Human Resource Management in the Service Sector

collardsdebonairManagement

Nov 6, 2013 (3 years and 10 months ago)

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Human Resource Management
in the Service Sector

Review of the course



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 this
sector (1 week)

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

3.
Investigation of HR challenges in four types of
organisations in this sector: call centres, management
consulting, law and creative (8 weeks)


Summary and review (second half of final week)


3

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

Characteristics of the service sector

Summary and revision

4

Literature focus for the course

HRM & knowledge
-
intensive services

Services sector

Professional
Services

5

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 by
knowledge based service sector working

6

Converting Human Capital into
Intellectual Capital

Human Capital

Employee
Knowledge
Skills
Experience

Conversion
Process

Intellectual Capital

Human Capital

Role of HR
practices in this
conversion process

Products
and
services
which have
market value

7

Implications for HRM

Intangible

Knowledge
based

Customised

Professional

Measurement

Standardisation

Performance
management/reward

Training and
Development

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))

8

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 knowledge
intensive firms


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

9

Pressures on knowledge intensive firms

Product market
-

Customers and clients

Financial success


short and long term

Employment market


needs of employees

KIF

(Maister, 2003)

10

Intellectual

Capital

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 of
structuring
work

Procedures, policies
and processes

Knowledge of
and
relationships
with clients

Knowledge of
and
relationships
with network
members

11

Human

capital

Social

capital

Structural

capital

Network

Capital

Client

Capital


Organizational

Capital


Intellectual

Capital

Resourcing

Pay and Reward

Delivery

The HR
Wheel

Kinnie et al 2006

12

Week 3: Managing knowledge
workers: objectives


Define a knowledge worker


Identify the characteristics of knowledge workers and
understand the human resource management
challenges 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 knowledge
workers

13

Managerial challenges


How can organisations retain and develop their
professionals?


Presents three dilemmas that sit between the
employee and the organisation


Retention

Employability

Organisation specific

Transferable

Value capture

Ownership of value

Multiple Identity perspective

14

Multiple sources of identity

Organisation

Client

Professional

Team

EE

15

Weeks 4 and 5: Call Centres:
objectives


Define call centres and understand the reasons for their
growth


Identify the key characteristics of the nature and
management of call centres


Analyse their forms of human capital and consider the
implications for HR especially recruitment, selection and
retention


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


Apply the 4 ID model to gain insights into the nature of
work in call centres


with reference to the Norwich
Union case


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

16

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



Human

capital

Social

capital

Structural

capital

Network

Capital

Client

Capital

Organizational

Capital

17

Using external facilitators poses a challenge to many
forms of intellectual capital flows

Clients

Facilitators

18

Facilitator network: HC viewpoint

External pool of
facilitators

Focal
Practice
Group

Regions

Other
Practice
Groups

Clients

Clients

Clients

Clients

Facilitators
within
clients

External skill experts

External skill experts

External skill experts

HC
boundary

19

Weeks 8 and 9: Law Firms:
objectives


Understand the basic characteristics of the
sector


Identify the traditional model of organising
and management of HR


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


Identify the challenges this presents for HRM
and for knowledge management


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


Analyse a practical case drawing on our
knowledge of theory

20

Traditional HR practices
‘Up or Out’

Elite
recruitment

Apprenticeship
model

Partner in 6 years


or leave the firm

High reward for
equity partners

21

‘High Trust’


Local law firm
-

medium sized and growing fast


Strong emphasis on culture and values inclusive
and mutual respect


building social capital


sharing work and knowledge


Issue of how to reward their staff who contribute
to the success of the firm while reinforcing their
values

22

Weeks 10 and 11: Creative
Firms: objectives


Understand the basic characteristics of the
sector and establish our focus on
advertising/marketing agencies


Identify the key forms of capital present in
these firms


Identify the challenges this presents for HRM
especially the development and retention of
staff


Draw contrasts between two practical cases
on the way they manage these HR
challenges

23

Building network capital

Client

Marketing
manager

Agency

24

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





25

Revision


Essential to understand the basic
theoretical frameworks underlying the
course (weeks 2 and 3 especially)


Need to be able to apply these to the four
sectors studied (eg how does the reactor
model apply to creative firms)


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

26

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

27

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

28

Sample questions


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


How might the concept of multiple identities help
managers of HR contribute to the creation of
organisational value in professional service
firms?


With reference to the ‘High Trust’ case study
discuss the problems associated with designing
a variable reward system in law firms. How
might these problems be resolved?

29

Expectations


Demonstrate your learning and your understanding of
the theory and the practice


Answers which directly focus on the question (basic
descriptive answers will get a low pass)


Explicit references to previous research (you will get
credit for this)


Good use of practical examples to illustrate points
(credited)


Highlight conflicts and tensions where they exist


Develop an argument which is supported by theory and
evidence (illustrates higher level understanding)

30

Advice


All the basics apply: plan your answer/focus on
the question/refer to relevant theory and
examples/pull it together


Thorough revision


understanding not rote
learning


test yourself out


use the models to
analyse cases; use the cases to ask: what is this
an example of?


See links between the models and sectors


Use contemporary examples if you can


shows
engagement with the material