Transformation Model Of Human Resource Management

Potential Usefulness

Discuss about the Transformation Model of Human Resource Management.

Transformational model is a leadership framework that enables managers to understand the internal and external environment of their organizations. The model is used by different organizations as it is essential in guiding a successful process of redesigning the organization hence reducing the complexity of its activities to different variables that guide the successful alignment of the business strategies. The alignment adopted by the model is a representation of a holistic system that best fits every element of the organization as pointed out by Nankervis, Compton, and Baird (2011). The tool is thus very essential is it creates an alignment process that ensures a holistic attention of understanding different elements of the organization so as to make effective decisions towards relevant improvements in quality, cycle time, efficiency, customer service, as well as employees satisfaction. This paper examines the transformational model as a strategy and its relevancy to the leadership responsibilities of a human resource manager in an organization.

With stiff competition, globalization, and technological advancement, global business are subjected to dynamic changes that require operation management flexibility. The eight variables in the context of the organization are the ultimate determinant of the success of every organization according to the Centre for Organizational Design (2016). For instance;

Environment- Like any other living system, the organization can only survive in its operations when it monitors or maintains harmony with its external environment.  It hence enables the human resource manager of the organization to be sensitive to every need of the organization (Nankervis, Compton, & Baird 2011). These include the perception of the customers, knowledge of competitors, understanding the occurrence of technological changes that can impact the operation of the business, as well as understanding towards the social, political, and legal climates of the organization.

Figure 1: Transformational model structure (adapted from the Centre for Organizational Design 2016)

Core process- According to Schraeder (2014), the core process is the flow of activities or work within the organization. It is the sequence of steps or events that are necessary for delivering a service or getting a product out of the door. The core process as well includes the resources and technology such as software, space, materials, and equipment necessary for the successful performance of the organization. It is hence a focal point where all another business unit for the proper organization in line with the objectives of the organization. It thus enables human resource managers to streamline, understand, and properly support the core business processes in ensuring the organization operates as per intended goals and objectives.

Relevance to International Human Resource Management

Structure – In his desing, Don (2016) points out that the structure of a business involves the organization of the employers and other stakeholders towards the process of the organization. Apart from just a box chart of business deals, the structure of organization involves an understanding of the boundaries, responsibilities, roles, and reporting relationships in the internal and external environment of an organization. It is a framework or template that determines the coordination, relationship, and allocation of resources in the process of the organization’s operation. The process hence helps human resource managers to make proper decisions that fit the core process and strategy and eliminate hinders to the success of the business.

Strategy- According to Voelpel (2016), the strategy of a business is a set of activities or conscious decisions on how an organization can add value to customers while distinguishing itself from its competitors. It is the major determinant of the growth and performance targets of the organization. Embracing an effective strategy within the transformational models guides the decision-making processes of the organization including the future vision, mission, guiding principles, and values. It hence helps the human resource managers to transform the processes of the organization to an inspiring performance and not just a normal operation process.

System- In their study, Faulkner and Runde (2013) denotes that within the transformational model, a system is an interrelated set of activities or tasks that enable the organization to coordinate its work about the competitive level of its operation. In the process of transformation, a system involves selection and recruitment, development and training, promotion and reward procedures, decision making and communication, planning towards the organizational goals, policies procedures, etc. The system hence cuts across the organization and needs effective support and management responsibility for the human resource functions.

Culture- The culture determines the operation of the organization regarding the leadership strategies, workers habits, and attitudes, as well as management procedures that distinctively determine the performance of every employee. It helps HR managers to mirror a true philosophy towards the values practiced by the organization. The culture hence determines how the organization transforms its strategies in practical performance.

Leadership- Is the major driver of the success of the organizations towards its goals and monitors the achieved results while scanning the external environment, defining the vision strategy, developing the employees and the overall culture of the organization. However,  //// denotes that with globalization, technology, and stiff global competition, having effective leadership skills are not sufficient or adequate in managing the complexity of the organizational performance.

Result- It defines the health and success of the organization hence starting a point for understanding the functionality of the organization. It is through the results that the management can monitor the performance of the organization by identifying the areas of strengths as well as sections of the organization that needs improvement. Every element of an organization is tied to the results and hence enables it to determine the direction of transformation the organization adopts. Transformational model hence enables human resource managers to monitor the results of the organization as well as the need for change within the organization.

Irrespective of whether an organization is a governmental agency, profit- or non-profit organization, all organizations are striving towards maximizing the quality the transformation process so as to remain competitive while satisfactorily meeting the demands of its customers (Ozay 2012, p.427). Figure 2 shows how a transformational model is essential in connecting the input, output, as well as the environment of the organization through a strategic transformation system to ensure that the activities of the organization and well-monitored and controlled towards achieving the desired goals.

Figure 2: Atypical transformation process in an organization (Adapted from Don, 2013)

As a strategic business tool, the transformational model has been used by different manufacturing organizations in the United States as a way of ensuring their performance remain up to the competitive standard of the global business industries. For instance, 3M Company as a potentially useful strategy in transforming organizational inputs into outputs so as to give the organization a competitive advantage in the marketplace. As a manufacturer of the top quality Magic Tape, 3M ensures that its product have attractive feature as opposed to other competitors (Don 2013). The company has enjoyed a substantial profit margin for decades by controlling its product design into a high value product through input-output transformation process hence making it difficult for the competitors.  As a strategic implication, the human resource management adopted a transformation process to stop the manufacture of VHS tape for recorders since the company had not advantage in priority manufacturing. Since it has not priority control over the VHS tape manufacturing process, I dropped the VHS and adopted the Magic Tape as a management operation and transformation process.

As similar global case that shows the usefulness of adopting the transformational model is evident in Netherlands. Financial institutions like banks have adopted transformational models in their services. For instance, the ING Bank is a banking company that has managed to adopt technology to ensure that it conducts all its financial transactions over the internet, mail, and phone. According to Don (2013), ING Bank no longer maintains a traditional facility except for its buildings housing the employees that ensure timely execution of remote transactions with the customers of the bank. Adopting the transitional model as a leadership and operation strategy by the organization has resulted into a tremendous competitive and cost saving advantage. The bank hence does not have to spend its capital resources on buildings and land as the traditional banks operate. It can as well offer the customers with lower interest rates on loans and higher interest rates on savings accounts.

Conclusion

As the operation managers of every organization, the human resources are required to adopt a transformational model in their leadership as well as strategic operation style. With stiff competition, globalization, and technological advancement, global business are subjected to dynamic changes that require operation management flexibility. Transformational model hence enable the human resource managers to adopt systematic and directional strategies that will control the transformation of resources into products that can be essential, relevant, and satisfying to customers.

List of References

Center for Organizational Design, 2016, https://www.centerod.com/framework/

Don McCubbrey. “The input/output transformation model.” Business Fundamentals Boundless, 20 Sep. 2016. Retrieved 14 Dec. 2016 from https://www.boundless.com/users/235420/textbooks/business-fundamentals/operations-management-7/operations-management-32/the-input-output-transformation-model-168-15471/

Nankervis, A, Compton, R, & Baird, M, 2011, Human Resource Management, 7th edition, Thomson Learning: Melbourne, Australia.

Faulkner, P, & Runde, J 2013, ‘Technological objects, social positions, and the transformational model of social activity’, MIS Quarterly, 37, 3, pp. 803-818, Business Source Premier, EBSCOhost, viewed 14 December 2016.

Ozay, EK 2012, ‘Möbius transformational high dimensional model representation on multi-way arrays’, AIP Conference Proceedings, 1479, 1, pp. 427-430, Academic Search Premier, EBSCOhost, viewed 14 December 2016.

Schraeder, M 2014, ‘The Weaver’s Loom: A Conceptual Framework for Facilitating Transformational Human Resource Management Through the Strategic Integration of Knowledge Management and Continuous Improvement’, Journal Of Business & Management, 20, 1, pp. 87-104, Business Source Premier, EBSCOhost, viewed 14 December 2016.

Voelpel, S 2016, ‘Revisiting the mediating role of leader–member exchange in transformational leadership: the differential impact model’, European Journal Of Work & Organizational Psychology, 25, 6, pp. 883-899, Business Source Premier, EBSCOhost, viewed 14 December 2016.