Leading HRPAUL SPARROW, Director, Centre for Performance-Led HR, Lancaster University MARTIN HIRD, Executive Director, Centre for Performance-Led HR, Lancaster University ANTHONY HESKETH
Trang 2Leading HR
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Trang 4Leading HR
PAUL SPARROW, Director, Centre for Performance-Led HR, Lancaster University
MARTIN HIRD, Executive Director, Centre for Performance-Led HR, Lancaster University
ANTHONY HESKETH, Deputy Director, Centre for Performance-Led HR, Lancaster University
CARY COOPER, Pro Vice Chancellor (External Relations) and Professor of
Organizational Psychology and Health, Lancaster University
Trang 5Selection and editorial matter © Paul Sparrow, Martin Hird,
Anthony Hesketh & Cary Cooper 2010
Individual chapters © individual authors
All rights reserved No reproduction, copy or transmission of this
publication may be made without written permission.
No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6-10 Kirby Street, London EC1N 8TS.
Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages The authors have asserted their rights to be identified
as the authors of this work in accordance with the Copyright,
Designs and Patents Act 1988.
First published 2010 by
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Trang 6To Sue, as always, for her insights and understanding Paul
To Charlotte and Emily Martin
To Helen, Thea, and Abby: my Golden Triangle! Ant
In the memory of Prof Sir Roland Smith for his friendship and concerns about
making business more humane Cary
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Trang 8List of Figures and Tables xii
About the Authors xiv
Acknowledgments xvi
Notes on Contributors xvii
1 Introduction: Performance-Led HR 1
by Paul Sparrow, Anthony Hesketh, Martin Hird, and Cary Cooper 1.1 Introduction 1
1.2 Strategic competence in turbulent times 3
1.3 Deciphering the language of strategy 5
1.4 Getting the measure of business models 8
1.5 Engaging the boardroom 12
1.6 Thinking more broadly about value 14
1.7 Structure of the book 17
2 HR Structures: Are They Working? 23
by Martin Hird, Paul Sparrow, and Craig Marsh 2.1 Introduction 23
2.2 A brief history of ideas 26
2.3 HR structures: Finding the devil in the detail 32
2.4 The three flaws of implementation 39
2.5 The issues created for HR 41
2.6 Conclusions 42
3 Nestlé: Reflections on the HR Structure Debate 46
by Martin Hird and Matt Stripe 3.1 Introduction 46
3.2 Early experiences of HR structure change 49
3.3 British Aerospace Group involvement 51
3.4 New experiences at Nestlé Confectionery UK 54
3.5 The Nestlé global HR experience 56
3.6 The HR structure debate by 2009: Acting locally 57
3.7 Reflections on the HR structuring process 60
3.8 Conclusion 66
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Trang 9viii Contents
4 Using Business Model Change to tie HR into Strategy: Reversing the
Arrow 68
by Paul Sparrow, Anthony Hesketh, Martin Hird, Craig Marsh, and Shashi Balain 4.1 Introduction 68
4.2 Incremental changes in business model change 73
4.3 Externally driven business model change: The changing Rules of the game 77
4.4 Internally driven business model change – Changing the rules of the game 79
4.5 Continuous business model change – persistent fluidity 82
4.6 Managing strategic reciprocity 84
4.7 Deconstructing the HR transformation 86
4.8 Key HR activities and capabilities 88
5 NG Bailey: Constructing Business Model Change 90
by Craig Marsh and Helen Sweeney 5.1 Introduction 90
5.2 The construction industry: Changing traditions 91
5.3 NG Bailey’s historical strategy and culture 93
5.4 Transformation of the Industry, and NG Bailey’s strategy: “For life in buildings” 93
5.5 NG Bailey’s business model 94
5.6 The change process in NG Bailey 96
5.7 HR added value to business model change: “Value from values” 97
5.8 HR department restructuring 98
5.9 Implementing change: The HR element 99
5.10 Engagement and climate change 100
5.11 Summary: HR contribution to business model change 101
6 Using Relationships Between Leaders to Leverage More Value from People: Building a Golden Triangle 103
by Anthony Hesketh and Martin Hird 6.1 Introduction 103
6.2 Who leads people strategy? 106
6.3 Human remains 107
6.4 Introducing executive strategic agency 108
6.5 Introducing the Golden Triangle 109
6.6 Operationalizing the Golden Triangle 110
6.7 Evidence for the existence of golden triangles 113
6.8 Golden Triangle influencers 114
6.9 Conclusion 120
Trang 10Contents ix
7 BAE: Using Senior Management Assessment as Part of
a Talent Strategy 122
by Martin Hird, John Whelan, and Sherief Hammady 7.1 Introduction 122
7.2 Background to the BAE SYSTEMS talent process 125
7.3 The client perspective 128
7.4 The consultant perspective 131
7.5 Conclusions 134
8 Integrated Organization Design: The New Strategic Priority for HR Directors 136
by Craig Marsh, Paul Sparrow, and Martin Hird 8.1 Introduction 136
8.2 Getting into the right frame of mind 138
8.3 Where have we come from? The ODS tradition 141
8.4 Understanding ODS capability 144
8.5 Bringing the different ODS perspectives together 146
8.6 Key messages from the ODS literature 149
8.7 Three levels of design capability 152
8.8 HR’s role in linking ODS to business model change 153
8.9 Conclusions 157
9 Understanding the Value of Engagement: Building Belief in Performance 162
by Shashi Balain and Paul Sparrow 9.1 Introduction: Why is employee engagement seen as important by organizations? 162
9.2 Engagement in the practitioner perspective 167
9.3 What is engagement? The academic perspective 172
9.4 Can we model engagement? 174
9.5 The consequences of engagement: Intermediate performance effects 177
9.6 Understanding organizational performance recipes 179
9.7 Conclusion 183
10 Cooperative Financial Services: Linking Ethics, Engagement, and Employer Branding to Business Model Change 189
by Craig Marsh and Rob Woolley 10.1 Introduction 189
10.2 CFS: Background 192
10.3 Business model change at CFS 193
10.4 Ethics, engagement, and branding at CFS 195
10.5 Making CFS receptive to change 197
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10.6 Signaling the capability transformation needed 198
10.7 Embedding cultural change through leadership behavior and employer branding 200
10.8 Linking leadership and employer branding with business model change 203
10.9 Changes to the HR structure at CFS 204
10.10 The payoff: CFS performance in 2008 205
10.11 Key messages for HR directors 206
10.12 Conclusion: Getting engagement right 207
11 McDonald’s UK: From Corporate Reputation to Trust-Based HR 209
by Paul Sparrow, Shashi Balain, and David Fairhurst 11.1 Introduction: Strategic context for McDonald’s UK 210
11.2 Initial resolve and purpose: Tackling employer reputation 2006–2008 212
11.3 Fundamental principles behind the HR trust strategy 214
11.4 What did McDonald’s do? 215
11.5 Reflections on the journey toward trust-based HR 223
11.6 Conclusion 227
12 Vodafone: Creating an HR Architecture for Sustainable Engagement 231
by Paul Sparrow, Shashi Balain, and Paul Chesworth 12.1 Introduction: The business journey 232
12.2 The one Vodafone transformation 234
12.3 Leading the original UK engagement journey 235
12.4 Vodafone’s thought process and general approach to engagement 236
12.5 Six employee touchpoints 237
12.6 Business partnering: A necessary condition 238
12.7 Initiating the Global Vodafone People Strategy: A common employee engagement strategy across one Vodafone 240
12.8 Developing intelligent global targets 242
12.9 Globalization and organizational restructuring at Vodafone: A tough test for engagement thinking 243
12.10 The employee engagement strategy at the global technology function 245
12.11 Communication, trust, and identification 247
12.12 Conclusions 249
13 The Future Scenario for Leading HR 253
by Anthony Hesketh, Paul Sparrow, and Martin Hird 13.1 Introduction 253
13.2 The death of HR? 255
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13.3 Whither labor markets? 259
13.4 Whither trust and its impact on labor market behavior? 263
13.5 Whither the economics of HR service delivery? 265
13.6 Whither HR functional reputation? 271
13.7 Conclusions 272
Index 279
Trang 13List of Figures and Tables
Figures
1.1 The Three Dimensions of HR Value 16
1.2 Performance-led HR 17
2.1 The Ulrich 3-Box model 27
3.1 Nestlé’s macro HR organizational model 56
3.2 Success levels of business partnering 59
3.3 The optimum HR delivery model 64
3.4 Where HR delivery models can go wrong 65
4.1 Managing complex transformations 86
5.1 The shifts entailed in the current and future business models at NG Bailey 95
5.2 NG Bailey HR scorecard 99
6.1 Golden Triangle influencers 115
7.1 a) The BCG Matrix b) Odiorne’s Proposed Adaption 126
7.2 An overview of the assessment process 131
9.1 The antecedents, bonds, condition, and consequences of individual-level engagement at intermediate level 178
9.2 The service-profit chain 180
11.1 The service-profit chain at McDonald’s 218
11.2 McDonald’s insight map 219
11.3 A model of trust-based HR 225
12.1 The one Vodafone program 235
12.2 Service-profit chain thinking at Vodafone 238
13.1 Emerging markets in value, complexity, and HR interactions 266
13.2 Capability index: The overall capability areas of HR and F&A compared 270
Tables 2.1 Percentage of organizations experiencing significant or complete change in various elements of their business model 33
2.2 Implementation issues with business partners 34
2.3 Implementation issues with COEs 36
2.4 Implementation issues with service centers 37
4.1 Incremental business model change: Key characteristics of the political space and implications for Leading HR 76
xii
Trang 14List of Figures and Tables xiii
4.2 Externally driven business model change: Key characteristics of the
political space and implications for Leading HR 79
4.3 Internally driven business model change: Key characteristics of the
political space and implications for Leading HR 82
4.4 Fluid business model change: Key characteristics of the political space
and implications for Leading HR 84
6.1 Operationalizing the Golden Triangle the role of the CHRO 1109.1 Contextual differences in service model that impact the
engagement–performance relationship? 18112.1 Employee touchpoints at Vodafone 23713.1 The necessary 9: The new service-oriented capabilities 269
Trang 15About the Authors
Paul Sparrow is the director of the Centre for Performance-Led HR and Professor
of International Human Resource Management at Lancaster University
Management School He has worked as a Research Fellow at Aston University,Senior Research Fellow at Warwick University, Consultant/Principal Consultant at
PA Consulting Group, Reader/Professor at Sheffield University and, whilst atManchester Business School he took up the Ford Chair from 2002 to 2004 and wasDirector, Executive Education 2002–2005 He has consulted with major
multinationals, public sector organizations and, intergovernmental agencies andwas an Expert Advisory Panel member to the UK Government’s Sector SkillsDevelopment Agency His research interests include cross-cultural and
international HRM, HR strategy, cognition at work, and changes in the
employment relationship He is on the Editorial Boards of a number of leading HRjournals and has published over 100 journal articles and chapters and severalbooks In 2009 he was voted amongst the Top 15 Most Influential HR Thinkers by
Human Resources Magazine.
Martin Hird is Executive Director at the Centre for Performance-led HR Martin
has held a range of managerial and educational roles Following graduation andinitial employment with the Dunlop Group he entered higher education becomingDean of the Business School at Humberside Polytechnic whilst also operating anOD/Development consultancy From 1988 to 2005 he worked for BAE Systems,McLaren Group, and Royal Mail in a series of HR Director roles which includedresponsibility for senior-level talent management and leadership development He
is a Fellow at the Centre for Leadership Studies at Exeter University In addition toresearch and teaching within the Centre, his role focuses on client liaison andresponding to business development opportunities Martin has had a number ofbooks, articles, and white papers published in recent years with particular
emphasis on HR Delivery Systems and Talent Management
Dr Anthony Hesketh is Senior Lecturer in the Management School at Lancaster
University His research focuses on capturing the impact of people and strategy onorganizational performance Anthony researches and consults with some of theworld’s leading organizations on strategic human capital management and its
measurement, and outsourcing Recent books include The Mismanagement of
Talent (2004) and, with Steve Fleetwood, Understanding the Performance of HR
(2009) He is the deputy director of the Centre for Performance-Led HR atLancaster, a founding member of the HROA Europe Board, and for which heheads the Research & Publications Committee Anthony regularly speaks atinternational conferences and sits on a number of advisory boards in the HR space
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