2003), Line manager involvement in learning and development, Employee Relations Vol. 25 No. 3, 2003 pp. 281-293 Huselid, M. A Becker, B. E. & Beatty, R. W. (2005), Differentiating Your Workforce Strategy, harvard Business School, Working Knowledge for Business Leaders, 16 Oct 2006 Larsen, H H & Brewster, C (2003), Line management responsibility for HRM: what is happening in Europe? Employee Relations Vol. 25 No. 3, 2003 pp. 228-244 MacNeil, C M (2003), Line managers: facilitators of knowledge sharing in teams, Employee Relations Vol. 25 No. 3, 2003 pp. 294-307 Papalexandris, N & Panayotopoulou, L (2006), Exploring the partnership between line managers and HRM in Greece, Journal of European Industrial Training Vol. 29 No. 4, 2005 pp. 281-291 Renwick, D (2003), Line manager involvement in HRM: an inside view, Employee Relations Vol. 25 No. 3, 2003 pp. 262-280 Shuit, D P (2006), The Good News About a Bad Fight, 26 Nov 2006 Thornhill, A & Saunders, M N K (1998), What if line managers don’t realize they’re responsible for HR? 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